Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 240

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1
Chunk 240
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’s results of operations.

RESULTS OF OPERATIONS

RESULTS OF OPERATIONS(Dollars and shares in millions, except per share amounts)

 EARNINGS BY SEGMENT(Dollars in millions) Years ended December 31, 202420232022Sempra:Sempra California$1,846 $1,747 $1,514 Sempra Texas Utilities781 694 736 Sempra Infrastructure911 877 310 Segment earnings attributable to common shares3,538 3,318 2,560 Parent and other(721)(288)(466)Earnings attributable to common shares$2,817 $3,030 $2,094 

2024 Form 10-K  |  67

Sempra California

Sempra California’s earnings are comprised of SDG&E and SoCalGas. Because changes in SDG&E’s and SoCalGas’ cost of natural gas and/or electricity are recovered in rates, changes in these costs are offset in the changes in revenues and therefore do not impact earnings, other than potential impacts related to the GCIM for SoCalGas that we describe below. In addition to the changes in cost or market prices, natural gas or electric revenues recorded during a period are impacted by the difference between customer billings and recorded or CPUC-authorized amounts. These differences are required to be balanced over time, resulting in over- and undercollected regulatory balancing accounts. We discuss balancing accounts and their effects further in Note 4 of the Notes to Consolidated Financial Statements.

In 2024 compared to 2023, the increase in earnings of $99 million (6%) to $1.8 billion was primarily due to:

▪$217 million higher income tax benefits primarily from flow-through items, including higher gas repairs tax benefits, offset by $25 million related to income tax benefits in 2023 from previously unrecognized income tax benefits pertaining to gas repairs expenditures 

▪$12 million higher electric transmission margin

▪$12 million higher AFUDC equity

▪$11 million higher net regulatory interest income

▪$9 million higher CPUC base operating margin authorized for 2024, net of operating expenses, including higher authorized cost of capital

Offset by:

▪$89 million charge in 2024 for amounts relating to the FERC order finding that the TO5 adder refund provision has been triggered, requiring SDG&E to refund customers the California ISO adder retroactively from June 1, 2019,