Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 110

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 110
---
 incremental and balanced capital projects that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD offset by $3 million lower authorized cost of capital

▪$19 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$8 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax expense. Gas repairs tax benefits 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 

Offset by:

▪$14 million lower revenues from incremental and balanced capital projects, including those that are now in CPUC-authorized base revenues as a result of the 2024 GRC FD and lower authorized cost of capital

▪$8 million decrease in cost of natural gas sold, which we discuss below

In the six months ended June 30, 2025 compared to the same period in 2024, SDG&E’s cost of natural gas decreased by $8 million (6%) to $131 million primarily due to lower average natural gas prices.

Operation and Maintenance

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s O&M decreased by $20 million (5%) to $403 million due to:

▪$26 million lower expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

▪$6 million higher non-refundable operating costs

In the six months ended June 30, 2025 compared to the same period in 2024, SDG&E’s O&M increased by $9 million (1%) to $843 million primarily due to higher expenses associated with refundable programs, which costs are recovered in revenue.

Other Income, Net

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s other income, net, increased by $8 million (35%) to $31 million primarily due to: 

▪$4 million higher net interest income on regulatory balancing accounts

▪$4 million higher AFUDC equity

In the six months ended June 30, 2025 compared to the same period in 2024, SDG&E’s other income, net, increased by $15 million (27%) to $71 million primarily due to: 

▪$8 million higher