-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NoMnFq5KLLUZ+LawJ5rjMCqL0/ZL9brtuMJ82XEnLFET9Dtdirx88Lr+jNsOlYYT agTm1LzMNNpfytI1/b3c3w== 0000940170-97-000027.txt : 19971127 0000940170-97-000027.hdr.sgml : 19971127 ACCESSION NUMBER: 0000940170-97-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971125 ITEM INFORMATION: FILED AS OF DATE: 19971126 SROS: AMEX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENOVA CORP CENTRAL INDEX KEY: 0000940170 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 330643023 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11439 FILM NUMBER: 97728966 BUSINESS ADDRESS: STREET 1: POST OFFICE BOX 1831 CITY: SAN DIEGO STATE: CA ZIP: 92112-4150 BUSINESS PHONE: 6196962000 MAIL ADDRESS: STREET 1: 101 ASH STREET CITY: SAN DIEGO STATE: CA ZIP: 92101 FORMER COMPANY: FORMER CONFORMED NAME: SDO PARENT CO /CA DATE OF NAME CHANGE: 19950303 8-K 1 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): November 25, 1997 ----------------- Exact name of Commission Registrant IRS Employer File as specified State of Identification Number in its charter Incorporation Number - ---------- -------------- -------------- -------------- 1-11439 ENOVA CORPORATION California 33-0643023 1-3779 SAN DIEGO GAS & ELECTRIC COMPANY California 95-1184800 - ------------------------------------------------------------------------ 101 ASH STREET, SAN DIEGO, CALIFORNIA 92101 - ---------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (619) 696-2000 Registrant's telephone number, including area code-------------------- - ---------------------------------------------------------------------- (Former name or former address, if changed since last report.) FORM 8-K Item 5. Other Events San Diego Gas & Electric (SDG&E), the principal subsidiary of Enova Corporation, has announced that its board of directors has approved plans to auction SDG&E's fossil power plants -- the South Bay plant in Chula Vista, California and the Encina plant in Carlsbad, California -- and its combustion turbines, as well as its 20-percent interest in the San Onofre Nuclear Generating Station (SONGS) south of San Clemente, California, and its portfolio of long-term power contracts. The plants (including SDG&E's share in the case of SONGS), have a net book value of $900 million ($250 million for fossil and $650 million for SONGS) and a generating capacity of 2,400 megawatts. The press release describing the announcement is attached as Exhibit 99.1. The decision will enable SDG&E to continue to concentrate its business on the distribution and transmission of electricity and natural gas, instead of electric generation, as California opens its electric utility industry to competition in January 1998. Any proceeds from the auction will be applied directly to SDG&E's transition costs. SDG&E plans to file with the CPUC in December 1997 for its approval of the auction plan. The sale of the plants and contracts is expected to be completed by the end of 1998. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1 Press release dated November 25, 1997. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ENOVA CORPORATION and SAN DIEGO GAS & ELECTRIC COMPANY (Registrants) Date: November 26, 1997 By: /s/ F.H. Ault ----------------- ----------------------------- F.H. Ault Vice President and Controller EX-99 2 PRESS RELEASE Exhibit 99.1 For more information contact: Doug Kline or Dave Kusumoto (619) 696-4292 After-hours pager: (619) 526-9555 Web Site: http://www.sdge.com SAN DIEGO GAS & ELECTRIC TO AUCTION POWER PLANTS, OTHER GENERATING ASSETS SAN DIEGO, Nov. 25, 1997 -- San Diego Gas & Electric (SDG&E), the principal subsidiary of Enova Corporation, today announced plans to auction its fossil power plants -- the South Bay plant in Chula Vista, Calif., the Encina plant in Carlsbad, Calif., and its combustion turbines -- as well as its 20-percent interest in the San Onofre Nuclear Generating Station (SONGS) and its portfolio of long-term power contracts. The decision, which was approved by SDG&E's board of directors late yesterday, comes as California prepares to open up its electric utility industry to competition Jan. 1, 1998. Electric generation will be deregulated and the state's investor-owned utilities, SDG&E, PG&E and Southern California Edison, will transition to being regulated distributors of power within their current service territories. "For more than a decade, SDG&E has pursued a business strategy that concentrates on the distribution and transmission of power, instead of generation, so the sale of our power plants is a natural evolution of our business," said Donald E. Felsinger, president and chief executive officer of SDG&E. "Selling off our generation assets will help expedite the development of competition in California's electric generation market, benefitting all of our customers." - more - The electric utilities' power plants are among those deemed by state regulators to represent "transition costs," or uneconomic investments that the utilities must recover during a four-year transition period to competition in California. Any proceeds from the sale of the plants and other generating assets will go directly to pay down SDG&E's transition costs. Of SDG&E's current asset base, more than twice as much is invested in distribution and transmission facilities as is invested in generation. The utility currently purchases 65 percent of the power it delivers to its customers and generates only 35 percent. Felsinger said that other companies in the free market -- not bound by the rules that apply to the state's regulated utilities -- will have a much greater opportunity to provide competitive generation services to customers with SDG&E's plants. Potential buyers of the plants and power contracts are likely to include independent power producers, power marketers, oil and natural gas companies, and unregulated affiliates of electric utilities. The first step in the process of selling the plants will be a filing with the California Public Utilities Commission (CPUC) next month. Once SDG&E receives approval from the CPUC, the utility will proceed with an auction of the generating assets and power contracts. The CPUC has final approval over any transaction. The sale of the plants and contracts is expected to be completed by the end of 1998. The Chula Vista and Carlsbad plants together have 285 employees and, along with the combustion turbines, have a generating capacity of approximately 2,000 megawatts. California's electric deregulation law, AB 1890, requires that any purchaser of the plants contract with the utility to operate and maintain them for at least two years after the sale transaction is completed. SDG&E also will auction up to 200 megawatts of Qualifying Facilities' contracts and 175 megawatts of other power contracts. -more - San Diego Gas & Electric is the primary subsidiary of Enova Corporation (NYSE: ENA), the parent company of the investor-owned utility and six other U.S.-based subsidiaries -- Enova Energy, Enova International, Enova Technologies, Enova Financial, Califia and Pacific Diversified Capital. SDG&E serves 1.2 million electric customers in San Diego and southern Orange counties and 710,000 natural gas customers in San Diego County. # # # -----END PRIVACY-ENHANCED MESSAGE-----