Subsidiary Operating Results
San Diego Gas & Electric
First-quarter earnings for San Diego Gas & Electric (SDG&E) rose to $99 million in 2009 from $74 million in 2008. Earnings were higher primarily due to the favorable impact of SDG&E’s rate case, which was approved by the California Public Utilities Commission and went into effect in the third quarter 2008. This improvement was partially offset by a favorable resolution in 2008 of prior-year’s income-tax issues.
In March, SDG&E expanded the roll-out of smart meters for its 1.4 million customers. The new digital meters will allow two-way communications between SDG&E and its customers, increasing operational efficiency and giving customers more information with which to manage their energy usage. All of the new meters are expected to be installed by the end of 2011.
Southern California Gas Co.
Earnings for Southern California Gas Co. (SoCalGas) in the first quarter 2009 were $59 million, compared with $57 million in the prior-year’s quarter.
RBS Sempra Commodities
First-quarter earnings from Sempra Energy’s commodity operations nearly doubled in 2009 to $114 million. During the most recent quarter, the RBS Sempra Commodities joint venture benefited from improved results in natural gas and oil marketing. First-quarter 2008 results of $59 million represented 100% of the earnings of Sempra Energy’s commodities-marketing business prior to the formation of the joint venture and reflected a $17 million write-down related to a credit issue with counterparty.
Sempra Generation
Sempra Generation’s earnings were $43 million in the first quarter 2009, compared with $45 million in last year’s first quarter.
On April 15, Sempra Generation announced its intention to construct a new 48-megawatt (MW) expansion of its existing 10-MW photovoltaic power-generation facility near Las Vegas. The combined 58-MW installation would become the largest operational photovoltaic solar-power facility in North America. Construction will commence after Sempra Generation contracts with customers for the facility’s power output.
Sempra Pipelines & Storage
First-quarter earnings for Sempra Pipelines & Storage rose 42% to $37 million in 2009 from $26 million in 2008, due primarily to increased contributions from its Mexico pipeline operations and Mobile Gas, offset by the negative effect of foreign currency exchange rates. Mobile Gas typically reports its highest earnings in the first quarter, when heating demand is stronger due to colder weather.
Sempra LNG
Sempra LNG recorded a loss of $7 million in the first quarter 2009, compared with a loss of $9 million in last year’s first quarter.
“We had an outstanding first quarter – a solid step toward meeting our 2009 financial objectives,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “In a tough economy, our businesses are continuing to grow and build long-term value for our shareholders.”
