Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 256

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 256
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.1 billion primarily due to:

▪$45 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 $5 million lower authorized cost of capital

▪$17 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$9 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

▪$6 million higher revenues from transmission operations

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Offset by:

▪$44 million lower regulatory revenues from higher ITCs from standalone energy storage projects, which are offset in income tax expense

▪$34 million decrease in cost of electric fuel and purchased power, which we discuss below

In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s cost of electric fuel and purchased power decreased by $34 million (32%) to $73 million primarily due to:

▪$26 million lower purchased power primarily due to change in excess capacity sales

▪$20 million lower purchased power from the California ISO due to lower market prices

Offset by:

▪$15 million lower sales to the California ISO due to lower market prices

Natural Gas Revenues and Cost of Natural Gas

In the three months ended March 31, 2025 and 2024, SDG&E’s average cost of natural gas per thousand cubic feet was $5.69 and $6.79, 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 March 31, 2025 compared to the same period in 2024, SDG&E’s natural gas revenues increased by $37 million (12%) to $356 million primarily due to:

▪$32 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 $2 million lower authorized cost of capital

▪$17 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$7 million higher regulatory revenues, including gas repairs tax benefits, which are offset in income