Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 313

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 313
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 based on 2023 authorized levels

▪$7 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD

▪$6 million higher net regulatory interest income

▪$3 million higher electric transmission margin

▪$3 million higher AFUDC equity

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Table of Contents

Offset by:

▪$14 million higher net interest expense

SIGNIFICANT CHANGES IN REVENUES AND COSTS

Electric Revenues and Cost of Electric Fuel and Purchased Power

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s electric revenues decreased by $115 million (10%) to $1.0 billion primarily due to:

▪$69 million decrease in cost of electric fuel and purchased power, which we discuss below

▪$28 million lower revenues associated with refundable programs, which are fully offset in O&M

▪$23 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense

Offset by:

▪$7 million higher revenues from transmission operations

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s cost of electric fuel and purchased power decreased by $69 million (39%) to $106 million primarily due to:

▪$44 million lower purchased power primarily due to change in excess capacity sales and lower renewable energy costs

▪$24 million lower purchased power from the California ISO due to lower customer demand from departing load now served by CCAs

In the six months ended June 30, 2025 compared to the same period in 2024, SDG&E’s electric revenues decreased by $111 million (5%) to $2.1 billion primarily due to:

▪$103 million decrease in cost of electric fuel and purchased power, which we discuss below

▪$67 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense

▪$11 million lower revenues associated with refundable programs, which are fully offset in O&M

Offset by:

▪$47 million higher CPUC-authorized base revenues, including certain incremental and balanced capital projects that are now in CP