SDG&E Puts Vital Electricity Link in Service to Help Meet Summer Peak Demand

Governor Schwarzenegger in San Diego for Dedication of Miguel-Mission 2 Transmission Line


SAN DIEGO, July 7, 2005 (PRIMEZONE) -- Using innovative engineering and construction techniques, San Diego Gas & Electric (SDG&E) completed work on its Miguel-Mission 2 electric transmission line a year ahead of schedule -- in time to put the line in service before this summer's peak electricity demand.

Joined by Governor Arnold Schwarzenegger and California Public Utilities Commission (CPUC) President Michael R. Peevey, SDG&E held a dedication ceremony today at its David A. Moore Skills Training Center in Mission Valley to announce that the line is now energized and already helping to ease congestion on the local power grid and to reduce energy costs for customers.

"Getting this vital transmission link in service has significantly reduced congestion at the Miguel substation and has immediately helped cut energy costs for Southern California consumers," said Edwin A. Guiles, SDG&E's chairman and chief executive officer. "With the Miguel-Mission line operational, we now have greater flexibility in deciding the most cost-effective way to meet our customers' needs.

"If lower-priced power is available outside California, SDG&E now can transmit the power through the Miguel substation instead of using locally generated power that may be more expensive."

SDG&E expects the line will save as much as $7 million this month alone; the utility projects yearly savings of approximately $50 million by reducing electricity costs related to transmission congestion.

The 35-mile, 230,000-volt (230 kV) line runs along the utility's existing right-of-way from its Miguel substation in the southeast region of San Diego County to its Mission substation in Mission Valley. Last year, the Miguel substation was one of the most congested electric transmission hubs in the state. As a result, state officials were concerned that transmission bottlenecks could trigger power outages this summer. Those concerns prompted SDG&E to accelerate construction to get the line built before the hot summer weather arrived in San Diego County.

"We used innovative techniques and materials without sacrificing safety or environmental standards to bring the line into service as soon as possible," said Guiles. "Crews strung a portion of the line using shorter polymer insulators and a composite wire that is thinner and lighter than what's normally used. Those modifications allowed us to temporarily energize a 69-kilovolt (kV) line at 230 kV. Final construction will be completed next year when the new 230-kV facilities are placed into service. In the meantime, this combination of engineering and ingenuity will reduce costs now and help keep the lights on for customers this summer."

In December 2004, the CPUC approved SDG&E's request to speed up construction of the line, in light of the concerns about possible transmission-related power problems this summer. The in-service date originally was scheduled for June 2006. When SDG&E proposed its novel engineering idea for temporary modifications to energize the line in time for summer 2005, state regulators, including CPUC President Peevey and the California Independent System Operator (CAISO), as well as local elected officials, strongly supported the plan.

SDG&E is a regulated public utility that provides safe and reliable energy service to three million consumers through 1.3 million electric meters and more than 800,000 natural gas meters 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.



            

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