SDG&E 8-K 5/02/2014



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 8-K

CURRENT REPORT



Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

  

  

  

  

Date of Report

 

(Date of earliest event reported):

May 2, 2014


  

  

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)

  

  

CALIFORNIA

 

1-03779

 

95-1184800

(State or other jurisdiction of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

  

  

8326 CENTURY PARK COURT, SAN DIEGO, CALIFORNIA

 

92123

(Address of principal executive offices)

 

(Zip Code)

  

  


Registrant's telephone number, including area code

(619) 696-2000

  

  

 

(Former name or former address, if changed since last report.)

  

  





  

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 


  







FORM 8-K


Item 2.02   Results of Operations and Financial Condition.


The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.


On May 2, 2014, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated earnings of $247 million, or $0.99 per diluted share of common stock, for the first quarter of 2014. The press release has been posted on Sempra Energy’s website (www.sempra.com) and a copy is attached as Exhibit 99.1.


Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Statement of Operations Data by Segment for the three months ended March 31, 2014 and 2013. A copy of such information is attached as Exhibit 99.2.


The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding San Diego Gas & Electric Company’s results of operations and financial condition.



Item 9.01  Financial Statements and Exhibits.  

  

         Exhibits  


          99.1

May 2, 2014 Sempra Energy News Release (including tables).


          99.2

Sempra Energy’s Statement of Operations Data by Segment for the three months ended March 31, 2014 and 2013.







SIGNATURE

  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.  

  

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

  

  


Date: May 2, 2014

By:  /s/ Robert Schlax

 

Robert Schlax
Vice President, Controller and Chief Financial Officer

 

  







Exhibit 99.1

Exhibit 99.1





NEWS RELEASE



Media Contact:

Doug Kline

Sempra Energy

(877) 340-8875

dkline@sempra.com

www.sempra.com

 

Financial Contact:

Kendall Helm

Sempra Energy

(877) 736-7727

investor@sempra.com



SEMPRA ENERGY REPORTS HIGHER

 FIRST-QUARTER 2014 EARNINGS


· Company Reaffirms 2014 Earnings-per-Share Guidance of $4.25 to $4.55

· Cameron LNG Export Project Completes Federal Environmental Review


SAN DIEGO, May 2, 2014 – Sempra Energy (NYSE: SRE) today reported first-quarter 2014 earnings of $247 million, or $0.99 per diluted share, compared with first-quarter 2013 earnings of $178 million, or $0.72 per diluted share.

Excluding a $9 million after-tax charge related to the closure of the San Onofre Nuclear Generating Station (SONGS), Sempra Energy’s adjusted earnings were $256 million, or $1.03 per diluted share, in the first quarter 2014.  

“We are seeing year-over-year earnings growth consistent with our expectations,” said Debra L. Reed, chairman and CEO of Sempra Energy. “We are on track to meet our 2014 earnings guidance. Our Cameron LNG liquefaction-export project continues to make strong progress toward the start of construction later this year and we have several large projects in Mexico and Peru coming online in the second half of 2014.”  

Earlier this week, Cameron LNG received notice that it had completed the environmental review process with the Federal Energy Regulatory Commission. Also, in March, Cameron LNG awarded a construction contract to a joint venture between CB&I and Chiyoda International Corp. Construction on the project is expected to begin later this year, with commercial operations slated to start in 2018.


CALIFORNIA UTILITIES

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) increased to $78 million in the first quarter 2014 from $46 million in last year’s first quarter, due primarily to higher California Public Utilities Commission (CPUC) base operating margin.  

The CPUC General Rate Case decision was delayed until the second quarter last year, so neither SoCalGas nor San Diego Gas & Electric (SDG&E) recorded revenue from that decision in the first quarter 2013.


San Diego Gas & Electric

First-quarter earnings for SDG&E were $99 million in 2014, compared with $91 million in 2013, due to improved CPUC base operating margin and the delay in the General Rate Case decision, offset by the $9 million SONGS charge.

On March 27, SDG&E and Southern California Edison announced that they reached a settlement agreement with key parties on the closure of SONGS. If approved by the CPUC, the agreement resolves all outstanding cost issues related to the plant closure and allows for recovery of replacement power costs, operating and maintenance expenses, and the companies’ non-steam generator replacement investment.


SEMPRA INTERNATIONAL

Sempra South American Utilities

Sempra South American Utilities had earnings of $35 million in the first quarter 2014, compared with $37 million in the first quarter 2013.     


Sempra Mexico

Sempra Mexico’s earnings increased to $42 million in the first quarter 2014 from $31 million in last year’s first quarter, due primarily to regulatory earnings for pipeline projects under construction and lower income-tax expense.

On April 21, Sempra Energy’s Mexican subsidiary IEnova announced that it has finalized an agreement to sell InterGen 50 percent of the 155-megawatt Energía Sierra Juárez wind-generation project. The project, which has a 20-year power-purchase agreement with SDG&E, is expected to begin commercial operations in 2015.


SEMPRA U.S. GAS & POWER

Sempra Renewables

Sempra Renewables had first-quarter 2014 earnings of $28 million, compared with $4 million in the first quarter 2013, due primarily to the sale of a 50-percent equity interest in the Copper Mountain Solar 3 project.


Sempra Natural Gas

Earnings for Sempra Natural Gas were $9 million in the first quarter 2014, compared with $53 million in the first quarter 2013. In last year’s first quarter, Sempra Natural Gas recorded a $44 million gain related to the sale of half of the Mesquite Power natural gas-fired power plant.  


NON-GAAP FINANCIAL MEASURES

Adjusted first-quarter 2014 earnings and earnings per share are non-GAAP financial measures. Additional information regarding these non-GAAP financial measures is in the appendix on Table A of the first-quarter financial tables.


INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2722529.







Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2013 revenues of more than $10.5 billion. The Sempra Energy companies’ 17,000 employees serve more than 31 million consumers worldwide.


###


This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “plans,” “estimates,”  “projects,” “forecasts,” “contemplates,” “intends,” “depends,” “should,” “could,” “would,” “will,” “may,” “potential,” “target,” “pursue,” “goals,” “outlook,” “maintain” or similar expressions, or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions, including issuances of permits to construct and licenses for operation, 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 in obtaining permits, licenses, certificates and other authorizations on a timely basis and risks in obtaining adequate and competitive financing for such projects; 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 and 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 that partners or counterparties will be unable or unwilling to fulfill their contractual commitments; 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 that threaten system operations and critical infrastructure, and cybersecurity threats to the energy grid and the confidentiality of proprietary information and the personal information of customers;  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 amount and variability of 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 San Diego Gas & Electric Company’s 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 the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.


Investors should not rely unduly on any forward-looking statement. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.


Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not regulated by the California Public Utilities Commission. Sempra International’s underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power’s underlying entities include Sempra Renewables and Sempra Natural Gas.








SEMPRA ENERGY

 

Table A

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

Three months ended March 31,

 

(Dollars in millions, except per share amounts)

2014

 

2013

 

 

 

 

REVENUES

 

 

 

 

Utilities

$           2,485

 

$           2,334

 

Energy-related businesses

310

 

316

 

    Total revenues

2,795

 

2,650

 

EXPENSES AND OTHER INCOME

 

 

 

 

Utilities:

 

 

 

 

    Cost of natural gas

(620)

 

(556)

 

    Cost of electric fuel and purchased power

(510)

 

(447)

 

Energy-related businesses:

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(138)

 

(111)

 

    Other cost of sales

(38)

 

(48)

 

Operation and maintenance

(676)

 

(724)

 

Depreciation and amortization

(286)

 

(295)

 

Franchise fees and other taxes

(105)

 

(106)

 

Gain on sale of equity interest and assets

27

 

74

 

Adjustment to loss from plant closure

13

 

-

 

Equity earnings, before income tax

17

 

10

 

Other income, net

40

 

37

 

Interest income

4

 

6

 

Interest expense

(136)

 

(138)

 

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

387

 

352

 

Income tax expense

(127)

 

(178)

 

Equity earnings, net of income tax

6

 

4

 

Net income

266

 

178

 

(Earnings) losses attributable to noncontrolling interests

(19)

 

2

 

Preferred dividends of subsidiaries

-

 

(2)

 

Earnings

$             247

 

$             178

 

 

 

 

 

 

Basic earnings per common share

$            1.01

 

$            0.73

 

Weighted-average number of shares outstanding, basic (thousands)

245,277

 

243,294

 

 

 

 

 

 

Diluted earnings per common share

$            0.99

 

$            0.72

 

Weighted-average number of shares outstanding, diluted (thousands)

249,669

 

247,534

 

 

 

 

 

 

Dividends declared per share of common stock

$            0.66

 

$            0.63

 

 

 

 

 

 






SEMPRA ENERGY

Table A (Continued)

 

 

 

 

 

 

 

Sempra Energy Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SEMPRA ENERGY GAAP EARNINGS TO SEMPRA ENERGY ADJUSTED EARNINGS

 

 

 

EXCLUDING 2014 ADJUSTMENT TO LOSS FROM 2013 PLANT CLOSURE (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

In the first quarter of 2014, Sempra Energy Adjusted Earnings and Adjusted Diluted Earnings Per Common Share exclude a $9 million charge ($0.04 per diluted share) to adjust the loss from plant closure (in addition to the amount recorded in the second quarter of 2013) associated with the investment in the San Onofre Nuclear Generating Station (SONGS) based upon a proposed settlement agreement filed with the California Public Utilities Commission (CPUC) in April 2014. These are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States of America). Because of the significance and nature of the excluded charge, management believes that these non-GAAP financial measures provide a more meaningful comparison of the performance of Sempra Energy's business operations from 2014 to 2013 and to future periods, and also as a base for projection of future compounded annual growth rate. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

 

(Dollars in millions, except per share amounts)

2014

 

2013

 

 

 

Sempra Energy GAAP Earnings

$              247

 

$              178

 

 

 

Add: 2014 adjustment to loss from 2013 plant closure

9

 

-

 

 

 

Sempra Energy Adjusted Earnings

$              256

 

$              178

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

Sempra Energy GAAP Earnings

$             0.99

 

$             0.72

 

 

 

Sempra Energy Adjusted Earnings

$             1.03

 

$             0.72

 

 

 

Weighted-average number of shares outstanding, diluted (thousands)

249,669

 

247,534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Diego Gas & Electric Company (SDG&E)

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF SDG&E GAAP EARNINGS TO ADJUSTED EARNINGS

 

 

 

 

 

EXCLUDING 2014 ADJUSTMENT TO LOSS FROM 2013 PLANT CLOSURE (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

SDG&E Adjusted Earnings excluding a $9 million charge in the first quarter of 2014 to adjust the loss from plant closure (in addition to the amount recorded in the second quarter of 2013) associated with SDG&E’s investment in SONGS based upon a proposed settlement agreement filed with the CPUC in April 2014 is a non-GAAP financial measure. Because of the significance and nature of this item, management believes that this non-GAAP financial measure provides a more meaningful comparison of the performance of SDG&E's business operations from 2014 to 2013 and to future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods this non-GAAP financial measure to SDG&E Earnings, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP.

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

(Dollars in millions)

2014

 

2013

 

 

 

SDG&E GAAP Earnings

$                99

 

$                91

 

 

 

Add: 2014 adjustment to loss from 2013 plant closure

9

 

-

 

 

 

SDG&E Adjusted Earnings

$              108

 

$                91

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table B

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

(Dollars in millions)

2014

 

2013(1)

 

 

 

 

 

(unaudited)

 

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 $               844

 

 $               904

 

 

Restricted cash

                    26

 

                    24

 

 

Accounts receivable, net

               1,405

 

               1,522

 

 

Due from unconsolidated affiliates

                     2

 

                     4

 

 

Income taxes receivable

                    88

 

                    85

 

 

Deferred income taxes

                  375

 

                  301

 

 

Inventories

                  197

 

                  287

 

 

Regulatory balancing accounts – undercollected

                  665

 

                  556

 

 

Other regulatory assets

                    35

 

                    38

 

 

Fixed-price contracts and other derivatives

                  114

 

                  106

 

 

Asset held for sale, power plant

                  293

 

                      -

 

 

Other

                  180

 

                  170

 

 

 

 

Total current assets

               4,224

 

               3,997

 

 

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

 

Restricted cash

                    27

 

                    25

 

 

Due from unconsolidated affiliate

                    31

 

                    14

 

 

Regulatory assets arising from pension and other postretirement benefit obligations

                  454

 

                  435

 

 

Other regulatory assets

               2,039

 

               2,113

 

 

Nuclear decommissioning trusts

               1,055

 

               1,034

 

 

Investments

               1,634

 

               1,575

 

 

Goodwill

                  999

 

               1,024

 

 

Other intangible assets

                  423

 

                  426

 

 

Sundry

               1,146

 

               1,141

 

 

 

 

Total investments and other assets

               7,808

 

               7,787

 

Property, plant and equipment, net

             25,452

 

             25,460

 

Total assets

 $           37,484

 

 $           37,244

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term debt

 $            1,084

 

 $               545

 

 

Accounts payable

               1,200

 

               1,215

 

 

Dividends and interest payable

                  322

 

                  271

 

 

Accrued compensation and benefits

                  260

 

                  376

 

 

Regulatory balancing accounts – overcollected

                    88

 

                    91

 

 

Current portion of long-term debt

                    97

 

               1,147

 

 

Fixed-price contracts and other derivatives

                    54

 

                    55

 

 

Customer deposits

                  155

 

                  154

 

 

Other

                  615

 

                  515

 

 

 

 

Total current liabilities

               3,875

 

               4,369

 

Long-term debt

             11,700

 

             11,253

 

 

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

 

Customer advances for construction

                  158

 

                  155

 

 

Pension and other postretirement benefit obligations, net of plan assets

                  679

 

                  667

 

 

Deferred income taxes

               2,958

 

               2,804

 

 

Deferred investment tax credits

                    41

 

                    42

 

 

Regulatory liabilities arising from removal obligations

               2,624

 

               2,623

 

 

Asset retirement obligations

               2,127

 

               2,084

 

 

Fixed-price contracts and other derivatives

                  238

 

                  228

 

 

Deferred credits and other

               1,195

 

               1,169

 

 

 

 

Total deferred credits and other liabilities

             10,020

 

               9,772

 

Equity:

 

 

 

 

 

Total Sempra Energy shareholders’ equity

             11,040

 

             11,008

 

 

Preferred stock of subsidiary

                    20

 

                    20

 

 

Other noncontrolling interests

                  829

 

                  822

 

 

 

 

Total equity

             11,889

 

             11,850

 

Total liabilities and equity

 $           37,484

 

 $           37,244

 

 

 

 

 

 

 

 

 

(1)

Derived from audited financial statements.

 






SEMPRA ENERGY

 

Table C

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

(Dollars in millions)

 

2014

 

2013

 

 

 

 

(unaudited)

 

Cash Flows from Operating Activities

 

 

 

 

 

Net income

 $

266

 $

178

 

Adjustments to reconcile net income to net cash provided

 

 

 

 

 

  by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

286

 

295

 

 

Deferred income taxes and investment tax credits

 

95

 

252

 

 

Gain on sale of equity interest and assets

 

(27)

 

(74)

 

 

Adjustment to loss from plant closure

 

(13)

 

 

 

Equity earnings

 

(23)

 

(14)

 

 

Fixed-price contracts and other derivatives

 

(3)

 

17

 

 

Other

 

(24)

 

6

 

Net change in other working capital components

 

234

 

149

 

Changes in other assets

 

94

 

17

 

Changes in other liabilities

 

19

 

9

 

 

Net cash provided by operating activities

 

904

 

835

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities

 

 

 

 

 

Expenditures for property, plant and equipment

 

(801)

 

(531)

 

Expenditures for investments

 

(12)

 

(5)

 

Proceeds from sale of equity interest and assets, net of cash sold

 

66

 

371

 

Distributions from investments

 

3

 

15

 

Purchases of nuclear decommissioning and other trust assets

 

(198)

 

(136)

 

Proceeds from sales by nuclear decommissioning and other trusts

 

195

 

134

 

Decrease in restricted cash

 

23

 

52

 

Increase in restricted cash

 

(27)

 

(60)

 

Advances to unconsolidated affiliates

 

(17)

 

 

Other

 

(2)

 

(2)

 

 

Net cash used in investing activities

 

(770)

 

(162)

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

Common dividends paid

 

(154)

 

(145)

 

Preferred dividends paid by subsidiaries

 

 

(2)

 

Issuances of common stock

 

11

 

15

 

Repurchases of common stock

 

(37)

 

(45)

 

Issuances of debt (maturities greater than 90 days)

 

1,188

 

608

 

Payments on debt (maturities greater than 90 days)

 

(1,138)

 

(645)

 

Proceeds from sale of noncontrolling interests, net of $25 in offering costs

 

 

574

 

Decrease in short-term debt, net

 

(69)

 

(43)

 

Other

 

6

 

3

 

 

Net cash (used in) provided by financing activities

 

(193)

 

320

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(1)

 

3

 

 

 

 

 

 

 

 

(Decrease) increase in cash and cash equivalents

 

(60)

 

996

 

Cash and cash equivalents, January 1

 

904

 

475

 

Cash and cash equivalents, March 31

 $

844

 $

1,471

 

 

 

 

 

 

 

 






SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

(Dollars in millions)

2014

 

2013

 

 

 

 

 

    (unaudited)

 

 

Earnings (Losses)

 

 

 

 

 

California Utilities:

 

 

 

 

 

San Diego Gas & Electric

$                99

 

$             91

 

 

Southern California Gas

78

 

46

 

 

Sempra International:

 

 

 

 

 

Sempra South American Utilities

35

 

37

 

 

Sempra Mexico

42

 

31

 

 

Sempra U.S. Gas & Power:

 

 

 

 

 

Sempra Renewables

28

 

4

 

 

Sempra Natural Gas

9

 

53

 

 

Parent and other

(44)

 

(84)

 

 

Earnings

$              247

 

$            178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

(Dollars in millions)

2014

 

2013

 

 

 

 

 

    (unaudited)

 

 

Capital Expenditures and Investments

 

 

 

 

 

California Utilities:

 

 

 

 

 

San Diego Gas & Electric

$              294

 

$            237

 

 

Southern California Gas

260

 

179

 

 

Sempra International:

 

 

 

 

 

Sempra South American Utilities

32

 

22

 

 

Sempra Mexico

75

 

61

 

 

Sempra U.S. Gas & Power:

 

 

 

 

 

Sempra Renewables

111

 

11

 

 

Sempra Natural Gas

40

 

26

 

 

Parent and other

1

 

-

 

 

Consolidated Capital Expenditures and Investments

$              813

 

$            536

 

 

 

 

 

 

 

 

 

 






SEMPRA ENERGY

 

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

UTILITIES

 

2014

 

2013

 

 

 

 

 

 

 

California Utilities - SDG&E and SoCalGas

 

 

 

 

 

Gas Sales (bcf)(1)

 

              112

 

              140

 

Transportation (bcf)(1)

 

              162

 

              168

 

Total Deliveries (bcf)(1)

 

              274

 

              308

 

Total Gas Customers (Thousands)

 

            6,714

 

            6,685

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)(1)

 

            3,897

 

            4,024

 

Direct Access (Millions of kWhs)

 

              888

 

              835

 

Total Deliveries (Millions of kWhs)(1)

 

            4,785

 

            4,859

 

Total Electric Customers (Thousands)

 

            1,410

 

            1,403

 

 

 

 

 

 

 

 

 

Other Utilities

 

 

 

 

 

Natural Gas Sales (bcf)

 

 

 

 

 

 

Mexico

 

                  6

 

                  6

 

 

Mobile Gas(2)

 

                11

 

                11

 

 

Willmut Gas

 

                  1

 

                  1

 

Natural Gas Customers (Thousands)

 

 

 

 

 

 

Mexico

 

              101

 

                94

 

 

Mobile Gas

 

                88

 

                89

 

 

Willmut Gas

 

                20

 

                20

 

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

Peru

 

            1,851

 

            1,746

 

 

Chile

 

              788

 

              761

 

Electric Customers (Thousands)

 

 

 

 

 

 

Peru

 

            1,005

 

              968

 

 

Chile

 

              644

 

              628

 

 

 

 

 

 

 

 

 

ENERGY-RELATED BUSINESSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra International

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

Sempra Mexico

 

            1,102

 

            1,099

 

 

 

 

 

 

 

 

 

Sempra U.S. Gas & Power

 

 

 

 

 

Power Sold (Millions of kWhs)

 

 

 

 

 

 

Sempra Renewables(3)

 

              638

 

              698

 

 

Sempra Natural Gas(4)

 

            1,252

 

            1,132

 

 

 

 

 

 

 

 

 

(1)

Includes intercompany sales.

 

 

 

 

 

(2)

Includes transportation.

 

(3)

Includes 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

 

(4)

Sempra Natural Gas sold one 625-megawatt (MW) block of its 1,250-MW Mesquite Power natural gas-fired power plant in February 2013.

 

 

 

 

 

 

 

 

 




Exhibit 99.2

Exhibit 99.2



 

         SEMPRA ENERGY

 

 

           Table F (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations Data by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          987

 

$    1,085

 

$            378

 

$           201

 

$              6

 

$         260

 

$               (122)

 

 

$     2,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(649)

 

(851)

 

(301)

 

(135)

 

(12)

 

(243)

 

104

 

 

(2,087)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(130)

 

(105)

 

(14)

 

(16)

 

(1)

 

(17)

 

(3)

 

 

(286)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of equity interest

 

-

 

-

 

-

 

-

 

27

 

-

 

-

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment to loss from plant closure

 

13

(1)

-

 

-

 

-

 

-

 

-

 

-

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

2

 

15

 

-

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

13

 

4

 

1

 

10

 

-

 

1

 

11

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before interest and tax (2)

 

234

 

133

 

64

 

60

 

22

 

16

 

(10)

 

 

519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(50)

 

(17)

 

(5)

 

(4)

 

-

 

(1)

 

(55)

 

 

(132)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(83)

 

(38)

 

(15)

 

(12)

 

6

 

(6)

 

21

 

 

(127)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(2)

 

8

 

-

 

-

 

-

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings attributable to noncontrolling interests

 

(2)

 

-

 

(7)

 

(10)

 

-

 

-

 

-

 

 

(19)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$            99

 

$         78

 

$              35

 

$            42

 

$            28

 

$            9

 

$                 (44)

 

 

$        247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

SDG&E

 

SoCalGas

 

Sempra South American Utilities

 

Sempra Mexico

 

Sempra Renewables

 

Sempra Natural Gas

 

Consolidating Adjustments, Parent & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$          939

 

$       983

 

$            384

 

$           168

 

$            21

 

$         253

 

$                 (98)

 

 

$     2,650

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and other expenses

 

(637)

 

(800)

 

(301)

 

(113)

 

(13)

 

(220)

 

92

 

 

(1,992)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(134)

 

(100)

 

(15)

 

(16)

 

(8)

 

(20)

 

(2)

 

 

(295)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of assets

 

-

 

-

 

-

 

-

 

-

 

74

 

-

 

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings, before income tax

 

-

 

-

 

-

 

-

 

1

 

9

 

-

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

11

 

4

 

3

 

9

 

-

 

2

 

8

 

 

37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before interest and tax (2)

 

179

 

87

 

71

 

48

 

1

 

98

 

-

 

 

484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expense (3)

 

(48)

 

(17)

 

(2)

 

(1)

 

(5)

 

(12)

 

(49)

 

 

(134)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (expense) benefit

 

(51)

 

(24)

 

(17)

 

(26)

 

8

 

(33)

 

(35)

(4)

 

(178)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity (losses) earnings, net of income tax

 

-

 

-

 

(7)

 

11

 

-

 

-

 

-

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses (earnings) attributable to noncontrolling interests

 

11

 

-

 

(8)

 

(1)

 

-

 

-

 

-

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (losses)

 

$            91

 

$         46

 

$              37

 

$            31

 

$              4

 

$          53

 

$                 (84)

 

 

$        178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

After taxes, including a $17 million charge to reduce certain tax regulatory assets attributed to SONGS, the adjustment to loss from plant closure is a $9 million charge to earnings.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our

 

 

operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3)

Net Interest Expense includes interest income, interest expense and preferred dividends of subsidiaries.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4)

Includes $63 million income tax expense resulting from a corporate reorganization in connection with the IEnova stock offerings.