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SDGE 8-02-07 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):	August 2, 2007

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 2, 2007, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated net income of $277 million, or $1.05 per diluted share of common stock, for the second 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 and six months ended June 30, 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 San Diego Gas & Electric Company's results of operations and financial condition.

Item 9.01 Financial Statements and Exhibits.

Exhibits

99.1

August 2, 2007 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, 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.

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)


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

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’S INCOME FROM CONTINUING OPERATIONS RISES SHARPLY IN SECOND QUARTER 2007

SAN DIEGO, Aug. 2, 2007 – Sempra Energy (NYSE: SRE) today reported income from continuing operations of $280 million, or $1.06 per diluted share, in the second quarter 2007, up 51 percent from $185 million, or $0.71 per diluted share, in the year-ago period. Second-quarter 2007 net income was $277 million, or $1.05 per diluted share, compared with net income of $373 million, or $1.43 per diluted share, in last year’s second quarter, which included $188 million, or $0.72 per diluted share, of income primarily from asset sales.

For the first six months of 2007, Sempra Energy’s income from continuing operations was $507 million, or $1.92 per diluted share, an increase of 21 percent over the $419 million, or $1.61 per diluted share, earned during the same period last year. Net income for the first half of 2007 was $505 million, or $1.91 per diluted share, compared with $628 million, or $2.42 per diluted share, in the first six months of 2006.

-more-

“I am pleased with our strong operating results through the first half of the year,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “All of our businesses are performing well, putting us on target to meet our 2007 financial plans. As anticipated, we are beginning to see the strong year-to-date economic performance of our commodities business in our second-quarter results. Under current accounting rules, our reported results in the first quarter did not reflect this business’ mark-to-market profits on transportation and storage services related to natural gas contracts.”

Sempra Energy’s revenues increased in the second quarter 2007 to $2.7 billion from $2.5 billion in the prior-year’s quarter, due primarily to higher commodity prices.

On July 9, 2007, Sempra Energy announced a joint venture with The Royal Bank of Scotland to expand Sempra Energy’s commodities business globally. The joint venture, called RBS Sempra Commodities LLP, will absorb the operations of Sempra Commodities. RBS will provide the joint venture with all growth capital, credit and liquidity. As a result of this transaction, Sempra Energy expects to receive a majority of the joint venture’s profits until the business almost doubles its 2006 record earnings. Upon closing, Sempra Energy will receive net proceeds of $1 billion to $1.2 billion in cash and will keep $1.3 billion invested in the joint venture.

Following the expected close of the transaction in the fourth quarter 2007, Sempra Energy intends to increase its quarterly dividend to $0.35, or $1.40 annually, from the current quarterly dividend of $0.31, or $1.24 annually, and maintain a targeted dividend payout ratio of 35 percent to 40 percent of net income. Additionally, the company intends to begin purchasing $1.5 billion to $2 billion of its common stock.

OPERATING HIGHLIGHTS

Sempra Utilities

Second-quarter net income for Sempra Utilities – San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) – was $105 million in 2007, compared with $123 million in 2006.

-more-

SDG&E earned second-quarter 2007 net income of $51 million, compared with $65 million in the year-ago period. In the most recent quarter, SDG&E benefited from higher transmission earnings, while, in last year’s second quarter, the utility realized a $16-million benefit from the favorable resolution of certain regulatory and tax issues and a positive litigation-reserve adjustment.

SDG&E recently energized its Otay-Metro Powerloop electric-transmission project, a new 52-mile loop around the center of San Diego County designed to improve electric reliability in the region.

Southern California Gas Co.’s net income in the second quarter 2007 was $54 million, compared with $58 million in the same quarter last year.

Sempra Commodities

Sempra Commodities’ second-quarter 2007 net income more than doubled to $155 million from $69 million in the second quarter 2006, due primarily to improved margins in all its commodity product lines. During the recent quarter, Sempra Commodities benefited from the recognition of a portion of the profits that were earned in the first quarter 2007 from natural gas storage and transportation contracts, but deferred under current accounting rules.

Sempra Generation

In the second quarter 2007, Sempra Generation’s net income was $10 million, compared with $16 million in last year’s second quarter. The change was due primarily to mark-to-market losses on forward contracts with Sempra Commodities.

During the quarter, Sempra Generation announced its entry into the renewable-energy business with the acquisition of the development assets associated with the proposed 250-megawatt La Rumorosa Wind Power project in Baja California, Mexico.

-more-

Sempra Pipelines & Storage

Second-quarter net income for Sempra Pipelines & Storage in 2007 was $17 million, compared with $28 million in 2006. Prior-year results were impacted favorably by the resolution of tax issues.

Sempra LNG

Sempra LNG reported a net loss of $13 million in the second quarter 2007, down from a net loss of $17 million in the prior-year’s 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 the passcode 2402925.

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/2Q2007.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 and 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 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; a nd 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.

-more-

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		Six months ended
		June 30,		June 30,
(Dollars in millions, except per share amounts)		2007	2006	2007	2006
		(Unaudited)
Operating revenues
Sempra Utilities		$ 1,620	$ 1,568	$ 3,679	$ 3,696
Sempra Global and parent		1,041	918	1,986	2,126
	Total operating revenues	2,661	2,486	5,665	5,822
Operating expenses
Sempra Utilities:
	Cost of natural gas	603	535	1,653	1,665
	Cost of electric fuel and purchased power	163	153	312	363
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	278	233	614	531
	Other cost of sales	221	313	540	689
Other operating expenses		743	680	1,376	1,356
Depreciation and amortization		171	171	340	328
Franchise fees and other taxes		68	64	149	141
	Total operating expenses	2,247	2,149	4,984	5,073
Operating income		414	337	681	749
Other income (expense), net		45	(5)	56	(1)
Interest income		24	25	50	39
Interest expense		(66)	(87)	(136)	(183)
Preferred dividends of subsidiaries		(3)	(3)	(5)	(5)
Income from continuing operations before income taxes and
	equity in earnings of certain unconsolidated subsidiaries	414	267	646	599
Income tax expense		143	96	206	204
Equity in earnings of certain unconsolidated subsidiaries		9	14	67	24
Income from continuing operations		280	185	507	419
Discontinued operations, net of income tax		(3)	188	(2)	209
Net income		$ 277	$ 373	$ 505	$ 628

Basic earnings per share:
	Income from continuing operations	$ 1.08	$ 0.73	$ 1.95	$ 1.64
	Discontinued operations, net of income tax	(0.01)	0.73	(0.01)	0.82
	Net income	$ 1.07	$ 1.46	$ 1.94	$ 2.46
Weighted-average number of shares outstanding (thousands)		260,198	255,728	259,830	254,996

Diluted earnings per share:
	Income from continuing operations	$ 1.06	$ 0.71	$ 1.92	$ 1.61
	Discontinued operations, net of income tax	(0.01)	0.72	(0.01)	0.81
	Net income	$ 1.05	$ 1.43	$ 1.91	$ 2.42
Weighted-average number of shares outstanding (thousands)		264,963	260,320	264,518	259,804
Dividends declared per share of common stock		$ 0.31	$ 0.30	$ 0.62	$ 0.60

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*

				June 30,	December 31,
(Dollars in millions)				2007	2006
				(unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 1,352	$ 920
	Restricted cash			1	4
	Accounts receivable			772	1,035
	Deferred income taxes			349	270
	Interest receivable			5	40
	Trading-related receivables and deposits, net			2,346	3,047
	Derivative trading instruments			3,197	4,068
	Commodities owned			1,763	1,845
	Inventories			167	215
	Regulatory assets			136	193
	Other			442	317
		Current assets of continuing operations		10,530	11,954
		Current assets of discontinued operations		58	62
			Total current assets	10,588	12,016

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			331	353
	Regulatory assets arising from pension and other postretirement
		benefit obligations		373	356
	Other regulatory assets			445	472
	Nuclear decommissioning trusts			728	702
	Investments			1,122	1,086
	Sundry			840	789
			Total investments and other assets	3,839	3,758
Property, plant and equipment, net				14,050	13,175
Total assets				$ 28,477	$ 28,949

Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 627	$ 252
	Accounts payable			1,318	1,587
	Due to unconsolidated affiliate			60	-
	Income taxes payable			28	9
	Trading-related payables			2,531	3,211
	Derivative trading instruments			2,243	2,304
	Commodities sold with agreement to repurchase			407	537
	Dividends and interest payable			143	145
	Regulatory balancing accounts, net			555	332
	Fixed-price contracts and other derivatives			53	87
	Current portion of long-term debt			340	681
	Other			1,157	1,197
		Current liabilities of continuing operations		9,462	10,342
		Current liabilities of discontinued operations		5	7
			Total current liabilities	9,467	10,349
Long-term debt				4,219	4,525

Deferred credits and other liabilities:
	Due to unconsolidated affiliate			102	162
	Customer advances for construction			127	126
	Pension and other postretirement benefit obligations, net of plan assets			620	609
	Deferred income taxes			437	412
	Deferred investment tax credits			64	67
	Regulatory liabilities arising from removal obligations			2,382	2,330
	Asset retirement obligations			1,204	1,128
	Other regulatory liabilities			228	221
	Fixed-price contracts and other derivatives			343	358
	Deferred credits and other			940	961
			Total deferred credits and other liabilities	6,447	6,374
Preferred stock of subsidiaries				179	179
Minority interests				176	11
Shareholders' equity				7,989	7,511
Total liabilities and shareholders' equity				$ 28,477	$ 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*
		Six months ended
		June 30,
(Dollars in millions)		2007	2006
		(Unaudited)
Cash Flows from Operating Activities:
Net income		$ 505	$ 628
Adjustments to reconcile net income to net cash
provided by operating activities:
	Discontinued operations	2	(209)
	Depreciation and amortization	340	328
	Deferred income taxes and investment tax credits	(39)	(216)
	Equity in income of unconsolidated subsidiaries	(55)	(6)
	Other	(16)	82
Net changes in other working capital components		918	79
Changes in other assets		33	(2)
Changes in other liabilities		(10)	32
	Net cash provided by continuing operations	1,678	716
	Net cash provided by (used in) discontinued operations	(3)	76
	Net cash provided by operating activities	1,675	792

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(889)	(893)
Proceeds from sale of assets from continuing operations		61	24
Expenditures for investments		(5)	(120)
Distributions from investments		-	104
Purchases of nuclear decommissioning and other trust assets		(341)	(398)
Proceeds from sales by nuclear decommissioning and other trusts		300	371
Dividends received from unconsolidated affiliates		4	3
Other		(9)	(5)
	Net cash used in continuing operations	(879)	(914)
	Net cash provided by discontinued operations	-	560
	Net cash used in investing activities	(879)	(354)

Cash Flows from Financing Activities:
Common dividends paid		(152)	(134)
Issuances of common stock		28	46
Repurchases of common stock		-	(12)
Increase (decrease) in short-term debt, net		374	(668)
Payments on long-term debt		(654)	(64)
Issuance of long-term debt		4	253
Financing transaction related to Sempra Financial		-	83
Other		7	8
	Net cash used in continuing operations	(393)	(488)
	Net cash provided by discontinued operations	-	2
	Net cash used in financing activities	(393)	(486)

Increase (decrease) in cash and cash equivalents		403	(48)
Cash and cash equivalents, January 1		920	769
Cash assumed in connection with FIN 46(R) consolidation		29	-
Cash and cash equivalents, June 30		$ 1,352	$ 721

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		Six months ended
			June 30,		June 30,
(Dollars in millions)			2007	2006	2007	2006
Net Income
Sempra Utilities:
	San Diego Gas & Electric		$ 51	$ 65	$ 113	$ 112
	Southern California Gas		54	58	109	107
		Total Sempra Utilities	105	123	222	219

Sempra Global:
	Sempra Commodities		155	69	226	185
	Sempra Generation*		10	16	64	57
	Sempra Pipelines & Storage*		17	28	33	39
	Sempra LNG		(13)	(17)	(23)	(22)
		Total Sempra Global	169	96	300	259

Parent & Other			6	(34)	(15)	(59)

Continuing Operations			280	185	507	419

Discontinued Operations, Net of Income Tax			(3)	188	(2)	209

Consolidated Net Income			$ 277	$ 373	$ 505	$ 628

* Excludes amounts now classified as discontinued operations.


			Three months ended		Six months ended
			June 30,		June 30,
(Dollars in millions)			2007	2006	2007	2006
Capital Expenditures and Investments
Sempra Utilities:
	San Diego Gas & Electric		$ 148	$ 140	$ 305	$ 723
	Southern California Gas		105	96	191	193
	Total Sempra Utilities		253	236	496	916

Sempra Global:
	Sempra Commodities		12	10	25	30
	Sempra Generation		3	6	4	35
	Sempra Pipelines & Storage		58	41	137	146
	Sempra LNG		138	193	224	345
	Total Sempra Global		211	250	390	556

Parent & Other			2	9	8	(459)	(1)

Consolidated Capital Expenditures and Investments			$ 466	$ 495	$ 894	$ 1,013

(1) Reflects the transfer of the Palomar plant to SDG&E from Sempra Generation.

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			Six months ended
		June 30,			June 30,
*SEMPRA UTILITIES*		2007	2006		2007	2006

Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 655	$ 660		$ 1,360	$ 1,378
	SoCalGas (excludes intercompany sales)	$ 965	$ 908		$ 2,319	$ 2,318

Gas Sales Bcf)		84	89		225	230
Transportation and Exchange (Bcf)		123	132		243	254
Total Deliveries (Bcf)		207	221		468	484

Total Gas Customers (Thousands)					6,501	6,427

Electric Sales (Millions of kWhs)		3,869	3,832		8,059	7,875
Direct Access (Millions of kWhs)		716	756		1,494	1,654
Total Deliveries (Millions of kWhs)		4,585	4,588		9,553	9,529

Total Electric Customers (Thousands)					1,360	1,346


*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		4,148	3,646	(1)	9,525	8,556	(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	78	67		141	119
	Mexico	11	11		22	21
	Chile	-	-		-	1
Natural Gas Customers (Thousands)
	Argentina				1,568	1,514
	Mexico				98	99
	Chile				39	38
Electric Sales (Millions of kWhs)
	Peru	1,258	1,157		2,527	2,322
	Chile	621	563		1,286	1,177
Electric Customers (Thousands)
	Peru				799	777
	Chile				541	528


SEMPRA ENERGY
Table E (Continued)

*SEMPRA COMMODITIES*

		Three months ended June 30,			Six months ended June 30,
Margin (Dollars in millions)*		2007	2006		2007	2006
Geographical:
	North America	$ 388	$ 247		$ 492	$ 606
	Europe/Asia	79	18		142	24
	Total	$ 467	$ 265		$ 634	$ 630

Product Line:
	Gas	$ 212	$ 105		$ 156	$ 284
	Power	117	110		199	211
	Oil - Crude & Products	57	33		114	86
	Metals	64	(2)		124	25
	Other	17	19		41	24
	Total	$ 467	$ 265		$ 634	$ 630

* Margin is a non-GAAP financial measure, consisting of operating revenues less cost of sales (primarily transportation and storage costs), both GAAP financial measures, reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense, as follows:

		Three months ended June 30,			Six months ended June 30,
(Dollars in millions)		2007	2006		2007	2006
	Revenues	$ 710	$ 614		$ 1,222	$ 1,394
	Cost of sales	(220)	(314)		(540)	(689)
		490	300		682	705
	Other related costs	(23)	(35)		(48)	(75)
	Margin	$ 467	$ 265		$ 634	$ 630

		Three months ended June 30,			Six months ended June 30,
Effect of EITF 02-3 (Dollars in millions)		2007	2006		2007	2006
	Mark-to-Market Earnings *	$ 122	$ 83		$ 279	$ 243
	Effect of EITF 02-3 **	33	(14)		(53)	(58)
	GAAP Net Income	$ 155	$ 69		$ 226	$ 185

* 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	Scheduled Maturity (in months)
Net Unrealized Revenue (Dollars in millions)		June 30, 2007	0 - 12	13 - 24	25 - 36	> 36

OTC Fair Value of forwards, swaps and options (1)		$ 961	$ 442	$ 306	$ 54	$ 159

	Maturity of OTC Fair Value - Cumulative Percentages		46.0%	77.8%	83.5%	100.0%


Exchange Contracts (2)		428	418	27	47	(64)
	Total Net Unrealized Revenue at June 30, 2007	$ 1,389	$ 860	$ 333	$ 101	$ 95

	Net Unrealized Revenue - Cumulative Percentages		61.9%	85.9%	93.2%	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


		June 30,	December 31,
Credit Quality of Unrealized Trading Assets (net of margin)		2007	2006
Commodity Exchanges		11%	13%
Investment Grade		56%	57%
Below Investment Grade		33%	30%


		Three months ended June 30,			Six months ended June 30,
Risk Adjusted Performance Indicators (Mark-to-Market Basis)		2007	2006		2007	2006
VaR at 95% (Dollars in millions) (1)		$ 10.6	$ 14.3		$ 10.5	$ 18.1
VaR at 99% (Dollars in millions) (2)		$ 15.0	$ 20.1		$ 14.8	$ 25.6

(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

		Three months ended June 30,			Six months ended June 30,
Physical Statistics		2007	2006		2007	2006
Natural Gas (Bcf/Day)		11.9	11.6		12.1	12.1
Electric (Billions of kWhs)		122.6	109.0		245.5	223.9
Oil & Liquid Products (Millions Bbls/Day)		0.6	0.9		0.6	0.8

Exhibit 99.2


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Three Months Ended June 30, 2007

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

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

Cost of Sales and Other Operating Expenses	473	806	457	249	80	11	-	2,076

Depreciation & Amortization	75	70	6	13	3	-	4	171

Operating Income (Loss)	111	105	247	15	1	(15)	(50)	414

Other Income (Expense), Net	(2)	(2)	-	(2)	(2)	-	53	45

Income (Loss) before Interest & Taxes ⁽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 in Earnings (Losses) of Certain Unconsolidated Subsidiaries	-	-	(6)	-	15	-	-	9

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

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


Three Months Ended June 30, 2006

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

Operating Revenues	$ 664	$ 908	$ 614	$ 257	$ 72	$ (20)	$ (9)	$ 2,486

Cost of Sales and Other Operating Expenses	459	735	479	212	69	9	15	1,978

Depreciation & Amortization	80	67	6	11	3	-	4	171

Operating Income (Loss)	125	106	129	34	-	(29)	(28)	337

Other Income (Expense), Net	11	(1)	1	(11)	2	(1)	(6)	(5)

Income (Loss) before Interest & Taxes ⁽¹⁾	136	105	130	23	2	(30)	(34)	332

Net Interest Expense (Income) ⁽²⁾	33	4	15	(2)	-	2	13	65

Income Tax Expense (Benefit)	38	43	46	9	(12)	(15)	(13)	96

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	14	-	-	14

Discontinued Operations	-	-	-	-	-	-	188	188

Net Income (Loss)	$ 65	$ 58	$ 69	$ 16	$ 28	$ (17)	$ 154	$ 373


⁽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.


SEMPRA ENERGY
Table F (Unaudited)

*Income Statement Data by Business Unit*

Six Months Ended June 30, 2007

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

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

Cost of Sales and Other Operating Expenses	987	1,997	931	548	150	21	10	4,644

Depreciation & Amortization	150	139	13	25	6	-	7	340

Operating Income (Loss)	231	213	278	101	5	(32)	(115)	681

Other Income (Expense), Net	2	(4)	-	(2)	(2)	-	62	56

Income (Loss) before Interest & Taxes ⁽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 in Earnings of Certain Unconsolidated Subsidiaries	-	-	40	-	27	-	-	67

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

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


Six Months Ended June 30, 2006

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

Operating Revenues	$ 1,386	$ 2,333	$ 1,394	$ 653	$ 148	$ (20)	$ (72)	$ 5,822

Cost of Sales and Other Operating Expenses	1,015	1,993	1,057	526	139	19	(4)	4,745

Depreciation & Amortization	147	133	13	22	6	-	7	328

Operating Income (Loss)	224	207	324	105	3	(39)	(75)	749

Other Income (Expense), Net	13	(1)	-	(10)	3	(2)	(4)	(1)

Income (Loss) before Interest & Taxes ⁽¹⁾	237	206	324	95	6	(41)	(79)	748

Net Interest Expense ⁽²⁾	52	19	31	4	-	2	41	149

Income Tax Expense (Benefit)	73	80	108	34	(9)	(21)	(61)	204

Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	24	-	-	24

Discontinued Operations	-	-	-	-	-	-	209	209

Net Income (Loss)	$ 112	$ 107	$ 185	$ 57	$ 39	$ (22)	$ 150	$ 628


⁽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.