8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934

Date of Report
(Date of earliest event reported):	May 2, 2006 - ----------------------

SAN DIEGO GAS & ELECTRIC COMPANY
- ---------------------------------------------------------------------
(Exact name of registrant as specified in its charter)

CALIFORNIA - --------------------------------	1-3779 - --------------------------------	95-1184800 - --------------------------------
(State of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.

8330 CENTURY PARK COURT, SAN DIEGO, CA - ------------------------------------------------------------------	92123 - ----------------------
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code (619) 696-2000
- -------------------

---------------------------------------------------------------------
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

FORM 8-K

Item 2.02 Results of Operations and Financial Condition

The information furnished in this Item 2.02 and in Exhibits 99.1 and 99.2 shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, nor shall it be deemed to be incorporated by reference in any filing of San Diego Gas & Electric Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On May 2, 2006, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated net income of $255 million, or $0.98 per diluted share of common stock, for the first quarter of 2006. The press release has been posted on Sempra Energy's website (www.sempra.com) and a copy is attached as Exhibit 99.1.

Concurrently with the website posting of such press release and as noted therein, Sempra Energy also posted its Income Statement Data by Business Unit for the three months ended March 31, 2006 and 2005. A copy of such information is attached as Exhibit 99.2

The Sempra Energy financial information contained in the press release includes, on a consolidated basis, information regarding San Diego Gas & Electric Company's results of operations and financial condition.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 May 2, 2006 Sempra Energy News Release (including tables)

99.2 Sempra Energy's Income Statement Data by Business Unit for the three months ended March 31, 2006 and 2005.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SAN DIEGO GAS & ELECTRIC COMPANY
(Registrant)

Date: May 2, 2006	By: /s/ S.D. Davis - -----------------------------------------
	S.D. Davis Sr. Vice President-External Relations and Chief Financial Officer

EX-99

NEWS RELEASE

Exhibit 99.1

Media Contacts: Doug Kline
Sempra Energy
(877) 866-2066
www.sempra.com

Financial Contacts: Dennis Arriola/Karen Sedgwick
Sempra Energy
(877) 736-7727

SEMPRA ENERGY'S FIRST-QUARTER 2006
NET INCOME RISES 14 PERCENT

SAN DIEGO, May 2, 2006 - Sempra Energy today reported first-quarter 2006 net income of $255 million, or $0.98 per diluted share, up 14 percent over first-quarter 2005 net income of $223 million, or $0.92 per diluted share. First-quarter 2005 results included $59 million in net income related to the favorable resolution of federal and state income-tax issues from prior years.

Revenues in the first quarter 2006 were $3.3 billion, compared with $2.7 billion in the year-ago period.

"Our Commodities group drove our strong first-quarter results," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "We are pleased with our 52-percent increase in operating income during the quarter and are off to a solid start to meet our previously announced guidance for the year of $3.40 to $3.60 per share."

Sempra Generation recently announced the sale of its two coal-fired power plants in Texas, the jointly owned, 632-megawatt (MW) Coleto Creek Power facility and 305-MW Twin Oaks plant. Coleto Creek Power is being sold for $1.14 billion - the highest price paid for a U.S. coal-fired power plant in more than a decade - to International Power plc. Sempra Generation and its partner, Riverstone Holdings, acquired Coleto Creek for $430 million in July 2004. Last month, Sempra Generation completed the sale of Twin Oaks to PNM Resources, Inc., for $480 million in cash. The plant was acquired by Sempra Generation in November 2002 for $120 million. During the first quarter 2006, Sempra Generation also entered into agreements to sell its businesses in energy-facilities management and energy-performance contracting.

"Our strategy is focused on developing natural gas infrastructure, primarily in our non-utility businesses, and expanding the energy-delivery capabilities of our California utilities," Felsinger said. "We are repositioning our portfolio, divesting some assets that are not core to this strategy. Through these asset sales, we expect to generate more than $1 billion in pre-tax proceeds to help fund our ongoing investments."

SUBSIDIARY OPERATING RESULTS

Sempra Utilities

First-quarter net income for San Diego Gas & Electric (SDG&E) was $47 million in 2006, compared with $59 million in 2005, due primarily to the favorable resolution of tax issues in the prior-year's quarter.

Net income for Southern California Gas Co. (SoCalGas) in the first quarter 2006 was $49 million, compared with $69 million in the year-ago period. In the first quarter 2005, SoCalGas benefited from favorable adjustments related to a California Public Utilities Commission ratemaking decision and favorable resolution of tax issues.

At the end of the first quarter 2006, SDG&E assumed ownership and operation of the 550-MW Palomar Energy Center in Escondido, Calif., the first major power plant built in San Diego County in more than 30 years.

Sempra Commodities

Sempra Commodities recorded $116 million in net income during the first quarter 2006, a 300-percent increase over first-quarter 2005 net income of $29 million. The sharp increase was due primarily to stronger natural gas and power marketing in North America.

"In the first quarter, Sempra Commodities continued a performance trend over the past nine months of outstanding results," Felsinger said.

Sempra Generation

First-quarter net income for Sempra Generation was $43 million in 2006, compared with $45 million in 2005, due primarily to a $15 million after-tax charge taken for an arbitration decision related to Sempra Generation's electricity-supply contract with the California Department of Water Resources. The charge was offset by gains related to the transfer of Palomar Energy to SDG&E during the quarter.

Sempra Pipelines & Storage

Sempra Pipelines & Storage had net income of $11 million in the first quarter 2006, compared with $13 million in the same quarter a year ago.

During the most recent quarter, Sempra Pipelines & Storage and Kinder Morgan Energy Partners announced that they have secured binding commitments from natural gas shippers for the entire capacity of the Rockies Express Pipeline project. The $4.4 billion, 1,323-mile pipeline will connect natural gas supply basins in the Rocky Mountain region to the eastern United States, transporting 1.8 billion cubic feet of gas per day when the project is completed in 2009. Sempra Pipelines & Storage currently owns one-third of the project.

Sempra LNG

Sempra LNG recorded a net loss of $5 million during the first quarter 2006, unchanged from the previous year.

In the first quarter 2006, Sempra LNG announced an open season to gauge market interest in an expansion of Energía Costa Azul, the company's liquefied natural gas (LNG) receipt terminal under construction in Baja California, Mexico. The terminal is more than 30-percent complete and, when operational in early 2008, it will be the first LNG receipt facility on the west coast of North America.

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. Eastern Time with senior management of the company. 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 passcode 7944055.

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/1Q2006_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 P ublic 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.govand 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
		Three months ended
		March 31,
(Dollars in millions, except per share amounts)		2006		2005
		(Unaudited)
Operating revenues
California utilities		$ 2,128		$ 1,827
Sempra Global and parent		1,221		828
	Total operating revenues	3,349		2,655
Operating expenses
California utilities:
	Cost of natural gas	1,130		913
	Cost of electric fuel and purchased power	210		145
Other cost of sales		679		560
Litigation expense		33		8
Other operating expenses		643		528
Depreciation and amortization		159		158
Franchise fees and other taxes		77		68
Impairment losses		2		1
	Total operating expenses	2,933		2,381
Operating income		416		274
Other income, net		4		10
Interest income		14		10
Interest expense		(96	)	(74	)
Preferred dividends of subsidiaries		(2	)	(2	)
Income from continuing operations before income taxes and
	equity in earnings of certain unconsolidated subsidiaries	336		218
Income tax expense		110		7
Equity in earnings of certain unconsolidated subsidiaries		10		10
Income from continuing operations		236		221
Discontinued operations, net of income tax		19		2
Net income		$ 255		$ 223
Basic earnings per share:
	Income from continuing operations	$ 0.93		$ 0.95
	Discontinued operations, net of tax	0.07		0.01
	Net income	$ 1.00		$ 0.96
Weighted-average number of shares outstanding (thousands)		254,257		232,939
Diluted earnings per share:
	Income from continuing operations	$ 0.91		$ 0.91
	Discontinued operations, net of tax	0.07		0.01
	Net income	$ 0.98		$ 0.92
Weighted-average number of shares outstanding (thousands)		259,251		241,105
Dividends declared per share of common stock		$ 0.30		$ 0.29
The statements above reflect the decision in the first quarter of 2006 to dispose of the Twin Oaks power plant and the Energy Services and Facilities Management businesses within Sempra Generation.

SEMPRA ENERGY
Table B
CONSOLIDATED BALANCE SHEETS
				March 31,	December 31,
(Dollars in millions)				2006	2005
				(Unaudited)
Assets
Current assets:
	Cash and cash equivalents			$ 650	$ 770
	Short-term investments			4	12
	Accounts receivable			1,091	1,143
	Due from unconsolidated affiliates			8	3
	Deferred income taxes			173	134
	Interest receivable			32	29
	Trading-related receivables and deposits, net			2,809	3,370
	Derivative trading instruments			4,265	4,502
	Commodities owned			2,106	2,498
	Regulatory assets			249	255
	Inventories			98	206
	Other			212	285
		Current assets of continuing operations		11,697	13,207
		Current assets of discontinued operations		391	454
			Total current assets	12,088	13,661
Investments and other assets:
	Due from unconsolidated affiliates			21	21
	Regulatory assets arising from fixed-price contracts and other derivatives			389	398
	Other regulatory assets			711	713
	Nuclear decommissioning trusts			654	638
	Investments			1,201	1,102
	Sundry			817	802
			Total investments and other assets	3,793	3,674
Property, plant and equipment, net				12,169	11,881
Total assets				$ 28,050	$ 29,216
Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$ 673	$ 1,043
	Accounts payable			989	1,396
	Income taxes payable			195	69
	Trading-related payables			3,297	4,127
	Derivative trading instruments			3,210	3,246
	Commodities sold with agreement to repurchase			432	634
	Dividends and interest payable			151	140
	Regulatory balancing accounts, net			406	192
	Fixed-price contracts and other derivatives			126	130
	Current portion of long-term debt			89	98
	Other			1,005	1,012
		Current liabilities of continuing operations		10,573	12,087
		Current liabilities of discontinued operations		143	131
			Total current liabilities	10,716	12,218
Long-term debt				4,778	4,815
Deferred credits and other liabilities:
	Due to unconsolidated affiliate			162	162
	Customer advances for construction			116	110
	Postretirement benefits other than pensions			119	121
	Deferred income taxes			223	219
	Deferred investment tax credits			71	73
	Regulatory liabilities arising from removal obligations			2,343	2,313
	Asset retirement obligations			972	958
	Other regulatory liabilities			206	200
	Fixed-price contracts and other derivatives			398	400
	Deferred credits and other			1,284	1,288
			Total deferred credits and other liabilities	5,894	5,844
Preferred stock of subsidiaries				179	179
Shareholders' equity				6,483	6,160
Total liabilities and shareholders' equity				$ 28,050	$ 29,216
The statements above reflect the decision in the first quarter of 2006 to dispose of the Twin Oaks power plant and
	the Energy Services and Facilities Management businesses within Sempra Generation.

SEMPRA ENERGY
Table C
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
		Three months ended
		March 31,
(Dollars in millions)		2006		2005
		(Unaudited)
Cash Flows from Operating Activities:
Net income		$ 255		$ 223
Adjustments to reconcile net income to net cash provided by operating
activities:
	Depreciation and amortization	159		161
	Deferred income taxes and investment tax credits	(43	)	(68	)
	Accretion of interest	7		-
	Other	23		3
Net changes in other working capital components		384		394
Changes in other assets		64		2
Changes in other liabilities		6		(3	)
	Net cash provided by operating activities	855		712
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(420	)	(269	)
Proceeds from sale of assets		24		11
Investments in subsidiaries		(103	)	(1	)
Purchases of nuclear decommissioning and other trust assets		(122	)	(84	)
Proceeds from sales by nuclear decommissioning and other trusts		116		88
Dividends received from unconsolidated affiliates		-		2
Other		(1	)	14
	Net cash used in investing activities	(506	)	(239	)
Cash Flows from Financing Activities:
Common dividends paid		(65	)	(50	)
Issuances of common stock		17		90
Repurchases of common stock		(12	)	(6	)
Redemption of mandatorily redeemable preferred securities		-		(200	)
Payments on long-term debt		(45	)	(50	)
Decrease in short-term debt, net		(366	)	(64	)
Other		2		(3	)
	Net cash used in financing activities	(469	)	(283	)
Increase (decrease) in cash and cash equivalents		(120	)	190
Cash and cash equivalents, January 1		770		416
Cash and cash equivalents, March 31		$ 650		$ 606

SEMPRA ENERGY
Table D
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS (Unaudited)
			Three months ended
			March 31,
(Dollars in millions)			2006		2005
Net Income
California Utilities:
	San Diego Gas & Electric		$ 47		$ 59
	Southern California Gas		49		69
		Total California Utilities	96		128
Sempra Global:
	Sempra Commodities		116		29
	Sempra Generation		43		45
	Sempra Pipelines & Storage		11		13
	Sempra LNG		(5	)	(5	)
		Total Sempra Global	165		82
Sempra Financial			5		4
Parent & Other			(30	)	7
Continuing Operations			236		221
Discontinued Operations			19		2
Consolidated Net Income			$ 255		$ 223
The statements above reflect the decision in the first quarter of 2006 to dispose of the Twin Oaks power plant and the Energy Services and Facilities Management businesses within Sempra Generation.
			Three months ended
			March 31,
(Dollars in millions)			2006		2005
Capital Expenditures and Investments
California Utilities:
	San Diego Gas & Electric		$ 583		$ 94
	Southern California Gas		97		63
	Total California Utilities		680		157
Sempra Global:
	Sempra Generation		34		49
	Sempra Commodities		20		13
	Sempra Pipelines & Storage		105		4
	Sempra LNG		152		45
	Total Sempra Global		311		111
Parent & Other			(468	) (1)	2
Consolidated Capital Expenditures and Investments			$ 523		$ 270
(1)	Reflects the transfer of the Palomar plant to SDG&E from Sempra Generation.

SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
		Three months ended
		March 31,
CALIFORNIA UTILITIES		2006	2005
Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)	$ 718	$ 616
	SoCalGas (excludes intercompany sales)	$ 1,410	$ 1,211
Gas Sales (Bcf)		141	137
Transportation and Exchange (Bcf)		122	122
Total Deliveries (Bcf)		263	259
Total Gas Customers (Thousands)		6,406	6,316
Electric Sales (Millions of kWhs)		4,043	3,906
Direct Access (Millions of kWhs)		898	820
Total Deliveries (Millions of kWhs)		4,941	4,726
Total Electric Customers (Thousands)		1,342	1,323
SEMPRA GENERATION
Power Sold (Millions of kWhs)		5,750	4,989	(1)
(1)	Revised to exclude the Twin Oaks power plant as a discontinued operation.
SEMPRA PIPELINES & STORAGE
(Represents 100% of these subsidiaries, although only the Mexican subsidiaries are 100% owned by Sempra Energy).
Natural Gas Sales (Bcf)
	Argentina	52	51
	Mexico	10	10
	Chile	1	1
Natural Gas Customers (Thousands)
	Argentina	1,511	1,459
	Mexico	99	97
	Chile	38	38
Electric Sales (Millions of kWhs)
	Peru	1,165	1,052
	Chile	614	733
Electric Customers (Thousands)
	Peru	772	753
	Chile	525	512

SEMPRA ENERGY
Table E (Continued)
SEMPRA COMMODITIES
		Three months ended
		March 31,
Margin * (Dollars in millions)		2006	2005
Geographical:
	North America	$ 359	$ 125
	Europe/Asia	6	29
	Total	$ 365	$ 154
Product Line:
	Gas	$ 179	$ (15)
	Power	101	42
	Oil - Crude & Products	53	80
	Metals	27	14
	Other	5	33
	Total	$ 365	$ 154
* 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
		March 31,
Effect of EITF 02-03 (Dollars in millions)		2006	2005
	Mark-to-Market Earnings **	$ 160	$ 52
	Effect of EITF 02-03 ***	(44)	(23)
	GAAP Net Income	$ 116	$ 29
** 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.
*** 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 Value
		March 31,	Scheduled Maturity (in months)
Net Unrealized Revenue (Dollars in millions)		2006	0 - 12	13 - 24	25 - 36	> 36
Sources of Over-the-Counter (OTC) Fair Value:
	Prices actively quoted	$ 978	$ 185	$ 316	$ 397	$ 80
	Prices provided by other external sources	51	(1)	1	(1)	52
	Prices based on models and other valuation methods	(9)	-	-	-	(9)
	Total OTC Fair Value (1)	1,020	184	317	396	123
	Maturity of OTC Fair Value - Cumulative Percentages		18.0%	49.1%	87.9%	100.0%
Exchange Contracts (2)		223	501	(112)	(145)	(21)
Total Net Unrealized Revenue at March 31, 2006		$ 1,243	$ 685	$ 205	$ 251	$ 102
	Net Unrealized Revenue - Cumulative Percentages		55.1%	71.6%	91.8%	100.0%
(1) The present value of unrealized revenue to be received or (paid) from outstanding OTC contracts
(2) Cash received or (paid) associated with open Exchange Contracts
		March 31,	December 31,
Credit Quality of Unrealized Trading Assets (net of margin)		2006	2005
Commodity Exchanges		5%	2%
Investment Grade		69%	75%
Below Investment Grade		26%	23%
		Three months ended
		March 31,
Risk Adjusted Performance Indicators (Mark-to-Market Basis)		2006	2005
VaR at 95% (Dollars in millions) (1)		$ 22.0	$ 8.5
VaR at 99% (Dollars in millions) (2)		$ 31.1	$ 11.9
Risk Adjusted Return on Capital (RAROC) (3)		37%	38%
(1) Average Daily Value-at-Risk for the period using a 95% confidence level
(2) Average Daily Value-at-Risk for the period using a 99% confidence level
(3) Average Daily Trading Margin/Average Daily VaR at 95% confidence level
Physical Statistics
Natural Gas (BCF/Day)		12.6	12.2
Electric (Billions of kWhs)		114.9	107.8
Oil & Liquid Products (Millions Bbls/Day)		0.7	0.9

EX-99

Exhibit 99.2

SEMPRA ENERGY
Table F (Unaudited)
Income Statement Data by Business Unit
Three Months Ended March 31, 2006
(Dollars in millions)	SDG&E	SoCalGas	Commodities		Generation	Pipelines & Storage		LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 722	$ 1,425	$ 780		$ 404	$ 80		$ -		$ -		$ (62	)	$ 3,349
Cost of Sales and Other Operating Expenses	556	1,258	573		291	73		10		-		(22	)	2,739
Litigation Expense	-	-	5		26	1		-		-		1		33
Depreciation & Amortization	67	66	7		13	4		-		-		2		159
Impairment Losses	-	-	-		-	-		-		2		-		2
Operating Income	99	101	195		74	2		(10	)	(2	)	(43	)	416
Other Income (Expense), Net	1	-	(1	)	1	1		(1	)	(3	)	6		4
Income before Interest & Taxes (1)	100	101	194		75	3		(11	)	(5	)	(37	)	420
Net Interest Expense (Income) (2)	18	15	16		6	(1	)	-		1		29		84
Income Tax Expense/(Benefit)	35	37	62		26	3		(6	)	(11	)	(36	)	110
Equity in Income of Certain Unconsolidated Subsidiaries	-	-	-		-	10		-		-		-		10
Discontinued Operations	-	-	-		-	-		-		-		19		19
Net Income	$ 47	$ 49	$ 116		$ 43	$ 11		$ (5	)	$ 5		$ (11	)	$ 255
Three Months Ended March 31, 2005
(Dollars in millions)	SDG&E	SoCalGas	Commodities		Generation	Pipelines & Storage		LNG		Financial		Consolidating Adjustments, Parent & Other		Total
Operating Revenues	$ 621	$ 1,241	$ 458		$ 382	$ 69		$ -		$ -		$ (116)		$ 2,655
Cost of Sales and Other Operating Expenses	461	1,049	397		301	61		7		1		(63)		2,214
Litigation Expense	-	-	4		4	-		-		-		-		8
Depreciation & Amortization	65	66	7		9	4		-		5		2		158
Impairment Losses	-	-	-		-	-		-		1		-		1
Operating Income	95	126	50		68	4		(7)		(7)		(55)		274
Other Income (Expense), Net	2	(1)	-		7	-		(1)		(1)		4		10
Income before Interest & Taxes (1)	97	125	50		75	4		(8)		(8)		(51)		284
Net Interest Expense (2)	11	9	6		3	-		-		1		36		66
Income Tax Expense/(Benefit)	27	47	15		27	1		(3)		(13)		(94)		7
Equity in Income of Certain Unconsolidated Subsidiaries	-	-	-		-	10		-		-		-		10
Discontinued Operations	-	-	-		-	-		-		-		2		2
Net Income	$ 59	$ 69	$ 29		$ 45	$ 13		$ (5)		$ 4		$ 9		$ 223
(1) Management believes "Income before Interest & Taxes" (Operating Income plus Other Income, Net) is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income taxes, neither of which is directly relevant to the efficiency of those operations.
(2) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.
The statements above reflect the decision in the first quarter of 2006 to dispose of the Twin Oaks power plant and the Energy Services and Facilities Management businesses within Sempra Generation.