Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 371

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 371
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 Fund obligation until the liability is settled. SDG&E is amortizing the Wildfire Fund asset on a straight-line basis over the estimated period of benefit, as adjusted for utilization by the IOUs. In 2024, SDG&E revised its estimate of the period of benefit from 15 years to 25 years. The estimated period of benefit of the Wildfire Fund asset is based on several assumptions, including, but not limited to: ▪historical wildfire experience of each IOU in California, including frequency and severity of the wildfires▪the value of property potentially damaged by wildfires▪the effectiveness of wildfire risk mitigation efforts by each IOU ▪liability cap of each IOU▪IOU prudency determination levels▪FERC jurisdictional allocation levels▪insurance coverage levels

2024 Form 10-K  |  F-37

The use of different assumptions, or changes to the assumptions used, could have a significant impact on the estimated period of benefit of the Wildfire Fund asset. SDG&E periodically evaluates the estimated period of benefit of the Wildfire Fund asset based on actual experience and changes in these assumptions. SDG&E recognizes a reduction of its Wildfire Fund asset and records a charge against earnings in the period when there is a reduction of the available coverage due to recoverable claims from any of the participating IOUs. Wildfire claims that are recoverable from the Wildfire Fund, net of anticipated or actual reimbursement to the Wildfire Fund by the responsible IOU, decrease the Wildfire Fund asset and remaining available coverage. The following table summarizes the location of balances related to the Wildfire Fund on Sempra’s and SDG&E’s Consolidated Balance Sheets.WILDFIRE FUND (Dollars in millions)December 31,Location20242023Wildfire Fund asset:CurrentPrepaid Expenses$14 $28 NoncurrentWildfire Fund262 269 Wildfire Fund obligation:CurrentOther Current Liabilities13 13 NoncurrentDeferred Credits and Other31 42 

NOTE RECEIVABLEIn November 2021, Sempra loaned $300 million to KKR Pinnacle in exchange for an interest-bearing promissory note that is due in full no later than October 2029 and bears compound interest at 5% per annum, which may be paid quarterly or added to the outstanding principal at the election of KKR Pinnacle. At December 31, 2024 and 2023, Other Long-Term Assets includes $349 million