Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 363

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 363
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 trends in write-offs, the age of the receivables and customer payment patterns, historical and industry trends, counterparty creditworthiness, economic conditions and specific events, such as bankruptcies, pandemics and other factors. We write off financial assets measured at amortized cost in the period in which we determine they are not recoverable. We record recoveries of amounts previously written off when it is known that they will be recovered.After considering the past-due status of receivables, payment history and other customer-specific information, in 2024 and 2023, Sempra recorded a provision for expected credit losses of $53 million and $52 million, respectively, on a customer’s past due account balance.The implementation of customer assistance programs and higher 2023 winter season customer billings have resulted in certain SDG&E and SoCalGas customers exhibiting slower payment and higher levels of nonpayment than has been the case historically. SDG&E and SoCalGas have regulatory mechanisms to recover credit losses and thus record changes in the allowances for credit losses related to Accounts Receivable – Trade that are probable of recovery in regulatory accounts. We discuss regulatory accounts in Note 4.

2024 Form 10-K  |  F-31

Changes in allowances for credit losses for trade receivables and other receivables are as follows:CHANGES IN ALLOWANCES FOR CREDIT LOSSES(Dollars in millions) 202420232022Sempra:   Allowances for credit losses at January 1$533 $181 $136 Provisions for expected credit losses203 468 123 Write-offs(222)(116)(78)Allowances for credit losses at December 31$514 $533 $181 SDG&E:   Allowances for credit losses at January 1$144 $78 $66 Provisions for expected credit losses52 115 54 Write-offs(82)(49)(42)Allowances for credit losses at December 31$114 $144 $78 SoCalGas:   Allowances for credit losses at January 1$331 $98 $69 Provisions for expected credit losses94 300 65 Write-offs(140)(67)(36)Allowances for credit losses at December 31$285 $331 $98 Allowances for credit losses related to trade receivables and other receivables are included in the Consolidated Balance Sheets as follows: ALLOWANCES FOR CREDIT