Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 71

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 71
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 notsubject to rate recoveryRevenues: Energy-relatedbusinesses$(35)$98 $4 $218 Commodity contracts notsubject to rate recoveryEnergy-related businessescost of sales1 — (1)— Commodity contracts subjectto rate recoveryCost of natural gas(91)(16)(111)(43)Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power(7)(10)(3)(29)Interest rate instrumentsInterest expense(2)— (58)— Total $(134)$72 $(169)$146 SDG&E:     Commodity contracts subjectto rate recoveryCost of electric fuel and purchased power$(7)$(10)$(3)$(29)SoCalGas:     Commodity contracts subjectto rate recoveryCost of natural gas$(91)$(16)$(111)$(43)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 September 30, 2025 and December 31, 2024 is $227 million and $122 million, respectively. For SDG&E, the total fair value of this group of derivative instruments in a liability position is negligible at both September 30, 2025 and December 31, 2024. For SoCalGas, the total fair value of this group of derivative instruments in a liability position at September 30, 2025 and December 31, 2024 is $78 million and $42 million, respectively. At September 30, 2025, if the credit ratings of Sempra or SoCalGas were reduced below investment grade, $227 million, and $78 million, respectively, of additional assets could be required to be posted as collateral for these derivative contracts.

For Sempra, SDG&E and SoCalGas, some of our derivative contracts contain a provision that would permit the counterparty, in certain circumstances, to request adequate assurance of our performance under