Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 222

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 222
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 2025SoCalGas:Assets:    Commodity contracts subject to rate recovery$— $5 $— $(3)$2 Liabilities:    Commodity contracts subject to rate recovery$— $39 $— $(5)$34  Fair value at December 31, 2024SoCalGas:Assets:    Commodity contracts subject to rate recovery$2 $1 $— $1 $4 Liabilities:    Commodity contracts subject to rate recovery$2 $44 $— $(3)$43 (1)    Includes the effect of the contractual ability to settle contracts under master netting agreements and with cash collateral, as well as cash collateral not offset. 

Level 3 InformationSDG&EThe table below sets forth reconciliations of changes in the fair value of CRRs classified as Level 3 in the fair value hierarchy for Sempra and SDG&E.LEVEL 3 RECONCILIATIONS(1)(Dollars in millions) Three months ended March 31, 20252024Balance at January 1$4 $10 Realized and unrealized gains (losses), net(1)(1)Allocated transmission instruments2 — Settlements(1)— Balance at March 31$4 $9 Change in unrealized losses relating to instruments still held at March 31$(2)$— (1)    Excludes the effect of the contractual ability to settle contracts under master netting agreements and cash collateral.Inputs used to determine the fair value of CRRs are reviewed and compared with market conditions to determine reasonableness.CRRs are recorded at fair value based almost entirely on the most current auction prices published by the California ISO, an objective source. Annual auction prices are published once a year, typically in the middle of November, and are the basis for valuing CRRs settling in the following year. For the CRRs settling from January 1 to December 31, the auction price inputs, at a given location, were in the following ranges for the years indicated below:CONGESTION REVENUE RIGHTS AUCTION PRICE INPUTSSettlement yearPrice per MWhMedian price per MWh2025$(7.38)to$15.54 $0.01 2024(3.69)to9.55 (0.44)The impact associated with discounting is