Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 125

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 125
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63 million (24%) was primarily due to:

▪$53 million higher income tax benefits primarily from flow-through items, including impacts from the election to accelerate self-developed software deductions, and from the resolution of prior year income tax items

▪$15 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $5 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

▪$4 million higher electric transmission margin

▪$4 million higher net regulatory interest income

Offset by:

▪$8 million higher net interest expense

110

In the nine months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $110 million (16%) was primarily due to:

▪$60 million higher income tax benefits primarily from flow-through items, including impacts from the election to accelerate self-developed software deductions and 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), and from the resolution of prior year income tax items

▪$49 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $14 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

▪$10 million higher net regulatory interest income

▪$7 million higher electric transmission margin

Offset by:

▪$22 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 September 30, 2025 compared to the same period in 2024, SDG&E’s electric revenues increased by $191 million (18%) to $1.3 billion primarily due to:

▪$140 million increase in cost of electric fuel and purchased power, which we discuss below

▪$40 million higher CPUC-authorized base revenues, including certain incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $6 million lower authorized cost of capital

▪$15 million higher revenues from incremental and balanced capital projects offset