Press release details

SAN DIEGO, Nov. 16, 2005 -- The following statement was issued today by W. Davis Smith, vice president and associate general counsel of Sempra Energy, regarding California Attorney General Lockyer's announcement that he is filing suit against Sempra Commodities, a subsidiary of the company:

"Over the past few weeks, we have been negotiating in good faith with state officials and other parties in an effort to resolve issues related to the California energy crisis of 2000-01 and the Continental Forge class-action trial currently under way in San Diego Superior Court.

"In recent days, officials in the Attorney General's office repeatedly have threatened that, if our company did not agree to the state's terms, the Attorney General would file lawsuits against us and today delivered on these threats, filing a meritless lawsuit against our Sempra Commodities unit. The timing of this action is highly inappropriate given the trial under way in San Diego.

"After a preliminary review of today's lawsuit, it appears to be nothing more than old news about a case that has already been addressed and closed by the Federal Energy Regulatory Commission. The Attorney General's motives are made even more transparent by the fact that the courts have dismissed these types of cases filed by him in the past, because these cases are preempted by federal law and fall under the jurisdiction of the FERC.

"Back in 2003, the Sempra Commodities business reached a settlement with FERC on substantially the same issues. Sempra Commodities did not engage in any improper market activities and abided by the law, regulations and market rules in existence.

"These charges have no merit whatsoever. The issues, which have been recycled from the dark days of the energy crisis, are designed to exploit the genuine pain that many people suffered during the energy crisis. "

Contact:

Doug Kline/Jennifer Andrews
Sempra Energy
(877) 866-2066
www.sempra.com