Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 73

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 73
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 have other commodity derivatives that are valued using industry standard models that consider quoted forward prices for commodities, time value, current market and contractual prices for the underlying instruments, volatility factors, and other relevant economic measures (Level 2). Level 3 recurring items relate to CRRs at SDG&E, as we discuss below in “Level 3 Information – SDG&E.” We further discuss derivative assets and liabilities in Note 8.▪Rabbi Trust investments include short-term investments that consist of money market and mutual funds that we value using a market approach based on closing prices reported in the active market in which the identical security is traded (Level 1).▪As we discuss in Note 13, in July 2020, Sempra entered into a Support Agreement for the benefit of CFIN. We measure the Support Agreement, which includes a guarantee obligation, a put option and a call option, net of related guarantee fees, at fair value on a recurring basis. We use a discounted cash flow model to value the Support Agreement, net of related guarantee fees. Because some of the inputs that are significant to the valuation are less observable, the Support Agreement is classified as Level 3, as we describe below in “Level 3 Information – Other Sempra.”

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RECURRING FAIR VALUE MEASURES(Dollars in millions)Level 1Level 2Level 3Netting(1)TotalFair value at September 30, 2025Sempra:Assets:    Nuclear decommissioning trusts:    Short-term investments, primarily cash equivalents$19 $2 $— $21 Equity securities289 3 — 292 Debt securities:    Debt securities issued by the U.S. Treasury and other U.S. government corporations and agencies28 26 — 54 Municipal bonds— 296 — 296 Other securities— 254 — 254 Total debt securities28 576 — 604 Total nuclear decommissioning trusts(2)336 581 — 917 Short-term investments held in Rabbi Trust22 — — 22 Support Agreement, net of related guarantee fees— — 39 39 Commodity contracts subject to rate recovery3 8 6 $25 42 Total361 589 45 25 1,020 Assets held for sale:Interest rate instruments— 214 — — 214 Commodity contracts not