Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 192

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 192
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 the fourth quarter of 2024 as a result of the 2024 GRC FD

▪$15 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 $1 million lower authorized cost of capital

▪$6 million increase in cost of natural gas sold, which we discuss below

Offset by:

▪$13 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

In the three months ended September 30, 2025 compared to the same period in 2024, SDG&E’s cost of natural gas increased by $6 million (16%) to $44 million primarily due to higher average natural gas prices.

In the nine months ended September 30, 2025 compared to the same period in 2024, SDG&E’s natural gas revenues increased by $105 million (15%) to $800 million primarily due to:

▪$65 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 $4 million lower authorized cost of capital

▪$44 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$24 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax benefit (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:

▪$27 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

Operation and Maintenance

In the three months and nine months ended September 30, 2025 compared to the same periods in 2024, SDG&E’s O&M increased by $31 million (7%) to $451 million and $40 million (3%) remaining at $1.3 billion, respectively, primarily due to higher expenses associated with refundable programs, which costs are recovered in revenue.

Other Income, Net

In the three months and nine