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AVAILABLE-FOR-SALE SECURITIES

9 Months Ended

Sep. 30, 2009

Notes to Condensed Consolidated Financial Statements

Available-for-sale Securities Disclosure

NOTE 4. INVESTMENTS IN UNCONSOLIDATED ENTITIES

SEMPRA ENERGY AND SDG&E
Available-for-Sale Securities
During the nine months ended September 30, 2008, Sempra Energy and SDG&E purchased $345 million and $68 million, respectively, of SDG&E's industrial development bonds, net of purchases and sales between Sempra Energy and SDG&E as the cash flow needs of each entity changed. After the remarketing of $237 million of these bonds in the fourth quarter of 2008, the remaining $176 million, $24 million of which were held by SDG&E, were classified as available-for-sale securities and included in Short-Term Investments on the Condensed Consolidated Balance Sheets. In June 2009, SDG&E remarketed the remaining $176 million of these bonds at a fixed rate of 5.875 percent, maturing in 2034. Pr ior to SDG&E's remarketing of the remaining bonds in 2009, SDG&E purchased $152 million of the bonds from Sempra Energy. We discuss these bonds further in Note 6 of the Notes to Consolidated Financial Statements in the Annual Report.

Nuclear Decommissioning Trusts
We discuss our investments in nuclear decommissioning trust funds in Note 7 of the Notes to Consolidated Financial Statements in the Annual Report. The following table shows the fair values and gross unrealized gains and losses for the securities held in the trust funds:

NUCLEAR DECOMMISSIONING TRUSTS
(Dollars in millions)
			Gross		Gross		Estimated
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
As of September 30, 2009:
Debt securities
U.S. government*	$	141	$	17	$	(1)	$	157
mp;#160;#160;#160;#160;Municipal bonds/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;67#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;3#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;(2)/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;68#160;/td/trtrtd width="318" align="left" height="16" colspan="2"Total debt securities/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;208#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;20#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;(3)/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;225#160;/td/trtrtd width="318" align="left" height="16" colspan="2"Equity securities/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;236#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;171#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;(6)/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;401#160;/td/trtrtd width="318" align="left" height="16" colspan="2"Cash and other securities/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;35#160;/tdtd height="16" style="borde r-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;3#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;-#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;38#160;/td/trtrtd width="318" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16"Total available-for-sale securities/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;borde r-bottom: 3px solid #000000;" align="right" width="61"#160;479#160;/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;194#160;/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;(9)/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;664#160;/td/trtrtd height="16" style="border-top: 3px solid #000000;" align="lef t" width="33"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="left" width="285"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="left" width="61"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="left" width="61"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="left" width="61"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 3px solid #000000;" align="left" width="61"#160;/td/trtrt d width="318" align="left" height="16" colspan="2"bAs of December 31, 2008:/b/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/td/trtrtd width="318" align="left" height="16" colspan="2"Debt securities/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/td ;td height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="left"#160;/td/trtrtd width="318" align="left" height="16" colspan="2"#160;#160;#160;#160;U.S. government/tdtd height="16" width="22" align="right"$/tdtd height="16" width="61" align="right"#160;127#160;/tdtd height="16" width="22" align="right"$/tdtd height="16" width="61" align="right"#160;28#160;/tdtd height="16" width="22" align="right"$/tdtd height="16" width="61" align="right"#160;-#160;/tdtd height="16" width="22" align="right"$/tdtd height="16" width="61" align="right"#160;155#160;/td/trtrtd width="318" align="le ft" height="16" colspan="2"#160;#160;#160;#160;Municipal bonds/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;69#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;1#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;(9)/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;61#160;/td/tr gt;trtd width="318" align="left" height="16" colspan="2"Total debt securities/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;196#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;29#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;(9)/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="61"#160;216#160;/td/trtr lt;td width="318" align="left" height="16" colspan="2"Equity securities/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;251#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;105#160;/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;(36)/tdtd height="16" width="22" align="right"#160;/tdtd height="16" width="61" align="right"#160;320#160;/td/trtrtd width="318" align="left" height="16" colspan="2"Cash and other securities/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;40#160;/td t;td height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;3#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;(2)/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="22"#160;/tdtd height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"#160;41#160;/td/trtrtd width="318" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16"Total available-for-sale securities/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1p x solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;487#160;/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;137#160;/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;(47)/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"#160;577#160;/td/trtrtd height="16" style="border-top: 3px soli d #000000;" align="left" width="33"i/i/tdtd width="617" align="left" colspan="9" style="border-top: 3px solid #000000;" height="16"iMaturity dates are 2012-2039/i/td/trtrtd height="16" width="33" align="left"i/i/tdtd width="617" align="left" height="16" colspan="9"iMaturity dates are 2010-2057/i/td/trtrtd height="16" width="33" align="left"i*/i/tdtd width="617" align="left" height="16" colspan="9"iMaturity dates are 2009-2049/i/td/tr/tablepThe following table shows the proceeds from sales of securities in the trusts and gross realized gains and losses on those sales:/ptable style="border-collapse: collapse; margin-top: 20px;"trtd width="533" align="left" colspan="9" style="border-top: 1px solid #000000;" height="19"bSALES OF SECURITIES/b/td/trtrtd width="533" align="left" height="19" colspan="9"i(Dollars in millions)/i/td/trtrtd height="14" width="145" align="left"b#160;/b/tdtd width="194" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14"Three months ended September 30,/tdtd width="194" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14"Nine months ended September 30,/td/trtrtd height="14" style="border-bottom: 1px solid #000000;" align="left" width="145"#160;/tdtd width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"2009#160;/tdtd width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"2008#160;/tdtd width="97 " align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"2009#160;/tdtd width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"2008#160;/td/trtrtd height="16" style="border-top: 1px solid #000000;" align="left" width="145"Proceeds from sales/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="75"#160;62#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="75"#160;173#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000 ;" align="right" width="75"#160;150#160;/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="22"$/tdtd height="16" style="border-top: 1px solid #000000;" align="right" width="75"#160;342#160;/td/trtrtd height="16" width="145" align="left"Gross realized gains/tdtd height="16" width="22" align="left"#160;/tdtd height="16" width="75" align="right"#160;-#160;/tdtd height="16" width="22" align="left"#160;/tdtd height="16" width="75" align="right"#160;4#160;/tdtd height="16" width="22" align="left"#160;/tdtd height="16" width="75" align="right"#160;4#160;/tdtd height="16" width="22" align="left"#160;/tdtd height="16" width="75" align="right"#160;11#160;/td/trtrtd height="16" style="border-bo ttom: 3px solid #C0C0C0;" align="left" width="145"Gross realized losses/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"#160;/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"#160;(6)/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"#160;/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"#160;(11)/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"#160;/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"#160;(30)/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"#160;/tdtd height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"#160;(22)/td/tr/tablepNet unrealiz ed gains (losses) are included in Regulatory Liabilities Arising from Removal Obligations on the Condensed Consolidated Balance Sheets. We determine the cost of securities in the trusts on the basis of specific identification.br //p/div

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - shares shares in Millions	Sep. 30, 2009	Dec. 31, 2008
Sempra Energy Consolidated
Statement Line Items
Preferred Stock Shares Authorized	50	50
Preferred Stock Shares Issued	0	0
Common Stock Shares Authorized	750	750
Common Stock Shares Outstanding	246	243
San Diego Gas and Electric Company and Subsidiary
Statement Line Items
Common Stock Shares Authorized	255	255
Common Stock Shares Outstanding	117	117
Pacific Enterprises and Subsidiaries
Statement Line Items
Common Stock Shares Authorized	600	600
Common Stock Shares Outstanding	84	84
Southern California Gas Company and Subsidiaries
Statement Line Items
Common Stock Shares Authorized	100	100
Common Stock Shares Outstanding	91	91

GENERAL	9 Months Ended
GENERAL	Sep. 30, 2009
Notes to Condensed Consolidated Financial Statements
General Disclosure	NOTE 1. GENERAL Principles of Consolidation Sempra Energy Sempra Energy's Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 holding company, its consolidated subsidiaries, and variable interest entities. Sempra Energy’s principal subsidiaries are: San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas), which we collectively refer to as the Sempra Utilities; and Sempra Global, which is the holding company for Sempra Commodities, Sempra Generation, Sempra Pipelines & Storage, Sempra LNG and other, smaller businesses. Sempra Energy uses the equit y method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control. SDG&E SDG&E's Condensed Consolidated Financial Statements include its accounts, the accounts of its sole subsidiary, SDG&E Funding LLC, and the accounts of Otay Mesa Energy Center LLC (Otay Mesa VIE) and Orange Grove L.P., which are variable interest entities of which SDG&E is the primary beneficiary, as discussed in Note 5 under "Variable Interest Entities." SDG&E’s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. The activities of SDG&E Funding LLC were substantially complete in 2007, and the entity was dissolved in 2008. Pacific Enterprises and SoCalGas The Condensed Consolidated Financial Statements of Pacific Enterprises include the accounts of Pacific Enterprises (PE) and its subsidiary, SoCalGas. Sempra Energy owns all of PE’s common stock and PE owns all of SoCalGas’ common stock. SoCalGas’ Condensed Consolidated Financial Statements include its subsidiaries, which comprise less than one percent of its consolidated financial position and results of operations. PE's operations consist solely of those of SoCalGas and additional items (e.g., cash, intercompany accounts and equity) attributable to being a holding company for SoCalGas. Basis of Presentation This is a combined report of Sempra Energy, SDG&E, PE and SoCalGas. We provide separate information for SDG&E, PE and SoCalGas as required. When only information for SoCalGas is provided, it is the same for PE. References in this report to "we," "our" and "Sempra Energy Consolidated" are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within each set of consolidated financ ial statements. We have prepared the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after September 30, 2009 but before the issuance of these financial statements on November 9, 2009, and in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation. These adjustments are only of a normal, recurring nature, except as we discuss below in "Presentation of Preferred Securities" and in Note 2. You should read the information in this Quarterly Report in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2008 (the Annual Report) and our Quarterly Reports on Form 10-Q for the quarters en ded March 31, 2009 and June 30, 2009, which are combined reports for Sempra Energy, SDG&E, PE and SoCalGas. Our significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes, except for the adoption of new accounting standards as we discuss in Note 2. The Sempra Utilities account for the economic effects of regulation on utility operations in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 980, Regulated Operations (formerly Statement of Financial Accounting Standards (SFAS) 71, Accounting for the Effects of Certain Types of Regulation). Presentation of Preferred Securities In connection with the adoption of SFAS 160, Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51 (ASC 810), as we discuss in Note 2, we evaluate d the requirements of Emerging Issues Task Force (EITF) Topic No. 98, Classification and Measurement of Redeemable Securities (Topic D-98) (ASC 480), with respect to the presentation of preferred securities. In previously issued financial statements, SDG&E classified certain preferred securities within the shareholders' equity section of the balance sheet. These preferred securities contain a contingent redemption feature that allows the holder to elect a majority of SDG&E's board of directors if dividends are not paid for eight consecutive quarters. Because such a redemption triggering event is not solely within the control of SDG&E, SDG&E has concluded that these preferred securities should have been presented separate from and outside of shareholders' equity in a manner consistent with temporary equity defined in Topic D-98. Although SDG&E believes that the effects are not material to the previously issued balance sheets, SDG&E has corrected the classificati on of these amounts as of December 31, 2008 for comparability purposes. This change, which affects preferred securities totaling $79 million at both December 31, 2008 and September 30, 2009, affects only the balance sheet presentation of equity accounts and has no impact on earnings or on cash flows for any period presented.

NEW ACCOUNTING STANDARDS	9 Months Ended
NEW ACCOUNTING STANDARDS	Sep. 30, 2009
Notes to Condensed Consolidated Financial Statements
New Accounting Standards Disclosure	NOTE 2. NEW ACCOUNTING STANDARDS We describe below recent pronouncements that have had or may have a significant effect on our financial statements. We do not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to our financial condition, results of operations, or disclosures. SEMPRA ENERGY, SDG&E, PE AND SOCALGAS SFAS 168, "The FASB Accounting Standards CodificationTM and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162" (SFAS 168): The FASB Accounting Standards Codification (the Codification) became the official source of GAAP on July 1, 2009 and for convenience, we have provided the prior GAAP source references in addition to the Codification reference throughout this Form 10-Q . In addition, the Codification changed the referencing system used to identify new accounting guidance. As a result, we refer to an accounting update issued after July 1, 2009 as an Accounting Standards Update (ASU). We refer to new pronouncements issued before July 1, 2009 by their original title. ASU 2009-05, “Measuring Liabilities at Fair Value” (ASU 2009-05): ASU 2009-05 addresses practical difficulties that arise when calculating the fair value of a liability, or the price at which the liability may be transferred to a market participant. Generally, a quoted price for an identical liability is not available because few liabilities are transferred to another party. In the absence of a quoted price in an active market for an identical liability, ASU 2009-05 allows the following valuation techniques: a quoted price of an identical or similar liability traded as an asset a valuation techniqu e consistent with ASC 820, Fair Value Measurements and Disclosures ASU 2009-05 applies to us prospectively beginning October 1, 2009. We are in the process of evaluating the effects of this statement on our financial position and results of operations. SFAS 167, "Amendments to FASB Interpretation No. 46(R)" (SFAS 167): SFAS 167 amends FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities – an interpretation of ARB No. 51 (FIN 46(R)), which provides consolidation guidance related to variable interest entities. SFAS 167 requires a qualitative approach for identifying the primary beneficiary of a variable interest entity based on 1) the power to direct activities that most significantly impact the economic performance of the entity, and 2) the obligation to absorb losses or right to receive benefits that could be significant to the entity; ongo ing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity; and separate disclosure by the primary beneficiary on the face of the balance sheet to identify 1) assets that can only be used to settle obligations of the variable interest entity, and 2) liabilities for which creditors do not have recourse to the primary beneficiary. SFAS 167 applies to us beginning with the first quarter of 2010. We are in the process of evaluating the effects of this statement on our financial position and results of operations. SFAS 165, "Subsequent Events" (SFAS 165): SFAS 165 (ASC 855) requires management to evaluate events that occur after the balance sheet through the date that the financial statements are issued. The guidance is similar to current audit guidance and does not change the way we assess subsequent events. The statement requires that we disclose the date through which we evaluated subs equent events. We adopted SFAS 165 on April 1, 2009 and provide the required disclosure in Note 1. SFAS 160, "Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB No. 51" (SFAS 160): SFAS 160 (ASC 810) amends Accounting Research Bulletin (ARB) No. 51, Consolidated Financial Statements, to establish accounting and reporting standards for ownership interests in subsidiaries held by parties other than the parent. SFAS 160 provides guidance on the following: how to report noncontrolling interests in a subsidiary in consolidated financial statements; the amount of consolidated net income attributable to the parent and to the noncontrolling interest; and changes in a parent’s ownership interest and the valuation of retained noncontrolling equity investments when a subsidiary is deconsolidated. We adopted SFAS 160 on January 1, 2009, and the presentation and disclosure requirements must be applied retrospectively. Accordingly, Sempra Energy’s, SDG&E’s and PE's Condensed Consolidated Financial Statements at December 31, 2008 and for the three and nine months ended September 30, 2008 have been reclassified to conform to the new presentation. The adoption of SFAS 160 had no impact on SoCalGas’ financial statements. The pronouncement also requires disclosures that clearly identify and distinguish between the interest of the parent and the interests of the noncontrolling owners. We provide the required disclosure in Note 5. SFAS 161, "Disclosures about Derivative Instruments and Hedging Activities – an amendment of FASB Statement No. 133" (SFAS 161): SFAS 161 (ASC 815) expands the disclosure requirements in SFAS 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133). SFAS 161 requires d isclosures about the following: qualitative objectives and strategies for using derivatives; quantitative disclosures of fair value amounts, and gains and losses on derivative instruments and related hedged items; and credit-risk-related contingent features in derivative agreements. We adopted SFAS 161 prospectively on January 1, 2009. We provide the required disclosure in Note 7. FASB Staff Position (FSP) FAS 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That are Not Orderly" (FSP FAS 157-4): FSP FAS 157-4 (ASC 820) concerns the determination of fair values for assets and liabilities when there is no active market or where the prices used might represent distressed sales. Specifically, it reaffirms the need to use judgment to ascertain if a fo rmerly active market has become inactive and in determining fair values when markets have become inactive. The FSP also outlines factors to be used to determine whether there has been a significant decrease in the volume and level of activity for the assets and liabilities when compared with normal market activity. We adopted FSP FAS 157-4 on April 1, 2009, and it did not affect our financial position or results of operations. FSP FAS 107-1 and APB 28-1, "Interim Disclosures About Fair Value of Financial Instruments" (FSP FAS 107-1 and APB 28-1): FSP FAS 107-1 and APB 28-1 (ASC 820) requires disclosure about the carrying amount and fair value of financial instruments for interim periods. Prior to the issuance of this FSP, this disclosure was required only for annual periods. We adopted FSP FAS 107-1 and APB 28-1 on April 1, 2009 and provide the required disclosure in Note 8. FSP FAS 115-2 and FAS 124-2, "Recognition and Presentation of Other-Than-Temporary Impairments" (FSP FAS 115- 2 and FAS 124-2): FSP FAS 115-2 and FAS 124-2 (ASC 320) establishes a new model for determining and recording other-than-temporary impairment for debt securities. The pronouncement also requires disclosure about the fair value of investments for interim periods. Prior to the issuance of this FSP, this disclosure was required only for annual periods. We adopted FSP FAS 115-2 and FAS 124-2 on April 1, 2009, and it did not affect our financial position or results of operations. We provide the required disclosure in Note 8. FSP FAS 132(R)-1, "Employers’ Disclosures about Postretirement Benefit Plan Assets" (FSP FAS 132(R)-1): FSP FAS 132(R)-1 (ASC 715) requires annual disclosure about the assets held in postretirement benefit plans, including a breakdown by the level of the assets and a reconciliation of any change in Level 3 assets during the year. It requires disclosures about the following: valuation inputs, with detailed disclosure required abo ut Level 3 assets asset categories, broken down to relevant detail concentration of risk in plan assets FSP FAS 132(R)-1 applies to us prospectively for fiscal years ending after December 15, 2009. Early application is permitted. We are in the process of evaluating the effect of this statement on our financial statement disclosures and will include the additional disclosure in our 2009 annual financial statements. SEMPRA ENERGY FSP EITF 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" (FSP EITF 03-6-1): FSP EITF 03-6-1 (ASC 260) states that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, they are required to be included when computing earnings per share (EPS) under the two-class method described in SFAS 128, Earnings per Share. All prior-period EPS data are to be adjusted retrospectively to conform with the provisions of this FSP. We adopted FSP EITF 03-6-1 on January 1, 2009, and it did not have a material effect on our EPS. EITF Issue No. 08-6, "Equity Method Investment Accounting Considerations" (EITF 08-6): EITF 08-6 (ASC 323) clarifies accounting and impairment considerations involving equity method investments. We adopted EITF 08-6 on January 1, 2009, and it did not have a material effect on our financial position or results of operations. EITF Issue No. 08-5, "Issuer’s Accounting for Liabilities Measured at Fair Value with a Third-Party Credit Enhancement" (EITF 08-5): EITF 08-5 (ASC 820) provides that an issuer of a liability with a third-party credit enhancement that is inseparable from the liability may not include the effect of the credit enhancement in the fair value measurement of the liability. We adopted EITF 08-5 on January 1, 2009, and it did not affect our financial position or results of operations.

RECENT EQUITY TRANSACTION	9 Months Ended
RECENT EQUITY TRANSACTION	Sep. 30, 2009
Notes to Condensed Consolidated Financial Statements
Recent Equity Transaction Disclosure	NOTE 3. RECENT EQUITY TRANSACTION SEMPRA PIPELINES & STORAGE Sempra Midstream, owned by Sempra Pipelines & Storage, owned 60 percent of Mississippi Hub, LLC (Mississippi Hub) at December 31, 2008. On January 16, 2009, Sempra Midstream purchased the remaining 40-percent ownership interest of Mississippi Hub for $94 million in cash.