8-K

UNITED STATES

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):	February 26, 2008

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)	(IRS Employer Identification No.)

8326 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))

2

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 February 26, 2008, Sempra Energy, of which San Diego Gas & Electric Company is a consolidated subsidiary, issued a press release announcing consolidated net income of $289 million, or $1.10 per diluted share of common stock, for the fourth quarter of 2007 and $1.1 billion, or $4.16 per diluted share of common stock, for the fiscal year 2007. 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 and the years ended December 31, 2007 and 2006. 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.  

         Exhibits  

          99.1

February 26, 2008 Sempra Energy News Release (including tables)

          99.2

Sempra Energy's Income Statement Data by Business Unit for the three months and the years ended December 31, 2007 and 2006.

3

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: February 26, 2008	By: /S/ Dennis V. Arriola
	Dennis V. Arriola Sr. Vice President and Chief Financial Officer

4

EX-99

Exhibit 99.1

NEWS RELEASE

Media Contact:	Doug Kline
	Sempra Energy
	(877) 866-2066
	www.sempra.com
Financial Contact:	Glen Donovan
	Sempra Energy
	(877) 736-7727
	investor@sempra.com

SEMPRA ENERGY REPORTS
RECORD INCOME FROM CONTINUING
OPERATIONS IN 2007

SAN DIEGO, Feb. 26, 2008 – Sempra Energy (NYSE:  SRE) today reported 2007 income from continuing operations of $1.13 billion, or $4.26 per diluted share, up from $1.09 billion, or $4.17 per diluted share, in 2006.

Income from continuing operations in 2006 included a $204 million gain on asset sales and a fourth-quarter write-down of $221 million on the company’s Argentine utility investments.

Sempra Energy’s 2007 net income was $1.10 billion, or $4.16 per diluted share, compared with 2006 net income of $1.41 billion, or $5.38 per diluted share.  The company’s 2006 results included $315 million in after-tax income from discontinued operations primarily related to asset sales.

Fourth-quarter 2007 net income was $289 million, or $1.10 per diluted share, compared with $125 million, or $0.47 per diluted share, in 2006.

“We are pleased that we achieved record results and exceeded our financial goals in 2007,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “In 2008, Sempra Energy will mark its 10^th anniversary and we will complete several of our major natural gas infrastructure projects.  We also expect to launch our joint venture with The Royal Bank of Scotland.  This transaction will significantly expand the global footprint of our commodities business, while, at the same time, enable us to raise our dividend and begin our share-repurchase program.”

Revenues for Sempra Energy in 2007 were $11.4 billion, compared with $11.8 billion in 2006, due primarily to lower revenues from commodity operations.  Fourth-quarter 2007 revenues were $3.1 billion, compared with $3.2 billion in the prior year’s quarter.

SUBSIDIARY OPERATING RESULTS

Sempra Utilities

Sempra Utilities – San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas) – had net income of $513 million in 2007, up 12 percent from $460 million in 2006.  The utilities’ fourth-quarter 2007 net income was $105 million, compared with $110 million in 2006.

Net income for SDG&E rose to $283 million in 2007, from $237 million in 2006, due primarily to the favorable resolution of tax issues, and higher electric transmission and generation earnings.   SDG&E’s fourth-quarter 2007 net income was $47 million, compared with $55 million quarterly net income in 2006, primarily due to lower taxes in 2006. 

SoCalGas’ 2007 net income increased to $230 million from $223 million in 2006, due primarily to higher operating margin.  Fourth-quarter net income for SoCalGas was $58 million in 2007, compared with $55 million in 2006.

Sempra Commodities

Sempra Commodities’ 2007 net income was $499 million, compared with the prior-year’s net income of $504 million.  Fourth-quarter 2007 net income for Sempra Commodities was $186 million, compared with $214 million in the fourth quarter 2006, primarily due to reduced margins in natural gas.

In the third quarter 2007, Sempra Energy and The Royal Bank of Scotland announced their intention to form a global commodities-marketing joint venture, RBS Sempra Commodities, which will absorb the operations of Sempra Commodities.  The transaction is expected to be completed in April 2008.   RBS will provide the joint venture with all growth capital, credit and liquidity. 

Sempra Generation

Sempra Generation’s net income in 2007 was $162 million, compared with $375 million in 2006.  The company’s 2006 net income included $204 million from the sale of its jointly owned Texas power plants.  Fourth-quarter 2007 net income for Sempra Generation was $40 million, compared with $53 million in the fourth quarter 2006, due primarily to higher taxes and a three-month outage at the company’s El Dorado Energy plant in Nevada.  

Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $64 million in 2007 net income, compared with a net loss of $165 million in 2006.  In the fourth quarter 2007, Sempra Pipelines & Storage had $14 million in net income, compared with a net loss of $223 million in the fourth quarter 2006.  Both the quarter and full-year results for Sempra Pipelines & Storage in 2006 were impacted by the company’s write-down on its Argentine investments.

REX-West, the western leg of the Rockies Express Pipeline – a joint-venture project of Kinder Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhilips -- has been put into interim service.  Permitting is underway on the eastern leg of the 1,600-mile transcontinental pipeline project.   During the quarter, the project partners completed a successful non-binding open-season solicitation that could extend the pipeline from its original eastern terminus in Clarington, Ohio, to Princeton, N.J.

Sempra LNG

Sempra LNG recorded a net loss of $46 million in 2007, compared with a net loss of $42 million in 2006.   For the fourth quarter, Sempra LNG’s 2007 net loss was $19 million, compared with $7 million in 2006, due primarily to a mark-to-market loss on an inter-company marketing agreement.

For its Energía Costa Azul receipt terminal in Baja California, Mexico, Sempra LNG expects to receive start-up liquefied natural gas (LNG) cargoes early in the second quarter 2008, with commercial operations beginning later in the same quarter.  Construction on the Cameron LNG receipt terminal in Louisiana is expected to be complete and ready for commercial operations by year-end.

2008 Outlook

Sempra Energy today reaffirmed its prior 2008 earnings-per-share guidance of $3.65 to $3.85.  The 2008 guidance reflects the company’s reduced ownership in the commodity-marketing business when the joint venture with RBS commences, partially offset by the anticipated improved performance at other operating units and the positive impact of the share-repurchase program.

As announced previously, following the close of the transaction with RBS, Sempra Energy intends to increase its quarterly dividend to $0.35, or $1.40 annually, from the current quarterly dividend of $0.32, or $1.28 annually, and maintain a targeted dividend payout ratio of 35 percent to 40 percent of net income.  Additionally, in 2008, Sempra Energy intends to repurchase $1 billion of its common stock, the first phase of its $1.5 billion to $2 billion stock-repurchase program. 

Internet Broadcast

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST 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 (888) 203-1112 and entering the passcode 3144385.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2007 revenues of more than $11 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers worldwide.

Complete financial tables, including income-statement information by business unit, is available on Sempra Energy’s Web site at http://www.sempra.com/downloads/4Q2007.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,” ”could,” “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 ris ks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority, and other regulatory bodies in the United States and other countries; capital market 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, electric power 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 unc ertainties, 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
		Three months ended		Years ended
		December 31,		December 31,
(Dollars in millions, except per share amounts)		2007	2006	2007	2006
		(Unaudited)
Operating revenues
Sempra Utilities		$   1,859	$    1,709	$    7,053	$  6,899
Sempra Global and parent		1,251	1,536	4,385	4,862
	Total operating revenues	3,110	3,245	11,438	11,761
Operating expenses
Sempra Utilities:
	Cost of natural gas	721	679	2,763	2,756
	Cost of electric fuel and purchased power	203	155	699	721
Sempra Global and parent:
	Cost of natural gas, electric fuel and purchased power	357	358	1,302	1,221
	Other cost of sales	192	395	988	1,468
Litigation expense		4	13	73	56
Other operating expenses		883	838	2,954	2,814
Depreciation and amortization		172	166	686	657
Franchise fees and other taxes		74	67	295	275
Gains on sale of assets, net		-	(2)	(6)	(1)
Impairment losses		5	6	5	9
	Total operating expenses	2,611	2,675	9,759	9,976
Operating income		499	570	1,679	1,785
Other income, net		20	6	81	381
Interest income		10	36	72	109
Interest expense		(68)	(78)	(272)	(351)
Preferred dividends of subsidiaries		(3)	(3)	(10)	(10)
Income from continuing operations before income taxes and
	equity in earnings (losses) of certain unconsolidated subsidiaries	458	531	1,550	1,914
Income tax expense		183	180	524	641
Equity in earnings (losses) of certain unconsolidated subsidiaries		13	(222)	99	(182)
Income from continuing operations		288	129	1,125	1,091
Discontinued operations, net of income tax		1	(4)	(26)	315
Net income		$      289	$       125	$    1,099	$  1,406
Basic earnings per share:
	Income from continuing operations	$     1.12	$      0.50	$      4.34	$    4.25
	Discontinued operations, net of income tax	-	(0.02)	(0.10)	1.23
	Net income	$     1.12	$      0.48	$      4.24	$    5.48
Weighted-average number of shares outstanding (thousands)		257,864	258,385	259,269	256,477
Diluted earnings per share:
	Income from continuing operations	$     1.10	$      0.49	$      4.26	$    4.17
	Discontinued operations, net of income tax	-	(0.02)	(0.10)	1.21
	Net income	$     1.10	$      0.47	$      4.16	$    5.38
Weighted-average number of shares outstanding (thousands)		262,839	263,429	264,004	261,368
Dividends declared per share of common stock		$     0.31	$      0.30	$      1.24	$    1.20
As a result of 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, these operations have been reflected above as discontinued operations in all periods presented.

SEMPRA ENERGY
Table B
CONSOLIDATED BALANCE SHEETS
				December 31,	December 31,
(Dollars in millions)				2007	2006
Assets
Current assets:
	Cash and cash equivalents			$           668	$           920
	Restricted cash			1	4
	Accounts receivable, net			1,074	1,035
	Income taxes receivable			99	-
	Deferred income taxes			247	270
	Interest receivable			4	40
	Trading-related receivables and deposits, net			2,887	3,047
	Derivative trading instruments			3,367	4,068
	Commodities owned			2,231	1,845
	Inventories			224	215
	Regulatory assets			106	193
	Other			430	317
		Current assets of continuing operations		11,338	11,954
		Current assets of discontinued operations		-	62
			Total current assets	11,338	12,016
Investments and other assets:
	Regulatory assets arising from fixed-price contracts and other derivatives			309	353
	Regulatory assets arising from pension and other postretirement
		benefit obligations		162	356
	Other regulatory assets			460	472
	Nuclear decommissioning trusts			739	702
	Investments			1,243	1,086
	Sundry			956	789
			Total investments and other assets	3,869	3,758
Property, plant and equipment, net				14,884	13,175
Total assets				$       30,091	$       28,949
Liabilities and Shareholders' Equity
Current liabilities:
	Short-term debt			$         1,064	$           252
	Accounts payable			1,563	1,587
	Due to unconsolidated affiliate			60	-
	Income taxes payable			-	9
	Trading-related payables			3,328	3,211
	Derivative trading instruments			1,974	2,304
	Commodities sold with agreement to repurchase			500	537
	Dividends and interest payable			145	145
	Regulatory balancing accounts, net			481	332
	Fixed-price contracts and other derivatives			62	87
	Current portion of long-term debt			7	681
	Other			1,210	1,197
		Current liabilities of continuing operations		10,394	10,342
		Current liabilities of discontinued operations		-	7
			Total current liabilities	10,394	10,349
Long-term debt				4,553	4,525
Deferred credits and other liabilities:
	Due to unconsolidated affiliate			102	162
	Customer advances for construction			153	126
	Pension and other postretirement benefit obligations, net of plan assets			434	609
	Deferred income taxes			531	412
	Deferred investment tax credits			61	67
	Regulatory liabilities arising from removal obligations			2,522	2,330
	Asset retirement obligations			1,129	1,128
	Other regulatory liabilities			265	221
	Fixed-price contracts and other derivatives			332	358
	Deferred credits and other			949	961
			Total deferred credits and other liabilities	6,478	6,374
Preferred stock of subsidiaries				179	179
Minority interests				148	11
Shareholders' equity				8,339	7,511
Total liabilities and shareholders' equity				$       30,091	$       28,949
As a result of 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, these operations have been reflected above as discontinued operations in all periods presented.

SEMPRA ENERGY
Table C
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
		Years ended
		December 31,
(Dollars in millions)		2007	2006
Cash Flows from Operating Activities:
Net income		$     1,099	$    1,406
Adjustments to reconcile net income to net cash provided by
operating activities:
	Discontinued operations	26	(315)
	Depreciation and amortization	686	657
	Gains on sale of assets, net	(6)	(1)
	Impairment losses	5	9
	Deferred income taxes and investment tax credits	149	77
	Noncash rate-reduction bond expense	55	60
	Equity in income of unconsolidated subsidiaries	(90)	(156)
	Other	41	38
Quasi-reorganization resolution		-	12
Net changes in other working capital components		25	(183)
Changes in other assets		22	20
Changes in other liabilities		79	42
	Net cash provided by continuing operations	2,091	1,666
	Net cash used in discontinued operations	(3)	(37)
	Net cash provided by operating activities	2,088	1,629
Cash Flows from Investing Activities:
Expenditures for property, plant and equipment		(2,011)	(1,907)
Proceeds from sale of assets from continuing operations		103	40
Expenditures for investments		(121)	(257)
Distributions from investments		18	104
Purchases of nuclear decommissioning and other trust assets		(646)	(546)
Proceeds from sales by nuclear decommissioning and other trusts		613	503
Dividends received from unconsolidated affiliates		-	431
Other		(29)	(27)
	Net cash used in continuing operations	(2,073)	(1,659)
	Net cash provided by discontinued operations	-	793
	Net cash used in investing activities	(2,073)	(866)
Cash Flows from Financing Activities:
Common dividends paid		(316)	(283)
Issuances of common stock		40	97
Repurchases of common stock		(185)	(37)
Issuance of long-term debt		404	552
Payments on long-term debt		(1,072)	(263)
Increase (decrease) in short-term debt, net		812	(791)
Financing transaction related to Sempra Financial		-	83
Other		21	28
	Net cash used in continuing operations	(296)	(614)
	Net cash provided by discontinued operations	-	2
	Net cash used in financing activities	(296)	(612)
Increase (decrease) in cash and cash equivalents		(281)	151
Cash and cash equivalents, January 1		920	769
Cash assumed in connection with FIN 46(R) initial consolidation		29	-
Cash and cash equivalents, December 31		$        668	$      920
As a result of 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, these operations have been reflected above as discontinued operations in all periods presented.

SEMPRA ENERGY
Table D
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS
			Three months ended		Years ended
			December 31,		December 31,
(Dollars in millions)			2007	2006	2007	2006
Net Income			(unaudited)
Sempra Utilities:
	San Diego Gas & Electric		$      47	$      55	$     283	$     237
	Southern California Gas		58	55	230	223
		Total Sempra Utilities	105	110	513	460
Sempra Global:
	Sempra Commodities		186	214	499	504
	Sempra Generation*		40	53	162	375
	Sempra Pipelines & Storage*		14	(223)	64	(165)
	Sempra LNG		(19)	(7)	(46)	(42)
		Total Sempra Global	221	37	679	672
Parent & Other			(38)	(18)	(67)	(41)
Continuing Operations			288	129	1,125	1,091
Discontinued Operations, Net of Income Tax			1	(4)	(26)	315
Consolidated Net Income			$     289	$     125	$  1,099	$  1,406
	* Excludes amounts now classified as discontinued operations.
			Three months ended		Years ended
			December 31,		December 31,
(Dollars in millions)			2007	2006	2007	2006
Capital Expenditures and Investments			(unaudited)
Sempra Utilities:
	San Diego Gas & Electric		$     235	$     190	$     714	$  1,070
	Southern California Gas		157	129	457	413
	Total Sempra Utilities		392	319	1,171	1,483
Sempra Global:
	Sempra Commodities		15	10	64	53
	Sempra Generation		5	3	13	40
	Sempra Pipelines & Storage		187	202	367	414
	Sempra LNG		152	153	498	619
	Total Sempra Global		359	368	942	1,126
Parent & Other			7	10	19	(445)	(1)
Consolidated Capital Expenditures and Investments			$     758	$     697	$  2,132	$  2,164
(1) Reflects the transfer of the Palomar plant to SDG&E from Sempra Generation.
As a result of 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, these operations have been reflected above as discontinued operations in all periods presented.

SEMPRA ENERGY
Table E
OTHER OPERATING STATISTICS (Unaudited)
			Three months ended			Years ended
			December 31,			December 31,
SEMPRA UTILITIES			2007	2006		2007	2006
Revenues (Dollars in millions)
	SDG&E (excludes intercompany sales)		$    765	$    692		$ 2,839	$  2,770
	SoCalGas (excludes intercompany sales)		$ 1,094	$ 1,017		$ 4,214	$  4,129
Gas Sales (Bcf)			114	110		404	402
Transportation and Exchange (Bcf)			145	127		566	546
Total Deliveries (Bcf)			259	237		970	948
Total Gas Customers (Thousands)						6,531	6,468
Electric Sales (Millions of kWhs)			4,198	3,939		17,045	16,836
Direct Access (Millions of kWhs)			819	821		3,220	3,390
Total Deliveries (Millions of kWhs)			5,017	4,760		20,265	20,226
Total Electric Customers (Thousands)						1,365	1,355
SEMPRA GENERATION
Power Sold (Millions of kWhs)			5,613	5,734	(1)	20,856	19,760	(1)
(1)		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	79	70		320	278
		Mexico	11	10		46	44
		Chile	-	-		1	2
Natural Gas Customers (Thousands)
		Argentina				1,603	1,542
		Mexico				96	101
		Chile				39	39
Electric Sales (Millions of kWhs)
		Peru	1,278	1,620		5,078	5,108
		Chile	632	762		2,500	2,324
Electric Customers (Thousands)
		Peru				809	788
		Chile				549	534

SEMPRA ENERGY
Table E (Continued)
SEMPRA COMMODITIES
		Three months ended December 31,			Years ended December 31,
Margin* (Dollars in millions)		2007	2006		2007	2006
Geographical:
	North America	$                     422	$                 474		$             1,202	$                 1,313
	Europe/Asia	120	173		359	325
	Total	$                     542	$                 647		$             1,561	$                 1,638
Product Line:
	Gas	$                     234	$                 362		$               570	$                    792
	Power	170	104		460	431
	Oil - Crude & Products	46	85		195	198
	Metals	88	60		292	138
	Other	4	36		44	79
	Total	$                     542	$                 647		$             1,561	$                 1,638
* Margin is a non-GAAP financial measure, consisting of operating revenues less cost of sales (primarily transportation and storage costs), both GAAP financial measures, reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense, as follows:
		Three months ended December 31,			Years ended December 31,
(Dollars in millions)		2007	2006		2007	2006
	Revenues	$                     773	$               1,078		$             2,674	$                 3,256
	Cost of sales	(192)	(395)		(988)	(1,468)
		581	683		1,686	1,788
	Other related costs	(39)	(36)		(125)	(150)
	Margin	$                     542	$                 647		$             1,561	$                 1,638
		Three months ended December 31,			Years ended December 31,
Effect of EITF 02-3  (Dollars in millions)		2007	2006		2007	2006
	Mark-to-Market Earnings *	$                     139	$                 158		$               494	$                    487
	Effect of EITF 02-3 **	47	56		5	17
	GAAP Net Income	$                     186	$                 214		$               499	$                    504
* Represents earnings from 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, capacity contracts for transportation and storage, and derivative hedging activities related to synthetic fuels tax credits.
		Fair
		Market Value	Scheduled Maturity (in months)
Net Unrealized Revenue (Dollars in millions)		December 31, 2007	0 - 12	13 - 24	25 - 36	> 36
OTC Fair Value of forwards, swaps and options (1)		$                  1,381	$               1,074	$             95	$                 23	$                    189
	Maturity of OTC Fair Value - Cumulative Percentages		77.8%	84.6%	86.3%	100.0%
Exchange Contracts (2)		(178)	(274)	118	(7)	(15)
	Total Net Unrealized Revenue at December 31, 2007	$                  1,203	$                 800	$           213	$                 16	$                    174
	Net Unrealized Revenue - Cumulative Percentages		66.5%	84.2%	85.5%	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
		December 31,	December 31,
Credit Quality of Unrealized Trading Assets (net of margin)		2007	2006
Commodity Exchanges		9%	13%
Investment Grade		54%	57%
Below Investment Grade		37%	30%
		Three months ended December 31,			Years ended December 31,
Risk Adjusted Performance Indicators (Mark-to-Market Basis)		2007	2006		2007	2006
VaR at 95% (Dollars in millions) (1)		$                    16.5	$                17.3		$              13.9	$                   16.2
VaR at 99% (Dollars in millions) (2)		$                    23.3	$                24.3		$              19.7	$                   22.8
(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
		Three months ended December 31,			Years ended December 31,
Physical Statistics		2007	2006		2007	2006
Natural Gas (Bcf/Day)		15	12.2		13.4	12.0
Electric (Billions of kWhs)		141.4	125.5		519.1	475.5
Oil & Liquid Products (Millions Bbls/Day)		0.7	0.7		0.7	0.7

EX-99

Exhibit 99.2

SEMPRA ENERGY
Table F (Unaudited)
Income Statement Data by Business Unit
Three Months Ended December 31, 2007
(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total
Operating Revenues	$        768	$       1,114	$           773	$         412	$            72	$          (11)	$            (18)	$ 3,110
Cost of Sales and Other Operating Expenses	588	937	465	328	70	13	34	2,435
Litigation Expense (Adjustment)	2	(1)	4	(1)	-	1	(1)	4
Depreciation & Amortization	76	71	7	15	2	-	1	172
Operating Income (Loss)	102	107	297	70	-	(25)	(52)	499
Other Income, Net	1	1	-	3	2	-	13	20
Income (Loss) before Interest & Taxes (1)	103	108	297	73	2	(25)	(39)	519
Net Interest Expense (Income) (2)	22	12	15	(2)	1	-	13	61
Income Tax Expense (Benefit)	34	38	96	35	-	(6)	(14)	183
Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	-	-	13	-	-	13
Discontinued Operations	-	-	-	-	-	-	1	1
Net Income (Loss)	$         47	$            58	$           186	$           40	$            14	$          (19)	$            (37)	$    289
Three Months Ended December 31, 2006
(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total
Operating Revenues	$        696	$       1,036	$        1,078	$         422	$            68	$           (1)	$            (54)	$ 3,245
Cost of Sales and Other Operating Expenses	519	868	701	334	62	8	4	2,496
Litigation Expense	-	1	2	8	1	1	-	13
Depreciation & Amortization	72	67	6	12	3	-	6	166
Operating Income (Loss)	105	100	369	68	2	(10)	(64)	570
Other Income (Expense), Net	(7)	-	-	1	(1)	-	13	6
Income (Loss) before Interest & Taxes (1)	98	100	369	69	1	(10)	(51)	576
Net Interest Expense (Income) (2)	17	11	14	(11)	(2)	(3)	19	45
Income Tax Expense (Benefit)	26	34	125	27	20	-	(52)	180
Equity in Losses of Certain Unconsolidated Subsidiaries	-	-	(16)	-	(206)	-	-	(222)
Discontinued Operations	-	-	-	-	-	-	(4)	(4)
Net Income (Loss)	$         55	$            55	$           214	$           53	$        (223)	$           (7)	$            (22)	$    125
(1) Management believes "Income (Loss) 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 (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.

SEMPRA ENERGY
Table F (Unaudited)
Income Statement Data by Business Unit
Year Ended December 31, 2007
(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total
Operating Revenues	$     2,852	$       4,282	$        2,674	$      1,476	$         314	$        (22)	$          (138)	$11,438
Cost of Sales and Other Operating Expenses	2,041	3,563	1,848	1,168	297	42	41	9,000
Litigation Expense	10	1	58	1	-	2	1	73
Depreciation & Amortization	301	281	26	56	11	-	11	686
Operating Income (Loss)	500	437	742	251	6	(66)	(191)	1,679
Other Income (Expense), Net	11	(3)	-	9	(1)	-	65	81
Income (Loss) before Interest & Taxes (1)	511	434	742	260	5	(66)	(126)	1,760
Net Interest Expense (Income) (2)	93	44	31	(13)	2	2	51	210
Income Tax Expense (Benefit)	135	160	252	111	(2)	(22)	(110)	524
Equity in Earnings of Certain Unconsolidated Subsidiaries	-	-	40	-	59	-	-	99
Discontinued Operations	-	-	-	-	-	-	(26)	(26)
Net Income (Loss)	$        283	$          230	$           499	$        162	$          64	$        (46)	$            (93)	$ 1,099
Year Ended December 31, 2006
(Dollars in millions)	SDG&E	SoCalGas	Commodities	Generation	Pipelines & Storage	LNG	Consolidating Adjustments, Parent & Other	Total
Operating Revenues	$     2,785	$       4,181	$        3,256	$      1,454	$         295	$        (22)	$          (188)	$11,761
Cost of Sales and Other Operating Expenses	2,014	3,477	2,345	1,120	272	37	(2)	9,263
Litigation Expense (Adjustment)	3	(2)	10	38	4	1	2	56
Depreciation & Amortization	291	267	25	46	12	-	16	657
Operating Income (Loss)	477	439	876	250	7	(60)	(204)	1,785
Other Income (Expense), Net	8	(1)	-	355	2	-	17	381
Income (Loss) before Interest & Taxes (1)	485	438	876	605	9	(60)	(187)	2,166
Net Interest Expense (Income) (2)	96	42	62	(13)	(4)	-	69	252
Income Tax Expense (Benefit)	152	173	294	243	12	(18)	(215)	641
Equity in Losses of Certain Unconsolidated Subsidiaries	-	-	(16)	-	(166)	-	-	(182)
Discontinued Operations	-	-	-	-	-	-	315	315
Net Income (Loss)	$        237	$          223	$           504	$        375	$      (165)	$        (42)	$            274	$ 1,406
(1) Management believes "Income (Loss) 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 (Income) includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.