Sempra Energy Reports Higher Third-Quarter 2006 Earnings




 -- Company Reports $332 Million in Income From Continuing Operations,
    Excluding Asset Sales

 -- Earnings Guidance Raised for 2006

SAN DIEGO, Nov. 2, 2006 (PRIMEZONE) -- Sempra Energy (NYSE:SRE) today reported earnings of $653 million, or $2.49 per diluted share, in the third quarter 2006, up from $221 million, or $0.86 per diluted share, in the same period last year. Third-quarter 2006 earnings included income of $110 million from discontinued operations, compared with $5 million in the prior-year period.

Income from continuing operations in the third quarter 2006 was $543 million, or $2.07 per diluted share. Continuing operations included a $211 million gain from the sale of several Texas power plants. Excluding the impact of these asset sales, third-quarter 2006 income from continuing operations was $332 million, or $1.27 per diluted share.

Third-quarter 2005 net income benefited from several one-time items totaling $141 million, offset by a $189 million after-tax effect from an increase in litigation reserves.

For the first nine months of 2006, Sempra Energy's earnings were $1.28 billion, or $4.92 per diluted share, compared with $565 million, or $2.26 per diluted share, during the same period in 2005. Excluding the impact of the sale of the Texas power plants, nine-month income from continuing operations in 2006 was $758 million, or $2.91 per diluted share.

"Our strategy is to grow both our natural gas infrastructure businesses and our California utilities, while divesting non-core assets," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "Execution of this plan has been very successful to date. Given our strong results through the first nine months of the year, we are increasing our earnings guidance for 2006."

Felsinger said the company has raised its 2006 earnings guidance to a range of $3.50 per share to $3.70 per share from continuing operations, excluding gains on asset sales, from the previous range of $3.40 per share to $3.60 per share.

Sempra Energy's revenues in the third quarter 2006 were approximately $2.7 billion, unchanged from the year-ago quarter.

OPERATING HIGHLIGHTS

Sempra Utilities

Third-quarter net income for Southern California Gas Co. (SoCalGas) rose to $61 million in 2006 from $36 million last year. In the prior-year's quarter, SoCalGas recorded a $53 million after-tax increase in litigation reserves, partially offset by an $18 million benefit from the resolution of prior-years' tax issues.

San Diego Gas & Electric (SDG&E) had net income of $70 million in the third quarter 2006, compared with $102 million in the same quarter last year. In the third quarter 2006, SDG&E benefited from a favorable regulatory outcome and contributions from its new Palomar Energy Center. In the year-ago quarter, SDG&E recorded a $39 million benefit from the resolution of prior-years' tax issues and a $27 million benefit from an electric-transmission cost settlement, offset by the effect of a $27 million after-tax increase in litigation reserves.

In August 2006, the California Independent System Operator, the agency that manages the state's power grid, endorsed SDG&E's proposal to build Sunrise Powerlink, a major new transmission line. The project, if approved by the California Public Utilities Commission, will be built and placed into service in 2010.

Sempra Commodities

Sempra Commodities' third-quarter net income was $105 million in 2006, compared with $161 million last year. In the third quarter 2005, Sempra Commodities had a $16 million benefit from the resolution of prior-years' tax issues and a $38 million after-tax gain related to asset sales, partially offset by the effect of a $14 million after-tax increase in litigation reserves. During the recent quarter, Sempra Commodities' results in natural gas, power marketing and metals were strong, while margins in its petroleum marketing business were lower.

Sempra Generation

Net income for Sempra Generation in the third quarter 2006 was $265 million, up from $24 million in the third quarter 2005. In the recent quarter, Sempra Generation benefited from a net gain of $211 million from the sale of the company's 50-percent stake in several Texas power plants, as well as lower project-development and operating costs. Third-quarter 2005 earnings were affected by $19 million from temporary mark-to-market losses on forward sales.

Sempra Pipelines & Storage

Third-quarter net income for Sempra Pipelines & Storage was $19 million in 2006, unchanged from the prior-year's quarter.

During the recent quarter, Sempra Pipelines & Storage and ProLiance Transportation and Storage, LLC, announced they acquired three existing salt caverns representing 10 billion cubic feet (Bcf) to 12 Bcf of potential natural gas storage capacity and more than 150 acres of property in Cameron Parish, La. Once developed, the newly acquired property and caverns would become an extension of Liberty Gas Storage -- a nearby natural gas storage facility the two companies currently are constructing.

Sempra LNG

Sempra LNG reported a loss of $13 million in the third quarter 2006, compared with a loss of $5 million in the same quarter last year.

Construction on Sempra LNG's Mexico receipt terminal -- planned to be operational in 2008 -- is now more than 50-percent complete. Sempra LNG's Louisiana receipt terminal also is under construction and on schedule for completion in late 2008.

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, 9434558.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion. The Sempra Energy companies' 14,000 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/3Q2006_Table_All.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 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 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
 (Dollars in millions, except per share amounts)

                             Three months ended     Nine months ended
                                September 30,          September 30,
                             -------------------   -------------------
                               2006       2005        2006      2005
 -----------------------------------------------   -------------------
                                           (Unaudited)
 Operating revenues
 Sempra Utilities            $  1,494   $  1,495   $  5,190   $  4,783
 Sempra Global and parent       1,200      1,215      3,326      2,797
                             --------   --------   --------   --------
    Total operating revenues    2,694      2,710      8,516      7,580
                             --------   --------   --------   --------

 Operating expenses
 Sempra Utilities:
  Cost of natural gas             412        547      2,077      2,060
  Cost of electric fuel
   and purchased power            203        146        566        437
 Other cost of sales              716        709      1,936      1,796
 Other operating expenses         657        705      1,979      1,758
 Litigation expense                12        325         43        341
 Depreciation and
  amortization                    163        152        491        466
 Franchise fees and
  other taxes                      67         59        208        181
 Losses (gains) on sale of
  assets, net                      (2)       (99)         1       (104)
                             --------   --------   --------   --------
    Total operating expenses    2,228      2,544      7,301      6,935
                             --------   --------   --------   --------
 Operating income                 466        166      1,215        645
 Other income, net                376         19        375         24
 Interest income                   34         28         73         50
 Interest expense                 (90)       (74)      (273)      (220)
 Preferred dividends of
  subsidiaries                     (2)        (2)        (7)        (7)
                             --------   --------   --------   --------
 Income from continuing
  operations before income
  taxes and equity in
  earnings of certain
  unconsolidated subsidiaries     784        137      1,383        492
 Income tax expense (benefit)     257        (63)       461        (22)
 Equity in earnings of
  certain unconsolidated
  subsidiaries                     16         16         40         42
                             --------   --------   --------   --------
 Income from continuing
  operations                      543        216        962        556
 Discontinued operations,
  net of income tax               110          5        319          9
                             --------   --------   --------   --------
 Net income                  $    653   $    221   $  1,281   $    565
                             ========   ========   ========   ========
 Basic earnings per share:
  Income from continuing
   operations                $   2.11   $   0.85   $   3.76   $   2.28
  Discontinued operations,
   net of income tax             0.43       0.02       1.25       0.04
                             --------   --------   --------   --------
  Net income                 $   2.54   $   0.87   $   5.01   $   2.32
                             ========   ========   ========   ========
 Weighted-average number
  of shares outstanding
  (thousands)                 257,487    252,974    255,834    243,342
                             ========   ========   ========   ========
 Diluted earnings per share:
  Income from continuing
   operations                $   2.07   $   0.84   $   3.69   $   2.22
  Discontinued operations,
   net of income tax             0.42       0.02       1.23       0.04
                             --------   --------   --------   --------
  Net income                 $   2.49   $   0.86   $   4.92   $   2.26
                             ========   ========   ========   ========
 Weighted-average number
  of shares outstanding
  (thousands)                 262,102    257,370    260,587    249,874
                             ========   ========   ========   ========
 Dividends declared per
  share of common stock      $   0.30   $   0.29   $   0.90   $   0.87
                             ========   ========   ========   ========

 The statements above reflect the decisions in 2006 to dispose of the
 Twin Oaks power plant, Sempra Energy Production Company, and the
 Energy Services and Facilities Management businesses, all within
 Sempra Generation, and Bangor Gas and Frontier Energy, both within
 Sempra Pipelines & Storage.


                             SEMPRA ENERGY
                                Table B
 CONSOLIDATED BALANCE SHEETS
 (Dollars in millions)
                                            September 30,  December 31,
                                                2006            2005
 ---------------------------------------------------------------------
 Assets                                              (Unaudited)
 Current assets:
  Cash and cash equivalents                    $ 1,501         $   769
  Restricted cash                                  165              12
  Accounts receivable                              702           1,145
  Deferred income taxes                            336             134
  Interest receivable                               43              29
  Trading-related receivables and
   deposits, net                                 2,754           3,370
  Derivative trading instruments                 4,278           4,502
  Commodities owned                              2,025           2,498
  Regulatory assets                                217             255
  Inventories                                      300             205
  Other                                            269             297
                                               -------         -------
   Current assets of continuing operations      12,590          13,216
   Current assets of discontinued operations       145             611
                                               -------         -------
     Total current assets                       12,735          13,827
                                               -------         -------
 Investments and other assets:
  Due from unconsolidated affiliates                21              21
  Regulatory assets arising from fixed-price
   contracts and other derivatives                 364             398
  Other regulatory assets                          707             713
  Nuclear decommissioning trusts                   669             638
  Investments                                    1,062           1,091
  Sundry                                           808             802
                                               -------         -------
     Total investments and other assets          3,631           3,663
                                               -------         -------
 Property, plant and equipment, net             12,680          11,756
                                               -------         -------
 Total assets                                  $29,046         $29,246
                                               =======         =======

 Liabilities and Shareholders' Equity
 Current liabilities:
  Short-term debt                              $   411         $ 1,043
  Accounts payable                               1,256           1,394
  Income taxes payable                             132              86
  Trading-related payables                       3,192           4,127
  Derivative trading instruments                 2,903           3,246
  Commodities sold with agreement
   to repurchase                                   488             634
  Dividends and interest payable                   153             140
  Regulatory balancing accounts, net               349             192
  Fixed-price contracts and
   other derivatives                               100             130
  Current portion of long-term debt                842              98
  Other                                            796           1,012
                                               -------         -------
   Current liabilities of continuing
    operations                                  10,622          12,102
   Current liabilities of discontinued
    operations                                     174             151
                                               -------         -------
     Total current liabilities                  10,796          12,253
                                               -------         -------
 Long-term debt                                  4,416           4,815
                                               -------         -------

 Deferred credits and other liabilities:
  Due to unconsolidated affiliate                  162             162
  Customer advances for construction               123             110
  Postretirement benefits other than pensions      122             121
  Deferred income taxes                            355             214
  Deferred investment tax credits                   68              73
  Regulatory liabilities arising from
   removal obligations                           2,388           2,313
  Asset retirement obligations                     996             958
  Other regulatory liabilities                     220             200
  Fixed-price contracts and other derivatives      368             400
  Deferred credits and other                     1,377           1,288
                                               -------         -------
     Total deferred credits and
      other liabilities                          6,179           5,839
                                               -------         -------
 Preferred stock of subsidiaries                   179             179
                                               -------         -------
 Shareholders' equity                            7,476           6,160
                                               -------         -------
 Total liabilities and shareholders' equity    $29,046         $29,246
                                               =======         =======

 The statements above reflect the decisions in 2006 to dispose of the
 Twin Oaks power plant, Sempra Energy Production Company, and the
 Energy Services and Facilities Management businesses, all within
 Sempra Generation, and Bangor Gas and Frontier Energy, both within
 Sempra Pipelines & Storage.


                             SEMPRA ENERGY
                                Table C

 CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
 (Dollars in millions)
                                                    Nine months ended
                                                       September 30,
                                                    -------------------
                                                      2006       2005
 ---------------------------------------------------------------------
                                                        (Unaudited)
 Cash Flows from Operating Activities:
 Income from continuing operations                  $   962    $   556
 Adjustments to reconcile income from
  continuing operations to net cash
  provided by operating activities:
   Depreciation and amortization                        491        466
   Losses (gains) on sale of assets                       1       (104)
   Impairment losses                                      3         12
   Deferred income taxes and investment tax credits     (56)      (169)
   Equity in income of unconsolidated subsidiaries     (380)       (46)
   Tax benefits from share-based awards                 (18)        --
   Other                                                 73         45
 Quasi-reorganization resolution                         12         --
 Net changes in other working capital components        263       (328)
 Changes in other assets                                 41         (2)
 Changes in other liabilities                            12        335
                                                    -------    -------
   Net cash provided by continuing operations         1,404        765
   Net cash used in discontinued operations             (13)       (70)
                                                    -------    -------
   Net cash provided by operating activities          1,391        695
                                                    -------    -------

 Cash Flows from Investing Activities:
 Expenditures for property, plant
  and equipment                                      (1,341)      (940)
 Proceeds from sale of assets from
  continuing operations                                  36        275
 Expenditures for investments                          (126)       (80)
 Distribution from investment                           104         --
 Purchases of nuclear decommissioning
  and other trust assets                               (500)      (200)
 Proceeds from sales by nuclear
  decommissioning and other trusts                      476        168
 Increase in restricted cash balance                   (153)         3
 Dividends received from unconsolidated affiliates      410         49
 Other                                                  (27)       (12)
                                                    -------    -------
   Net cash used in continuing operations            (1,121)      (737)
   Net cash provided by (used in)
    discontinued operations                             778        (18)
                                                    -------    -------
   Net cash used in investing activities               (343)      (755)
                                                    -------    -------

 Cash Flows from Financing Activities:
 Common dividends paid                                 (203)      (193)
 Issuances of common stock                               89        692
 Repurchases of common stock                            (12)       (95)
 Issuances of long-term debt                            422        255
 Redemption of mandatorily redeemable preferred
  securities                                             --       (200)
 Payments on long-term debt                             (81)      (207)
 Decrease in short-term debt, net                      (632)       (97)
 Financing transaction related to Sempra Financial       83         --
 Tax benefits from share-based awards                    18         --
 Other                                                   (2)        (3)
                                                    -------    -------
    Net cash provided by (used in)
     continuing operations                             (318)       152
    Net cash provided by (used in)
     discontinued operations                              2         (7)
                                                    -------    -------
    Net cash provided by (used in)
     financing activities                              (316)       145
                                                    -------    -------
 Increase in cash and cash equivalents                  732         85
 Cash and cash equivalents, January 1                   769        415
                                                    -------    -------
 Cash and cash equivalents, September 30            $ 1,501    $   500
                                                    =======    =======

 The statements above reflect the decisions in 2006 to dispose of the
 Twin Oaks power plant, Sempra Energy Production Company, and the
 Energy Services and Facilities Management businesses, all within
 Sempra Generation, and Bangor Gas and Frontier Energy, both within
 Sempra Pipelines & Storage.


                             SEMPRA ENERGY
                                Table D
 BUSINESS UNIT EARNINGS AND
 CAPITAL EXPENDITURES & INVESTMENTS
 (Unaudited)
 (Dollars in millions)
                                Three months ended  Nine months ended
                                   September 30,       September 30,
                                 ----------------    ----------------
                                  2006      2005      2006      2005
 ------------------------------------------------    ----------------
 Net Income
 Sempra Utilities:
  San Diego Gas & Electric       $   70    $  102    $  182    $  190
  Southern California Gas            61        36       168       163
                                 ------    ------    ------    ------
    Total Sempra Utilities          131       138       350       353

 Sempra Global:
  Sempra Commodities                105       161       290       216
  Sempra Generation(a)              265        24       322        91
  Sempra Pipelines & Storage(a)      19        19        58        48
  Sempra LNG                        (13)       (5)      (35)      (15)
                                 ------    ------    ------    ------
    Total Sempra Global             376       199       635       340

 Parent & Other                      36      (121)      (23)     (137)
                                 ------    ------    ------    ------

 Continuing Operations              543       216       962       556

 Discontinued Operations,
  Net of Income Tax                 110         5       319         9
                                 ------    ------    ------    ------
 Consolidated Net Income         $  653    $  221    $1,281    $  565
                                 ======    ======    ======    ======

 (a) Excludes amounts now classified as discontinued operations.


 CAPITAL EXPENDITURES & INVESTMENTS
 (Unaudited)
 (Dollars in millions)

                                Three months ended   Nine months ended
                                   September 30,       September 30,
                                  ---------------     ---------------
                                   2006     2005       2006     2005
 --------------------------------------------------------------------
 Capital Expenditures and
  Investments
 Sempra Utilities:
  San Diego Gas & Electric        $  157   $  146     $  880   $  342
  Southern California Gas             91       99        284      245
                                  ------   ------     ------   ------
    Total Sempra Utilities           248      245      1,164      587
                                  ------   ------     ------   ------

 Sempra Global:
  Sempra Generation                    2      110         37      193
  Sempra Commodities                  13       32         43       61
  Sempra Pipelines & Storage          66        3        212       10
  Sempra LNG                         121       43        466      156
                                  ------   ------     ------   ------
    Total Sempra Global              202      188        758      420
                                  ------   ------     ------   ------

 Parent & Other                        4        7       (455)      13
                                  ------   ------     ------   ------
 Consolidated Capital
  Expenditures and Investments    $  454   $  440     $1,467   $1,020
                                  ======   ======     ======   ======

 The statements above reflect the decisions in 2006 to dispose of the
 Twin Oaks power plant, Sempra Energy Production Company, and the
 Energy Services and Facilities Management businesses, all within
 Sempra Generation, and Bangor Gas and Frontier Energy, both within
 Sempra Pipelines & Storage.


                             SEMPRA ENERGY
                                Table E

 OTHER OPERATING STATISTICS (Unaudited)

                                 Three months ended  Nine months ended
                                    September 30,       September 30,
                                 -------------------------------------
 SEMPRA UTILITIES                  2006      2005      2006      2005
 ---------------------------------------------------------------------
 Revenues (Dollars in millions)
  SDG&E
   (excludes intercompany sales) $   700   $   596   $ 2,078   $ 1,747
  SoCalGas
   (excludes intercompany sales) $   794   $   899   $ 3,112   $ 3,036

 Gas Sales (Bcf)                      62        67       292       290
 Transportation and
  Exchange (Bcf)                     165       142       419       381
                                 -------   -------   -------   -------
 Total Deliveries (Bcf)              227       209       711       671
                                 -------   -------   -------   -------

 Total Gas Customers (Thousands)                       6,446     6,358

 Electric Sales
  (Millions of kWhs)               5,022     4,300    12,897    11,988
 Direct Access
  (Millions of kWhs)                 915       865     2,569     2,493
                                 -------   -------   -------   -------
 Total Deliveries
  (Millions of kWhs)               5,937     5,165    15,466    14,481
                                 -------   -------   -------   -------
 Total Electric Customers
  (Thousands)                                          1,350     1,333


 SEMPRA GENERATION
 -------------------------------------------------   -----------------
 Power Sold
  (Millions of kWhs)               5,470    4,557(a)  14,054  12,131(a)

 (a) Revised to exclude the Twin Oaks, Coleto Creek
     and Topaz power plants.


 SEMPRA PIPELINES & STORAGE
 (Represents 100% of these subsidiaries, although only the Mexican
  subsidiaries are 100% owned by Sempra Energy.)
 ---------------------------------------------------------------------
 Natural Gas Sales (Bcf)
  Argentina                           89        88       208       210
  Mexico                              13        12        34        33
  Chile                                1         1         2         2
 Natural Gas Customers (Thousands)
  Argentina                                            1,527     1,488
  Mexico                                                 100        98
  Chile                                                   39        37
 Electric Sales (Millions of kWhs)
  Peru                             1,166     1,058     3,488     3,185
  Chile                              385       511     1,562     1,752
 Electric Customers (Thousands)
  Peru                                                   780       762
  Chile                                                  532       518

 SEMPRA COMMODITIES
 ---------------------------------------------------------------------
                                Three months ended   Nine months ended
                                   September 30,        September 30,
 Margin (a)                     ------------------   -----------------
 (Dollars in millions)            2006       2005     2006       2005
 -------------------------------------------------   -----------------
 Geographical:
  North America                 $  233      $ 254    $ 839      $ 548
  Europe/Asia                      128        119      152        113
                                ------------------   -----------------
   Total                        $  361      $ 373    $ 991      $ 661
                                ------------------   -----------------

 Product Line:
  Gas                           $ 146       $ 121    $ 430      $ 122
  Power                           116         110      327        234
  Oil - Crude & Products           27          89      113        160
  Metals                           53           3       78         42
  Other                            19          50       43        103
                                ------------------   -----------------
   Total                        $ 361       $ 373    $ 991      $ 661
                                ------------------   -----------------

 (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)            2006       2005     2006       2005
 -------------------------------------------------   -----------------
 Mark-to-Market Earnings (b)    $   86       $ 153   $ 329      $ 282
 Effect of EITF 02-03 (c)           19           8     (39)       (66)
                                ------------------   -----------------
 GAAP Net Income                $  105       $ 161   $ 290      $ 216
                                ------------------   -----------------

 (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.

                          Fair
                         Market
  Net Unrealized         Value        Scheduled Maturity (in months)
  Revenue               Sept. 30,  -----------------------------------
 (Dollars in millions)    2006     0 - 12   13 - 24  25 - 36   gt. 36
 -------------------------------   ------   -------  -------   -------
 Sources of Over-the-
  Counter (OTC) Fair Value:
   Prices actively
    quoted                $1,309   $  480   $  546   $  159   $  124
   Prices provided by
    other external sources    70       (4)       2       --       72
   Prices based on
    models and other
    valuation methods        (13)      --       --       --      (13)
                          --------------------------------------------
   Total OTC Fair
    Value (d)              1,366      476      548      159      183
                          --------------------------------------------
  Maturity of OTC Fair
   Value - Cumulative              -----------------------------------
   Percentages                       34.8%    75.0%    86.6%   100.0%
                                   -----------------------------------
 ---------------------------------------------------------------------
 gt = greater than
 -----------------

 Exchange Contracts (e)      (45)     156      (71)     (11)    (119)
                          --------------------------------------------
 Total Net Unrealized
  Revenue at September
  30, 2006                $ 1,321   $ 632    $ 477    $ 148     $  64
 Net Unrealized Revenue            -----------------------------------
  - Cumulative Percentages           47.8%    84.0%    95.2%    100.0%
                                   -----------------------------------

 (d) The present value of unrealized revenue to be received or
     (paid) from outstanding OTC contracts
 (e) Cash received or (paid) associated with open Exchange
     Contracts


  Credit Quality
  of Unrealized
  Trading Assets      September 30,    December 31,
  (net of margin)         2006             2005
 --------------------------------------------------
 Commodity Exchanges       14%              2%
 Investment Grade          60%             75%
 Below Investment Grade    26%             23%

 ---------------------------------------------------------------------

                              Three months ended    Nine months ended
 Risk Adjusted Performance       September 30,        September 30,
 Indicators                    -----------------    -----------------
 (Mark-to-Market Basis)         2006        2005     2006        2005
 -----------------------------------------------    -----------------
 VaR at 95% (Dollars
  in millions) (a)             $11.1       $12.8    $15.8       $10.3
 VaR at 99% (Dollars
  in millions) (b)             $15.6       $18.0    $22.3       $14.6
 Risk Adjusted Return
  on Capital (RAROC) (c)          36%         38%      33%         36%

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

 Physical Statistics
 -----------------------------------------------    -----------------
 Natural Gas (BCF/Day)          11.8        11.7     12.0        11.5
 Electric (Billions of kWhs)   126.1       107.0    350.0       300.8
 Oil & Liquid Products
  (Millions Bbls/Day)            0.6         0.7      0.7         0.9


            

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