PROPERTY, PLANT AND EQUIPMENT BY MAJOR FUNCTIONAL CATEGORY
(Dollars in millions)
 December 31,Depreciation rates for years ended
December 31,
 20252024202520242023
SDG&E(1):
Natural gas operations$4,742 $4,531 2.63 %2.62 %2.60 %
Electric distribution13,357 12,542 4.26 4.21 4.05 
Electric transmission(2)
9,501 8,878 3.07 3.06 3.04 
Electric generation2,532 2,527 4.27 5.43 5.18 
Other electric2,915 2,722 6.72 6.95 7.05 
Construction work in progress(2)
1,986 1,962 N/AN/AN/A
Total SDG&E35,033 33,162 
SoCalGas:
Natural gas operations29,262 27,191 3.81 3.68 3.64 
Other non-utility37 32 0.97 0.98 1.03 
Construction work in progress1,779 1,861 N/AN/AN/A
Total SoCalGas31,078 29,084 
Other Sempra(3)(4):
Estimated useful life
(in years)(5)
Weighted-average useful life
(in years)(5)
Land and land rights— 498 
N/A
N/A
Machinery and equipment:
Pipelines and storage481 4,355 
19 to 49
44
Generating plants— 1,820 
N/A
N/A
LNG terminal— 1,156 
N/A
N/A
Refined products terminals— 876 
N/A
N/A
Other96 348 
1 to 9
2
Construction work in progress160 8,781 
N/A
N/A
Other52 317 
4 to 25
10
 789 18,151 
Total Sempra$66,900 $80,397 
(1)    Includes $214 decrease in 2025 from regulatory disallowances associated with SDG&E’s 2024 GRC Track 2 FD, which we discuss in Note 4.
(2)    At December 31, 2025, includes $553 in electric transmission assets and $3 in construction work in progress related to SDG&E’s 86% interest in the Southwest Powerlink transmission line, jointly owned by SDG&E with other utilities. SDG&E, and each of the other owners, holds its undivided interest as a tenant in common in the property. Each owner is responsible for its share of the project and participates in decisions concerning operations and capital expenditures. SDG&E’s share of operating expenses is included in SDG&E’s and Sempra’s Consolidated Statements of Operations.
(3)    At December 31, 2025, excludes total PP&E of $23,579, which is included in Assets Held for Sale on the Sempra Consolidated Balance Sheet and is comprised of $500 in land and land rights; machinery and equipment of $3,646 in pipelines and storage, $1,809 in generating plants, $1,160 in LNG terminal, $872 in refined products terminals, and $255 in other; $15,077 in construction work in progress; and $260 in other.
(4)    At December 31, 2025, $362 of utility plant, primarily pipelines and other distribution assets at Ecogas, is included in Assets Held for Sale on the Sempra Consolidated Balance Sheet.
(5)    Estimated useful life relates to PP&E that is held and used as of December 31, 2025. PP&E included in the disposal group that is classified as held for sale in 2025 is no longer depreciated.
DEPRECIATION EXPENSE
(Dollars in millions)
 Years ended December 31,
 202520242023
Sempra$2,537 $2,409 $2,202 
SDG&E1,309 1,216 1,092 
SoCalGas1,007 903 833 
ACCUMULATED DEPRECIATION AND AMORTIZATION
(Dollars in millions)
 December 31,
 20252024
SDG&E(1):
Accumulated depreciation:
Natural gas operations$1,191 $1,121 
Electric transmission, distribution and generation(2)
7,538 6,930 
Total SDG&E8,729 8,051 
SoCalGas:
Accumulated depreciation:
Natural gas operations8,933 8,315 
Other non-utility15 15 
Total SoCalGas8,948 8,330 
Other Sempra:
Accumulated depreciation other(3)(4)
212 2,579 
Total Sempra $17,889 $18,960 
(1)    Includes $71 decrease in 2025 from regulatory disallowances associated with SDG&E’s 2024 GRC Track 2 FD, which we discuss in Note 4.
(2)    At December 31, 2025, includes $347 related to SDG&E’s 86% interest in the Southwest Powerlink transmission line, jointly owned by SDG&E and other utilities.
(3)    At December 31, 2025, $2,497 of accumulated depreciation is included in Assets Held for Sale on the Sempra Consolidated Balance Sheet.
(4)    At December 31, 2025, $88 of accumulated depreciation for utility plant at Ecogas is included in Assets Held for Sale on the Sempra Consolidated Balance Sheet.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 25, 2025

About PP&E Disclosures

The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.

Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.