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SDG&E 8-k 08/07/08

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):	August 7, 2008

SAN DIEGO GAS & ELECTRIC COMPANY

(Exact name of registrant as specified in its charter)


CALIFORNIA	1-3779	95-1184800
(State of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)


8326 CENTURY PARK COURT, SAN DIEGO, CA		92123
(Address of principal executive offices)		(Zip Code)


Registrant's telephone number, including area code	(619) 696-2000

(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 San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On August 7, 2008, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated net income of $244 million, or $0.98 per diluted share of common stock, for the second quarter of 2008. 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 and six months ended June 30, 2008 and 2007. 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 San Diego Gas & Electric Company's results of operations and financial condition.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1

August 7, 2008 Sempra Energy News Release (including tables)

99.2

Sempra Energy's Income Statement Data by Business Unit for the three months and six months ended June 30, 2008 and 2007.

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.

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)


Date: August 7, 2008	By: /s/ Dennis V. Arriola
	Dennis V. Arriola Senior Vice President and Chief Financial Officer

Exhibit 99.1

Exhibit 99.1

NEWS RELEASE


Media Contact:	Doug Kline
	Sempra Energy
	(877) 866-2066
	www.sempra.com


Financial Contact:	Glen Donovan
	Sempra Energy
	(877) 736-7727
	investor@sempra.com

SEMPRA ENERGY REPORTS

SECOND-QUARTER RESULTS,

RAISES EARNINGS GUIDANCE FOR 2008

Earnings-Per-Share Outlook Increased to Range of $3.80 to $4

SAN DIEGO, Aug. 7, 2008 – Sempra Energy (NYSE: SRE) today reported second-quarter 2008 net income of $244 million, or $0.98 per diluted share, compared with $277 million, or $1.05 per diluted share, in the second quarter 2007. Second-quarter 2008 results reflected Sempra Energy’s reduced ownership in its commodities business as the result of the formation on April 1 of RBS Sempra Commodities, the joint venture with The Royal Bank of Scotland (RBS).

For the first six months of 2008, Sempra Energy’s net income was $486 million, or $1.90 per diluted share, compared with $505 million, or $1.91 per diluted share during the same period last year.

Sempra Energy today also announced an increase in its earnings guidance for 2008 to a range of $3.80 to $4 per share from the previous range of $3.65 to $3.85 per share.

“Through the first half of the year, we are ahead of plan in meeting our 2008 financial goals and have made significant progress in the expansion of our natural gas business,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “Additionally, our planned acquisition of EnergySouth, Inc. will increase our presence in the fastest-growing U.S. energy markets.”

OPERATING HIGHLIGHTS

Sempra Utilities

Net income for Sempra Utilities – San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) – increased 11 percent to $117 million in the second quarter 2008 from $105 million in last year’s second quarter.

SDG&E’s second-quarter 2008 net income rose to $61 million from $51 million in the second quarter 2007, primarily due to performance incentive awards approved during the quarter by the California Public Utilities Commission (CPUC).

SoCalGas’ net income in the second quarter 2008 was $56 million, compared with $54 million in the second quarter last year.

On July 31, 2008, the CPUC approved the four-year rate-case filed by SDG&E and SoCalGas. The terms of the approved rate-case allow for recovery of the forecasted operating costs and capital requirements necessary to operate the utilities. The rate adjustment for both utilities was retroactive to Jan. 1, 2008.

Sempra Commodities

Second-quarter net income for Sempra Commodities was $130 million in 2008, compared with net income of $155 million in 2007. Second-quarter 2008 net income included $93 million in equity earnings from the RBS Sempra Commodities joint venture and a $67 million gain on the transaction with RBS, offset by $30 million in charges, primarily for litigation and tax issues.

Results for 2007 and the first quarter 2008 represented 100 percent of the earnings from the commodity-marketing business prior to the formation of RBS Sempra Commodities.

“Our global commodities joint venture with RBS is off to a great start,” said Felsinger. “The integration of operations has been seamless and early financial results have exceeded expectations.”

Sempra Generation

In the second quarter 2008, Sempra Generation’s net income increased to $23 million from $10 million in the same quarter last year, due primarily to higher scheduled maintenance expenses in 2007.

Last month, Sempra Generation announced its first solar power project, a 10-megawatt, thin-film solar facility adjacent to the company’s El Dorado Energy natural gas-fueled power plant in Boulder City, Nev. Sempra Generation expects construction to be complete and the plant operational by year-end.

Sempra Pipelines & Storage

Second-quarter net income for Sempra Pipelines & Storage rose to $24 million in 2008 from $17 million in 2007, due primarily to the start-up of western operations of the Rockies Express natural gas pipeline during the recent quarter.

On July 28, Sempra Energy agreed to acquire Mobile, Ala.-based EnergySouth, Inc. for $510 million in cash. The acquisition, which is expected to close by year-end, includes majority ownership in two high-turn, salt-dome storage facilities on the Gulf Coast that, when fully developed, will have capacity of 57 billion cubic feet (Bcf) of natural gas serving the U.S. Southeast. Sempra Pipelines & Storage will be responsible for development and operation of the storage assets, as well as management of EnergySouth’s Mobile Gas distribution utility.

Sempra LNG

Sempra LNG reported a net loss of $28 million in the second quarter 2008, compared with a $13 million loss in the second quarter 2007, due primarily to higher income-tax expense, as well as a higher mark-to-market loss on a marketing agreement with RBS Sempra Commodities.

Parent & Other

During the second quarter 2008, Sempra Energy incurred a $22 million loss in Parent & Other, compared with $6 million in net income in last year’s second quarter when the company benefited from an $18 million gain from an interest-rate swap.

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 the passcode 2594824.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2007 revenues of more than $11 billion. The Sempra Energy companies’ 13,500 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/2Q2008.pdf

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,” ”could,” “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 an d other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority and other 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 electric power, 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 predict 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 Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Commodities are not regulated by the California Public Utilities Commission.

###


SEMPRA ENERGY
Table A


*STATEMENTS OF CONSOLIDATED INCOME*


		Three months ended		Six months ended
		June 30,		June 30,
(Dollars in millions, except per share amounts)		2008	2007	2008	2007
		(unaudited)
Revenues
Sempra Utilities		$ 1,887	$ 1,620	$ 4,177	$ 3,679
Sempra Global and parent		616	1,041	1,596	1,986
	Total revenues	2,503	2,661	5,773	5,665

Expenses and Other Income
Sempra Utilities:
	Cost of natural gas	(784)	(603)	(2,019)	(1,653)
	Cost of electric fuel and purchased power	(220)	(163)	(383)	(312)
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	(513)	(278)	(922)	(614)
	Other cost of sales	(17)	(221)	(153)	(540)
Operation and maintenance		(549)	(747)	(1,252)	(1,382)
Depreciation and amortization		(171)	(171)	(346)	(340)
Franchise fees and other taxes		(71)	(68)	(154)	(149)
Gains on sale of assets		109	4	114	6
Equity earnings (losses):
	RBS Sempra Commodities LLP	146	-	146	-
	Other	9	(6)	15	(12)
Other income, net		17	51	36	68
Interest income		10	24	24	50
Interest expense		(38)	(66)	(98)	(136)
Preferred dividends of subsidiaries		(3)	(3)	(5)	(5)
Income from continuing operations before income taxes and equity earnings of certain unconsolidated subsidiaries		428	414	776	646
Income tax expense		(202)	(143)	(329)	(206)
Equity earnings, net of income tax		18	9	39	67
Income from continuing operations		244	280	486	507
Discontinued operations, net of income tax		-	(3)	-	(2)
Net income		$ 244	$ 277	$ 486	$ 505

Basic earnings per share:
	Income from continuing operations	$ 0.99	$ 1.08	$ 1.93	$ 1.95
	Discontinued operations, net of income tax	-	(0.01)	-	(0.01)
	Net income	$ 0.99	$ 1.07	$ 1.93	$ 1.94
Weighted-average number of shares outstanding (thousands)		245,576	260,198	252,100	259,830

Diluted earnings per share:
	Income from continuing operations	$ 0.98	$ 1.06	$ 1.90	$ 1.92
	Discontinued operations, net of income tax	-	(0.01)	-	(0.01)
	Net income	$ 0.98	$ 1.05	$ 1.90	$ 1.91
Weighted-average number of shares outstanding (thousands)		249,677	264,963	256,169	264,518
Dividends declared per share of common stock		$ 0.35	$ 0.31	$ 0.67	$ 0.62


SEMPRA ENERGY
Table B

*CONSOLIDATED BALANCE SHEETS*

				June 30,	December 31,
(Dollars in millions)				2008	2007
				(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 230	$ 668
	Short-term investments			413	-
	Restricted cash			-	1
	Accounts receivable, net			997	1,074
	Income taxes receivable			180	99
	Deferred income taxes			147	247
	Trading-related receivables and deposits, net			-	2,719
	Derivative trading instruments			-	2,170	*
	Commodities owned			-	2,231	*
	Inventories			125	224
	Regulatory assets			39	106
	Fixed-price contracts and other derivatives			285	28
	Other			94	397	*
			Total current assets	2,510	9,964

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			274	309
	Regulatory assets arising from pension and other postretirement
		benefit obligations		166	162
	Other regulatory assets			497	460
	Nuclear decommissioning trusts			685	739
	Investment in RBS Sempra Commodities LLP			1,985	-
	Other investments			1,261	1,243
	Sundry			806	956
			Total investments and other assets	5,674	3,869
Property, plant and equipment, net				15,571	14,884
Total assets				$ 23,755	$ 28,717

Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 829	$ 1,064
	Accounts payable			879	1,563
	Due to unconsolidated affiliates			54	60
	Trading-related payables			-	2,265	*
	Derivative trading instruments			-	1,672	*
	Commodities sold with agreement to repurchase			-	500
	Dividends and interest payable			145	145
	Regulatory balancing accounts, net			604	481
	Current portion of long-term debt			302	7
	Fixed-price contracts and other derivatives			317	53
	Other			1,146	1,210	*
			Total current liabilities	4,276	9,020
Long-term debt				4,809	4,553

Deferred credits and other liabilities:
	Due to unconsolidated affiliate			102	102
	Customer advances for construction			153	153
	Pension and other postretirement benefit obligations, net of plan assets			433	434
	Deferred income taxes			668	531
	Deferred investment tax credits			59	61
	Regulatory liabilities arising from removal obligations			2,516	2,522
	Asset retirement obligations			1,148	1,129
	Other regulatory liabilities			250	265
	Fixed-price contracts and other derivatives			312	332
	Deferred credits and other			958	949
			Total deferred credits and other liabilities	6,599	6,478
Preferred stock of subsidiaries				179	179
Minority interests				209	148
Shareholders' equity				7,683	8,339
Total liabilities and shareholders' equity				$ 23,755	$ 28,717

* December 31, 2007 amounts have been reclassified due to the adoption of FASB Staff Position FIN 39-1.


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*
		Six months ended
		June 30,
(Dollars in millions)		2008	2007
		(unaudited)
Cash Flows from Operating Activities:
Net income		$ 486	$ 505
Adjustments to reconcile net income to net cash
provided by operating activities:
	Discontinued operations	-	2
	Depreciation and amortization	346	340
	Deferred income taxes and investment tax credits	51	(39)
	Equity earnings	(200)	(55)
	Gains on sale of assets	(114)	(6)
	Fixed-price contracts and other derivatives	62	(28)
	Other	40	18
Net changes in other working capital components		226	918
Changes in other assets		(10)	33
Changes in other liabilities		(27)	(10)
	Net cash provided by continuing operations	860	1,678
	Net cash used in discontinued operations	-	(3)
	Net cash provided by operating activities	860	1,675

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(1,114)	(889)
Proceeds from sale of assets, net of cash sold		2,071	61
Expenditures for investments		(2,180)	(5)
Distributions from investments		16	-
Purchases of nuclear decommissioning and other trust assets		(173)	(341)
Proceeds from sales by nuclear decommissioning and other trusts		177	300
Decrease in notes receivable from unconsolidated affiliates		60	-
Dividends received from unconsolidated affiliates		-	4
Other		(15)	(9)
	Net cash used in investing activities	(1,158)	(879)

Cash Flows from Financing Activities:
Common dividends paid		(166)	(152)
Issuances of common stock		11	28
Repurchases of common stock		(1,002)	-
Increase in short-term debt, net		496	374
Issuance of long-term debt		593	4
Payments on long-term debt		(73)	(654)
Other		1	7
	Net cash used in financing activities	(140)	(393)

Increase (decrease) in cash and cash equivalents		(438)	403
Cash and cash equivalents, January 1		668	920
Cash assumed in connection with FIN 46(R) consolidation		-	29
Cash and cash equivalents, June 30		$ 230	$ 1,352


SEMPRA ENERGY
Table D


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


			Three months ended		Six months ended
			June 30,		June 30,
(Dollars in millions)			2008	2007	2008		2007
Net Income
Sempra Utilities:
	San Diego Gas & Electric		$ 61	$ 51	$ 135		$ 113
	Southern California Gas		56	54	113		109
		Total Sempra Utilities	117	105	248		222

Sempra Global:
	Sempra Commodities		130	155	189		226
	Sempra Generation		23	10	68		64
	Sempra Pipelines & Storage		24	17	50		33
	Sempra LNG		(28)	(13)	(37)		(23)
		Total Sempra Global	149	169	270		300

Parent & Other			(22)	6	(32)		(15)

Continuing Operations			244	280	486		507

Discontinued Operations, Net of Income Tax			-	(3)	-		(2)

Consolidated Net Income			$ 244	$ 277	$ 486		$ 505




			Three months ended		Six months ended
			June 30,		June 30,
(Dollars in millions)			2008	2007	2008		2007
Capital Expenditures and Investments*
Sempra Utilities:
	San Diego Gas & Electric		$ 194	$ 148	$ 665	**	$ 305
	Southern California Gas		126	105	242		191
	Total Sempra Utilities		320	253	907		496

Sempra Global:
	Sempra Commodities		-	12	37		25
	Sempra Generation		2	3	13		4
	Sempra Pipelines & Storage		93	58	302		137
	Sempra LNG		152	138	249		224
	Total Sempra Global		247	211	601		390

Parent & Other			4	2	186	**	8

Consolidated Capital Expenditures and Investments			$ 571	$ 466	$ 1,694		$ 894

*	Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008.

**	Amounts for SDG&E and Parent & Other include the purchase of $236 and $177, respectively, of industrial development bonds purchased in the first quarter of 2008. In the second quarter of 2008, Parent & Other purchased $75 of these bonds from SDG&E.



SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended		Six months ended
		June 30,		June 30,
*SEMPRA UTILITIES*		2008	2007	2008	2007

Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 752	$ 655	$ 1,494	$ 1,360
	SoCalGas (excludes intercompany sales)	$ 1,135	$ 965	$ 2,683	$ 2,319

Gas Sales (Bcf)		81	84	225	225
Transportation and Exchange (Bcf)		136	123	274	243
Total Deliveries (Bcf)		217	207	499	468

Total Gas Customers (Thousands)				6,553	6,501

Electric Sales (Millions of kWhs)		4,021	3,869	8,296	8,059
Direct Access (Millions of kWhs)		750	716	1,515	1,494
Total Deliveries (Millions of kWhs)		4,771	4,585	9,811	9,553

Total Electric Customers (Thousands)				1,367	1,360


*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,506	4,148	11,118	9,525


*SEMPRA PIPELINES & STORAGE*
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.)
Natural Gas Sales (Bcf)
	Argentina	81	78	152	141
	Mexico	12	11	24	22
	Chile	-	-	-	-
Natural Gas Customers (Thousands)
	Argentina			1,637	1,568
	Mexico			95	98
	Chile			39	39
Electric Sales (Millions of kWhs)
	Peru	1,354	1,258	2,716	2,527
	Chile	568	621	1,232	1,286
Electric Customers (Thousands)
	Peru			822	799
	Chile			557	541


SEMPRA ENERGY
Table E (Continued)



*SEMPRA COMMODITIES*
The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. RBS Sempra Commodities LLP acquired the commodity-marketing businesses of Sempra Energy on April 1, 2008. For the three months ended June 30, 2008, the Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Marketing. The margin and financial data below represents the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS).

*RBS Sempra Commodities LLP*

*Operating Statistics*
(in millions of US dollars)
		Three
		months ended
RBS Sempra Commodities LLP - Joint Venture level margin*		June 30, 2008

Geographical:
	North America	$ 522
	Europe/Asia	124
	Total	$ 646

Product Line:
	Natural Gas	$ 306
	Power	174
	Oil - Crude & Products	92
	Metals	42
	Other	32
	Total	$ 646

* Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense.

*Financial Information*
(in millions of US dollars)

RBS Sempra Commodities LLP		Three months ended June 30, 2008
		Joint Venture	Sempra
		Total	Share*
	Fee income and trading revenue, net of selling costs	$ 646
	Operating and other expenses	(312)
	Joint Venture distributable income	$ 334


	Preferred return on capital	$ 148	$ 60
	1^st allocation - 70% Sempra / 30% RBS	125	87
	2^nd allocation - 30% Sempra / 70% RBS	61	18
	Distributable income	$ 334	$ 165

*Sempra Earnings from RBS Sempra Commodities LLP*

			Three
			months ended
(in millions of US dollars)			June 30, 2008
	Sempra share of distributable income - IFRS basis		$ 165
	U.S. GAAP conversion impact		(19)
	Sempra equity earnings - U.S. GAAP basis		146
	Income tax expense		(53)
	Sempra equity earnings from RBS Sempra Commodities LLP		$ 93

* After payment of the preferred return, Sempra receives 70% of the first $500 million and 30% of any remaining income. The preferred return and the $500 million tranche are prorated over the year.

Exhibit 99.2


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Three Months Ended June 30, 2008

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

Revenues	$ 754	$ 1,143	$ 16	$ 482	$ 118	$ 5	$ (15)	$ 2,503

Cost of Sales and Other Expenses	(564)	(971)	(43)	(423)	(114)	(32)	(7)	(2,154)

Depreciation & Amortization	(78)	(71)	-	(14)	(3)	(2)	(3)	(171)

Gains on Sale of Assets	-	-	109	-	-	-	-	109

Equity Earnings (Losses) Recorded Before Income Tax	-	-	146	-	12	-	(3)	155

Other Income, Net	5	2	-	1	3	-	6	17

Income (Loss) Before Interest & Tax ⁽¹⁾	117	103	228	46	16	(29)	(22)	459

Net Interest (Expense) Income ⁽²⁾	(21)	(11)	(4)	(2)	1	(1)	7	(31)

Income Tax (Expense) Benefit	(35)	(36)	(94)	(21)	(11)	2	(7)	(202)

Equity Earnings Recorded Net of Income Tax	-	-	-	-	18	-	-	18

Net Income (Loss)	$ 61	$ 56	$ 130	$ 23	$ 24	$ (28)	$ (22)	$ 244


Three Months Ended June 30, 2007

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

Revenues	$ 659	$ 981	$ 710	$ 277	$ 84	$ (4)	$ (46)	$ 2,661

Cost of Sales and Other Expenses	(473)	(808)	(457)	(249)	(80)	(11)	(2)	(2,080)

Depreciation & Amortization	(75)	(70)	(6)	(13)	(3)	-	(4)	(171)

Gains on Sale of Assets	-	2	-	-	-	-	2	4

Equity Losses Recorded Before Income Tax	-	-	-	-	(3)	-	(3)	(6)

Other Income (Expense), Net	(2)	(2)	-	(2)	1	-	56	51

Income (Loss) Before Interest & Tax ⁽¹⁾	109	103	247	13	(1)	(15)	3	459

Net Interest (Expense) Income ⁽²⁾	(23)	(10)	-	2	1	-	(15)	(45)

Income Tax (Expense) Benefit	(35)	(39)	(86)	(5)	2	2	18	(143)

Equity Earnings (Losses) Recorded Net of Income Tax	-	-	(6)	-	15	-	-	9

Discontinued Operations	-	-	-	-	-	-	(3)	(3)

Net Income (Loss)	$ 51	$ 54	$ 155	$ 10	$ 17	$ (13)	$ 3	$ 277


⁽¹⁾ Management believes "Income (Loss) before Interest & Taxes" 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.


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Six Months Ended June 30, 2008

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

Revenues	$ 1,500	$ 2,699	$ 473	$ 928	$ 211	$ (5)	$ (33)	$ 5,773

Cost of Sales and Other Expenses	(1,107)	(2,346)	(395)	(782)	(202)	(44)	(7)	(4,883)

Depreciation & Amortization	(155)	(142)	(6)	(28)	(5)	(2)	(8)	(346)

Gains (Losses) on Sale of Assets	3	-	110	2	-	-	(1)	114

Equity Earnings (Losses) Recorded Before Income Tax	-	-	146	2	20	-	(7)	161

Other Income, Net	8	2	-	2	3	15	6	36

Income (Loss) Before Interest & Tax ⁽¹⁾	249	213	328	124	27	(36)	(50)	855

Net Interest (Expense) Income ⁽²⁾	(47)	(24)	(9)	(4)	2	(2)	5	(79)

Income Tax (Expense) Benefit	(67)	(76)	(133)	(52)	(15)	1	13	(329)

Equity Earnings Recorded Net of Income Tax	-	-	3	-	36	-	-	39

Net Income (Loss)	$ 135	$ 113	$ 189	$ 68	$ 50	$ (37)	$ (32)	$ 486


Six Months Ended June 30, 2007

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

Revenues	$ 1,368	$ 2,349	$ 1,222	$ 674	$ 161	$ (11)	$ (98)	$ 5,665

Cost of Sales and Other Expenses	(989)	(1,999)	(931)	(548)	(150)	(21)	(12)	(4,650)

Depreciation & Amortization	(150)	(139)	(13)	(25)	(6)	-	(7)	(340)

Gains on Sale of Assets	2	2	-	-	-	-	2	6

Equity Losses Recorded Before Income Tax	-	-	-	(1)	(3)	-	(8)	(12)

Other Income (Expense), Net	2	(4)	-	(1)	1	-	70	68

Income (Loss) Before Interest & Tax ⁽¹⁾	233	209	278	99	3	(32)	(53)	737

Net Interest (Expense) Income ⁽²⁾	(47)	(22)	(2)	9	-	(1)	(28)	(91)

Income Tax (Expense) Benefit	(73)	(78)	(90)	(44)	3	10	66	(206)

Equity Earnings Recorded Net of Income Tax	-	-	40	-	27	-	-	67

Discontinued Operations	-	-	-	-	-	-	(2)	(2)

Net Income (Loss)	$ 113	$ 109	$ 226	$ 64	$ 33	$ (23)	$ (17)	$ 505


⁽¹⁾ Management believes "Income (Loss) before Interest & Taxes" 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.