Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 9

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 9
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�$18 million higher purchased services

◦$6 million from a provision for expected credit losses on a customer’s past due receivable balance

Other Income, Net

In 2024 compared to 2023, Sempra’s other income, net, increased by $5 million (4%) to $136 million primarily due to:

▪$17 million higher AFUDC equity, including $12 million at Sempra California 

▪$15 million higher net interest income on regulatory balancing accounts at Sempra California 

▪$8 million higher net investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other 

▪$5 million lower non-service components of net periodic benefit cost, including $17 million at Sempra California

Offset by:

▪$26 million charge in 2024, comprised of $7 million of AFUDC equity and $19 million of net regulatory interest, relating to the FERC order finding that the TO5 adder refund provision has been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019

▪$20 million decrease from $14 million losses in 2024 compared to $6 million gains in 2023 from impacts associated with interest rate and foreign exchange instruments and foreign currency transactions primarily at Sempra Infrastructure, including:

◦$18 million lower from $16 million losses in 2024 compared to $2 million gains in 2023 on other foreign currency transactional effects

◦$6 million gains in 2023 on cross-currency swaps as a result of fluctuation of the Mexican peso

We provide further details of the components of other income, net, in Note 1 of the Notes to Consolidated Financial Statements.

Interest Expense

In 2024 compared to 2023, Sempra’s interest expense decreased by $260 million (20%) to $1.0 billion primarily due to:

▪$372 million at Sempra Infrastructure from:

◦$288 million favorable impact in interest expense from interest rate swaps related to the PA LNG Phase 1 project comprised of:

•$245 million from $212 million unrealized gains in 2024 compared to $33 million unrealized losses in 2023 

•$43 million from a $29 million settlement in 2024 from the termination of interest rate swaps compared to $14 million settlement losses in 2023 on a contingent interest rate swap

◦$56