Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 367

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 367
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RC FD 

Offset by:

▪$27 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital

Operation and Maintenance

In the three months and nine months ended September 30, 2025 compared to the same periods in 2024, SDG&E’s O&M increased by $31 million (7%) to $451 million and $40 million (3%) remaining at $1.3 billion, respectively, primarily due to higher expenses associated with refundable programs, which costs are recovered in revenue.

Other Income, Net

In the three months and nine months ended September 30, 2025 compared to the same periods in 2024, SDG&E’s other income, net, increased by $2 million (7%) to $32 million and $17 million (20%) to $103 million, respectively, primarily due to higher net interest income on regulatory balancing accounts.

112

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES(Dollars in millions) Three months ended September 30,Nine months ended September 30, 2025202420252024SDG&E:Income tax (benefit) expense$(33)$15 $(12)$89 Income before income taxes$291 $276 $768 $759 Effective income tax rate(11)%5 %(2)%12 %

In the three months and nine months ended September 30, 2025 compared to the same periods in 2024, SDG&E had an income tax benefit in 2025 compared to an income tax expense in 2024, respectively, primarily due to:

▪higher income tax benefit from flow-through items, including $26 million income tax benefit in 2025 from the election to accelerate self-developed software deductions, which we discuss in Note 1 of the Notes to Condensed Consolidated Financial Statements 

▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects

We discuss herein SoCalGas’ results of operations and significant changes in earnings (losses), revenues and costs for the three months (Q3) and nine months (YTD) ended September 30, 2025 compared to the same period in 2024.

Due to the delay in the issuance of the CPUC’s FD in the SoCalGas