Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 80

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 80
---
 2,114 Eliminations and adjustments(5)(5)Total$2,362 $2,109 Cost of natural gas(1):Sempra California$485 $544 Sempra Infrastructure11 9 Segment totals496 553 Eliminations and adjustments(3)1 Total$493 $554 

(1)    Excludes depreciation and amortization, which are presented separately on Sempra’s Condensed Consolidated Statements of Operations. 

81

Table of Contents

In the three months ended March 31, 2025 compared to the same period in 2024, Sempra’s natural gas revenues increased by $253 million (12%) driven by Sempra California, which included:

▪$179 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 $13 million lower authorized cost of capital

▪$163 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$52 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:

▪$71 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

▪$59 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, Sempra’s cost of natural gas decreased by $61 million (11%) driven by Sempra California, which included:

▪$38 million lower average natural gas prices 

▪$21 million lower volumes driven by weather

Utilities: Electric Revenues and Cost of Electric Fuel and Purchased Power

Our utilities revenues include electric revenues at Sempra California, substantially all of which is at SDG&E. Intercompany revenues are eliminated in Sempra’s Condensed Consolidated Statements of Operations.

SDG&E operates under a regulatory framework that permits it to recover the actual cost incurred to generate or procure electricity based on annual estimates of the cost of electricity supplied to customers. The differences in