Sempra Energy: 10-K Risk Factor Changes

Our facilities and the systems that interconnect and/or manage them are subject to risks of, among other things: ▪equipment or process failures due to aging infrastructure or otherwise ▪human error ▪loss or outage of a key technology platform or system ▪shortages of or delays in obtaining equipment, materials, supplies, commodities or labor, which have been and may continue to be exacerbated by supply chain and gas transportation capacity constraints, tight labor markets, and cost increases due to inflation, tariffs or otherwise, that may not be recoverable in a timely manner or at all ▪operational restrictions resulting from governmental interventions, including environmental requirements, or permitting delays ▪inability to enter into, maintain, extend or replace long-term supply or transportation contracts ▪performance below expected levels Our businesses undertake capital investment projects to construct, replace, operate, maintain and upgrade facilities and systems, but such projects may not be completed or effective at managing these risks and involve significant costs that may not be recoverable in a timely manner or at all. We often rely on third parties, including contractors, to perform work related to these projects and other activities, which may subject us to liability for safety issues or lower standards of work quality. Because some of our facilities are interconnected with those of third parties, including customer-side-of-meter facilities, natural gas pipelines and power generation facilities, the operation of our facilities could also be materially adversely affected by these or similar risks to such third-party systems, which may be unanticipated or uncontrollable by us.