Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 48

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 48
---
 variability in future cash flows for forecasted transactions, excluding those forecasted transactions related to the payment of variable interest on existing financial instruments, is approximately one year.The following table summarizes the effects of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Operations.UNDESIGNATED DERIVATIVE IMPACTS(Dollars in millions)  Pretax (loss) gain on derivatives recognized in earnings  Three months ended March 31, Location20252024Sempra:   Commodity contracts not subjectto rate recoveryRevenues: Energy-relatedbusinesses$6 $79 Commodity contracts subjectto rate recoveryCost of natural gas(16)(6)Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power3 (23)Interest rate instrumentsInterest expense(65)— Total $(72)$50 SDG&E:   Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power$3 $(23)SoCalGas:   Commodity contracts subjectto rate recoveryCost of natural gas$(16)$(6)

56

Table of Contents

CREDIT RISK RELATED CONTINGENT FEATURESFor Sempra, SDG&E and SoCalGas, certain of our derivative instruments contain credit limits which vary depending on our credit ratings. Generally, these provisions, if applicable, may reduce our credit limit if a specified credit rating agency reduces our ratings. In certain cases, if our credit ratings were to fall below investment grade, the counterparty to these derivative liability instruments could request immediate payment or demand immediate and ongoing full collateralization.For Sempra, the total fair value of this group of derivative instruments in a liability position at March 31, 2025 and December 31, 2024 was $105 million and $122 million, respectively. For SDG&E, the total fair value of this group of derivative instruments in a liability position was $1 million at March 31, 2025 and negligible at December 31, 2024. For SoCalGas, the total fair value of this group of derivative instruments in a liability position at March 31, 2025 and December 31, 2024 was $34 million and $42 million, respectively. At March 31, 2025, if the credit ratings of Sempra, SDG&E or SoCalGas were reduced below investment grade, $105 million,