Sempra 8K Energy Earnings | SRE 25 Feb 10

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 EARNINGS

INCREASE IN 2009

SAN DIEGO, Feb. 25, 2010 – Sempra Energy (NYSE: SRE) today reported 2009 earnings of $1.12 billion, or $4.52 per diluted share, compared with 2008 earnings of $1.11 billion, or $4.43 per diluted share.

Sempra Energy’s 2009 earnings per diluted share increased 8 percent over the prior year, excluding the impact of an asset write-off of $64 million, or $0.26 per diluted share, at Sempra Pipelines & Storage in the second quarter.

In the fourth quarter 2009, Sempra Energy’s earnings were $288 million, or $1.16 per diluted share, compared with earnings of $319 million, or $1.30 per diluted share in the same quarter of 2008.

“We posted solid financial results in 2009,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “Our five-year build-out of natural gas infrastructure projects sets the foundation for the next decade of growth. Together with our California utilities, these projects should enable us to benefit from stable cash flows well into the future.”

SUBSIDIARY OPERATING RESULTS

San Diego Gas & Electric

Earnings for San Diego Gas & Electric (SDG&E) rose to $344 million in 2009 from $339 million in 2008. SDG&E’s fourth-quarter 2009 earnings were $67 million, compared with $81 million in the prior-year’s fourth quarter, due primarily to lower regulatory incentive awards in 2009.

Southern California Gas Co.

Earnings for Southern California Gas Co. (SoCalGas) in 2009 increased to $273 million from $244 million in 2008. In the fourth quarter 2009, SoCalGas earned $75 million, compared with $54 million in the prior-year’s fourth quarter. The fourth-quarter improvement was due primarily to higher authorized operating margins and lower litigation expenses in 2009.

RBS Sempra Commodities

Sempra Energy generated earnings of $345 million in 2009 from its commodity operations, on par with 2008 earnings. Sempra Energy formed its commodities joint venture, RBS Sempra Commodities, with The Royal Bank of Scotland (RBS) at the beginning of the second quarter of 2008. Fourth quarter 2009 earnings were $71 million, compared with $164 million in the fourth quarter 2008, due primarily to reduced margins in natural gas and other product segments.

On Feb. 16, Sempra Energy and RBS agreed to sell certain assets of RBS Sempra Commodities to J.P. Morgan Chase & Co. for an expected $1.7 billion. Sempra Energy’s share of the proceeds is expected to be approximately $940 million. The assets being sold include the joint venture’s global oil and metals businesses, along with its European power and natural gas businesses. The transaction, which is subject to regulatory approvals, is expected to be completed in the second quarter 2010.

In November 2009, RBS announced its intention to divest its share of the joint venture, following a directive from the European Commission to dispose of certain assets.

Sempra Generation

Sempra Generation’s 2009 earnings were $162 million, compared with $222 million in 2008. In the fourth quarter 2009, Sempra Generation’s earnings were $43 million, compared with $60 million in the fourth quarter 2008, primarily due to higher foreign-tax benefits in 2008.

In December 2009, Sempra Generation and BP Wind Energy began commercial operations of a 200-megawatt wind farm in Indiana. The two companies are equal partners in the project.

Also in December 2009, the California Public Utilities Commission approved Pacific Gas & Electric’s 20-year contract with Sempra Generation to purchase 48 megawatts of solar power from Sempra Generation’s Copper Mountain Solar facility under development in Nevada. Last month, Sempra Generation started construction on the plant, which is expected to be completed in late 2010.

Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $101 million in 2009, compared with $106 million in 2008. Sempra Pipelines & Storage’s fourth-quarter earnings rose to $37 million in 2009 from $22 million in 2008, due primarily to improvement in the company’s Mexican operations and South American investments. Sempra Pipelines & Storage’s 2009 results included a second-quarter charge of $64 million for the write-off of certain assets at Liberty Gas Storage in Louisiana.

Yesterday, Sempra Pipelines & Storage announced an agreement to acquire the Mexican pipeline and gas infrastructure assets of El Paso Corp. for $300 million ($260 million, net of cash and debt). The transaction includes acquisition of El Paso’s natural gas pipeline and compression assets in the Mexican border state of Sonora, as well as a 50-percent ownership in a joint venture with PEMEX (Mexico’s state-owned oil company). The joint venture operates natural gas pipelines and a propane system in northern Mexico. The transaction, which should be completed in the second quarter 2010, is expected to add $0.05 per diluted share in earnings for 2010 and $0.10 per diluted share in earnings for 2011.

Sempra LNG

In 2009, Sempra LNG had earnings of $16 million, compared with losses of $46 million in 2008. In the fourth quarter 2009, Sempra LNG had earnings of $35 million, compared with losses of $13 million in the prior-year’s fourth quarter. The improvement in the fourth quarter 2009 was due primarily to the start-up of marketing and terminal operations. Both of Sempra LNG’s liquefied natural gas receipt terminals are now operational.

2010 Outlook

Sempra Energy today confirmed a 2010 earnings-per-share outlook of $4.25 to $4.50.

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 4889875.

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 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/4Q2009.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, nationa l 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 without charge at the SEC’s Web site,www.sec.gov and on the company’s Web site, atwww.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


*CONSOLIDATED STATEMENTS OF OPERATIONS*

	Three months ended December 31,			Years ended December 31,
(Dollars in millions, except per share amounts)		2009	2008*	2009	2008*
	(unaudited)
REVENUES
Sempra Utilities		$ 1,838	$ 1,782	$ 6,220	$ 7,972
Sempra Global and parent		618	511	1,886	2,786
Total revenues		2,456	2,293	8,106	10,758

EXPENSES AND OTHER INCOME
Sempra Utilities:
Cost of natural gas		(533)	(536)	(1,530)	(3,244)
Cost of electric fuel and purchased power		(164)	(206)	(672)	(900)
Sempra Global and parent:
Cost of natural gas, electric fuel and purchased power		(301)	(318)	(976)	(1,671)
Other cost of sales		(28)	(14)	(80)	(182)
Operation and maintenance		(798)	(720)	(2,474)	(2,536)
Depreciation and amortization		(207)	(179)	(775)	(687)
Franchise fees and other taxes		(68)	(82)	(296)	(312)
Gains on sale of assets		-	-	3	114
Write-off of long-lived assets		-	-	(132)	-
Equity earnings:
RBS Sempra Commodities LLP		79	241	463	383
Other		9	8	36	37
Other income (expense), net		52	(139)	149	(109)
Interest income		5	9	21	45
Interest expense		(110)	(88)	(367)	(253)
Income before income taxes and equity earnings of certain unconsolidated subsidiaries		392	269	1,476	1,443
Income tax expense		(95)	(15)	(422)	(438)
Equity earnings, net of income tax		9	6	68	63
Net income		306	260	1,122	�� 1,068
(Earnings) losses attributable to noncontrolling interests		(15)	62	7	55
Preferred dividends of subsidiaries		(3)	(3)	(10)	(10)
Earnings		$ 288	$ 319	$ 1,119	$ 1,113

Basic earnings per common share		$ 1.18	$ 1.32	$ 4.60	$ 4.50

Weighted-average number of shares outstanding, basic (thousands)		244,923	241,660	243,339	247,387

Diluted earnings per common share		$ 1.16	$ 1.30	$ 4.52	$ 4.43

Weighted-average number of shares outstanding, diluted (thousands)		248,749	244,531	247,384	251,159
Dividends declared per share of common stock		$ 0.39	$ 0.35	$ 1.56	$ 1.37

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).


SEMPRA ENERGY
Table B

*CONSOLIDATED BALANCE SHEETS*

			December 31,	December 31,
(Dollars in millions)			2009	2008*

Assets
Current assets:
	Cash and cash equivalents		$ 110	$ 331
	Short-term investments		-	176
	Restricted cash		35	27
	Accounts receivable, net		1,130	981
	Due from unconsolidated affiliates		41	4
	Income taxes receivable		221	195
	Deferred income taxes		10	31
	Inventories		197	320
	Regulatory assets		54	121
	Fixed-price contracts and other derivatives		77	160
	Insurance receivable related to wildfire litigation		273	-
	Other		147	130
		Total current assets	2,295	2,476

Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives		241	264
	Regulatory assets arising from pension and other postretirement benefit obligations		959	1,188
	Other regulatory assets		603	534
	Nuclear decommissioning trusts		678	577
	Investment in RBS Sempra Commodities LLP		2,172	2,082
	Other investments		2,151	1,166
	Goodwill and other intangible assets		524	539
	Sundry		608	709
		Total investments and other assets	7,936	7,059
Property, plant and equipment, net			18,281	16,865
Total assets			$ 28,512	$ 26,400

Liabilities and Equity
Current liabilities:
	Short-term debt		$ 618	$ 503
	Accounts payable		693	856
	Due to unconsolidated affiliates		29	38
	Dividends and interest payable		190	156
	Accrued compensation and benefits		264	280
	Regulatory balancing accounts, net		382	335
	Current portion of long-term debt		573	410
	Fixed-price contracts and other derivatives		95	180
	Customer deposits		145	170
	Reserve for wildfire litigation		270	-
	Other		629	684
		Total current liabilities	3,888	3,612
Long-term debt			7,460	6,544

Deferred credits and other liabilities:
	Due to unconsolidated affiliate		2	102
	Customer advances for construction		146	155
	Pension and other postretirement benefit obligations, net of plan assets		1,252	1,487
	Deferred income taxes		1,318	946
	Deferred investment tax credits		54	57
	Regulatory liabilities arising from removal obligations		2,557	2,430
	Asset retirement obligations		1,277	1,159
	Other regulatory liabilities		181	219
	Fixed-price contracts and other derivatives		312	392
	Deferred credits and other		735	909
		Total deferred credits and other liabilities	7,834	7,856
Preferred stock of subsidiary			79	79
Equity:
	Total Sempra Energy shareholders' equity		9,007	7,969
	Preferred stock of subsidiaries		100	100
	Other noncontrolling interests		144	240
		Total equity	9,251	8,309
Total liabilities and equity			$ 28,512	$ 26,400

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).


SEMPRA ENERGY
Table C

*CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS*
		Years ended
		December 31,
(Dollars in millions)		2009	2008*

Cash Flows from Operating Activities:
Net income		$ 1,122	$ 1,068
Adjustments to reconcile net income to net cash
provided by operating activities:
	Depreciation and amortization	775	687
	Gains on sale of assets	(3)	(114)
	Deferred income taxes and investment tax credits	295	324
	Equity earnings	(567)	(483)
	Write-off of long-lived assets	132	-
	Fixed-price contracts and other derivatives	(30)	46
	Other	(45)	150
Net change in other working capital components		(256)	(483)
Distributions from RBS Sempra Commodities LLP		407	85
Changes in other assets		139	(15)
Changes in other liabilities		(94)	(74)
	Net cash provided by operating activities	1,875	1,191

Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(1,912)	(2,061)
Proceeds from sale of assets from continuing operations
	net of cash sold	179	2,295
Expenditures for investments and acquisition of businesses,
	net of cash acquired	(939)	(2,675)
Distributions from investments		23	34
Purchases of nuclear decommissioning and other trust assets		(267)	(485)
Proceeds from sales by nuclear decommissioning and other trusts		230	469
Decrease in notes receivable from unconsolidated affiliate		100	60
Purchase of bonds issued by unconsolidated affiliate		(50)	-
Other		(36)	(23)
	Net cash used in investing activities	(2,672)	(2,386)

Cash Flows from Financing Activities:
Common dividends paid		(341)	(339)
Preferred dividends paid by subsidiaries		(10)	(10)
Issuances of common stock		73	18
Repurchases of common stock		(22)	(1,018)
Issuances of debt (maturities greater than 90 days)		2,151	1,706
Payments on debt (maturities greater than 90 days)		(435)	(19)
(Decrease) increase in short-term debt, net		(659)	564
Payments on notes payable to unconsolidated affiliate		(100)	(60)
Purchase of noncontrolling interest		(94)	-
Other		13	16
	Net cash provided by financing activities	576	858

Decrease in cash and cash equivalents		(221)	(337)
Cash and cash equivalents, January 1		331	668
Cash and cash equivalents, December 31		$ 110	$ 331

* As adjusted for the retrospective adoption of ASC 810 (SFAS 160).


SEMPRA ENERGY
Table D


		*BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS*


			Three months ended			Years ended
			December 31,			December 31,
(Dollars in millions)			2009	2008		2009	2008
			(unaudited)
Earnings (Losses)
San Diego Gas & Electric			$ 67	$ 81		$ 344	$ 339
Southern California Gas			75	54		273	244
Sempra Commodities⁽¹⁾			71	164		345	345
Sempra Generation			43	60		162	222
Sempra Pipelines & Storage			37	22		101	106
Sempra LNG			35	(13)		16	(46)
Parent & Other			(40)	(49)		(122)	(97)
Earnings			$ 288	$ 319		$ 1,119	$ 1,113

⁽¹⁾	With the exception of the first quarter of 2008, results for 2009 and 2008 include the company's portion of RBS Sempra Commodities' joint venture earnings and interest, income taxes, cost allocations and other items associated with the joint venture. Results for the first quarter of 2008 include 100% of the commodities-marketing businesses. Both 2009 and 2008 include the results of Sempra Rockies Marketing.

			Three months ended			Years ended
			December 31,			December 31,
(Dollars in millions)			2009	2008		2009	2008
			(unaudited)
Capital Expenditures and Investments⁽¹⁾
	San Diego Gas & Electric		$ 322	$ 430	⁽²⁾	$ 1,107	$ 1,372	⁽²⁾
	Southern California Gas		144	104		480	454
	Sempra Commodities		-	-		-	37
	Sempra Generation		69	44		276	59
	Sempra Pipelines & Storage⁽³⁾		227	564		950	909
	Sempra LNG		5	55		235	365
	Parent & Other		1	229	⁽²⁾	5	655	⁽²⁾
	Eliminations⁽²⁾		-	(411)		(152)	(715)
	Consolidated Capital Expenditures and Investments		$ 768	$ 1,015		$ 2,901	$ 3,136

⁽¹⁾	Investments do not include the $1.6 billion contribution to RBS Sempra Commodities in the second quarter of 2008.

⁽²⁾	During the year ended December 31, 2008, SDG&E and Parent & Other purchased $488 and $640, respectively, of SDG&E's industrial development bonds, including purchases and sales between the entities. As their cash flow needs changed, SDG&E purchased $184 of the bonds from Parent & Other during the three months ended December 31, 2008 and Parent & Other purchased $227 of the bonds from SDG&E in the same period. In the second quarter of 2009, SDG&E purchased $152 of the bonds from Parent & Other to facilitate their remarketing.

⁽³⁾	Amounts for the three months and the year ended December 31, 2008 include $495 for the acquisition of EnergySouth, which is net of cash acquired.



SEMPRA ENERGY
Table E


*OTHER OPERATING STATISTICS (Unaudited)*



		Three months ended		Years ended
		December 31,		December 31,
*SEMPRA UTILITIES*		2009	2008	2009	2008

Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 778	$ 801	$ 2,908	$ 3,240
	SoCalGas (excludes intercompany sales)	$ 1,060	$ 981	$ 3,312	$ 4,732

Gas Sales (Bcf)		108	103	380	391
Transportation (Bcf)		133	156	554	601
Total Deliveries (Bcf)		241	259	934	992

Total Gas Customers (Thousands)				6,607	6,575

Electric Sales (Millions of kWhs)		4,214	4,386	16,982	17,398
Direct Access (Millions of kWhs)		829	939	3,119	3,235
Total Deliveries (Millions of kWhs)		5,043	5,325	20,101	20,633

Total Electric Customers (Thousands)				1,379	1,372


*SEMPRA GENERATION*
Power Sold (Millions of kWhs)		5,742	5,903	22,268	22,728


*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	81	78	330	332
	Mexico	5	5	19	19
	Mobile Gas(1)	8	9	32	9
Natural Gas Customers (Thousands)
	Argentina			1,710	1,670
	Mexico			91	95
	Mobile Gas			92	93
Electric Sales (Millions of kWhs)
	Peru	1,409	1,352	5,560	5,415
	Chile	565	620	2,402	2,417
Electric Customers (Thousands)
	Peru			863	837
	Chile			576	562

(1) Mobile Gas was acquired in October 2008.


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 months and the year ended December 31, 2009, 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 represent 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		Three
		months ended		months ended		Year ended
RBS Sempra Commodities LLP - Joint Venture level margin*		December 31, 2009		December 31, 2008		December 31, 2009

Geographical:
	North America	$ 123		$ 373		$ 695
	Europe/Asia	156		340		473
	Total	$ 279		$ 713		$ 1,168

Product Line:
	Oil - Crude & Products	$ 100		$ 243		$ 317
	Power	62		129		257
	Natural Gas	(16)		171		232
	Metals	88		149		309
	Other	45		21		53
	Total	$ 279		$ 713		$ 1,168

*Financial Information*
(in millions of US dollars)

RBS Sempra Commodities LLP		Three months ended December 31, 2009		Three months ended December 31, 2008		Year ended December 31, 2009
		Joint Venture	Sempra	Joint Venture	Sempra	Joint Venture	Sempra
		Total	Share**	Total	Share**	Total	Share**
	Fee income and trading revenue, net of selling costs	$ 279		$ 713		$ 1,168
	Operating and other expenses	(251)		(339)		(761)
	Joint Venture distributable income	$ 28		$ 374		$ 407


	Preferred return on capital	$ 84	$ 60	$ 103	$ 61	$ 330	$ 240
	1st allocation - 70% Sempra / 30% RBS***	(56)	(36)	271	192	77	60
	2nd allocation - 30% Sempra / 70% RBS	-	-	-	-	-	-
	Distributable income	$ 28	$ 24	$ 374	$ 253	$ 407	$ 300

*Sempra Commodities Earnings*
			Three		Three
			months ended		months ended		Year ended
(in millions of US dollars)			December 31, 2009		December 31, 2008		December 31, 2009
	Sempra share of distributable income - IFRS basis		$ 24		$ 253		$ 300
	U.S. GAAP conversion impact		55		(12)		163
	Sempra equity earnings before income taxes - U.S. GAAP basis		79		241		463
	Income tax expense		(5)		(79)		(111)
	Sempra equity earnings from RBS Sempra Commodities LLP		74		162		352
	Other segment activity		(3)		2		(7)
	Sempra Commodities earnings		$ 71		$ 164		$ 345

*	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.

**	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.

***	Includes certain transition costs specifically allocated to Sempra and RBS.

Sempra (SRE) 8-KSempra Energy Earnings