SEMPRA ENERGY 8-K 2015
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Item 8.01 Other Events
On September 11, 2015, San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas) filed a settlement of their 2016 General Rate Case (2016 GRC), supported by a majority of the active parties in the proceeding, with the California Public Utilities Commission (CPUC). The settlement resolves all material matters related to the 2016 GRC, except for the revenue requirement implications of certain income tax benefits associated with flow-through repair allowance deductions, discussed below. The settlement contemplates a 2016 total revenue requirement of $1,811 million and $2,219 million at SDG&E and SoCalGas, respectively. For SDG&E, the total 2016 revenue requirement includes $44 million refundable (subject to recovery through balancing accounts), $1,747 million non-refundable (not subject to balancing accounts) and $20 million miscellaneous revenues. For SoCalGas, the total 2016 revenue requirement includes $206 million refundable, $1,914 million nonrefundable and $99 million miscellaneous revenues. In addition, for each company, the settlement calls for attrition adjustments of 3.5% for both 2017 and 2018. The filed settlement is subject to a 30-day comment period and subsequent approval by the CPUC. We anticipate all matters referenced herein will be resolved with the final resolution of the 2016 GRC.
One of the intervenors in the settlement has taken a position that, for both SDG&E and SoCalGas, certain intra-rate case income tax benefits should be passed to ratepayers. We believe this treatment contradicts long standing rate making and income tax policy, and would represent a material departure from historical practice.
We provide additional information regarding the 2016 GRC in Note 10 of the Notes to Condensed Consolidated Financial Statements in the combined Quarterly Report on Form 10-Q for the second quarter ended June 30, 2015 for Sempra Energy, SDG&E and SoCalGas.
The settlement agreement will be available on SDG&E’s website, sdge.com, and on SoCalGas’ website, socalgas.com, today.
We make statements in this report that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are necessarily based upon assumptions with respect to the future, involve risks and uncertainties, and are not guarantees of performance. These forward-looking statements represent our estimates and assumptions only as of the filing date of this report. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.
In this report, when we use words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “contemplates,” “intends,” “depends,” “should,” “could,” “would,” “will,” “confident,” “may,” “potential,” “possible,” “proposed,” “target,” “pursue,” “goals,” “outlook,” “maintain,” or similar expressions, or when we discuss our guidance, strategy, plans, goals, opportunities, projections, initiatives, objectives or intentions, we are making forward-looking statements.
Factors, among others, that could cause our actual results and future actions to differ materially from those described in forward-looking statements include
We caution you not to rely unduly on any forward-looking statements. You should review and consider carefully the risks, uncertainties and other factors that affect our business as described in this report and in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on a combined basis for Sempra Energy, SDG&E and SoCalGas.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
SAN DIEGO GAS & ELECTRIC COMPANY
SOUTHERN CALIFORNIA GAS COMPANY