Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 257

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 257
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 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:

▪$15 million decrease in cost of natural gas sold, which we discuss below

▪$12 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

In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s cost of natural gas decreased by $15 million (15%) to $87 million primarily due to lower average natural gas prices.

Operation and Maintenance

In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s O&M increased by $29 million (7%) to $440 million due to:

▪$34 million higher expenses associated with refundable programs, which costs are recovered in revenue

Offset by:

▪$5 million lower non-refundable operating costs

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES(Dollars in millions) Three months ended March 31, 20252024SDG&E:Income tax expense$14 $40 Income before income taxes$295 $263 Effective income tax rate5 %15 %

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SDG&E records regulatory liabilities for benefits that will be flowed through to customers in the future.

In the three months ended March 31, 2025 compared to the same period in 2024, SDG&E’s income tax expense decreased by $26 million primarily due to: 

▪higher income tax benefit in 2025 from higher ITCs from standalone energy storage projects

Offset by:

▪higher pretax income

We discuss herein SoCalGas’ results of operations and significant changes in earnings, revenues and costs for the three months ended March 31, 2025 compared to the same period in 2024.

Due to the delay in the issuance of the CPUC’s final decision in the SoCalGas 2024 GRC, SoCalGas recorded revenues in the first three quarters of 2024 based on levels authorized for 2023 under the 2019 GRC. In December 202