Company: SREA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001032208-25-000048
Chunk: 167

Company: SEMPRA
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 167
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 ended June 30, 2025 compared to the same period in 2024, SDG&E’s electric revenues decreased by $111 million (5%) to $2.1 billion primarily due to:

▪$103 million decrease in cost of electric fuel and purchased power, which we discuss below

▪$67 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense

▪$11 million lower revenues associated with refundable programs, which are fully offset in O&M

Offset by:

▪$47 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 $9 million lower authorized cost of capital

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

▪$13 million higher revenues from transmission operations

In the six months ended June 30, 2025 compared to the same period in 2024, SDG&E’s cost of electric fuel and purchased power decreased by $103 million (37%) to $179 million primarily due to:

▪$73 million lower purchased power primarily due to change in excess capacity sales and lower renewable energy costs

▪$44 million lower purchased power from the California ISO due to lower customer demand from departing load now served by CCAs

Offset by:

▪$15 million lower sales to the California ISO due to decreased utility-owned generator availability

Natural Gas Revenues and Cost of Natural Gas

In the three months ended June 30, 2025 and 2024, SDG&E’s average cost of natural gas per thousand cubic feet was $4.60 and $3.53, respectively. In the six months ended June 30, 2025 and 2024, SDG&E’s average cost of natural gas per thousand cubic feet was $4.86 and $5.08, respectively. The average cost of natural gas sold at SDG&E is impacted by market prices, as well as transportation, tariff and other charges.

In the three months ended June 30, 2025 compared to the same period in 2024, SDG&E’s natural gas revenues increased by $22 million (11%) to $228 million primarily due to:

▪$18