Sempra Energy Reports Strong Operating Results in Third-Quarter




  --  Earnings-Per-Share Outlook for 2005 Raised to $3.40 to $3.60 
      from $3.20 to $3.40

  --  Capital Spending for Energy Projects $1 Billion Through Three 
      Quarters

SAN DIEGO, Nov. 2, 2005 (PRIMEZONE) -- Sempra Energy (NYSE:SRE) today reported third-quarter 2005 earnings of $221 million, or $0.86 per diluted share, compared with third-quarter 2004 earnings of $231 million, or $0.98 per diluted share.

Net income in the third quarter 2005 included the effects of several items, including $71 million from the favorable resolution of prior-years' tax issues, a $38 million gain from the sale of Sempra Commodities' natural gas storage assets, and a $27 million benefit at San Diego Gas & Electric (SDG&E) from an electric-transmission-cost settlement. The quarterly results were negatively affected by a $189 million after-tax effect from an increase in reserves at the parent company and several of its subsidiaries, almost entirely for continuing litigation.

Excluding the impact of discontinued operations and the items listed above, net income would have been $275 million, or $1.07 per diluted share. In the prior-year's period, net income was $227 million, or $0.96 per diluted share, excluding the effects of a $9 million gain from the sale of property and $5 million in tax issues that negatively affected earnings.

For the first nine months of 2005, Sempra Energy's earnings were $565 million, or $2.26 per diluted share, up 3 percent over $549 million, or $2.36 per diluted share, for the same period in 2004.

"Our strong operating results in the third quarter, especially from our commodity operations, have contributed to an improved outlook for the rest of the year," said Stephen L. Baum, chairman and chief executive officer of Sempra Energy. "We are raising our 2005 GAAP earnings-per-share guidance to $3.40 to $3.60 from $3.20 to $3.40."

Sempra Energy's revenues in the third quarter 2005 were $2.7 billion, compared with $2.2 billion in the year-ago quarter, based on higher volatility in commodity prices that led to increased margins in natural gas and power sales at Sempra Commodities.

During the first nine months of 2005, Sempra Energy's capital expenditures totaled $1 billion -- more than half of which have been invested in SDG&E and Southern California Gas Co. (SoCalGas) -- compared with approximately $850 million during the same period last year.

"With energy supplies tight in North America, we continue to invest in natural gas and electric infrastructure to bring new supplies to market," said Baum.

OPERATING HIGHLIGHTS

Sempra Utilities

Third-quarter earnings for SDG&E rose to $102 million in 2005 from $60 million in 2004, due primarily to a $39 million tax benefit and the $27 million electric-transmission-cost settlement, offset by the effect of a $27 million after-tax increase in litigation reserves.

Net income for SoCalGas in the third quarter 2005 was $36 million, compared with $68 million in the third quarter 2004, due primarily to the effect of a $53 million after-tax increase in litigation reserves, partially offset by an $18 million tax benefit. Third-quarter 2004 results included a $9 million gain from a property sale.

SDG&E recently signed several major power-purchase contracts for renewable energy. Last month, the utility entered into an agreement with enXco of Escondido, Calif., for 205.5 megawatts (MW) of wind power with deliveries beginning in 2007-08. In September 2005, SDG&E contracted with Stirling Energy Systems of Arizona for 300 MW of solar power under a 20-year agreement and with San Diego-based Covanta for approximately 4 MW of power from a local landfill gas facility under a 10-year agreement.

"With these new contracts, SDG&E is well on its way to achieving its goal of meeting 20 percent of its customers' needs by 2010 with renewable energy and developing a balanced portfolio of energy resources," said Baum.

Sempra Commodities

Sempra Commodities posted strong quarterly results, earning $161 million in the third quarter 2005, up from $46 million in the same period last year. The bulk of the company's growth during the quarter came from its North American and European natural gas and power sales. The results for the quarter also included a $16 million tax benefit, the $38 million gain related to the sale of its natural gas storage assets and the effect of a $14 million after-tax increase in litigation reserves.

Sempra Generation

Sempra Generation's third-quarter net income was $30 million in 2005, compared with $64 million in 2004. Third-quarter 2005 earnings were affected by higher development costs, $19 million from temporary mark-to-market losses on forward sales and the effect of a $5 million after-tax increase in litigation reserves. Third-quarter 2004 results included approximately $7 million in temporary mark-to-market gains.

Sempra Pipelines & Storage

Based on improved performance at the company's distribution operations outside the United States, Sempra Pipelines & Storage's net income more than doubled to $19 million in the third quarter 2005 from $7 million in the same period last year.

During the quarter, Sempra Pipelines & Storage entered into a Memorandum of Understanding with Kinder Morgan Energy Partners, L.P. to pursue development of a proposed new 1,700-mile natural gas pipeline that would link producing areas in the Rocky Mountain region to the upper Midwest and eastern United States. As designed, the pipeline would have capacity of up to 2 billion cubic feet per day. Initially, Kinder Morgan would own two-thirds of the equity in the proposed pipeline and Sempra Pipelines & Storage would own one-third.

Sempra LNG

Sempra LNG reported a third-quarter loss of $5 million in 2005, compared with a loss of $4 million last year.

"With construction of our Louisiana and Mexico liquefied natural gas (LNG) terminals now under way and our Texas LNG terminal in the latter stages of permitting, we continue to make good progress toward becoming North America's leading importer of LNG," said Baum. "LNG remains a key to expanding domestic supplies and helping to stabilize natural gas prices in the future."

Last month, Sempra LNG announced that it is proceeding with detailed negotiations to deliver Algerian natural gas to the U.S. Gulf Coast. The negotiations follow a Heads of Agreement (HOA) signed earlier this year with Sonatrach S.A., one of the world's leading energy firms. The non-binding HOA contemplates a 20-year agreement to import the equivalent of 250 million cubic feet per day (MMcfd) to 500 MMcfd of Algerian liquefied natural gas to Sempra LNG's Cameron LNG receipt terminal.

Litigation Update

On Oct. 29, 2005, Sempra Energy, SoCalGas and SDG&E announced that the companies had entered into a legal settlement with the County of Los Angeles and 11 other plaintiffs that fully resolved their claims related to the Continental Forge case. Terms of the agreement were not disclosed.

"This settlement represents a very small part of the overall litigation related to the energy crisis," said Baum. "We are pleased with the mutually agreeable settlement."

Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with key company executives. 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 (706) 645-9291 and entering the passcode, 9806013.

Sempra Energy (NYSE:SRE), based in San Diego, is a Fortune 500 energy services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies' 13,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

Income-statement information by business unit is available on Sempra Energy's Web site at http://www.sempra.com/downloads/3Q2005_Table_F.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. When the company uses words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "would," "should" or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements. 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, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of 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 company's reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company's Web site, www.sempra.com.

Sempra LNG and Sempra Pipelines & Storage are not the same companies as the utilities, SDG&E or SoCalGas, and are not regulated by the California Public Utilities Commission. Sempra Energy Trading, doing business as Sempra Commodities, and Sempra Generation are not the same companies as the utilities, SDG&E or SoCalGas, and the California Public Utilities Commission does not regulate the terms of their products and services.



                             SEMPRA ENERGY
                                Table A

 STATEMENTS OF CONSOLIDATED INCOME  (Unaudited)

                             Three months ended    Nine months ended
                               September 30,         September 30,
                            --------------------   -----------------
 (Dollars in millions, 
  except per share amounts)  2005       2004       2005      2004
 -----------------------------------------------   -----------------

 Operating revenues
 California utilities:
  Natural gas              $ 1,032    $   909    $ 3,520    $ 3,189
  Electric                     463        445      1,263      1,246
 Other                       1,231        811      2,907      2,086
                           -------    -------    -------    -------
   Total operating revenues  2,726      2,165      7,690      6,521
                           -------    -------    -------    -------
 Operating expenses
 California utilities:
  Cost of natural gas          547        438      2,060      1,744
  Cost of electric fuel and
   purchased power             146        143        437        425
 Other cost of sales           743        484      1,887      1,186
 Other operating expenses      993        530      2,069      1,597
 Depreciation and
  amortization                 157        171        481        501
 Franchise fees and other
  taxes                         61         54        185        171
                           -------    -------    -------    -------
   Total operating expenses  2,647      1,820      7,119      5,624
                           -------    -------    -------    -------
 Operating income               79        345        571        897

 Other income, net             131         40        157         58
 Interest income                29         25         52         58
 Interest expense              (75)       (74)      (221)      (234)
 Preferred dividends of
  subsidiaries                  (2)        (2)        (7)        (7)
                           -------    -------    -------    -------
 Income from continuing
  operations before income     
  taxes                        162        334        552        772
 Income tax expense 
  (benefit)                    (60)       103        (16)       191
                           -------    -------    -------    -------
 Income from continuing
  operations                   222        231        568        581
 Discontinued operations,
  net of tax                    (1)        --         (3)       (32)
                           -------    -------    -------    -------
 Net income                $   221    $   231    $   565    $   549
                           =======    =======    =======    =======
 Basic earnings per share:
  Income from continuing
   operations              $  0.87    $  1.01    $  2.33    $  2.55
  Discontinued operations,
   net of tax                   --         --      (0.01)     (0.14)
                           -------    -------    -------    -------
  Net income               $  0.87    $  1.01    $  2.32    $  2.41
                           =======    =======    =======    =======
  Weighted-average number of
   shares outstanding
   (thousands)             252,974    229,376    243,342    227,412
                           =======    =======    =======    =======
 Diluted earnings per share:
  Income from continuing
   operations              $  0.86    $  0.98    $  2.27    $  2.50
  Discontinued operations,
   net of tax                   --         --      (0.01)     (0.14)
                           -------    -------    -------    -------
  Net income               $  0.86    $  0.98    $  2.26    $  2.36
                           =======    =======    =======    =======
  Weighted-average number of
   shares outstanding
   (thousands)             257,370    235,936    249,874    232,366
                           =======    =======    =======    =======
 Dividends declared per
  share of common stock    $  0.29    $  0.25    $  0.87    $  0.75
                           =======    =======    =======    =======


                              SEMPRA ENERGY
                                 Table B

 CONSOLIDATED BALANCE SHEETS
                                          September 30,   December 31,
 (Dollars in millions)                       2005            2004
 ---------------------------------------------------------------------
                                          (Unaudited)
 Assets
 Current assets:

  Cash and cash equivalents                   $   503        $   419
  Short-term investments                           12             15
  Accounts receivable                             800          1,032
  Due from unconsolidated affiliate                 4              4
  Deferred income taxes                            36             15
  Interest receivable                              32             80
  Trading-related receivables and deposits,
   net                                          3,281          2,606
  Derivative trading instruments                5,547          2,339
  Commodities owned                             2,456          1,547
  Regulatory assets arising from fixed-
   price contracts and other derivatives          121            152
  Other regulatory assets                         107            103
  Inventories                                     240            172
  Other                                           274            222
                                              -------        -------
   Current assets of continuing operations     13,413          8,706
   Current assets of discontinued
    operations                                     55             70
                                              -------        -------
    Total current assets                       13,468          8,776
                                              -------        -------
 Investments and other assets:
  Due from unconsolidated affiliates               27             42
  Regulatory assets arising from fixed-
   price contracts and other derivatives          411            500
  Other regulatory assets                         564            619
  Nuclear decommissioning trusts                  631            612
  Investments                                   1,104          1,164
  Sundry                                          994            844
                                              -------        -------
   Total investments and other assets           3,731          3,781
                                              -------        -------
 Property, plant and equipment, net            11,780         11,086
                                              -------        -------
 Total assets                                 $28,979        $23,643
                                              =======        =======

 Liabilities and Shareholders' Equity
 Current liabilities:
  Short-term debt                             $   305        $   405
  Accounts payable                              1,088          1,126
  Due to unconsolidated affiliates
   (mandatorily redeemable preferred
   securities)                                     --            205
  Income taxes payable                             75            187
  Trading-related payables                      4,501          3,182
  Derivative trading instruments                4,742          1,484
  Commodities sold with agreement to
   repurchase                                     394            513
  Dividends and interest payable                  137            123
  Regulatory balancing accounts, net              522            509
  Fixed-price contracts and other
   derivatives                                    128            157
  Current portion of long-term debt               401            398
  Other                                           820            776
                                              -------        -------
   Current liabilities of continuing
    operations                                 13,113          9,065
   Current liabilities of discontinued
    operations                                      7             17
                                              -------        -------
    Total current liabilities                  13,120          9,082
                                              -------        -------
 Long-term debt                                 4,346          4,192
                                              -------        -------
 Deferred credits and other liabilities:

  Due to unconsolidated affiliates                162            162
  Customer advances for construction               95             97
  Postretirement benefits other than
   pensions                                       124            129
  Deferred income taxes                           227            420
  Deferred investment tax credits                  74             78
  Regulatory liabilities arising from cost
   of removal obligations                       2,444          2,359
  Regulatory obligations arising from
   asset retirement obligations                   342            333
  Other regulatory liabilities                     60             67
  Fixed-price contracts and other
   derivatives                                    412            500
  Asset retirement obligations                    334            326
  Deferred credits and other                    1,183            854
                                              -------        -------
   Total deferred credits and other
    liabilities                                 5,457          5,325
                                              -------        -------
 Preferred stock of subsidiaries                  179            179
                                              -------        -------
 Shareholders' equity                           5,877          4,865
                                              -------        -------
 Total liabilities and shareholders'
  equity                                      $28,979        $23,643
                                              =======        =======


                             SEMPRA ENERGY
                                Table C

 CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)

                                                 Nine months ended
                                                   September 30,
                                               --------------------
 (Dollars in millions)                         2005           2004
 ------------------------------------------------------------------
 Cash Flows from Operating Activities:
 Net income                                 $   565        $   549
 Adjustments to reconcile net income to net
  cash provided by operating
  activities:
  Loss from discontinued operations,
   net of tax                                     3             32
  Depreciation and amortization                 481            501
  Gain on sale of assets                       (105)           (15)
  Impairment losses                              11              8
  Deferred income taxes and investment                    
   tax credits                                 (161)            (7)
  Other                                           7             42
 Net changes in other working capital                     
  components                                   (387)          (519)
 Changes in other assets                        (99)           (72)
 Changes in other liabilities                   349             21
                                            -------        -------
  Net cash provided by continuing operations    664            540
  Net cash used in discontinued operations       (3)           (30)
                                            -------        -------
  Net cash provided by operating activities     661            510
                                            -------        -------
                                                         
 Cash Flows from Investing Activities:               
 Expenditures for property, plant and
  equipment                                    (957)          (782)
 Proceeds from sale of assets                   274            371(a)
 Proceeds from disposal of discontinued                 
  operations                                      3            137
 Investments and acquisitions of                        
  subsidiaries, net of cash acquired            (80)           (70)
 Dividends received from affiliates              46             50
 Other                                           (8)             8
                                            -------        -------
  Net cash used in investing activities        (722)          (286)
                                            -------        -------
                                                        
 Cash Flows from Financing Activities:                  
 Common dividends paid                         (193)          (145)
 Issuance of common stock                       692             90
 Repurchases of common stock                    (95)            (5)
 Issuance of long-term debt                     255            897
 Payments on long-term debt                    (209)        (1,648)
 Redemption of mandatorily redeemable                   
  preferred securities                         (200)            --
 Increase (decrease) in short-term debt, net   (102)           434
 Other                                           (3)            (4)
                                            -------        -------
  Net cash provided by (used in) financing              
  activities                                    145           (381)
                                            -------        -------
 Increase (decrease) in cash and cash                   
  equivalents                                    84           (157)
 Cash and cash equivalents, January 1           419            409
                                            -------        -------
 Cash and cash equivalents, September 30    $   503        $   252
                                            =======        =======
                                                     
 (a) Includes $363 proceeds from the sale of U.S. Treasury 
     obligations which previously securitized the Mesquite synthetic 
     lease.


                             SEMPRA ENERGY
                                Table D

 BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS
  (Unaudited)

                              Three months ended    Nine months ended
                                 September 30,        September 30,
                             --------------------  ------------------
 (Dollars in millions)          2005      2004        2005      2004
 ------------------------------------------------  ------------------
 Net Income
 California Utilities:
  San Diego Gas & Electric     $ 102     $  60       $ 190     $ 140
  Southern California Gas         36        68         163       174
                               -----     -----       -----     -----
   Total California Utilities    138       128         353       314

 Sempra Global:
  Sempra Commodities             161        46         216       149
  Sempra Generation               30        64         103       118
  Sempra Pipelines & Storage      19         7          48        35
  Sempra LNG                      (5)       (4)        (15)       --
                               -----     -----       -----     -----
   Total Sempra Global           205       113         352       302

 Sempra Financial                  8        10          19        26

 Parent & Other                 (129)      (20)       (156)      (61)
                               -----     -----       -----     -----
 Continuing Operations           222       231         568       581

 Discontinued Operations(a)       (1)       --          (3)      (32)
                               -----     -----       -----     -----
 Consolidated Net Income       $ 221     $ 231       $ 565     $ 549
                               =====     =====       =====     =====
 (a) Reflects Atlantic Electric & Gas.

                               Three months ended    Nine months ended
                                 September 30,         September 30,
                             --------------------  -------------------
 (Dollars in millions)          2005      2004        2005      2004
 ---------------------------------------------------------------------
 Capital Expenditures and Investments
 California Utilities:
  San Diego Gas & Electric    $  146    $  102      $  342    $  283
  Southern California Gas         99        90         245       234
                              ------    ------      ------    ------
   Total California Utilities    245       192         587       517
                              ------    ------      ------    ------

 Sempra Global:
  Sempra Generation              115       106         209       154
  Sempra Commodities              32        21          61       103
  Sempra Pipelines & Storage       4         2          11        18
  Sempra LNG                      43        13         156        35
                              ------    ------      ------    ------
   Total Sempra Global           194       142         437       310
                              ------    ------      ------    ------
 Parent & Other                    7         7          13        25
                              ------    ------      ------    ------
 Consolidated Capital 
  Expenditures and 
  Investments                  $ 446    $  341      $1,037     $ 852
                              ======    ======      ======    ======


                             SEMPRA ENERGY
                                Table E

 OTHER OPERATING STATISTICS (Unaudited)

                                 Three months ended  Nine months ended
                                   September 30,       September 30,
                                 -------------------------------------
 CALIFORNIA UTILITIES              2005   2004        2005      2004
 ---------------------------------------------------------------------
 Revenues (Dollars in millions)
  SDG&E (excludes intercompany 
   sales)                         $  596  $  545   $ 1,747   $ 1,649
  SoCalGas (excludes intercompany
   sales)                         $  899  $  809   $ 3,036   $ 2,786
 Gas Sales (Bcf)                      67      67       290       288
 Transportation and Exchange (Bcf)   142     162       381       411
                                  ------  ------   -------   -------
 Total Deliveries (Bcf)              209     229       671       699
                                  ------  ------   -------   -------
 Total Gas Customers (Thousands)                     6,358     6,271

 Electric Sales (Millions of kWhs) 4,300   4,247    11,988    11,806
 Direct Access (Millions of kWhs)    865     902     2,493     2,560
                                  ------  ------   -------   -------
 Total Deliveries (Millions
  of kWhs)                         5,165   5,149    14,481    14,366
                                  ------  ------   -------   -------
 Total Electric Customers 
  (Thousands)                                        1,333     1,312

 SEMPRA GENERATION
 -----------------------------------------------    ------------------
 Power Sold (Millions of kWhs)     6,317   6,435    16,967    14,796

 SEMPRA PIPELINES & STORAGE
 (Represents 100% of these 
  subsidiaries, although only the 
  Mexican subsidiaries are 100% 
  owned by Sempra Energy.)
 ---------------------------------------------------------------------
 Natural Gas Sales (Bcf)
  Argentina                           88      78       210       191
  Mexico                              12      13        33        33
  Chile                                1       1         2         2
 Natural Gas Customers (Thousands)
  Argentina                                          1,488     1,444
  Mexico                                                98        99
  Chile                                                 37        37
 Electric Sales (Millions of kWhs)
  Peru                             1,058     997     3,185     3,020
  Chile                              511     474     1,752     1,484
 Electric Customers (Thousands)
  Peru                                                 762       744
  Chile                                                518       504


                              SEMPRA ENERGY
                           Table E (Continued)

 SEMPRA COMMODITIES
 
 ---------------------------------------------------------------------
                                Three months ended   Nine months ended
                                  September 30,        September 30,
                                ------------------   -----------------
 Margin(a) (Dollars in millions)
                                2005        2004      2005      2004
 -------------------------------------------------   -----------------
 Geographical:
   North America               $ 254       $ 129     $ 548     $ 396
   Europe/Asia                   119          53       113       173
                               -----       -----     -----     -----
   Total                       $ 373       $ 182     $ 661     $ 569
                               -----       -----     -----     -----
  Product Line:                                               
   Gas                         $ 121       $ (11)    $ 122     $  83
   Power                         110          37       234        91
   Oil - Crude & Products         89         107       160       198
   Metals                          3          16        42       125
   Other                          50          33       103        72
                               -----       -----     -----     -----
   Total                       $ 373       $ 182     $ 661     $ 569
                               -----       -----     -----     -----
 (a) Margin consists of net revenues less related costs (primarily 
     brokerage, transportation and storage) plus or minus net interest 
     expense/income, and is used by management in evaluating its 
     geographical and product line performance. 

                                Three months ended   Nine months ended
                                  September 30,        September 30,
                                ------------------   -----------------
 Effect of EITF 02-03 (Dollars in millions)            
                                2005(d)     2004      2005(d)   2004
 -------------------------------------------------   -----------------
      Mark-to-Market 
       Earnings(b)              $153         $84      $282      $183
      Effect of EITF 02-03(c)      8         (38)      (66)      (34)
                               -----       -----     -----     -----
      GAAP Net Income           $161         $46      $216      $149
                               -----       -----     -----     -----

 (b) Represents the fair market value of all commodities
     transactions.  This metric is a useful measurement of 
     profitability because it simultaneously recognizes changes in 
     the various components of transactions and reflects how the 
     business is managed

 (c) Consists of the income statement effect of not recognizing 
     changes in the fair market value of certain physical inventories 
     and capacity contracts for transportation and storage.

 (d) Includes after-tax gain of $38 million related to the sale of
     certain storage assets.

                            Fair
                         Market Value   Scheduled Maturity (in months)
 Net Unrealized Revenue  September 30,  ------------------------------
  (Dollars in millions)     2005          0-12   13-24   25-36   >36
 ---------------------------------------------------------------------
 Sources of Over-the-
  Counter (OTC) Fair 
  Value:
  Prices actively quoted   $ 835         $ 675   $(120)  $ 197   $  83
  Prices provided by 
   other external sources     32            (6)      3       1      34
  Prices based on models 
   and other valuation
   methods                     9            12                      (3)
                        ----------------------------------------------
   Total OTC Fair 
    Value (e)              $ 876          $681   $(117)  $ 198   $ 114
 Maturity of OTC Fair 
  Value
                        ----------------------------------------------
  Percentage               100.0%         77.8%  (13.4%)  22.6%   13.0%
  Cumulative Percentages                  77.8%   64.4%   87.0%  100.0%
                        ----------------------------------------------
 Exchange Contracts (f)    $(276)        $(198)  $ 143   $(177)  $ (44)
                        ----------------------------------------------
 Total Net Unrealized 
  Revenue at 
  September 30, 2005       $ 600
                        --------
 (e) The present value of unrealized revenue to be received or (paid)
     from outstanding OTC contracts 
 (f) Cash received or (paid) associated with open Exchange Contracts

 Credit Quality of 
  Unrealized Trading      September 30,  December 31,
  Assets (net of margin)     2005           2004
 ----------------------------------------------------
 Commodity Exchanges             12%         10%
 Investment Grade                71%         66%
 Below Investment Grade          17%         24%

                               Three months ended   Nine months ended
                                 September 30,        September 30,
                                ------------------   ----------------
 Risk Adjusted Performance 
  Indicators (Mark-to-Market
  Basis)                        2005        2004      2005      2004
  ----------------------------------------------    -----------------
 VaR at 95% (Dollars in 
  millions) (g)               $ 12.8       $ 8.4    $ 10.3     $ 6.9
 VaR at 99% (Dollars in 
  millions) (h)               $ 18.0      $ 11.9    $ 14.6     $ 9.7
 Risk Adjusted Return on 
  Capital (RAROC) (i)            41%         45%       38%       40%

 (g) Average Daily Value-at-Risk for the period using a 95% 
     confidence level
 (h) Average Daily Value-at-Risk for the period using a 99%
     confidence level 
 (i) Average Daily Trading Margin/Average Daily VaR at 95% confidence 
     level

 Physical Statistics                       
 -----------------------------------------------     -----------------
 Natural Gas (BCF/Day)          11.7        13.6      11.5      13.4
 Electric (Billions 
  of kWhs)                     107.0        89.8     300.8     265.6
 Oil & Liquid Products 
  (Millions Bbls/Day)            1.9         2.5       2.0       2.1


            

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