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Pacific Enterprises/SoCalGas 5/2/2007 8-K

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, 2007


Commission File Number	Name of Registrant, State of Incorporation, Address and Telephone Number	IRS Employer Identification Number
1-40	Pacific Enterprises (A California Corporation) 101 Ash Street San Diego, California 92101 (619) 696-2020	94-0743670

1-1402	Southern California Gas Company (A California Corporation) 555 West Fifth Street Los Angeles, California 90013 (213) 244-1200	95-1240705

(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 Pacific Enterprises or Southern California Gas Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On May 2, 2007, Sempra Energy, of which Pacific Enterprises and Southern California Gas Company are consolidated subsidiaries, issued a press release announcing consolidated net income of $228 million, or $0.86 per diluted share of common stock, for the first quarter of 2007. 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 Income Statement Data by Business Unit for the three months ended March 31, 2007 and 2006. 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 Pacific Enterprises' and Southern California Gas Company's results of operations and financial condition.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1

May 2, 2007 Sempra Energy News Release (including tables)

99.2

Sempra Energy's Income Statement Data by Business Unit for the three months ended March 31, 2007 and 2006.

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 thereunto duly authorized.

PACIFIC ENTERPRISES
(Registrant)


Date: May 2, 2007	By: /S/ Dennis V. Arriola
	Dennis V. Arriola Sr. Vice President and Chief Financial Officer

SOUTHERN CALIFORNIA GAS COMPANY
(Registrant)


Date: May 2, 2007	By: /S/ Dennis V. Arriola
	Dennis V. Arriola Sr. Vice President and Chief Financial Officer

Exhibit 99.1

Exhibit 99.1

NEWS RELEASE

Media Contacts:

Doug Kline

Sempra Energy

(877) 866-2066

www.sempra.com

Financial Contacts:

Glen Donovan

Sempra Energy

(877) 736-7727

investor@sempra.com

SEMPRA ENERGY REPORTS

FIRST-QUARTER 2007 EARNINGS

Company on Track to Meet 2007 Earnings-per-Share Guidance of $3.75 to $3.95

Sempra Utilities’ Quarterly Net Income Increases 22 Percent

SAN DIEGO, May 2, 2007 – Sempra Energy today reported first-quarter 2007 net income of $228 million, or $0.86 per diluted share, compared with $255 million, or $0.98 per diluted share, in the first quarter 2006. From continuing operations, Sempra Energy earned $227 million, or $0.86 per diluted share, in the first quarter 2007, compared with $234 million, or $0.90 per diluted share, in the year-ago period.

First-quarter 2007 results at Sempra Commodities do not reflect $86 million of natural gas storage and transportation mark-to-market profits, which are deferred under current accounting rules. First-quarter 2006 results did not reflect $44 million for similar items.

“We are pleased with our operating results in the first quarter, led by the solid performance of Sempra Utilities,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “At Sempra Commodities, we expect the strong economic benefits from our natural gas storage and transportation contracts to be largely recognized in reported results by year-end. Overall, we remain on track to meet our 2007 earnings-per-share guidance of $3.75 to $3.95.”

-more-

SUBSIDIARY OPERATING RESULTS

Sempra Utilities

Net income for Sempra Utilities -- San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) -- increased 22 percent to $117 million in the first quarter 2007 from $96 million in the first quarter 2006.

SDG&E’s first-quarter net income rose to $62 million in 2007 from $47 million in 2006, due primarily to higher earnings from the Palomar Energy Center and the San Onofre Nuclear Generating Station.

Net income for SoCalGas rose to $55 million in the first quarter 2007 from $49 million in the prior-year’s quarter, due to improved operations.

“The majority of our $11 billion, five-year capital plan is being dedicated to investments in new infrastructure and technology for Sempra Utilities,” Felsinger said. “These investments will enhance energy reliability, provide access to renewable resources, reduce customer costs and promote conservation.”

On April 12, 2007, the California Public Utilities Commission approved SDG&E’s “smart meter” project, which will dramatically change how SDG&E delivers services and will help customers manage their energy usage efficiently. SDG&E plans to spend $572 million through 2011 to replace an estimated 1.4 million electric meters with smart meters and to retrofit approximately 900,000 gas meters throughout its service territory.

Sempra Commodities

Sempra Commodities earned $71 million in the first quarter 2007, compared with $116 million in the first quarter 2006. Contributing factors included the effect of accounting rules that defer mark-to-market profits on natural gas storage and transportation contracts used in forward-sale transactions and reduced margins in natural gas and power marketing, offset by higher margins in metals.

Sempra Generation

First-quarter net income for Sempra Generation rose to $54 million in 2007 from $41 million in 2006, due primarily to a favorable change in mark-to-market earnings on long-term contracts with Sempra Commodities and higher interest income.

-more-

Sempra Pipelines & Storage

Net income for Sempra Pipelines & Storage in the first quarter 2007 was $16 million, compared with $11 million in the first quarter 2006, due to lower income-tax expense and improved results in its Mexican and South American operations.

On April 19, 2007, Sempra Pipelines & Storage and its partners in the Rockies Express Pipeline project received approval from the Federal Energy Regulatory Commission (FERC) to begin construction on the Rockies Express-West project, which extends the pipeline from Colorado to Missouri. This 713-mile leg of the 1,678-mile natural gas pipeline is expected to be in service in early 2008. Earlier this week, the project partners filed with the FERC for authorization to construct the 638-mile Rockies Express-East pipeline, covering the final leg of the project from Missouri to Ohio. The entire Rockies Express Pipeline project is scheduled for completion in 2009.

Sempra LNG

Sempra LNG recorded a net loss of $10 million in the first quarter 2007, compared with a net loss of $5 million in the first quarter 2006.

Discontinued Operations

Sempra Energy's 2007 first-quarter net income included $1 million in discontinued operations, compared with $21 million, primarily from asset sales, in the year-ago quarter.

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 Web site 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 2247326.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion. The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers worldwide.

Income-statement information by business unit is available on Sempra Energy’s Web site at http://www.sempra.com/downloads/1Q2007.pdf

-more-

# # #

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. When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. 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 risk s, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other environmental and regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to pred ict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.

Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.


SEMPRA ENERGY
Table A


*STATEMENTS OF CONSOLIDATED INCOME*


		Three months ended
		March 31,
(Dollars in millions, except per share amounts)		2007	2006
		(Unaudited)
Operating revenues
Sempra Utilities		$ 2,059	$ 2,128
Sempra Global and parent		945	1,208
	Total operating revenues	3,004	3,336
Operating expenses
Sempra Utilities:
	Cost of natural gas	1,050	1,130
	Cost of electric fuel and purchased power	149	210
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	336	298
	Other cost of sales	319	376
Other operating expenses		633	676
Depreciation and amortization		169	157
Franchise fees and other taxes		81	77
	Total operating expenses	2,737	2,924
Operating income		267	412
Other income, net		11	4
Interest income		26	14
Interest expense		(70)	(96)
Preferred dividends of subsidiaries		(2)	(2)
Income from continuing operations before income taxes and
	equity in earnings of certain unconsolidated subsidiaries	232	332
Income tax expense		63	108
Equity in earnings of certain unconsolidated subsidiaries		58	10
Income from continuing operations		227	234
Discontinued operations, net of income tax		1	21
Net income		$ 228	$ 255

Basic earnings per share:
	Income from continuing operations	$ 0.88	$ 0.92
	Discontinued operations, net of income tax	-	0.08
	Net income	$ 0.88	$ 1.00
Weighted-average number of shares outstanding (thousands)		259,459	254,257

Diluted earnings per share:
	Income from continuing operations	$ 0.86	$ 0.90
	Discontinued operations, net of income tax	-	0.08
	Net income	$ 0.86	$ 0.98
Weighted-average number of shares outstanding (thousands)		263,996	259,251
Dividends declared per share of common stock		$ 0.31	$ 0.30

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table B

*CONSOLIDATED BALANCE SHEETS*

				March 31,	December 31,
(Dollars in millions)				2007	2006
				(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 1,658	$ 920
	Restricted cash			1	4
	Accounts receivable			917	1,035
	Deferred income taxes			376	270
	Interest receivable			7	40
	Trading-related receivables and deposits, net			2,452	3,047
	Derivative trading instruments			3,332	4,068
	Commodities owned			1,399	1,845
	Inventories			111	215
	Regulatory assets			143	193
	Other			275	317
		Current assets of continuing operations		10,671	11,954
		Current assets of discontinued operations		60	62
			Total current assets	10,731	12,016

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			339	353
	Regulatory assets arising from pension and other postretirement
		benefit obligations		367	356
	Other regulatory assets			462	472
	Nuclear decommissioning trusts			710	702
	Investments			1,138	1,086
	Sundry			791	789
			Total investments and other assets	3,807	3,758
Property, plant and equipment, net				13,486	13,175
Total assets				$ 28,024	$ 28,949

Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 101	$ 252
	Accounts payable			1,013	1,587
	Income taxes payable			114	9
	Trading-related payables			2,769	3,211
	Derivative trading instruments			2,450	2,304
	Commodities sold with agreement to repurchase			144	537
	Dividends and interest payable			153	145
	Regulatory balancing accounts, net			457	332
	Fixed-price contracts and other derivatives			55	87
	Current portion of long-term debt			656	681
	Other			1,283	1,197
		Current liabilities of continuing operations		9,195	10,342
		Current liabilities of discontinued operations		5	7
			Total current liabilities	9,200	10,349
Long-term debt				4,520	4,525

Deferred credits and other liabilities:
	Due to unconsolidated affiliate			162	162
	Customer advances for construction			124	126
	Pension and other postretirement benefit obligations, net of plan assets			622	609


	Deferred income taxes		378	412
	Deferred investment tax credits		66	67
	Regulatory liabilities arising from removal obligations		2,353	2,330
	Asset retirement obligations		1,187	1,128
	Other regulatory liabilities		224	221
	Fixed-price contracts and other derivatives		346	358
	Deferred credits and other		954	972
		Total deferred credits and other liabilities	6,416	6,385
Preferred stock of subsidiaries			179	179
Shareholders' equity			7,709	7,511
Total liabilities and shareholders' equity			$ 28,024	$ 28,949

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*
		Three months ended
		March 31,
(Dollars in millions)		2007	2006
		(Unaudited)
Cash Flows from Operating Activities:
Income from continuing operations		$ 227	$ 234
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
	Depreciation and amortization	169	157
	Deferred income taxes and investment tax credits	(104)	(44)
	Equity in income of unconsolidated subsidiaries	(52)	(6)
	Other	20	32
Net changes in other working capital components		1,115	399
Changes in other assets		16	(18)
Changes in other liabilities		(7)	6
	Net cash provided by continuing operations	1,384	760
	Net cash provided by (used in) discontinued operations	(1)	95
	Net cash provided by operating activities	1,383	855

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(423)	(415)
Proceeds from sale of assets from continuing operations		32	22
Expenditures for investments		(5)	(103)
Purchases of nuclear decommissioning and other trust assets		(211)	(122)
Proceeds from sales by nuclear decommissioning and other trusts		213	116
Other		(6)	(1)
	Net cash used in continuing operations	(400)	(503)
	Net cash used in discontinued operations	-	(2)
	Net cash used in investing activities	(400)	(505)

Cash Flows from Financing Activities:
Common dividends paid		(79)	(65)
Issuances of common stock		16	17
Repurchases of common stock		-	(12)
Decrease in short-term debt, net		(151)	(369)
Payments on long-term debt		(35)	(44)
Issuance of long-term debt		2	-
Other		2	2
	Net cash used in continuing operations	(245)	(471)
	Net cash provided by discontinued operations	-	2
	Net cash used in financing activities	(245)	(469)
Increase (decrease) in cash and cash equivalents		738	(119)
Cash and cash equivalents, January 1		920	769
Cash and cash equivalents, March 31		$ 1,658	$ 650

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table D


*BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)*


			Three months ended
			March 31,
(Dollars in millions)			2007	2006
Net Income
Sempra Utilities:
	San Diego Gas & Electric		$ 62	$ 47
	Southern California Gas		55	49
		Total Sempra Utilities	117	96

Sempra Global:
	Sempra Commodities		71	116
	Sempra Generation*		54	41
	Sempra Pipelines & Storage*		16	11
	Sempra LNG		(10)	(5)
		Total Sempra Global	131	163

Parent & Other			(21)	(25)
Continuing Operations			227	234
Discontinued Operations, Net of Income Tax			1	21
Consolidated Net Income			$ 228	$ 255


* Excludes amounts now classified as discontinued operations.

			Three months ended
			March 31,
(Dollars in millions)			2007	2006
Capital Expenditures and Investments
Sempra Utilities:
	San Diego Gas & Electric		$ 157	$ 583	(1)
	Southern California Gas		86	97
	Total Sempra Utilities		243	680

Sempra Global:
	Sempra Commodities		13	20
	Sempra Generation		1	29
	Sempra Pipelines & Storage		79	105
	Sempra LNG		86	152
	Total Sempra Global		179	306

Parent & Other			6	(468)	(1)

Consolidated Capital Expenditures and Investments			$ 428	$ 518


(1)	Includes the transfer of the Palomar plant.

As a result of the decisions in 2006 to dispose of the Twin Oaks power plant, Sempra Energy Production Company, and the Energy Services and Facilities Management businesses, all within Sempra Generation, and Bangor Gas and Frontier Energy, both within Sempra Pipelines & Storage, these operations have been reflected above as discontinued operations in all periods presented.


SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended
		March 31,
*SEMPRA UTILITIES*		2007	2006
Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 705	$ 718
	SoCalGas (excludes intercompany sales)	$ 1,354	$ 1,410

Gas Sales (bcf)		141	141
Transportation and Exchange (bcf)		120	122
Total Deliveries (bcf)		261	263
Total Gas Customers (Thousands)		6,487	6,406

Electric Sales (Millions of kWhs)		4,190	4,043
Direct Access (Millions of kWhs)		778	898
Total Deliveries (Millions of kWhs)		4,968	4,941
Total Electric Customers (Thousands)		1,357	1,342



*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,377	4,910	(1)

(1)	Revised to exclude the Twin Oaks, Coleto Creek and Topaz power plants.


*SEMPRA PIPELINES & STORAGE*
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy).
Natural Gas Sales (bcf)
	Argentina	63	52
	Mexico	11	10
	Chile	-	1
Natural Gas Customers (Thousands)
	Argentina	1,552	1,511
	Mexico	101	99
	Chile	39	38
Electric Sales (Millions of kWhs)
	Peru	1,269	1,165
	Chile	665	614
Electric Customers (Thousands)
	Peru	793	772
	Chile	538	525


SEMPRA ENERGY
Table E (Continued)


*SEMPRA COMMODITIES*

		Three months ended
		March 31,
Margin (Dollars in millions)*		2007	2006
Geographical:
	North America	$ 104	$ 359
	Europe/Asia	63	6
	Total	$ 167	$ 365

Product Line:
	Gas	$ (56)	$ 179
	Power	82	101
	Oil - Crude & Products	57	53
	Metals	60	27
	Other	24	5
	Total	$ 167	$ 365

* Margin consists of net revenues less related costs (primarily brokerage, transportation and storage) plus or minus net interest expense/income, and is used by management in evaluating its geographical and product line performance.


		Three months ended
		March 31,
Effect of EITF 02-03 (Dollars in millions)		2007	2006

	Mark-to-Market Earnings *	$ 157	$ 160
	Effect of EITF 02-03 **	(86)	(44)
	GAAP Net Income	$ 71	$ 116

* Represents earnings from the fair market value of all commodities transactions. This metric is a useful measurement of profitability because it simultaneously recognizes changes in the various components of transactions and reflects how the business is managed.
** Consists of the income statement effect of not recognizing changes in the fair market value of certain physical inventories, capacity contracts for transportation and storage, and derivative hedging activities related to synthetic fuels tax credits.


		Fair
		Market Value
		March 31,	Scheduled Maturity (in months)
Net Unrealized Revenue (Dollars in millions)		2007	0 - 12	13 - 24	25 - 36	> 36

OTC Fair Value of forwards, swaps and options (1)		$ 854	369	340	2	143

	Maturity of OTC Fair Value - Cumulative Percentages		43.2%	83.0%	83.3%	100.0%


Exchange Contracts (2)		49	203	(134)	75	(95)

Total Net Unrealized Revenue at March 31, 2007		$ 903	$ 572	$ 206	$ 77	$ 48

	Net Unrealized Revenue - Cumulative Percentages		63.3%	86.2%	94.7%	100.0%

(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts
(2) Cash received or (paid) associated with open Exchange Contracts




	March 31,	December 31,
Credit Quality of Unrealized Trading Assets (net of margin)	2007	2006
Commodity Exchanges	8%	13%
Investment Grade	62%	57%
Below Investment Grade	30%	30%


	Three months ended
	March 31,
Risk Adjusted Performance Indicators (Mark-to-Market Basis)	2007	2006
VaR at 95% (Dollars in millions) (1)	$ 10.3	$ 22.0
VaR at 99% (Dollars in millions) (2)	$ 14.5	$ 31.1

(1) Average Daily Value-at-Risk for the period using a 95% confidence level
(2) Average Daily Value-at-Risk for the period using a 99% confidence level


Physical Statistics
Natural Gas (bcf/Day)	12.4	12.6
Electric (Billions of kWhs)	122.9	114.9
Oil & Liquid Products (Millions Bbls/Day)	0.6	0.7

Exhibit 99.2

Exhibit 99.2


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Three Months Ended March 31, 2007

(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 709	$ 1,368	$ 512	$ 397	$ 77	$ (7)	$ (52)	$ 3,004

Cost of Sales and Other Operating Expenses	514	1,191	474	299	70	10	10	2,568

Depreciation & Amortization	75	69	7	12	3	-	3	169

Operating Income (Loss)	120	108	31	86	4	(17)	(65)	267

Other Income (Expense), Net	4	(2)	-	-	-	-	9	11

Income (Loss) before Interest & Taxes ⁽¹⁾	124	106	31	86	4	(17)	(56)	278

Net Interest Expense (Income) ⁽²⁾	24	12	2	(7)	1	1	13	46

Income Tax Expense (Benefit)	38	39	4	39	(1)	(8)	(48)	63

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	46	-	12	-	-	58

Discontinued Operations	-	-	-	-	-	-	1	1

Net Income (Loss)	$ 62	$ 55	$ 71	$ 54	$ 16	$ (10)	$ (20)	$ 228


Three Months Ended March 31, 2006

(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total

Operating Revenues	$ 722	$ 1,425	$ 780	$ 396	$ 76	$ -	$ (63)	$ 3,336

Cost of Sales and Other Operating Expenses	556	1,258	578	314	70	10	(19)	2,767

Depreciation & Amortization	67	66	7	11	3	-	3	157

Operating Income (Loss)	99	101	195	71	3	(10)	(47)	412

Other Income (Expense), Net	2	-	(1)	1	1	(1)	2	4

Income (Loss) before Interest & Taxes ⁽¹⁾	101	101	194	72	4	(11)	(45)	416

Net Interest Expense ⁽²⁾	19	15	16	6	-	-	28	84

Income Tax Expense (Benefit)	35	37	62	25	3	(6)	(48)	108

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	10	-	-	10


Discontinued Operations	-	-	-	-	-	-	21	21

Net Income (Loss)	$ 47	$ 49	$ 116	$ 41	$ 11	$ (5)	$ (4)	$ 255


⁽¹⁾ Management believes "Income (Loss) before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations.

⁽²⁾Net Interest Expense (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.