|
||||||||||||
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
|
||||||||||||
FORM 10-Q
|
||||||||||||
(Mark One)
|
||||||||||||
[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|||||||||||
For the quarterly period ended
|
September 30, 2013
|
|||||||||||
or
|
||||||||||||
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|||||||||||
For the transition period from
|
to
|
|||||||||||
Commission File No.
|
Exact Name of Registrants as Specified in their Charters, Address and Telephone Number
|
States of Incorporation
|
I.R.S. Employer
Identification Nos.
|
Former name, former address and former fiscal year, if changed since last report
|
||||||||
1-14201
|
SEMPRA ENERGY
|
California
|
33-0732627
|
No change
|
||||||||
101 Ash Street
|
||||||||||||
San Diego, California 92101
|
||||||||||||
(619)696-2000
|
||||||||||||
1-03779
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
California
|
95-1184800
|
No change
|
||||||||
8326 Century Park Court
|
||||||||||||
San Diego, California 92123
|
||||||||||||
(619)696-2000
|
||||||||||||
1-01402
|
SOUTHERN CALIFORNIA GAS COMPANY
|
California
|
95-1240705
|
No change
|
||||||||
555 West Fifth Street
|
||||||||||||
Los Angeles, California 90013
|
||||||||||||
(213)244-1200
|
||||||||||||
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.
|
||||||||||||
Yes
|
X
|
No
|
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
||||||||||||
Sempra Energy
|
Yes
|
X
|
No
|
|||||||||
San Diego Gas & Electric Company
|
Yes
|
X
|
No
|
|||||||||
Southern California Gas Company
|
Yes
|
X
|
No
|
|||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
||||||||||||
Large
accelerated filer
|
Accelerated filer
|
Non-accelerated filer
|
Smaller reporting company
|
|||||||||
Sempra Energy
|
[ X ]
|
[ ]
|
[ ]
|
[ ]
|
||||||||
San Diego Gas & Electric Company
|
[ ]
|
[ ]
|
[ X ]
|
[ ]
|
||||||||
Southern California Gas Company
|
[ ]
|
[ ]
|
[ X ]
|
[ ]
|
||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
||||||||||||
Sempra Energy
|
Yes
|
No
|
X
|
|||||||||
San Diego Gas & Electric Company
|
Yes
|
No
|
X
|
|||||||||
Southern California Gas Company
|
Yes
|
No
|
X
|
|||||||||
Indicate the number of shares outstanding of each of the issuers’ classes of common stock, as of the latest practicable date.
|
||||||||||||
Common stock outstanding on November 1, 2013:
|
||||||||||||
Sempra Energy
|
244,399,914 shares
|
|||||||||||
San Diego Gas & Electric Company
|
Wholly owned by Enova Corporation, which is wholly owned by Sempra Energy
|
|||||||||||
Southern California Gas Company
|
Wholly owned by Pacific Enterprises, which is wholly owned by Sempra Energy
|
|||||||||||
SEMPRA ENERGY FORM 10-Q
SAN DIEGO GAS & ELECTRIC COMPANY FORM 10-Q
SOUTHERN CALIFORNIA GAS COMPANY FORM 10-Q
TABLE OF CONTENTS
|
||
Page
|
||
Information Regarding Forward-Looking Statements
|
4
|
|
PART I – FINANCIAL INFORMATION
|
||
Item 1.
|
Financial Statements
|
5
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
77
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
119
|
Item 4.
|
Controls and Procedures
|
120
|
PART II – OTHER INFORMATION
|
||
Item 1.
|
Legal Proceedings
|
121
|
Item 1A.
|
Risk Factors
|
121
|
Item 6.
|
Exhibits
|
123
|
Signatures
|
125
|
|
§
|
local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments;
|
§
|
actions and the timing of actions by the California Public Utilities Commission, California State Legislature, U.S. Department of Energy, Federal Energy Regulatory Commission, Nuclear Regulatory Commission, Atomic Safety and Licensing Board, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries in which we operate;
|
§
|
capital markets conditions, including the availability of credit and the liquidity of our investments;
|
§
|
the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of granting of, permits, licenses, certificates and other authorizations;
|
§
|
inflation, interest and exchange rates;
|
§
|
the impact of benchmark interest rates, generally Moody’s A-rated utility bond yields, on our California Utilities’ cost of capital;
|
§
|
energy markets, including the timing and extent of changes and volatility in commodity prices;
|
§
|
the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions, equipment failures and the decommissioning of San Onofre Nuclear Generating Station (SONGS);
|
§
|
weather conditions, natural disasters, catastrophic accidents, and conservation efforts;
|
§
|
risks inherent with nuclear power facilities and radioactive materials storage, including the catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the nuclear facility due to an extended outage and facility closure, and increased regulatory oversight;
|
§
|
risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest;
|
§
|
wars, terrorist attacks and cybersecurity threats;
|
§
|
business, regulatory, environmental and legal decisions and requirements;
|
§
|
expropriation of assets by foreign governments and title and other property disputes;
|
§
|
the impact on reliability of San Diego Gas & Electric Company’s electric transmission and distribution system due to increased power supply from renewable energy sources;
|
§
|
the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through our electric transmission and distribution system;
|
§
|
the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements;
|
§
|
the resolution of litigation; and
|
§
|
other uncertainties, all of which are difficult to predict and many of which are beyond our control.
|
SEMPRA ENERGY
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|||||||||
(Dollars in millions, except per share amounts)
|
|||||||||
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||
2013
|
2012
|
2013
|
2012
|
||||||
(unaudited)
|
|||||||||
REVENUES
|
|||||||||
Utilities
|
$
|
2,223
|
$
|
2,170
|
$
|
6,889
|
$
|
6,099
|
|
Energy-related businesses
|
328
|
337
|
963
|
880
|
|||||
Total revenues
|
2,551
|
2,507
|
7,852
|
6,979
|
|||||
EXPENSES AND OTHER INCOME
|
|||||||||
Utilities:
|
|||||||||
Cost of natural gas
|
(261)
|
(212)
|
(1,182)
|
(864)
|
|||||
Cost of electric fuel and purchased power
|
(537)
|
(515)
|
(1,461)
|
(1,252)
|
|||||
Energy-related businesses:
|
|||||||||
Cost of natural gas, electric fuel and purchased power
|
(120)
|
(136)
|
(325)
|
(346)
|
|||||
Other cost of sales
|
(47)
|
(43)
|
(144)
|
(117)
|
|||||
Operation and maintenance
|
(698)
|
(732)
|
(2,162)
|
(2,130)
|
|||||
Depreciation and amortization
|
(286)
|
(280)
|
(828)
|
(803)
|
|||||
Franchise fees and other taxes
|
(96)
|
(89)
|
(283)
|
(264)
|
|||||
Loss from plant closure
|
―
|
―
|
(200)
|
―
|
|||||
Gain on sale of assets
|
39
|
―
|
113
|
7
|
|||||
Equity earnings (losses), before income tax
|
3
|
(94)
|
21
|
(375)
|
|||||
Other income, net
|
16
|
44
|
79
|
137
|
|||||
Interest income
|
5
|
5
|
15
|
14
|
|||||
Interest expense
|
(137)
|
(126)
|
(413)
|
(352)
|
|||||
Income before income taxes and equity earnings
|
|||||||||
of certain unconsolidated subsidiaries
|
432
|
329
|
1,082
|
634
|
|||||
Income tax expense
|
(117)
|
(49)
|
(327)
|
(48)
|
|||||
Equity earnings, net of income tax
|
8
|
10
|
13
|
29
|
|||||
Net income
|
323
|
290
|
768
|
615
|
|||||
Earnings attributable to noncontrolling interests
|
(22)
|
(20)
|
(41)
|
(44)
|
|||||
Call premium on preferred stock of subsidiary
|
(3)
|
―
|
(3)
|
―
|
|||||
Preferred dividends of subsidiaries
|
(2)
|
(2)
|
(5)
|
(5)
|
|||||
Earnings
|
$
|
296
|
$
|
268
|
$
|
719
|
$
|
566
|
|
Basic earnings per common share
|
$
|
1.21
|
$
|
1.11
|
$
|
2.95
|
$
|
2.35
|
|
Weighted-average number of shares outstanding, basic (thousands)
|
244,140
|
241,689
|
243,682
|
241,133
|
|||||
Diluted earnings per common share
|
$
|
1.19
|
$
|
1.09
|
$
|
2.89
|
$
|
2.31
|
|
Weighted-average number of shares outstanding, diluted (thousands)
|
249,259
|
245,802
|
248,723
|
245,013
|
|||||
Dividends declared per share of common stock
|
$
|
0.63
|
$
|
0.60
|
$
|
1.89
|
$
|
1.80
|
|
See Notes to Condensed Consolidated Financial Statements.
|
SEMPRA ENERGY
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||
(Dollars in millions)
|
||||||||||||||
Three months ended September 30,
|
||||||||||||||
2013
|
2012
|
|||||||||||||
(unaudited)
|
||||||||||||||
Non-
|
Non-
|
|||||||||||||
Sempra
|
controlling
|
Sempra
|
controlling
|
|||||||||||
Energy
|
Interests
|
Total
|
Energy
|
Interests
|
Total
|
|||||||||
Net income
|
$
|
301
|
$
|
22
|
$
|
323
|
$
|
270
|
$
|
20
|
$
|
290
|
||
Other comprehensive income (loss), net of income tax:
|
||||||||||||||
Foreign currency translation adjustments
|
5
|
―
|
5
|
80
|
8
|
88
|
||||||||
Net actuarial gain (loss)
|
3
|
―
|
3
|
(10)
|
―
|
(10)
|
||||||||
Financial instruments
|
(4)
|
(2)
|
(6)
|
(3)
|
(4)
|
(7)
|
||||||||
Total other comprehensive income (loss)
|
4
|
(2)
|
2
|
67
|
4
|
71
|
||||||||
Total comprehensive income
|
305
|
20
|
325
|
337
|
24
|
361
|
||||||||
Preferred dividends of subsidiaries
|
(2)
|
―
|
(2)
|
(2)
|
―
|
(2)
|
||||||||
Total comprehensive income, after preferred
|
||||||||||||||
dividends of subsidiaries
|
$
|
303
|
$
|
20
|
$
|
323
|
$
|
335
|
$
|
24
|
$
|
359
|
||
Nine months ended September 30,
|
||||||||||||||
2013
|
2012
|
|||||||||||||
(unaudited)
|
||||||||||||||
Non-
|
Non-
|
|||||||||||||
Sempra
|
controlling
|
Sempra
|
controlling
|
|||||||||||
Energy
|
Interests
|
Total
|
Energy
|
Interests
|
Total
|
|||||||||
Net income
|
$
|
727
|
$
|
41
|
$
|
768
|
$
|
571
|
$
|
44
|
$
|
615
|
||
Other comprehensive income (loss), net of income tax:
|
||||||||||||||
Foreign currency translation adjustments
|
149
|
(24)
|
125
|
114
|
11
|
125
|
||||||||
Net actuarial gain (loss)
|
7
|
―
|
7
|
(5)
|
―
|
(5)
|
||||||||
Financial instruments
|
5
|
16
|
21
|
(9)
|
(13)
|
(22)
|
||||||||
Total other comprehensive income (loss)
|
161
|
(8)
|
153
|
100
|
(2)
|
98
|
||||||||
Total comprehensive income
|
888
|
33
|
921
|
671
|
42
|
713
|
||||||||
Preferred dividends of subsidiaries
|
(5)
|
―
|
(5)
|
(5)
|
―
|
(5)
|
||||||||
Total comprehensive income, after preferred
|
||||||||||||||
dividends of subsidiaries
|
$
|
883
|
$
|
33
|
$
|
916
|
$
|
666
|
$
|
42
|
$
|
708
|
||
See Notes to Condensed Consolidated Financial Statements.
|
SEMPRA ENERGY
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
ASSETS
|
|||||
Current assets:
|
|||||
Cash and cash equivalents
|
$
|
1,061
|
$
|
475
|
|
Restricted cash
|
28
|
46
|
|||
Trade accounts receivable, net
|
982
|
1,146
|
|||
Other accounts and notes receivable, net
|
194
|
153
|
|||
Income taxes receivable
|
132
|
56
|
|||
Deferred income taxes
|
119
|
148
|
|||
Inventories
|
463
|
408
|
|||
Regulatory balancing accounts – undercollected
|
346
|
395
|
|||
Regulatory assets
|
100
|
62
|
|||
Fixed-price contracts and other derivatives
|
76
|
95
|
|||
U.S. Treasury grants receivable
|
―
|
258
|
|||
Asset held for sale, power plant
|
―
|
296
|
|||
Other
|
211
|
157
|
|||
Total current assets
|
3,712
|
3,695
|
|||
Investments and other assets:
|
|||||
Restricted cash
|
21
|
22
|
|||
Regulatory assets arising from pension and other postretirement
|
|||||
benefit obligations
|
1,173
|
1,151
|
|||
Regulatory assets arising from wildfire litigation costs
|
339
|
364
|
|||
Other regulatory assets
|
1,947
|
1,227
|
|||
Nuclear decommissioning trusts
|
981
|
908
|
|||
Investments
|
1,564
|
1,516
|
|||
Goodwill
|
1,045
|
1,111
|
|||
Other intangible assets
|
428
|
436
|
|||
Sundry
|
928
|
878
|
|||
Total investments and other assets
|
8,426
|
7,613
|
|||
Property, plant and equipment:
|
|||||
Property, plant and equipment
|
33,573
|
33,528
|
|||
Less accumulated depreciation and amortization
|
(8,810)
|
(8,337)
|
|||
Property, plant and equipment, net ($445 and $466 at September 30, 2013 and
December 31, 2012, respectively, related to VIE)
|
24,763
|
25,191
|
|||
Total assets
|
$
|
36,901
|
$
|
36,499
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SEMPRA ENERGY
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
LIABILITIES AND EQUITY
|
|||||
Current liabilities:
|
|||||
Short-term debt
|
$
|
522
|
$
|
546
|
|
Accounts payable – trade
|
859
|
976
|
|||
Accounts payable – other
|
131
|
134
|
|||
Dividends and interest payable
|
314
|
266
|
|||
Accrued compensation and benefits
|
286
|
337
|
|||
Regulatory balancing accounts – overcollected
|
82
|
141
|
|||
Current portion of long-term debt
|
1,441
|
725
|
|||
Fixed-price contracts and other derivatives
|
64
|
77
|
|||
Customer deposits
|
155
|
143
|
|||
Reserve for wildfire litigation
|
127
|
305
|
|||
Other
|
549
|
608
|
|||
Total current liabilities
|
4,530
|
4,258
|
|||
Long-term debt ($327 and $335 at September 30, 2013 and December 31, 2012, respectively,
related to VIE)
|
10,478
|
11,621
|
|||
Deferred credits and other liabilities:
|
|||||
Customer advances for construction
|
145
|
144
|
|||
Pension and other postretirement benefit obligations, net of plan assets
|
1,472
|
1,456
|
|||
Deferred income taxes
|
2,543
|
2,100
|
|||
Deferred investment tax credits
|
43
|
46
|
|||
Regulatory liabilities arising from removal obligations
|
2,541
|
2,720
|
|||
Asset retirement obligations
|
2,111
|
2,033
|
|||
Fixed-price contracts and other derivatives
|
239
|
252
|
|||
Deferred credits and other
|
1,045
|
1,107
|
|||
Total deferred credits and other liabilities
|
10,139
|
9,858
|
|||
Contingently redeemable preferred stock of subsidiary
|
―
|
79
|
|||
Commitments and contingencies (Note 10)
|
|||||
Equity:
|
|||||
Preferred stock (50 million shares authorized; none issued)
|
―
|
―
|
|||
Common stock (750 million shares authorized; 244 million and 242 million shares
|
|||||
outstanding at September 30, 2013 and December 31, 2012, respectively; no par value)
|
2,424
|
2,217
|
|||
Retained earnings
|
8,700
|
8,441
|
|||
Accumulated other comprehensive income (loss)
|
(215)
|
(376)
|
|||
Total Sempra Energy shareholders’ equity
|
10,909
|
10,282
|
|||
Preferred stock of subsidiary
|
20
|
20
|
|||
Other noncontrolling interests
|
825
|
381
|
|||
Total equity
|
11,754
|
10,683
|
|||
Total liabilities and equity
|
$
|
36,901
|
$
|
36,499
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SEMPRA ENERGY
|
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||
(Dollars in millions)
|
|||||
Nine months ended September 30,
|
|||||
2013
|
2012
|
||||
(unaudited)
|
|||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|||||
Net income
|
$
|
768
|
$
|
615
|
|
Adjustments to reconcile net income to net cash provided
|
|||||
by operating activities:
|
|||||
Depreciation and amortization
|
828
|
803
|
|||
Deferred income taxes and investment tax credits
|
327
|
(45)
|
|||
Gain on sale of assets
|
(113)
|
(7)
|
|||
Loss from plant closure
|
200
|
―
|
|||
Equity (earnings) losses
|
(34)
|
346
|
|||
Fixed-price contracts and other derivatives
|
(25)
|
1
|
|||
Other
|
23
|
(1)
|
|||
Net change in other working capital components
|
(454)
|
(373)
|
|||
Changes in other assets
|
(203)
|
202
|
|||
Changes in other liabilities
|
13
|
147
|
|||
Net cash provided by operating activities
|
1,330
|
1,688
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|||||
Expenditures for property, plant and equipment
|
(1,785)
|
(2,241)
|
|||
Expenditures for investments and acquisition of businesses, net of cash acquired
|
(21)
|
(359)
|
|||
Proceeds from sale of assets and investment
|
566
|
9
|
|||
Proceeds from U.S. Treasury grants
|
238
|
―
|
|||
Distributions from investments
|
141
|
43
|
|||
Purchases of nuclear decommissioning and other trust assets
|
(514)
|
(534)
|
|||
Proceeds from sales by nuclear decommissioning and other trusts
|
510
|
534
|
|||
Decrease in restricted cash
|
285
|
89
|
|||
Increase in restricted cash
|
(311)
|
(105)
|
|||
Other
|
(10)
|
(12)
|
|||
Net cash used in investing activities
|
(901)
|
(2,576)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|||||
Common dividends paid
|
(452)
|
(405)
|
|||
Preferred dividends paid by subsidiaries
|
(5)
|
(5)
|
|||
Issuances of common stock
|
57
|
50
|
|||
Repurchases of common stock
|
(45)
|
(16)
|
|||
Issuances of debt (maturities greater than 90 days)
|
1,404
|
2,294
|
|||
Payments on debt (maturities greater than 90 days)
|
(1,444)
|
(563)
|
|||
Proceeds from sale of noncontrolling interests, net of $25 in offering costs
|
574
|
―
|
|||
Increase (decrease) in short-term debt, net
|
81
|
(142)
|
|||
Distributions to noncontrolling interests
|
(28)
|
(36)
|
|||
Other
|
15
|
(20)
|
|||
Net cash provided by financing activities
|
157
|
1,157
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
―
|
9
|
|||
Increase in cash and cash equivalents
|
586
|
278
|
|||
Cash and cash equivalents, January 1
|
475
|
252
|
|||
Cash and cash equivalents, September 30
|
$
|
1,061
|
$
|
530
|
|
See Notes to Condensed Consolidated Financial Statements.
|
SEMPRA ENERGY
|
|||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
|
|||||
(Dollars in millions)
|
|||||
Nine months ended September 30,
|
|||||
2013
|
2012
|
||||
(unaudited)
|
|||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
|||||
Interest payments, net of amounts capitalized
|
$
|
359
|
$
|
278
|
|
Income tax payments, net of refunds
|
106
|
99
|
|||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
|
|||||
Acquisition of businesses:
|
|||||
Assets acquired
|
$
|
13
|
$
|
29
|
|
Cash paid, net of cash acquired
|
(11)
|
(19)
|
|||
Liabilities assumed
|
$
|
2
|
$
|
10
|
|
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization
|
$
|
512
|
$
|
―
|
|
Accrued capital expenditures
|
285
|
315
|
|||
Capital expenditures recoverable by U.S. Treasury grants receivable
|
3
|
136
|
|||
Sequestration of U.S. Treasury grants receivable
|
(23)
|
―
|
|||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
|
|||||
Call premium on preferred stock of subsidiary
|
$
|
3
|
$
|
―
|
|
Dividends declared but not paid
|
158
|
149
|
|||
See Notes to Condensed Consolidated Financial Statements.
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(Dollars in millions)
|
||||||||
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
(unaudited)
|
||||||||
Operating revenues
|
||||||||
Electric
|
$
|
970
|
$
|
998
|
$
|
2,685
|
$
|
2,349
|
Natural gas
|
93
|
94
|
381
|
357
|
||||
Total operating revenues
|
1,063
|
1,092
|
3,066
|
2,706
|
||||
Operating expenses
|
||||||||
Cost of electric fuel and purchased power
|
315
|
301
|
776
|
604
|
||||
Cost of natural gas
|
36
|
29
|
157
|
130
|
||||
Operation and maintenance
|
266
|
309
|
852
|
852
|
||||
Depreciation and amortization
|
126
|
128
|
367
|
359
|
||||
Franchise fees and other taxes
|
57
|
55
|
158
|
144
|
||||
Loss from plant closure
|
―
|
―
|
200
|
―
|
||||
Total operating expenses
|
800
|
822
|
2,510
|
2,089
|
||||
Operating income
|
263
|
270
|
556
|
617
|
||||
Other income, net
|
10
|
5
|
30
|
59
|
||||
Interest income
|
―
|
―
|
1
|
―
|
||||
Interest expense
|
(50)
|
(49)
|
(147)
|
(124)
|
||||
Income before income taxes
|
223
|
226
|
440
|
552
|
||||
Income tax expense
|
(84)
|
(38)
|
(147)
|
(151)
|
||||
Net income
|
139
|
188
|
293
|
401
|
||||
Earnings attributable to noncontrolling interest
|
(5)
|
(12)
|
(1)
|
(23)
|
||||
Earnings
|
134
|
176
|
292
|
378
|
||||
Call premium on preferred stock
|
(3)
|
―
|
(3)
|
―
|
||||
Preferred dividend requirements
|
(2)
|
(2)
|
(4)
|
(4)
|
||||
Earnings attributable to common shares
|
$
|
129
|
$
|
174
|
$
|
285
|
$
|
374
|
See Notes to Condensed Consolidated Financial Statements.
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
|||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||||||||||
(Dollars in millions)
|
|||||||||||||
Three months ended September 30,
|
|||||||||||||
2013
|
2012
|
||||||||||||
(unaudited)
|
|||||||||||||
Non-
|
Non-
|
||||||||||||
controlling
|
controlling
|
||||||||||||
SDG&E
|
Interest
|
Total
|
SDG&E
|
Interest
|
Total
|
||||||||
Net income
|
$
|
134
|
$
|
5
|
$
|
139
|
$
|
176
|
$
|
12
|
$
|
188
|
|
Other comprehensive income (loss), net of income tax:
|
|||||||||||||
Net actuarial gain
|
1
|
―
|
1
|
―
|
―
|
―
|
|||||||
Financial instruments
|
―
|
(1)
|
(1)
|
―
|
(4)
|
(4)
|
|||||||
Total other comprehensive income (loss)
|
1
|
(1)
|
―
|
―
|
(4)
|
(4)
|
|||||||
Total comprehensive income
|
$
|
135
|
$
|
4
|
$
|
139
|
$
|
176
|
$
|
8
|
$
|
184
|
|
Nine months ended September 30,
|
|||||||||||||
2013
|
2012
|
||||||||||||
(unaudited)
|
|||||||||||||
Non-
|
Non-
|
||||||||||||
controlling
|
controlling
|
||||||||||||
SDG&E
|
Interest
|
Total
|
SDG&E
|
Interest
|
Total
|
||||||||
Net income
|
$
|
292
|
$
|
1
|
$
|
293
|
$
|
378
|
$
|
23
|
$
|
401
|
|
Other comprehensive income (loss), net of income tax:
|
|||||||||||||
Net actuarial gain
|
2
|
―
|
2
|
―
|
―
|
―
|
|||||||
Financial instruments
|
―
|
14
|
14
|
―
|
(13)
|
(13)
|
|||||||
Total other comprehensive income (loss)
|
2
|
14
|
16
|
―
|
(13)
|
(13)
|
|||||||
Total comprehensive income
|
$
|
294
|
$
|
15
|
$
|
309
|
$
|
378
|
$
|
10
|
$
|
388
|
|
See Notes to Condensed Consolidated Financial Statements.
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
ASSETS
|
|||||
Current assets:
|
|||||
Cash and cash equivalents
|
$
|
167
|
$
|
87
|
|
Restricted cash
|
9
|
10
|
|||
Accounts receivable – trade, net
|
335
|
252
|
|||
Accounts receivable – other, net
|
36
|
21
|
|||
Due from unconsolidated affiliates
|
1
|
39
|
|||
Income taxes receivable
|
―
|
35
|
|||
Deferred income taxes
|
53
|
―
|
|||
Inventories
|
78
|
82
|
|||
Regulatory balancing accounts, net
|
346
|
395
|
|||
Regulatory assets arising from fixed-price contracts and other derivatives
|
40
|
39
|
|||
Other regulatory assets
|
48
|
10
|
|||
Fixed-price contracts and other derivatives
|
21
|
41
|
|||
Other
|
82
|
76
|
|||
Total current assets
|
1,216
|
1,087
|
|||
Other assets:
|
|||||
Restricted cash
|
21
|
22
|
|||
Deferred taxes recoverable in rates
|
755
|
718
|
|||
Regulatory assets arising from fixed-price contracts and other derivatives
|
90
|
110
|
|||
Regulatory assets arising from pension and other postretirement
|
|||||
benefit obligations
|
292
|
303
|
|||
Regulatory assets arising from wildfire litigation costs
|
339
|
364
|
|||
Other regulatory assets
|
834
|
252
|
|||
Nuclear decommissioning trusts
|
981
|
908
|
|||
Sundry
|
164
|
117
|
|||
Total other assets
|
3,476
|
2,794
|
|||
Property, plant and equipment:
|
|||||
Property, plant and equipment
|
14,049
|
14,124
|
|||
Less accumulated depreciation and amortization
|
(3,466)
|
(3,261)
|
|||
Property, plant and equipment, net ($445 and $466 at September 30, 2013 and
December 31, 2012, respectively, related to VIE)
|
10,583
|
10,863
|
|||
Total assets
|
$
|
15,275
|
$
|
14,744
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
LIABILITIES AND EQUITY
|
|||||
Current liabilities:
|
|||||
Accounts payable
|
$
|
320
|
$
|
300
|
|
Due to unconsolidated affiliates
|
13
|
19
|
|||
Income taxes payable
|
30
|
―
|
|||
Deferred income taxes
|
―
|
26
|
|||
Dividends and interest payable
|
53
|
36
|
|||
Accrued compensation and benefits
|
82
|
129
|
|||
Current portion of long-term debt
|
45
|
16
|
|||
Fixed-price contracts and other derivatives
|
45
|
56
|
|||
Customer deposits
|
71
|
60
|
|||
Construction deposits
|
8
|
51
|
|||
Reserve for wildfire litigation
|
127
|
305
|
|||
Preferred stock pending redemption
|
82
|
―
|
|||
Other
|
213
|
106
|
|||
Total current liabilities
|
1,089
|
1,104
|
|||
Long-term debt ($327 and $335 at September 30, 2013 and December 31, 2012,
respectively, related to VIE)
|
4,527
|
4,292
|
|||
Deferred credits and other liabilities:
|
|||||
Customer advances for construction
|
24
|
17
|
|||
Pension and other postretirement benefit obligations, net of plan assets
|
328
|
340
|
|||
Deferred income taxes
|
1,872
|
1,636
|
|||
Deferred investment tax credits
|
24
|
25
|
|||
Regulatory liabilities arising from removal obligations
|
1,347
|
1,603
|
|||
Asset retirement obligations
|
901
|
733
|
|||
Fixed-price contracts and other derivatives
|
183
|
209
|
|||
Deferred credits and other
|
392
|
408
|
|||
Total deferred credits and other liabilities
|
5,071
|
4,971
|
|||
Contingently redeemable preferred stock
|
―
|
79
|
|||
Commitments and contingencies (Note 10)
|
|||||
Equity:
|
|||||
Common stock (255 million shares authorized; 117 million shares outstanding;
|
|||||
no par value)
|
1,338
|
1,338
|
|||
Retained earnings
|
3,180
|
2,895
|
|||
Accumulated other comprehensive income (loss)
|
(9)
|
(11)
|
|||
Total SDG&E shareholder's equity
|
4,509
|
4,222
|
|||
Noncontrolling interest
|
79
|
76
|
|||
Total equity
|
4,588
|
4,298
|
|||
Total liabilities and equity
|
$
|
15,275
|
$
|
14,744
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SAN DIEGO GAS & ELECTRIC COMPANY
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
(Dollars in millions)
|
||||
Nine months ended
September 30,
|
||||
2013
|
2012
|
|||
(unaudited)
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||
Net income
|
$
|
293
|
$
|
401
|
Adjustments to reconcile net income to net cash provided by
|
||||
operating activities:
|
||||
Depreciation and amortization
|
367
|
359
|
||
Deferred income taxes and investment tax credits
|
100
|
262
|
||
Loss from plant closure
|
200
|
―
|
||
Fixed-price contracts and other derivatives
|
(7)
|
(9)
|
||
Other
|
(9)
|
(55)
|
||
Net change in other working capital components
|
(284)
|
(518)
|
||
Changes in other assets
|
(164)
|
201
|
||
Changes in other liabilities
|
13
|
129
|
||
Net cash provided by operating activities
|
509
|
770
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||
Expenditures for property, plant and equipment
|
(679)
|
(998)
|
||
Proceeds from sale of assets
|
8
|
―
|
||
Purchases of nuclear decommissioning trust assets
|
(511)
|
(530)
|
||
Proceeds from sales by nuclear decommissioning trusts
|
507
|
524
|
||
Decrease in restricted cash
|
54
|
74
|
||
Increase in restricted cash
|
(52)
|
(62)
|
||
Other
|
(5)
|
―
|
||
Net cash used in investing activities
|
(678)
|
(992)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||
Capital distribution at Otay Mesa VIE
|
(12)
|
(22)
|
||
Preferred dividends paid
|
(4)
|
(4)
|
||
Issuances of long-term debt
|
450
|
249
|
||
Payments on long-term debt
|
(183)
|
(7)
|
||
Increase in short-term debt, net
|
―
|
2
|
||
Other
|
(2)
|
(3)
|
||
Net cash provided by financing activities
|
249
|
215
|
||
Increase (decrease) in cash and cash equivalents
|
80
|
(7)
|
||
Cash and cash equivalents, January 1
|
87
|
29
|
||
Cash and cash equivalents, September 30
|
$
|
167
|
$
|
22
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||
Interest payments, net of amounts capitalized
|
$
|
127
|
$
|
96
|
Income tax payments (refunds), net
|
33
|
(121)
|
||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
|
||||
Nuclear facility plant reclassified to regulatory asset, net of depreciation and amortization
|
$
|
512
|
$
|
―
|
Accrued capital expenditures
|
108
|
87
|
||
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES
|
||||
Call premium on preferred stock
|
$
|
3
|
$
|
―
|
Dividends declared but not paid
|
1
|
1
|
||
See Notes to Condensed Consolidated Financial Statements.
|
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(Dollars in millions)
|
||||||||
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
(unaudited)
|
||||||||
Operating revenues
|
$
|
807
|
$
|
728
|
$
|
2,694
|
$
|
2,328
|
Operating expenses
|
||||||||
Cost of natural gas
|
209
|
175
|
966
|
703
|
||||
Operation and maintenance
|
314
|
316
|
936
|
933
|
||||
Depreciation and amortization
|
100
|
91
|
280
|
268
|
||||
Franchise fees and other taxes
|
29
|
27
|
95
|
91
|
||||
Total operating expenses
|
652
|
609
|
2,277
|
1,995
|
||||
Operating income
|
155
|
119
|
417
|
333
|
||||
Other income, net
|
2
|
6
|
9
|
14
|
||||
Interest expense
|
(17)
|
(17)
|
(52)
|
(51)
|
||||
Income before income taxes
|
140
|
108
|
374
|
296
|
||||
Income tax expense
|
(38)
|
(37)
|
(107)
|
(105)
|
||||
Net income
|
102
|
71
|
267
|
191
|
||||
Preferred dividend requirements
|
―
|
―
|
(1)
|
(1)
|
||||
Earnings attributable to common shares
|
$
|
102
|
$
|
71
|
$
|
266
|
$
|
190
|
See Notes to Condensed Consolidated Financial Statements.
|
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
|
|||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
|||||
(Dollars in millions)
|
|||||
Three months ended September 30,
|
|||||
2013
|
2012
|
||||
(unaudited)
|
|||||
Net income
|
$
|
102
|
$
|
71
|
|
Total other comprehensive income, net of income tax
|
―
|
―
|
|||
Total comprehensive income
|
$
|
102
|
$
|
71
|
|
Nine months ended September 30,
|
|||||
2013
|
2012
|
||||
(unaudited)
|
|||||
Net income
|
$
|
267
|
$
|
191
|
|
Other comprehensive income, net of income tax:
|
|||||
Financial instruments
|
1
|
1
|
|||
Total other comprehensive income
|
1
|
1
|
|||
Total comprehensive income
|
$
|
268
|
$
|
192
|
|
See Notes to Condensed Consolidated Financial Statements.
|
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
ASSETS
|
|||||
Current assets:
|
|||||
Cash and cash equivalents
|
$
|
15
|
$
|
83
|
|
Accounts receivable – trade, net
|
314
|
539
|
|||
Accounts receivable – other, net
|
77
|
51
|
|||
Due from unconsolidated affiliates
|
14
|
24
|
|||
Income taxes receivable
|
139
|
104
|
|||
Deferred income taxes
|
―
|
3
|
|||
Inventories
|
177
|
151
|
|||
Regulatory assets
|
4
|
4
|
|||
Other
|
34
|
35
|
|||
Total current assets
|
774
|
994
|
|||
Other assets:
|
|||||
Regulatory assets arising from pension and other postretirement
|
|||||
benefit obligations
|
869
|
835
|
|||
Other regulatory assets
|
267
|
148
|
|||
Sundry
|
125
|
77
|
|||
Total other assets
|
1,261
|
1,060
|
|||
Property, plant and equipment:
|
|||||
Property, plant and equipment
|
11,558
|
11,187
|
|||
Less accumulated depreciation and amortization
|
(4,305)
|
(4,170)
|
|||
Property, plant and equipment, net
|
7,253
|
7,017
|
|||
Total assets
|
$
|
9,288
|
$
|
9,071
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|||||
(Dollars in millions)
|
|||||
September 30,
|
December 31,
|
||||
2013
|
2012(1)
|
||||
(unaudited)
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||
Current liabilities:
|
|||||
Accounts payable – trade
|
$
|
256
|
$
|
383
|
|
Accounts payable – other
|
81
|
82
|
|||
Due to unconsolidated affiliate
|
20
|
37
|
|||
Deferred income taxes
|
32
|
―
|
|||
Accrued compensation and benefits
|
118
|
116
|
|||
Regulatory balancing accounts, net
|
82
|
141
|
|||
Current portion of long-term debt
|
252
|
4
|
|||
Customer deposits
|
76
|
76
|
|||
Other
|
124
|
124
|
|||
Total current liabilities
|
1,041
|
963
|
|||
Long-term debt
|
1,159
|
1,409
|
|||
Deferred credits and other liabilities:
|
|||||
Customer advances for construction
|
107
|
111
|
|||
Pension and other postretirement benefit obligations, net of plan assets
|
888
|
855
|
|||
Deferred income taxes
|
978
|
881
|
|||
Deferred investment tax credits
|
19
|
20
|
|||
Regulatory liabilities arising from removal obligations
|
1,178
|
1,103
|
|||
Asset retirement obligations
|
1,170
|
1,238
|
|||
Deferred credits and other
|
296
|
256
|
|||
Total deferred credits and other liabilities
|
4,636
|
4,464
|
|||
Commitments and contingencies (Note 10)
|
|||||
Shareholders' equity:
|
|||||
Preferred stock
|
22
|
22
|
|||
Common stock (100 million shares authorized; 91 million shares outstanding;
|
|||||
no par value)
|
866
|
866
|
|||
Retained earnings
|
1,581
|
1,365
|
|||
Accumulated other comprehensive income (loss)
|
(17)
|
(18)
|
|||
Total shareholders' equity
|
2,452
|
2,235
|
|||
Total liabilities and shareholders' equity
|
$
|
9,288
|
$
|
9,071
|
|
(1)
|
Derived from audited financial statements.
|
||||
See Notes to Condensed Consolidated Financial Statements.
|
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||
(Dollars in millions)
|
||||
Nine months ended September 30,
|
||||
2013
|
2012
|
|||
(unaudited)
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||
Net income
|
$
|
267
|
$
|
191
|
Adjustments to reconcile net income to net cash provided by
|
||||
operating activities:
|
||||
Depreciation and amortization
|
280
|
268
|
||
Deferred income taxes and investment tax credits
|
72
|
39
|
||
Other
|
(6)
|
(9)
|
||
Net change in other working capital components
|
(56)
|
240
|
||
Changes in other assets
|
(65)
|
4
|
||
Changes in other liabilities
|
(5)
|
13
|
||
Net cash provided by operating activities
|
487
|
746
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||
Expenditures for property, plant and equipment
|
(521)
|
(462)
|
||
Decrease (increase) in loans to affiliates, net
|
17
|
(257)
|
||
Net cash used in investing activities
|
(504)
|
(719)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||
Issuances of long-term debt
|
―
|
348
|
||
Common dividends paid
|
(50)
|
(150)
|
||
Preferred dividends paid
|
(1)
|
(1)
|
||
Debt issuance costs
|
―
|
(3)
|
||
Net cash (used in) provided by financing activities
|
(51)
|
194
|
||
(Decrease) increase in cash and cash equivalents
|
(68)
|
221
|
||
Cash and cash equivalents, January 1
|
83
|
36
|
||
Cash and cash equivalents, September 30
|
$
|
15
|
$
|
257
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
||||
Interest payments, net of amounts capitalized
|
$
|
44
|
$
|
36
|
Income tax payments, net of refunds
|
66
|
46
|
||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES
|
||||
Accrued capital expenditures
|
$
|
97
|
$
|
69
|
See Notes to Condensed Consolidated Financial Statements.
|
§
|
San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), which are separate, reportable segments;
|
§
|
Sempra International, which includes our Sempra South American Utilities and Sempra Mexico reportable segments; and
|
§
|
Sempra U.S. Gas & Power, which includes our Sempra Renewables and Sempra Natural Gas reportable segments.
|
(Dollars in millions)
|
Copper Mountain Solar 2
|
Mesquite Solar 1
|
|||
Proceeds from sale, net of transaction costs(1)
|
$
|
68
|
$
|
100
|
|
Property, plant and equipment, net
|
(266)
|
(461)
|
|||
Other assets
|
(30)
|
(72)
|
|||
Long-term debt, including current portion
|
146
|
297
|
|||
Other liabilities
|
19
|
31
|
|||
Gain on sale of assets
|
(4)
|
(36)
|
|||
Equity method investments upon deconsolidation
|
$
|
(67)
|
$
|
(141)
|
|
(1)
|
Transaction costs were $3 million at both Copper Mountain Solar 2 and Mesquite Solar 1.
|
INVENTORY BALANCES
|
|||||||||||||||||
(Dollars in millions)
|
|||||||||||||||||
Natural Gas
|
Liquefied Natural Gas
|
Materials and Supplies
|
Total
|
||||||||||||||
September 30, 2013
|
December 31, 2012
|
September 30, 2013
|
December 31, 2012
|
September 30, 2013
|
December 31, 2012
|
September 30, 2013
|
December 31, 2012
|
||||||||||
SDG&E
|
$
|
5
|
$
|
3
|
$
|
―
|
$
|
―
|
$
|
73
|
$
|
79
|
$
|
78
|
$
|
82
|
|
SoCalGas
|
150
|
128
|
―
|
―
|
27
|
23
|
177
|
151
|
|||||||||
Sempra South American
|
|||||||||||||||||
Utilities
|
―
|
―
|
―
|
―
|
43
|
34
|
43
|
34
|
|||||||||
Sempra Mexico
|
―
|
―
|
3
|
8
|
16
|
8
|
19
|
16
|
|||||||||
Sempra Renewables
|
―
|
―
|
―
|
―
|
2
|
3
|
2
|
3
|
|||||||||
Sempra Natural Gas
|
133
|
109
|
5
|
8
|
6
|
5
|
144
|
122
|
|||||||||
Sempra Energy
|
|||||||||||||||||
Consolidated
|
$
|
288
|
$
|
240
|
$
|
8
|
$
|
16
|
$
|
167
|
$
|
152
|
$
|
463
|
$
|
408
|
|
§
|
the purpose and design of the VIE;
|
§
|
the nature of the VIE’s risks and the risks we absorb;
|
§
|
the power to direct activities that most significantly impact the economic performance of the VIE; and
|
§
|
the obligation to absorb losses or right to receive benefits that could be significant to the VIE.
|
AMOUNTS ASSOCIATED WITH OTAY MESA VIE
|
||||||||
(Dollars in millions)
|
||||||||
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||
2013
|
2012
|
2013
|
2012
|
|||||
Operating revenues
|
||||||||
Electric
|
$
|
(4)
|
$
|
―
|
$
|
―
|
$
|
―
|
Natural gas
|
―
|
―
|
―
|
―
|
||||
Total operating revenues
|
(4)
|
―
|
―
|
―
|
||||
Operating expenses
|
||||||||
Cost of electric fuel and purchased power
|
(27)
|
(26)
|
(65)
|
(66)
|
||||
Operation and maintenance
|
7
|
4
|
33
|
15
|
||||
Depreciation and amortization
|
7
|
7
|
20
|
19
|
||||
Total operating expenses
|
(13)
|
(15)
|
(12)
|
(32)
|
||||
Operating income
|
9
|
15
|
12
|
32
|
||||
Other loss, net
|
―
|
―
|
―
|
(1)
|
||||
Interest expense
|
(4)
|
(3)
|
(11)
|
(8)
|
||||
Income before income taxes/Net income
|
5
|
12
|
1
|
23
|
||||
Earnings attributable to noncontrolling interest
|
(5)
|
(12)
|
(1)
|
(23)
|
||||
Earnings
|
$
|
―
|
$
|
―
|
$
|
―
|
$
|
―
|
CHANGES IN ASSET RETIREMENT OBLIGATIONS
|
|||||||||||||||
(Dollars in millions)
|
|||||||||||||||