Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 134

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 134
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 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

▪$38 million higher CPUC base operating margin, net of operating expenses and $8 million lower authorized cost of capital. In the first three quarters of 2024, SoCalGas recorded CPUC-authorized base revenues based on 2023 authorized levels

Offset by:

▪$9 million higher net interest expense

89

Table of Contents

SIGNIFICANT CHANGES IN REVENUES AND COSTS

Natural Gas Revenues and Cost of Natural Gas

In the three months ended March 31, 2025 and 2024, SoCalGas’ average cost of natural gas per thousand cubic feet was $4.23 and $4.50, respectively. The average cost of natural gas sold at SoCalGas is impacted by market prices, as well as transportation and other charges. 

In the three months ended March 31, 2025 compared to the same period in 2024, SoCalGas’ natural gas revenues increased by $215 million (12%) to $2.0 billion primarily due to:

▪$147 million higher CPUC-authorized 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 $11 million lower authorized cost of capital

▪$146 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$45 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income tax 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:

▪$59 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

▪$50 million decrease in cost of natural gas sold, which we discuss below

In the three months ended March 31, 2025 compared to the same period in 2024, SoCalGas’ cost of natural gas decreased by $50 million (11%) to $415 million primarily due to: 

▪$27 million lower average natural gas prices 

▪$23