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          <NonNumbericText>&lt;div style="font-size:12pt"&gt;&lt;p&gt;INCOME TAXES&lt;/p&gt;&lt;table style="border-collapse: collapse; margin-top: 20px;"&gt;&lt;tr&gt;&lt;td width="560" align="left" colspan="12" style="border-top: 1px solid #000000;" height="17"&gt;&lt;b&gt;INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES&lt;/b&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="560" align="left" height="17" colspan="12"&gt;&lt;i&gt;(Dollars in millions)&lt;/i&gt;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td width="349" align="center" colspan="9" style="border-bottom: 1px solid #000000;" height="14"&gt;Three months ended September 30,&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"&gt;2009&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"&gt;2008&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Income Tax &lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Effective Income&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Income Tax &lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Effective Income&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="17"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="178"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="16"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Expense&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Tax Rate&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Expense&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Tax Rate*&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" colspan="2" style="border-top: 1px solid #000000;" height="17"&gt;Sempra Energy Consolidated&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="16"&gt;$&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;&amp;#160;128&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;31&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="20"&gt;%&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="15"&gt;$&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;&amp;#160;94&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;25&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="20"&gt;%&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" height="17" colspan="2"&gt;SDG&amp;amp;E&lt;/td&gt;&lt;td height="17" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;53&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;37&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="15" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;54&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;31&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" height="17" colspan="2"&gt;PE&lt;/td&gt;&lt;td height="17" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;41&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;36&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="15" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;42&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;34&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" colspan="2" style="border-bottom: 3px solid #C0C0C0;" height="18"&gt;SoCalGas&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="16"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;42&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;36&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;41&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;35&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="17"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="178"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="16"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td width="349" align="center" colspan="9" style="border-bottom: 1px solid #000000;" height="14"&gt;Nine months ended September 30,&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"&gt;2009&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14"&gt;2008&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" width="17" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="178" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Income Tax &lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Effective Income&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Income Tax &lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="center" width="64"&gt;Effective Income&lt;/td&gt;&lt;td height="14" style="border-top: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="17"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="178"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="16"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Expense&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Tax Rate&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Expense&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64"&gt;Tax Rate*&lt;/td&gt;&lt;td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" colspan="2" style="border-top: 1px solid #000000;" height="17"&gt;Sempra Energy Consolidated&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="16"&gt;$&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;&amp;#160;327&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;30&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="20"&gt;%&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="15"&gt;$&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;&amp;#160;423&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="right" width="64"&gt;36&amp;#160;&lt;/td&gt;&lt;td height="17" style="border-top: 1px solid #000000;" align="left" width="20"&gt;%&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" height="17" colspan="2"&gt;SDG&amp;amp;E&lt;/td&gt;&lt;td height="17" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;141&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;33&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="15" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;121&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;31&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" height="17" colspan="2"&gt;PE&lt;/td&gt;&lt;td height="17" width="16" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;117&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;38&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="15" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;119&amp;#160;&lt;/td&gt;&lt;td height="17" width="19" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;td height="17" width="64" align="right"&gt;38&amp;#160;&lt;/td&gt;&lt;td height="17" width="20" align="left"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td width="195" align="left" colspan="2" style="border-bottom: 3px solid #C0C0C0;" height="18"&gt;SoCalGas&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="16"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;115&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;37&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="15"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;117&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"&gt;&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64"&gt;38&amp;#160;&lt;/td&gt;&lt;td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"&gt;&amp;#160;&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td height="35" style="border-top: 3px solid #C0C0C0;" align="left" width="17"&gt;&lt;i&gt;*&lt;/i&gt;&lt;/td&gt;&lt;td width="543" align="left" colspan="11" style="border-top: 3px solid #C0C0C0;" height="35"&gt;&lt;i&gt;Amounts for Sempra Energy Consolidated, SDG&amp;amp;E and PE have been adjusted for the retrospective adoption of ASC 810 (SFAS 160).&lt;/i&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;&lt;p&gt;Changes in Effective Income Tax Rates&lt;br /&gt;Sempra Energy Consolidated&lt;br /&gt;The increase in the effective income tax rate for the three months ended September 30, 2009 was due primarily to lower pretax income in countries with lower statutory rates, and higher estimated investment tax credits in 2008 for Sempra Generation's solar-energy facility in Nevada.&lt;br /&gt;The decrease in the effective income tax rate for the first nine months of 2009 was due to:&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;higher pretax income in countries with lower statutory rates;&lt;br /&gt;&lt;/li&gt;&lt;li&gt;lower income tax expense related to Mexican currency translation and inflation adjustments; and&lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher favorable impact of the resolution of prior years' income tax issues.&lt;br /&gt;&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;SDG&amp;amp;E&lt;br /&gt;The increase in the effective income tax rate for the three months ended September 30, 2009 was due to:&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;lower favorable impact from the resolution of prior years' income tax issues; offset by &lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions allowed for depreciation not treated as deferred tax liabilities for ratemaking purposes; &lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions for self-developed software; and &lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions for asset removal costs.&lt;br /&gt;&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;The increase in the effective income tax rate for the nine months ended September 30, 2009 was due to:&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;lower favorable impact from the resolution of prior years' income tax issues; and&lt;br /&gt;&lt;/li&gt;&lt;li&gt;lower deductions allowed for depreciation not treated as deferred tax liabilities for ratemaking purposes; offset by &lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions for self-developed software costs; and &lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions for asset removal costs.&lt;br /&gt;&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;PE and SoCalGas&lt;br /&gt;The increases in the effective income tax rates for both PE and SoCalGas for the three months ended September 30, 2009 were due to:&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;lower favorable impact from the resolution of prior years' income tax issues; offset by&lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher deductions for self-developed software costs; and&lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher Medicare subsidy, as discussed in Note 9 of the Notes to Consolidated Financial Statements in the Annual Report.&lt;br /&gt;&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;The effective income tax rates for PE and SoCalGas for the first nine months of 2009 were impacted by:&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;higher deductions for self-developed software costs; and&lt;br /&gt;&lt;/li&gt;&lt;li&gt;higher Medicare subsidy.&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;&lt;/p&gt;&lt;/div&gt;</NonNumbericText>
          <NonNumericTextHeader>INCOME TAXESINCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES(Dollars in millions)&amp;#160;&amp;#160;&amp;#160;Three months ended September</NonNumericTextHeader>
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