SAN DIEGO, May 23, 2005 (PRIMEZONE) -- San Diego Gas & Electric (SDG&E) is working to ensure its customers have reliable, long-term supplies of reasonably priced natural gas. With domestic gas production not keeping pace with growing demand for natural gas, SDG&E officials say energy conservation, an increased use of renewable energy resources, and new natural gas supplies from non-traditional sources, such as liquefied natural gas (LNG), will be required to meet customers' future energy needs.
California's long-term economic livelihood will require a growing supply of natural gas. That is because a large number of residents and businesses in the region depend on natural gas to heat their homes and fuel their processes. In fact, the percentage of homes, businesses and electric power plants fueled by natural gas is greater in Southern California than anywhere else in the nation.
SDG&E believes that customer access to new supply sources will increase reliability and competition among suppliers, helping to reduce price volatility and create lower gas prices for all customers. SDG&E is working to increase supply diversity and its access to additional gas supply basins in the western United States.
The California Public Utilities Commission last year approved SDG&E's proposal to establish new receipt points on its pipeline system to accept natural gas supplies from LNG and other new supply sources. Industry experts estimate that the total savings in gas costs for consumers from bringing LNG into the West Coast could be as much as $1 billion a year or more.
With increased reliability and competition resulting from access to new supply sources, there will be less risk of a supply shortfall or price spikes that might occur if there is an unanticipated supply interruption on an existing pipeline or in an existing supply basin, according to SDG&E.
SDG&E is a regulated public utility that provides safe and reliable energy service to 3.3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters. The company's service territory encompasses 4,100 square miles in San Diego and southern Orange counties. Exceptional customer service is a priority of SDG&E as it seeks to enhance the region's quality of life. SDG&E is a regulated subsidiary of Sempra Energy (NYSE:SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company. To learn more, go to www.sdge.com.