Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 130

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 130
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 authorized levels

Offset by:

▪$8 million higher net interest expense

In the nine months ended September 30, 2025 compared to the same period in 2024, the increase in earnings of $98 million (21%) was primarily due to:

▪$74 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) and impacts from the election to accelerate self-developed software deductions, and from the resolution of prior year income tax items

▪$70 million higher CPUC base operating margin, net of operating expenses including higher depreciation and $17 million lower authorized cost of capital. In the first three quarters of 2024, SoCalGas recorded CPUC-authorized base revenues based on 2023 authorized levels

▪$10 million regulatory award approved by the CPUC in 2025

Offset by:

▪$26 million higher net interest expense

▪$25 million from disallowed regulatory recovery of COVID-19 costs

SIGNIFICANT CHANGES IN REVENUES AND COSTS

Natural Gas Revenues and Cost of Natural Gas

In the three months ended September 30, 2025 and 2024, SoCalGas’ average cost of natural gas per thousand cubic feet was $3.96 and $1.82, respectively. In the nine months ended September 30, 2025 and 2024, SoCalGas’ average cost of natural gas per thousand cubic feet was $3.65 and $3.14, respectively. The average cost of natural gas sold at SoCalGas is impacted by market prices, as well as transportation and other charges. 

In the three months ended September 30, 2025 compared to the same period in 2024, SoCalGas’ natural gas revenues increased by $127 million (12%) to $1.2 billion primarily due to:

▪$107 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

▪$100 million increase in cost of natural gas sold, which we discuss below

▪$42 million higher regulatory revenues, including gas repairs tax benefits, which are offset in