Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 166

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 166
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 2023 authorized levels

▪$8 million higher net interest expense

Offset by:

▪$4 million higher AFUDC equity

▪$3 million higher electric transmission margin

▪$3 million higher net regulatory interest income

In the six months ended June 30, 2025 compared to the same period in 2024, the increase in earnings of $47 million (11%) was primarily due to:

▪$34 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $9 million lower authorized cost of capital. In the first three quarters of 2024, SDG&E recorded CPUC-authorized base revenues based on 2023 authorized levels

▪$7 million higher income tax benefits primarily from flow-through items, including gas repairs tax benefits, which in the first three quarters of 2024 were recorded as a regulatory liability that was released in the fourth quarter of 2024 as a result of the 2024 GRC FD

▪$6 million higher net regulatory interest income

▪$3 million higher electric transmission margin

▪$3 million higher AFUDC equity

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Offset by:

▪$14 million higher net interest expense

SIGNIFICANT CHANGES IN REVENUES AND COSTS

Electric Revenues and Cost of Electric Fuel and Purchased Power

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s electric revenues decreased by $115 million (10%) to $1.0 billion primarily due to:

▪$69 million decrease in cost of electric fuel and purchased power, which we discuss below

▪$28 million lower revenues associated with refundable programs, which are fully offset in O&M

▪$23 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense

Offset by:

▪$7 million higher revenues from transmission operations

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s cost of electric fuel and purchased power decreased by $69 million (39%) to $106 million primarily due to:

▪$44 million lower purchased power primarily due to change in excess capacity sales and lower renewable energy costs

▪$24 million lower purchased power from the California ISO due to lower customer demand from departing load now served by CCAs

In the six months