Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 252

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 252
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 year ended December 31, 2022, refer to “Part II – Item 7. MD&A – Results of Operations” in our 2023 annual report on Form 10-K filed with the SEC on February 27, 2024.

RESULTS OF OPERATIONS

RESULTS OF OPERATIONS(Dollars in millions)

In 2024 compared to 2023, the decrease in SDG&E’s earnings of $45 million (5%) to $891 million was primarily due to:

▪$89 million charge in 2024 for amounts 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

▪$32 million higher net interest expense

▪$6 million lower AFUDC equity

Offset by:

▪$33 million higher income tax benefits primarily from flow through items, including higher gas repairs tax benefits

▪$27 million higher CPUC base operating margin authorized for 2024, net of operating expenses, including higher authorized cost of capital

▪$12 million higher electric transmission margin

▪$10 million lower Wildfire Fund amortization

2024 Form 10-K  |  77

SIGNIFICANT CHANGES IN REVENUES AND COSTS

Electric Revenues and Cost of Electric Fuel and Purchased Power

In 2024 compared to 2023, SDG&E’s electric revenues decreased by $36 million (1%) remaining at $4.3 billion primarily due to:

▪$176 million lower revenues associated with refundable programs, which are fully offset in O&M

▪$137 million lower cost of electric fuel and purchased power, which we discuss below

▪$94 million charge in 2024 for amounts 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

▪$18 million lower revenues from a $5 million credit in 2024 compared to a $13 million cost in 2023 for the non-service components of net periodic benefit cost, which fully offsets in other income, net

▪$9 million lower franchise fee revenues

Offset by:

▪$178 million lower ITCs from standalone energy storage projects, which are offset in income tax (expense) benefit

▪$110 million higher