Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 15

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 15
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 the 2024 GRC FD and higher authorized cost of capital

▪$82 million higher revenues from incremental and balanced capital projects, including higher authorized cost of capital, offset by certain projects that are now in CPUC-authorized revenues as a result of the 2024 GRC FD

▪$42 million higher revenues from transmission operations

In 2024 compared to 2023, SDG&E’s cost of electric fuel and purchased power decreased by $137 million (31%) to $308 million primarily due to:

▪$276 million lower purchased power primarily due to change in excess capacity sales

▪$242 million lower purchased power from the California ISO due to lower market prices

▪$105 million lower utility-owned generation costs

Offset by:

▪$331 million lower sales to the California ISO due to lower market prices

▪$129 million from realized losses in 2024 compared to realized gains in 2023 on derivative contracts for fixed-price natural gas, which are entered into to hedge the cost of electric fuel 

Natural Gas Revenues and Cost of Natural Gas

SDG&E’s average cost of natural gas per thousand cubic feet was $5.41 in 2024 and $11.05 in 2023. The average cost of natural gas sold at SDG&E is impacted by market prices, as well as transportation, tariff and other charges.

In 2024 compared to 2023, SDG&E’s natural gas revenues decreased by $220 million (18%) to $1.0 billion primarily due to:

▪$290 million decrease in cost of natural gas sold, which we discuss below

▪$38 million lower revenues from incremental and balanced capital projects that are now in CPUC-authorized revenues as a result of the 2024 GRC FD, offset by higher authorized cost of capital

▪$7 million lower franchise fee revenues

Offset by:

▪$57 million higher regulatory revenues primarily from the release of a tax regulatory liability for gas repairs expenditures as a result of the 2024 GRC FD

▪$55 million higher CPUC-authorized revenues in 2024, including certain incremental and balanced capital projects that are now in CPUC-authorized revenues as a result of the 2024 GRC FD and higher authorized cost of capital

▪$11 million higher revenues associated with refundable programs, which are fully offset in O&M

In 2024 compared to 2023, SDG&E’s cost of