Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 132

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 132
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 accelerate self-developed software deductions, which are offset in income tax benefit (expense)

▪$29 million lower revenues from disallowed regulatory recovery of COVID-19 costs

In the nine months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ cost of natural gas increased by $88 million (13%) to $749 million due to: 

▪$105 million higher average natural gas prices

Offset by:

▪$17 million lower volumes driven by weather

Operation and Maintenance

In the three months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ O&M decreased by $55 million (8%) to $623 million due to:

▪$31 million lower non-refundable operating costs

▪$24 million lower expenses associated with refundable programs, which costs are recovered in revenue

In the nine months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ O&M increased by $4 million remaining at $2.0 billion due to:

▪$23 million higher expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

▪$19 million lower non-refundable operating costs

Other (Expense) Income, Net

In the three months ended September 30, 2025 compared to the same period in 2024, SoCalGas had $3 million of other expense, net, in 2025 compared to $13 million of other income, net, in 2024 primarily due to higher non-service components of net periodic benefit cost. 

In the nine months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ other income, net, decreased by $36 million (49%) to $37 million primarily due to:

▪$22 million higher non-service components of net periodic benefit cost

▪$7 million reduction in regulatory interest from disallowed regulatory recovery of COVID-19 costs

▪$5 million lower net interest income on regulatory balancing accounts

115

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended September 30,Nine months ended September 30, 2025202420252024SoCalGas:Income tax (benefit) expense$(95)$(52)$(51)$1