Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 252

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 252
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 eliminations of intercompany activity.

In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s O&M increased by $131 million (11%) primarily due to:

▪$171 million increase at Sempra California due to:

◦$180 million higher expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

◦$9 million lower non-refundable operating costs

Offset by:

▪$25 million decrease at Parent and other primarily due to a $19 million change in deferred compensation from a $9 million benefit in 2025 compared to $10 million expense in 2024

▪$15 million decrease at Sempra Infrastructure due to:

◦$26 million from lower provisions for expected credit losses

Offset by:

◦$7 million higher development costs and certain non-capitalized expenses from projects under construction 

Other Income, Net

In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s other income, net, decreased by $8 million (8%) to $91 million primarily due to:

▪$14 million lower investment gains on dedicated assets in support of our employee nonqualified benefit plan and deferred compensation plan at Parent and other

Offset by:

▪$4 million higher AFUDC equity primarily at Sempra Infrastructure

Interest Income

In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s interest income increased by $21 million to $34 million primarily due to a $14 million increase in the fair value of the Support Agreement at Sempra Infrastructure.

Interest Expense

In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s interest expense increased by $128 million (42%) to $433 million primarily due to:

▪$77 million at Sempra Infrastructure primarily from $65 million in unrealized losses in 2025 on interest rate swaps related to the PA LNG Phase 1 project

▪$31 million at Parent and other from higher debt balances from debt issuances, offset by lower borrowings on commercial paper and capitalization of interest expense on projects under construction at Sempra Infrastructure

▪$20 million at Sempra California from higher debt balances from debt issuances

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Table of Contents

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE IN