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Sempra Energy 11/10/2008 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):	November 10, 2008

SEMPRA ENERGY

(Exact name of registrant as specified in its charter)


CALIFORNIA	1-14201	33-0732627
(State of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)


101 ASH STREET, SAN DIEGO, CALIFORNIA		92101
(Address of principal executive offices)		(Zip Code)


Registrant's telephone number, including area code	(619) 696-2034

(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 Sempra Energy, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On November 10, 2008, Sempra Energy issued a press release announcing consolidated net income of $308 million, or $1.24 per diluted share of common stock, for the third 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 nine months ended September 30, 2008 and 2007. A copy of such information is attached as Exhibit 99.2.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1

November 10, 2008 Sempra Energy News Release (including tables)

99.2

Sempra Energy's Income Statement Data by Business Unit for three months and nine months ended September 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.

SEMPRA ENERGY
(Registrant)


Date: November 10, 2008	By: /s/ Joseph A. Householder
	Joseph A. Householder Senior Vice President, Controller and Chief Accounting 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 THIRD-QUARTER

EARNINGS PER SHARE INCREASE

8 PERCENT

Utility, Generation, Pipeline Operations Pace Strong Results

SAN DIEGO, Nov. 10, 2008 – Sempra Energy (NYSE: SRE) today reported third-quarter 2008 net income of $308 million, or $1.24 per diluted share, up 8 percent per share over third-quarter 2007 net income of $305 million, or $1.15 per diluted share.

Net income for the first nine months of 2008 was $794 million, or $3.13 per diluted share, compared with $810 million, or $3.06 per diluted share, during the same period last year. Shares outstanding have been reduced in 2008 through the recently completed $1 billion share-repurchase program the company initiated in April.

“Given the turmoil and dislocation in the financial markets, we are pleased with our third-quarter results,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “We have assembled a diversified group of energy businesses that help us continue to meet our financial targets, even during down cycles in specific market segments.”

OPERATING HIGHLIGHTS

Southern California Gas Co.

Net income for Southern California Gas Co. (SoCalGas) in the third quarter 2008 rose to $77 million from $63 million in the third quarter 2007, due primarily to $11 million from the favorable resolution of regulatory and income-tax issues in 2008. SoCalGas’ third-quarter 2008 results also included $7 million of net income from the retroactive application of its rate case, approved in July.

San Diego Gas & Electric

Third-quarter net income for San Diego Gas & Electric (SDG&E) was $123 million in 2008, unchanged from 2007. Third-quarter 2008 results included $33 million from the retroactive application of SDG&E’s rate case, approved in July, and $12 million from the favorable resolution of income-tax issues, offset by $17 million in litigation expense. Last year’s third-quarter results included $46 million from the favorable resolution of regulatory and income-tax issues. SDG&E also benefited from improved operating margins in the third quarter 2008, compared with the same quarter in 2007.

On Oct. 31, the California Public Utilities Commission’s assigned commissioner and administrative law judge reviewing SDG&E’s application for the Sunrise Powerlink transmission-line project issued draft decisions in the case. The assigned commissioner recommended conditional approval of the project, while the administrative judge recommended denial of the project. The full commission is expected to issue a final decision on the Sunrise Powerlink next month.

RBS Sempra Commodities

Sempra Energy recorded a net loss of $3 million from its equity share of the RBS Sempra Commodities joint venture. In last year’s third quarter, Sempra Commodities earned $87 million in net income. Results for 2007 represented 100 percent of the earnings from the commodity-marketing business prior to the formation of RBS Sempra Commodities. In the most recent quarter, results were negatively impacted by losses in power marketing caused by the steep decline in commodity prices during the early part of the quarter and reduced market liquidity associated with fewer market participants.

“Notwithstanding the third-quarter results in our joint venture, its outlook continues to be strong and we expect to meet our previously provided range for this segment of $250 million to $350 million in 2008,” Felsinger said.

Sempra Generation

Sempra Generation’s third-quarter net income rose sharply to $94 million in 2008 from $58 million in 2007, primarily due to an increase in mark-to-market earnings on long-term contracts with RBS Sempra Commodities and other counterparties.

Sempra Pipelines & Storage

Third-quarter 2008 net income for Sempra Pipelines & Storage doubled to $34 million from $17 million in last year’s third quarter, due primarily to start-up of the Rockies Express-West pipeline and the natural gas pipelines supporting Sempra LNG’s new liquefied natural gas receipt terminal in Mexico.

Last month, Sempra Energy completed its acquisition of EnergySouth, Inc., whose operations have been absorbed into Sempra Pipelines & Storage. The transaction gives Sempra Energy a majority ownership in two large, high-cycle underground natural gas storage facilities that, when fully developed, will have capacity of 57 billion cubic feet of natural gas serving the nation’s fastest-growing natural gas markets. The transaction also included acquisition of Mobile Gas Service Corp., an Alabama natural gas distribution utility.

Sempra LNG

Sempra LNG had net income of $4 million in the third quarter 2008, compared with a net loss of $4 million in the third quarter 2007. The improved results were due primarily to a mark-to-market gain related to a natural gas marketing agreement with RBS Sempra Commodities.

The third quarter of 2008 was the first full quarter of operation of Energía Costa Azul, Sempra LNG’s Mexican receipt terminal.

Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST 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 6032084.

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.

Complete financial tables, including income-statement information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/3Q2008.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. These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies or plans. 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 risks, including, among others: local, regional, national and international economic, competitive, po litical, 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 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 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 th e control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system without charge at the SEC’s Web site, www.sec.gov and on the company’s Web site, at 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		Nine months ended
		September 30,		September 30,
(Dollars in millions, except per share amounts)		2008	2007	2008	2007
		(unaudited)
Revenues
Sempra Utilities		$ 2,013	$ 1,515	$ 6,190	$ 5,194
Sempra Global and parent		679	1,148	2,275	3,134
	Total revenues	2,692	2,663	8,465	8,328

Expenses and Other Income
Sempra Utilities:
	Cost of natural gas	(689)	(389)	(2,708)	(2,042)
	Cost of electric fuel and purchased power	(311)	(184)	(694)	(496)
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	(431)	(331)	(1,353)	(945)
	Other cost of sales	(15)	(256)	(168)	(796)
Operation and maintenance		(564)	(758)	(1,816)	(2,140)
Depreciation and amortization		(162)	(174)	(508)	(514)
Franchise fees and other taxes		(76)	(72)	(230)	(221)
Gains on sale of assets		-	-	114	6
Equity earnings (losses):
	RBS Sempra Commodities LLP	(4)	-	142	-
	Other	14	1	29	(11)
Other income (expense), net		(13)	4	23	72
Interest income		12	12	36	62
Interest expense		(67)	(68)	(165)	(204)
Preferred dividends of subsidiaries		(2)	(2)	(7)	(7)
Income from continuing operations before income taxes and equity earnings of certain unconsolidated subsidiaries		384	446	1,160	1,092
Income tax expense		(94)	(135)	(423)	(341)
Equity earnings, net of income tax		18	19	57	86
Income from continuing operations		308	330	794	837
Discontinued operations, net of income tax		-	(25)	-	(27)
Net income		$ 308	$ 305	$ 794	$ 810

Basic earnings per share:
	Income from continuing operations	$ 1.26	$ 1.27	$ 3.18	$ 3.23
	Discontinued operations, net of income tax	-	(0.10)	-	(0.11)
	Net income	$ 1.26	$ 1.17	$ 3.18	$ 3.12
Weighted-average number of shares outstanding (thousands)		243,793	259,563	249,311	259,742

Diluted earnings per share:
	Income from continuing operations	$ 1.24	$ 1.24	$ 3.13	$ 3.16
	Discontinued operations, net of income tax	-	(0.09)	-	(0.10)
	Net income	$ 1.24	$ 1.15	$ 3.13	$ 3.06
Weighted-average number of shares outstanding (thousands)		247,904	264,279	253,407	264,416
Dividends declared per share of common stock		$ 0.35	$ 0.31	$ 1.02	$ 0.93


SEMPRA ENERGY
Table B

*CONSOLIDATED BALANCE SHEETS*

				September 30,	December 31,
(Dollars in millions)				2008	2007
				(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 198	$ 668
	Short-term investments			413	-
	Accounts receivable, net			796	1,074
	Income taxes receivable			189	99
	Deferred income taxes			150	247
	Trading-related receivables and deposits, net			-	2,719	*
	Derivative trading instruments			-	2,170	*
	Commodities owned			-	2,231
	Inventories			461	224
	Regulatory assets			119	106
	Fixed-price contracts and other derivatives			91	28	*
	Other			153	398
			Total current assets	2,570	9,964

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			281	309
	Regulatory assets arising from pension and other postretirement
		benefit obligations		144	162
	Other regulatory assets			499	460
	Nuclear decommissioning trusts			636	739
	Investment in RBS Sempra Commodities LLP			1,912	-
	Other investments			1,247	1,243
	Sundry			746	956
			Total investments and other assets	5,465	3,869
Property, plant and equipment, net				15,814	14,884
Total assets				$ 23,849	$ 28,717

Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 319	$ 1,064
	Accounts payable			743	1,563
	Due to unconsolidated affiliates			37	60
	Trading-related payables			-	2,265	*
	Derivative trading instruments			-	1,672	*
	Commodities sold with agreement to repurchase			-	500
	Dividends and interest payable			164	145
	Regulatory balancing accounts, net			264	481
	Current portion of long-term debt			302	7
	Fixed-price contracts and other derivatives			175	53	*
	Other			1,131	1,210
			Total current liabilities	3,135	9,020
Long-term debt				5,864	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			412	434
	Deferred income taxes			799	531
	Deferred investment tax credits			58	61
	Regulatory liabilities arising from removal obligations			2,420	2,522
	Asset retirement obligations			1,165	1,129
	Other regulatory liabilities			234	265
	Fixed-price contracts and other derivatives			315	332
	Deferred credits and other			911	949
			Total deferred credits and other liabilities	6,569	6,478
Preferred stock of subsidiaries				179	179
Minority interests				204	148
Shareholders' equity				7,898	8,339
Total liabilities and shareholders' equity				$ 23,849	$ 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*
		Nine months ended
		September 30,
(Dollars in millions)		2008	2007
		(unaudited)
Cash Flows from Operating Activities:
Net income		$ 794	$ 810
Adjustments to reconcile net income to net cash
provided by operating activities:
	Discontinued operations	-	27
	Depreciation and amortization	508	514
	Deferred income taxes and investment tax credits	165	42
	Equity earnings	(228)	(75)
	Gains on sale of assets	(114)	(6)
	Fixed-price contracts and other derivatives	7	8
	Tax benefits from share-based awards	(7)	(12)
	Other	83	37
Net changes in other working capital components		(408)	131
Distribution from RBS Sempra Commodities LLP		56	-
Changes in other assets		(3)	35
Changes in other liabilities		(55)	63
	Net cash provided by continuing operations	798	1,574
	Net cash used in discontinued operations	-	(3)
	Net cash provided by operating activities	798	1,571

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(1,541)	(1,357)
Proceeds from sale of assets, net of cash sold		2,071	77
Expenditures for investments		(2,180)	(17)
Distributions from investments		23	13
Purchases of nuclear decommissioning and other trust assets		(361)	(498)
Proceeds from sales by nuclear decommissioning and other trusts		350	458
Decrease in notes receivable from unconsolidated affiliates		60	-
Other		(18)	(19)
	Net cash used for investing activities	(1,596)	(1,343)

Cash Flows from Financing Activities:
Common dividends paid		(252)	(234)
Issuances of common stock		17	36
Repurchases of common stock		(1,002)	(161)
Increase in short-term debt, net		985	954
Issuance of long-term debt		650	359
Payments on long-term debt		(75)	(1,069)
Tax benefits from share-based awards		7	12
Other		(2)	(2)
	Net cash provided by (used in) financing activities	328	(105)

Increase (decrease) in cash and cash equivalents		(470)	123
Cash and cash equivalents, January 1		668	920
Cash assumed in connection with FIN 46(R) initial consolidation		-	29
Cash and cash equivalents, September 30		$ 198	$ 1,072


SEMPRA ENERGY
Table D


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


		Three months ended			Nine months ended
		September 30,			September 30,
(Dollars in millions)		2008		2007	2008		2007

Net Income
San Diego Gas & Electric		$ 123		$ 123	$ 258		$ 236
Southern California Gas		77		63	190		172
Sempra Commodities*		(8)		87	181		313
Sempra Generation		94		58	162		122
Sempra Pipelines & Storage		34		17	84		50
Sempra LNG		4		(4)	(33)		(27)
Parent & Other		(16)		(14)	(48)		(29)
Continuing Operations		308		330	794		837
Discontinued Operations, Net of Income Tax		-		(25)	-		(27)
Consolidated Net Income		$ 308		$ 305	$ 794		$ 810

*	Includes the company's portion of RBS Sempra Commodities' joint venture earnings since the formation of the joint venture on April 1, 2008, and 100% of the commodities' marketing businesses prior to April 1, 2008. Also includes the operating results of Sempra Rockies Marketing, as well as interest, income taxes, cost allocations and other items associated with the joint venture.

		Three months ended			Nine months ended
		September 30,			September 30,
(Dollars in millions)		2008		2007	2008		2007

Capital Expenditures and Investments*
San Diego Gas & Electric		$ 277	**	$ 174	$ 942	**	$ 479
Southern California Gas		108		109	350		300
Sempra Commodities		-		24	37		49
Sempra Generation		2		4	15		8
Sempra Pipelines & Storage		43		43	345		180
Sempra LNG		61		122	310		346
Parent & Other		165	**	4	426	**	12
Eliminations		(229)	***	-	(304)	***	-
Consolidated Capital Expenditures and Investments		$ 427		$ 480	$ 2,121		$ 1,374

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

**	Purchases of industrial development bonds for SDG&E and Parent & Other were $68 and $161, respectively, in the three months ended September 30, 2008 and $304 and $413, respectively, for the nine months ended September 30, 2008.

***	Represents purchases and sales of industrial development bonds between SDG&E and Parent & Other.



SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended		Nine months ended
		September 30,		September 30,
*SEMPRA UTILITIES*		2008	2007	2008	2007

Revenues (Dollars in millions)
SDG&E (excludes intercompany sales)		$ 945	$ 714	$ 2,439	$ 2,074
SoCalGas (excludes intercompany sales)		$ 1,068	$ 801	$ 3,751	$ 3,120

Gas Sales (Bcf)		63	65	288	290
Transportation and Exchange (Bcf)		171	178	445	421
Total Deliveries (Bcf)		234	243	733	711

Total Gas Customers (Thousands)				6,565	6,517

Electric Sales (Millions of kWhs)		4,716	4,788	13,012	12,847
Direct Access (Millions of kWhs)		781	907	2,296	2,401
Total Deliveries (Millions of kWhs)		5,497	5,695	15,308	15,248

Total Electric Customers (Thousands)				1,370	1,363


*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,707	5,718	16,825	15,243


*SEMPRA PIPELINES & STORAGE*
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy.)
Natural Gas Sales (Bcf)
	Argentina	102	100	254	241
	Mexico	12	13	36	35
	Chile	-	1	-	1
Natural Gas Customers (Thousands)
	Argentina			1,658	1,589
	Mexico			95	95
	Chile			39	39
Electric Sales (Millions of kWhs)
	Peru	1,347	1,273	4,063	3,800
	Chile	565	582	1,797	1,868
Electric Customers (Thousands)
	Peru			829	803
	Chile			559	545


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 and six months ended September 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 Rockies 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	Six
		months ended	months ended
RBS Sempra Commodities LLP - Joint Venture level margin*		September 30, 2008	September 30, 2008

Geographical:
	North America	$ (79)	$ 443
	Europe/Asia	139	263
	Total	$ 60	$ 706

Product Line:
	Natural Gas	$ 57	$ 363
	Oil - Crude & Products	22	114
	Metals	62	104
	Power	(81)	93
	Other	-	32
	Total	$ 60	$ 706

* 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 September 30, 2008
		Joint Venture	Sempra
		Total	Share**
	Fee income and trading revenue, net of selling costs	$ 60
	Operating and other expenses	(93)
	Joint Venture distributable income	$ (33)


	Preferred return on capital	$ 131	$ 60
	1st allocation - 70% Sempra / 30% RBS	(103)	(71)
	2nd allocation - 30% Sempra / 70% RBS	(61)	(18)
	Distributable income	$ (33)	$ (29)

		Six months ended September 30, 2008
		Joint Venture	Sempra
		Total	Share**
	Fee income and trading revenue, net of selling costs	$ 706
	Operating and other expenses	(405)
	Joint Venture distributable income	$ 301


	Preferred return on capital	$ 279	$ 120
	1st allocation - 70% Sempra / 30% RBS	22	16
	2nd allocation - 30% Sempra / 70% RBS	-	-
	Distributable income	$ 301	$ 136

*Sempra Earnings from RBS Sempra Commodities LLP*

		Three	Six
		months ended	months ended
(in millions of US dollars)		September 30, 2008	September 30, 2008
	Sempra share of distributable income - IFRS basis	$ (29)	$ 136
	U.S. GAAP conversion impact	25	6
	Sempra equity earnings - U.S. GAAP basis	(4)	142
	Income tax expense	1	(52)
	Sempra equity earnings from RBS Sempra Commodities LLP	$ (3)	$ 90

**After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis. The preferred returns and the 1st allocation (the $500 million tranche) are prorated over the year. Negative amounts in the three-month period represent reductions required to reflect the YTD calculations of the 1st and 2nd allocations.

Exhibit 99.2

Exhibit 99.2


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Three Months Ended September 30, 2008

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

Revenues	$ 949	$ 1,077	$ 13	$ 498	$ 127	$ 49	$ (21)	$ 2,692

Cost of Sales and Other Expenses	(689)	(879)	(15)	(349)	(112)	(31)	(11)	(2,086)

Depreciation & Amortization	(68)	(67)	-	(14)	(5)	(6)	(2)	(162)

Equity Earnings (Losses) Recorded Before Income Tax	-	-	(4)	8	10	-	(4)	10

Other Income (Expense), Net	10	(1)	-	(1)	(1)	(2)	(18)	(13)

Income (Loss) Before Interest & Tax ⁽¹⁾	202	130	(6)	142	19	10	(56)	441

Net Interest (Expense) Income ⁽²⁾	(25)	(12)	(3)	(2)	2	(3)	(14)	(57)

Income Tax (Expense) Benefit	(54)	(41)	1	(46)	(5)	(3)	54	(94)

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

Net Income (Loss)	$ 123	$ 77	$ (8)	$ 94	$ 34	$ 4	$ (16)	$ 308


Three Months Ended September 30, 2007

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

Revenues	$ 716	$ 819	$ 679	$ 390	$ 81	$ -	$ (22)	$ 2,663

Cost of Sales and Other Expenses	(474)	(631)	(506)	(294)	(77)	(9)	1	(1,990)

Depreciation & Amortization	(75)	(71)	(6)	(16)	(3)	-	(3)	(174)

Equity Earnings (Losses) Recorded Before Income Tax	-	-	-	7	(2)	-	(4)	1

Other Income (Expense), Net	8	-	-	1	1	-	(6)	4

Income (Loss) Before Interest & Tax ⁽¹⁾	175	117	167	88	-	(9)	(34)	504

Net Interest (Expense) Income ⁽²⁾	(24)	(10)	(14)	2	(1)	(1)	(10)	(58)

Income Tax (Expense) Benefit	(28)	(44)	(66)	(32)	(1)	6	30	(135)

Equity Earnings Recorded Net of Income Tax	-	-	-	-	19	-	-	19

Discontinued Operations	-	-	-	-	-	-	(25)	(25)

Net Income (Loss)	$ 123	$ 63	$ 87	$ 58	$ 17	$ (4)	$ (39)	$ 305

⁽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*

Nine Months Ended September 30, 2008

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

Revenues	$ 2,449	$ 3,776	$ 486	$ 1,426	$ 338	$ 44	$ (54)	$ 8,465

Cost of Sales and Other Expenses	(1,796)	(3,225)	(410)	(1,131)	(314)	(75)	(18)	(6,969)

Depreciation & Amortization	(223)	(209)	(6)	(42)	(10)	(8)	(10)	(508)

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

Equity Earnings (Losses) Recorded Before Income Tax	-	-	142	10	30	-	(11)	171

Other Income (Expense), Net	18	1	-	1	2	13	(12)	23

Income (Loss) Before Interest & Tax ⁽¹⁾	451	343	322	266	46	(26)	(106)	1,296

Net Interest (Expense) Income ⁽²⁾	(72)	(36)	(12)	(6)	4	(5)	(9)	(136)

Income Tax (Expense) Benefit	(121)	(117)	(132)	(98)	(20)	(2)	67	(423)

Equity Earnings Recorded Net of Income Tax	-	-	3	-	54	-	-	57

Net Income (Loss)	$ 258	$ 190	$ 181	$ 162	$ 84	$ (33)	$ (48)	$ 794


Nine Months Ended September 30, 2007

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

Revenues	$ 2,084	$ 3,168	$ 1,901	$ 1,064	$ 242	$ (11)	$ (120)	$ 8,328

Cost of Sales and Other Expenses	(1,463)	(2,630)	(1,437)	(842)	(227)	(30)	(11)	(6,640)

Depreciation & Amortization	(225)	(210)	(19)	(41)	(9)	-	(10)	(514)

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

Equity Earnings (Losses) Recorded Before Income Tax	-	-	-	6	(5)	-	(12)	(11)

Other Income (Expense), Net	10	(4)	-	-	2	-	64	72

Income (Loss) Before Interest & Tax ⁽¹⁾	408	326	445	187	3	(41)	(87)	1,241

Net Interest (Expense) Income ⁽²⁾	(71)	(32)	(16)	11	(1)	(2)	(38)	(149)

Income Tax (Expense) Benefit	(101)	(122)	(156)	(76)	2	16	96	(341)

Equity Earnings Recorded Net of Income Tax	-	-	40	-	46	-	-	86

Discontinued Operations	-	-	-	-	-	-	(27)	(27)

Net Income (Loss)	$ 236	$ 172	$ 313	$ 122	$ 50	$ (27)	$ (56)	$ 810

⁽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.