Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 294

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 294
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(67)94 (9)22 (56)69 (Decrease) increase to net periodic benefit cost(6)7 (1)1 (4)5 

IMPACT DUE TO INCREASE/DECREASE IN RETURN ON PLAN ASSETS (Dollars in millions)SempraSDG&ESoCalGasIncreaseDecreaseIncreaseDecreaseIncreaseDecreasePension:(Decrease) increase to net periodic benefit cost$(39)$39 $(9)$9 $(28)$28 PBOP:(Decrease) increase to net periodic benefit cost(12)12 (1)1 (10)10 

For SDG&E and SoCalGas plans, the effects of the assumptions on earnings are expected to be recovered in rates and therefore are offset in regulatory accounts. We provide details of our pension and PBOP plans in Note 8 of the Notes to Consolidated Financial Statements.

SONGS ASSET RETIREMENT OBLIGATIONS

Sempra, SDG&E 

SDG&E’s legal AROs related to the decommissioning of SONGS are estimated based on a site-specific study performed no less than every three years. The estimate of the obligations includes: 

▪ estimated decommissioning costs, including labor, equipment, material and other disposal costs 

▪ inflation adjustment applied to estimated cash flows 

▪ discount rate based on a credit-adjusted risk-free rate 

▪ actual decommissioning costs, progress to date and expected duration of decommissioning activities 

2024 Form 10-K  |  103

SDG&E’s nuclear decommissioning expenses are subject to rate recovery and, therefore, rate-making accounting treatment is applied to SDG&E’s nuclear decommissioning activities. SDG&E recognizes a regulatory asset, or liability, to the extent that its SONGS ARO exceeds, or is less than, the amount collected from customers and the amount earned in SDG&E’s NDT.

SDG&E’s ARO related to the decommissioning of SONGS was $471 million as of December 31, 2024, based on the decommissioning cost study prepared in 2024. Changes in the estimated costs, execution strategy or timing of decommissioning, or in the assumptions and judgments by management underlying these estimates, could cause material revisions to the estimated total cost to decommission this facility, which could have a material effect on the recorded liability.

The following table illustrates the increase