Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 377

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 377
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.CAPITALIZED FINANCING COSTS(Dollars in millions) Years ended December 31, 202420232022Sempra$629 $448 $255 SDG&E100 116 116 SoCalGas101 77 73 

ASSET RETIREMENT OBLIGATIONSFor tangible long-lived assets, we record AROs for the present value of liabilities of future costs expected to be incurred when assets are retired from service if the retirement process is legally required and if a reasonable estimate of fair value can be made. We also record a liability if a legal obligation to perform an asset retirement exists and can be reasonably estimated but performance is conditional upon a future event. We record the estimated retirement cost using the present value of the obligation at the time the asset is placed into service and recognize that cost over the life of the related asset by depreciating the asset retirement cost and accreting the obligation until the liability is settled. Our rate-regulated entities record regulatory assets or liabilities as a result of the timing difference between the recognition of costs in accordance with U.S. GAAP and costs recovered through the rate-making process.We have recorded AROs related to various assets, including:SDG&E and SoCalGas▪fuel and storage tanks▪natural gas transmission and distribution systems▪hazardous waste storage facilities▪asbestos-containing construction materialsSDG&E▪nuclear power facilities▪electric transmission and distribution systems▪energy storage systems▪power generation plantsSoCalGas▪underground natural gas storage facilities and wellsOther Sempra▪LNG terminal▪natural gas transportation and distribution systems▪LPG storage facilities▪refined products terminals▪power generating plants 

2024 Form 10-K  |  F-42

The changes in AROs are as follows:CHANGES IN ASSET RETIREMENT OBLIGATIONS(Dollars in millions) SempraSDG&ESoCalGas 202420232022202420232022202420232022Balance at January 1(1)$3,831 $3,712 $3,538 $894 $887 $890 $2,847 $2,743 $2,582 Accretion expense156 148 141 37 37 37 114 106 101 Liabilities incurred— 18 21 — 15 6 — — — Payments(65