Southern California Gas Company PFD 6% (SOCGM) 8-K Sempra Energy Reports Second-quarter 2005 Earnings

SEMPRA ENERGY
(Unaudited)
Income Statement Data by Business Unit
Three Months Ended June 30, 2005
(Dollars in millions)	SDG&E		SoCal Gas	Commodities	Generation		Pipelines & Storage		LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 539		$ 940	$ 446	$ 355		$ 75		$ -		$ -		$ (83	)	$ 2,272
Operating Expenses	403		773	391	283		69		8		-		(31	)	1,896
													-
Depreciation & Amortization	66		66	7	14		3		-		5		2		163
Operating Income	70		101	48	58		3		(8	)	(5	)	(54	)	213
Other Income, net	(2	)	-	-	(6	)	13		-		-		4		9
Income before Interest & Taxes(1)	68		101	48	52		16		(8)		(5	)	(50	)	222
Net Interest Expense(2)	19		9	7	3		-		-		2		23		63
Income Tax Expense/(Benefit)	20		34	15	22		-		(3	)	(14	)	(38	)	36
Discontinued Operations	-		-	-	-		-		-		-		(2	)	(2	)
Net Income	$ 29		$ 58	$ 26	$ 27		$ 16		$ (5	)	$ 7		$ (37	)	$ 121
Three Months Ended June 30, 2004
(Dollars in millions)	SDG&E		SoCal Gas	Commodities	Generation		Pipelines & Storage		LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 536		$ 847	$ 344	$ 436		$ 63		$ -		$ -		$ (230	)	$ 1,996
Operating Expenses	395		678	263	380		63		4		1		(173	)	1,611
Depreciation & Amortization	67		76	5	10		3		-		-		4		165
Operating Income	74		93	76	46		(3	)	(4	)	(1	)	(61	)	220
Other Income, net	1		4	-	(10	)	32		-		(15	)	1		13
Income before Interest & Taxes(1)	75		97	76	36		29		(4	)	(16	)	(60	)	233
Net Interest Expense(2)	18		9	2	9		1		-		2		32		73
Income Tax Expense/(Benefit)	27		38	28	8		11		(2	)	(24	)	(55	)	31
Discontinued Operations	-		-	-	-		-		-		-		(8	)	(8	)
Net Income	$ 30		$ 50	$ 46	$ 19		$ 17		$ (2)		$ 6		$ (45	)	$ 121
(1) Management believes "Income 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 includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.

SEMPRA ENERGY
(Unaudited) (continued)
Income Statement Data by Business Unit
Six Months Ended June 30, 2005
(Dollars in millions)	SDG&E	SoCal Gas		Commodities	Generation		Pipelines & Storage	LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 1,160	$ 2,181		$ 904	$ 775		$ 144	$ -		$ -		$ (200	)	$ 4,964
Operating Expenses	864	1,822		792	618		130	15		1		(94	)	4,148
Depreciation & Amortization	131	132		14	27		7	-		11		2		324
Operating Income	165	227		98	130		7	(15	)	(12	)	(108	)	492
Other Income, net	1	(1	)	-	-		23	-		(1	)	4		26
Income before Interest & Taxes(1)	166	226		98	130		30	(15	)	(13	)	(104	)	518
Net Interest Expense(2)	31	18		13	8		-	1		3		54		128
Income Tax Expense/(Benefit)	47	81		30	49		1	(6	)	(27	)	(131	)	44
Discontinued Operations	-	-		-	-		-	-		-		(2	)	(2	)
Net Income	$ 88	$ 127		$ 55	$ 73		$ 29	$ (10	)	$ 11		$ (29	)	$ 344
Six Months Ended June 30, 2004
(Dollars in millions)	SDG&E	SoCal Gas		Commodities	Generation		Pipelines & Storage	LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 1,116	$ 1,995		$ 652	$ 736		$ 127	$ -		$ -		$ (270	)	$ 4,356
Operating Expenses	800	1,641		481	602		120	6		1		(177	)	3,474
Depreciation & Amortization	135	150		11	22		7	-		2		3		330
Operating Income	181	204		160	112		-	(6	)	(3	)	(96	)	552
Other Income, net	3	1		-	(14	)	41	13		(27	)	1		18
Income before Interest & Taxes(1)	184	205		160	98		41	7		(30	)	(95	)	570
Net Interest Expense(2)	31	18		4	13		1	-		4		61		132
Income Tax Expense/(Benefit)	73	81		53	31		12	3		(50	)	(115	)	88
Discontinued Operations	-	-		-	-		-	-		-		(32	)	(32	)
Net Income	$ 80	$ 106		$ 103	$ 54		$ 28	$ 4		$ 16		$ (73	)	$ 318
(1) Management believes "Income 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 includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.