NEWS RELEASE


Media Contact:	Doug Kline
	Sempra Energy
	(877) 340-8875
	www.sempra.com

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

SEMPRA ENERGY REPORTS

THIRD-QUARTER 2010 EARNINGS

Non-Commodity Earnings Rise 10 Percent

SAN DIEGO, Nov. 9, 2010 – Sempra Energy (NYSE: SRE) today reported third-quarter 2010 earnings of $131 million, or $0.53 per diluted share, compared with earnings of $317 million, or $1.27 per diluted share, in the third quarter 2009.

Third-quarter 2010 results included a previously announced $139 million after-tax charge from the write-down of Sempra Energy’s investment in the RBS Sempra Commodities joint venture.

Excluding Sempra Commodities, which is being sold, Sempra Energy had earnings of $265 million in the third quarter 2010, up approximately 10 percent from earnings of $242 million in last year’s third quarter.

Sempra Energy’s earnings for the first nine months of 2010 were $459 million, or $1.84 per diluted share, compared with $831 million, or $3.37 per diluted share, in the same period last year.

“The solid results from our core businesses in the third quarter keep us on track to meet our 2010 earnings guidance,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “Additionally, with our recent sale announcements, we essentially have exited the commodities trading business – a key goal this year.”

OPERATING HIGHLIGHTS

San Diego Gas & Electric

Third-quarter earnings for San Diego Gas & Electric (SDG&E) were $106 million in 2010, compared with $108 million in 2009.

For the first nine months, SDG&E’s earnings were $264 million in 2010, compared with $277 million in 2009.

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in the third quarter 2010 were $78 million, compared with $74 million in last year’s third quarter.

For the nine-month period, SoCalGas’ earnings increased to $212 million in 2010 from $198 million in 2009.

Sempra Generation

In the third quarter 2010, Sempra Generation’s earnings rose to $56 million from $43 million in the third quarter 2009, due primarily to renewable energy tax credits from investment in Copper Mountain Solar, the company’s new solar energy project in Nevada.

For the first nine months of 2010, Sempra Generation’s earnings were $51 million, compared with $119 million in the same period last year. In the first quarter 2010, Sempra Generation took a charge of $84 million related to a proposed energy-crisis litigation settlement.

Last week, Sempra Generation announced it has become an equal partner with BP Wind Energy in the development of the Cedar Creek Wind Farm in Colorado, which is expected to be operational in mid-2011. The project’s entire 250-megawatt (MW) output already has been sold under a 25-year power-purchase agreement to Public Service Co. of Colorado.

On Oct. 12, Sempra Generation announced a 20-year power-purchase agreement with Pacific Gas & Electric to sell solar power produced at Sempra Generation’s 150-MW Mesquite Solar project under construction outside Phoenix. Sempra Generation controls sufficient land to develop an additional 450 MW of solar power at the site.

Sempra Pipelines & Storage

Third-quarter 2010 earnings for Sempra Pipelines & Storage were $43 million, compared with earnings of $54 million in last year’s third quarter. The reduction in quarterly earnings was due primarily to higher income tax in 2010 and a write-down of the company’s investment in Argentina, offset by a favorable legal settlement.

For the nine-month period, earnings for Sempra Pipelines & Storage increased to $120 million in 2010 from $64 million in 2009. In the second quarter 2009, Sempra Pipelines & Storage recorded an after-tax charge of $64 million for the write-off of some of its Louisiana natural gas storage assets.

During the third quarter, Sempra Pipelines & Storage commenced operations of the first of two storage caverns under development at its Mississippi Hub natural gas storage facility in Simpson County, Miss. Last month, Sempra Pipelines & Storage also announced it has commenced operations of Cavern 4 at Bay Gas Storage in Alabama. Through the two new caverns, Sempra Pipelines & Storage has added approximately 12 billion cubic feet of new natural gas storage capacity.

Sempra LNG

Sempra LNG earned $5 million in the third quarter 2010, compared with a break-even third quarter a year ago. The improvement was due to a full quarter of earnings contribution from Sempra LNG’s Louisiana receipt terminal, which started operations in late July 2009, as well as from a major supply contract activated in September 2009. The increased earnings in the most recent quarter were offset by the impact of lower natural gas prices, including a reduction in the carrying value of inventory, and higher taxes.

For the nine-month period, Sempra LNG had earnings of $50 million in 2010, compared with a loss of $19 million last year.

Sempra Commodities

Sempra Energy’s commodity operations recorded a loss of $134 million in the third quarter 2010, compared with earnings of $75 million in the third quarter 2009. Third-quarter 2010 results included the $139 million charge for the write-down of Sempra Energy’s investment in the RBS Sempra Commodities joint venture.

For the first nine months of 2010, Sempra Energy’s commodity operations had a loss of $139 million, compared with earnings of $274 million in the same period last year.

The equity earnings from the joint venture in both the quarter and nine-month periods were adversely impacted by the sale of the international commodity businesses, as well as reduced volatility in U.S. natural gas and power markets.

On Sept. 20 and Oct. 7, Sempra Energy and The Royal Bank of Scotland (RBS) announced two separate agreements to sell the principal North American assets of the RBS Sempra Commodities joint venture to Noble Group Ltd. and JP Morgan Ventures Energy. The transaction with Noble Group was completed last week and the transaction with JP Morgan is expected to close next month. In July, Sempra Energy and RBS completed the sale of the joint venture’s global metals and oil businesses, and European natural gas and power businesses to JP Morgan Chase & Co.

As previously reported, Sempra Energy expects its share of the proceeds from the sale of all of the joint venture’s businesses and related cash distributions to total $1.8 billion to $1.9 billion.

Earnings Outlook

Sempra Energy today reaffirmed its prior earnings-per-share guidance for 2010 of $3.15 to $3.40, excluding Sempra Commodities.

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 passcode 4415915 .

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion. The Sempra Energy companies’ 13,800 employees serve about 25 million consumers worldwide.

Complete financial tables, including earnings information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/3Q2010.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, plans or intentions. 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, and other regulatory and governmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.

Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading 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 RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not regulated by the California Public Utilities Commission.

###


SEMPRA ENERGY
Table A


*CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS*

	Three months ended		Nine months ended
	September 30,		September 30,
(Dollars in millions, except per share amounts)	2010	2009	2010	2009
	(unaudited)
REVENUES
Sempra Utilities	$ 1,575	$ 1,424	$ 4,999	$ 4,382
Sempra Global and parent	541	429	1,659	1,268
Total revenues	2,116	1,853	6,658	5,650
EXPENSES AND OTHER INCOME
Sempra Utilities:
Cost of natural gas	(285)	(208)	(1,402)	(997)
Cost of electric fuel and purchased power	(203)	(208)	(480)	(508)
Sempra Global and parent:
Cost of natural gas, electric fuel and purchased power	(292)	(220)	(887)	(675)
Other cost of sales	(23)	(19)	(68)	(52)
Litigation expense	(17)	(3)	(184)	-
Other operation and maintenance	(590)	(568)	(1,782)	(1,673)
Depreciation and amortization	(218)	(196)	(643)	(568)
Franchise fees and other taxes	(76)	(77)	(243)	(228)
Write-off of long-lived assets	-	-	-	(132)
Equity earnings (losses):
RBS Sempra Commodities LLP	(281)	105	(290)	384
Other	8	18	24	27
Other income, net	66	24	82	97
Interest income	5	5	13	16
Interest expense	(111)	(96)	(323)	(257)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries	99	410	475	1,084
Income tax benefit (expense)	32	(128)	(85)	(327)
Equity earnings (losses), net of income tax	(4)	20	42	59
Net income	127	302	432	816
Losses attributable to noncontrolling interests	6	17	34	22
Preferred dividends of subsidiaries	(2)	(2)	(7)	(7)
Earnings	$ 131	$ 317	$ 459	$ 831

Basic earnings per common share	$ 0.53	$ 1.30	$ 1.86	$ 3.42
Weighted-average number of shares outstanding, basic (thousands)	246,668	243,925	246,513	242,806

Diluted earnings per common share	$ 0.53	$ 1.27	$ 1.84	$ 3.37
Weighted-average number of shares outstanding, diluted (thousands)	249,811	248,461	249,773	246,875
Dividends declared per share of common stock	$ 0.39	$ 0.39	$ 1.17	$ 1.17


SEMPRA ENERGY
Table B

*CONDENSED CONSOLIDATED BALANCE SHEETS*

			September 30,	December 31,
(Dollars in millions)			2010	2009
			(unaudited)
Assets
Current assets:
	Cash and cash equivalents		$ 547	$ 110
	Restricted cash		4	35
	Accounts receivable		776	1,130
	Due from unconsolidated affiliates		30	41
	Income taxes receivable		312	221
	Deferred income taxes		-	10
	Inventories		296	197
	Regulatory assets		97	54
	Fixed-price contracts and other derivatives		84	77
	Insurance receivable related to wildfire litigation		150	273
	Other		199	147
		Total current assets	2,495	2,295

Investments and other assets:
	Restricted cash		27	-
	Regulatory assets arising from fixed-price contracts and other derivatives		241	241
	Regulatory assets arising from pension and other postretirement benefit obligations		950	959
	Other regulatory assets		973	603
	Nuclear decommissioning trusts		737	678
	Investment in RBS Sempra Commodities LLP		825	2,172
	Other investments		2,317	2,151
	Goodwill and other intangible assets		542	524
	Sundry		621	608
		Total investments and other assets	7,233	7,936
Property, plant and equipment, net			19,221	18,281
Total assets			$ 28,949	$ 28,512

Liabilities and Equity
Current liabilities:
	Short-term debt		$ 574	$ 618
	Accounts payable		702	693
	Due to unconsolidated affiliates		12	29
	Deferred income taxes		16	-
	Dividends and interest payable		232	190
	Accrued compensation and benefits		247	264
	Regulatory balancing accounts, net		242	382
	Current portion of long-term debt		313	573
	Fixed-price contracts and other derivatives		107	95
	Customer deposits		133	145
	Reserve for wildfire litigation		344	270
	Other		855	629
		Total current liabilities	3,777	3,888
Long-term debt			8,032	7,460

Deferred credits and other liabilities:
	Due to unconsolidated affiliate		-	2
	Customer advances for construction		147	146
	Pension and other postretirement benefit obligations, net of plan assets		1,225	1,252
	Deferred income taxes		1,516	1,318
	Deferred investment tax credits		52	54
	Regulatory liabilities arising from removal obligations		2,635	2,557
	Asset retirement obligations		1,327	1,277
	Other regulatory liabilities		144	181
	Fixed-price contracts and other derivatives		336	312
	Deferred credits and other		672	735
		Total deferred credits and other liabilities	8,054	7,834
Contingently redeemable preferred stock of subsidiary			79	79
Equity:
	Total Sempra Energy shareholders' equity		8,802	9,007
	Preferred stock of subsidiaries		100	100
	Other noncontrolling interests		105	144
		Total equity	9,007	9,251
Total liabilities and equity			$ 28,949	$ 28,512


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*

		Nine months ended September 30,
(Dollars in millions)		2010	2009
		(unaudited)
Cash Flows from Operating Activities:
Net income		$ 432	$ 816
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation and amortization	643	568
	Deferred income taxes and investment tax credits	133	181
	Equity losses (earnings)	224	(470)
	Write-off of long-lived assets	-	132
	Fixed-price contracts and other derivatives	19	(27)
	Other	(24)	42
Net change in other working capital components		(77)	220
Distributions from RBS Sempra Commodities LLP		198	407
Changes in other assets		76	81
Changes in other liabilities		(22)	(66)
	Net cash provided by operating activities	1,602	1,884

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(1,354)	(1,371)
Proceeds from sale of assets		-	179
Expenditures for investments and acquisition of businesses, net of cash acquired		(385)	(762)
Distributions from RBS Sempra Commodities LLP		849	-
Distributions from other investments		259	16
Purchases of nuclear decommissioning and other trust assets		(261)	(167)
Proceeds from sales by nuclear decommissioning and other trusts		261	155
Other		(2)	(20)
	Net cash used in investing activities	(633)	(1,970)

Cash Flows from Financing Activities:
Common dividends paid		(269)	(255)
Preferred dividends paid by subsidiaries		(7)	(7)
Issuances of common stock		29	52
Repurchases of common stock		(502)	-
Increase (decrease) in short-term debt, net		184	(52)
Issuances of debt (maturities greater than 90 days)		771	1,181
Payments on debt (maturities greater than 90 days)		(727)	(325)
Purchase of noncontrolling interest		-	(94)
Other		(11)	11
	Net cash (used in) provided by financing activities	(532)	511

Increase in cash and cash equivalents		437	425
Cash and cash equivalents, January 1		110	331
Cash and cash equivalents, September 30		$ 547	$ 756


SEMPRA ENERGY
Table D


*BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS*


		Three months ended		Nine months ended
		September 30,		September 30,
(Dollars in millions)		2010	2009	2010	2009
		(unaudited)
Earnings (Losses)
San Diego Gas & Electric		$ 106	$ 108	$ 264	$ 277
Southern California Gas		78	74	212	198
Sempra Generation		56	43	51	119
Sempra Pipelines & Storage		43	54	120	64
Sempra LNG		5	-	50	(19)
Parent & Other		(23)	(37)	(99)	(82)
Earnings before Sempra Commodities		265	242	598	557
Sempra Commodities		(134)	75	(139)	274
Earnings		$ 131	$ 317	$ 459	$ 831

		Three months ended		Nine months ended
		September 30,		September 30,
(Dollars in millions)		2010	2009	2010	2009
		(unaudited)
Capital Expenditures and Investments
San Diego Gas & Electric		$ 300	$ 190	$ 822	$ 785
Southern California Gas		121	109	337	336
Sempra Generation		27	194	32	207
Sempra Pipelines & Storage		75	395	535	723
Sempra LNG		5	88	9	230
Parent & Other		2	2	4	4
Eliminations(1)		-	-	-	(152)
Consolidated Capital Expenditures and Investments		$ 530	$ 978	$ 1,739	$ 2,133

(1)	In the second quarter of 2009, SDG&E purchased $152 of industrial development bonds from Parent and Other.


SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended		Nine months ended
		September 30,		September 30,
*SEMPRA UTILITIES*		2010	2009	2010	2009
Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 810	$ 771	$ 2,239	$ 2,130
	SoCalGas (excludes intercompany sales)	$ 765	$ 653	$ 2,760	$ 2,252

Gas Sales (bcf)		64	61	281	272
Transportation (bcf)		144	170	374	421
Total Deliveries (bcf)		208	231	655	693
Total Gas Customers (Thousands)				6,629	6,599

Electric Sales (Millions of kWhs)		4,279	4,636	12,097	12,768
Direct Access (Millions of kWhs)		881	800	2,365	2,290
Total Deliveries (Millions of kWhs)		5,160	5,436	14,462	15,058
Total Electric Customers (Thousands)				1,385	1,377



*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,350	5,317	15,272	16,526


*SEMPRA PIPELINES & STORAGE*
(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method).
Natural Gas Sales (bcf)
	Argentina	104	101	251	249
	Mexico	5	5	16	14
	Mobile Gas	9	8	27	24
Natural Gas Customers (Thousands)
	Argentina			1,747	1,702
	Mexico			89	91
	Mobile Gas			90	92
Electric Sales (Millions of kWhs)
	Peru	1,483	1,378	4,445	4,151
	Chile	566	567	1,736	1,837
Electric Customers (Thousands)
	Peru			884	856
	Chile			589	574

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