Company: SREA
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001032208-25-000027
Chunk: 90

Company: SEMPRA
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 90
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UC-authorized base revenues as a result of the 2024 GRC FD offset by $11 million lower authorized cost of capital

▪$146 million higher revenues associated with refundable programs, which are fully offset in O&M

▪$45 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:

▪$59 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

▪$50 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, SoCalGas’ cost of natural gas decreased by $50 million (11%) to $415 million primarily due to: 

▪$27 million lower average natural gas prices 

▪$23 million lower volumes driven by weather

Operation and Maintenance

In the three months ended March 31, 2025 compared to the same period in 2024, SoCalGas’ O&M increased by $144 million (23%) to $757 million primarily due to higher expenses associated with refundable programs, which costs are recovered in revenue.

Income Taxes

INCOME TAX EXPENSE (BENEFIT) AND EFFECTIVE INCOME TAX RATES (Dollars in millions) Three months ended March 31, 20252024SoCalGas:Income tax expense$38 $43 Income before income taxes$481 $402 Effective income tax rate8 %11 %

In the three months ended March 31, 2025 compared to the same period in 2024, SoCalGas’ income tax expense decreased by $5 million primarily due to:

▪higher income tax benefits from flow-through items

Offset by:

▪higher pretax income

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Table of Contents

CAPITAL RESOURCES AND LIQUIDITY

OVERVIEW

Sempra

Liquidity

We expect to meet our cash requirements through cash flows from operations, unrestricted cash and cash equivalents, borrowings under or supported by our credit facilities, other incurrences of debt which may include issuing debt securities and obtaining term