Deloitte & Touche LLP
`655 W Broadway
`Suite 700
`San Diego, CA 92101-8590
`USA
`
`Tel: +1 619 232 6500
`Fax: +1 619 237 6802
`www.deloitte.com
`
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`INDEPENDENT AUDITORS’ REPORT
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`San Diego Gas & Electric Company
`San Diego, California
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`We have audited the accompanying financial statements of San Diego Gas & Electric Company (the
`"Company"), which comprise the balance sheet – regulatory basis as of December 31, 2019, and the
`related statements of income – regulatory basis, retained earnings – regulatory basis, and cash flows
`– regulatory basis for the year then ended, included on pages 110 through 123 of the accompanying
`Federal Energy Regulatory Commission Form 1, and the related notes to the financial statements.
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`Management’s Responsibility for the Financial Statements
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`Management is responsible for the preparation and fair presentation of these financial statements in
`accordance with the accounting requirements of the Federal Energy Regulatory Commission as set
`forth in its applicable Uniform System of Accounts and published accounting releases; this includes the
`design, implementation, and maintenance of internal control relevant to the preparation and fair
`presentation of financial statements that are free from material misstatement, whether due to fraud or
`error.
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`Auditors’ Responsibility
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`Our responsibility is to express an opinion on these financial statements based on our audit. We
`conducted our audit in accordance with auditing standards generally accepted in the United States of
`America. Those standards require that we plan and perform the audit to obtain reasonable assurance
`about whether the financial statements are free from material misstatement.
`
`An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
`in the financial statements. The procedures selected depend on the auditor’s judgment, including the
`assessment of the risks of material misstatement of the financial statements, whether due to fraud or
`error. In making those risk assessments, the auditor considers internal control relevant to the
`Company’s preparation and fair presentation of the financial statements in order to design audit
`procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
`on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An
`audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
`of significant accounting estimates made by management, as well as evaluating the overall
`presentation of the financial statements.
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`We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
`for our audit opinion.
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`Opinion
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`In our opinion, the regulatory basis financial statements referred to above present fairly, in all
`material respects, the assets, liabilities, and proprietary capital of San Diego Gas & Electric Company
`as of December 31, 2019, and the results of its operations and its cash flows for the year then ended
`in accordance with the accounting requirements of the Federal Energy Regulatory Commission as set
`forth in its applicable Uniform System of Accounts and published accounting releases.
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`Basis of Accounting
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`As discussed in Note B to the financial statements, these financial statements were prepared in
`accordance with the accounting requirements of the Federal Energy Regulatory Commission as set
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`forth in its applicable Uniform System of Accounts and published accounting releases, which is a basis
`of accounting other than accounting principles generally accepted in the United States of America. Our
`opinion is not modified with respect to this matter.
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`Restricted Use
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`This report is intended solely for the information and use of the board of directors and management of
`the Company and for filing with the Federal Energy Regulatory Commission and is not intended to be
`and should not be used by anyone other than these specified parties.
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`April 17, 2020
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