Company: SREA
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001032208-25-000012
Chunk: 525

Company: SEMPRA
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 525
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 to market risk as a result of the GCIM, which rewards or penalizes the utility for commodity costs below or above certain benchmarks. The one-day VaR for SDG&E’s and SoCalGas’ commodity positions were both $2 million at December 31, 2024 and $2 million and $4 million, respectively, at December 31, 2023.

INTEREST RATE RISK

We are exposed to fluctuations in interest rates primarily from our short- and long-term debt. Subject to regulatory constraints, we periodically enter into interest rate swap agreements to moderate our exposure to interest rate changes and to lower our overall cost of borrowing.

The table below shows the nominal amount of our debt:

NOMINAL AMOUNT OF DEBT(1)(Dollars in millions) December 31, 2024December 31, 2023 Sempra SDG&ESoCalGasSempra SDG&ESoCalGasShort-term:Sempra California$1,454 $417 $1,037 $947 $— $947 Other 562 — — 1,397 — — Long-term:Sempra California fixed-rate$16,309 $8,950 $7,359 $15,109 $8,350 $6,759 Sempra California variable-rate— — — 400 400 — Other fixed-rate15,527 — — 11,317 — — Other variable-rate1,063 — — 890 — — 

(1)    After the effects of interest rate swaps. Before reductions for unamortized discount and debt issuance costs and excluding finance lease obligations.

An interest rate risk sensitivity analysis measures interest rate risk by calculating the estimated changes in earnings attributable to common shares (but disregarding capitalized interest and impacts on equity earnings from debt at our equity method investees) that would result from a hypothetical change in market interest rates. Earnings attributable to common shares are affected by changes in interest rates on short-term debt and variable-rate long-term debt. If weighted-average interest rates on short-term debt outstanding at December 31, 2024 increased or decreased by 10%, the change in earnings attributable to common shares over the 12-month period ending December 31, 2025 would be approximately $7 million. If interest rates increased or decreased by 10% on all variable-rate long-term debt at December 31