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<div style="font-size:12pt"><p>NOTE 5. OTHER FINANCIAL DATA</p><p>VARIABLE INTEREST ENTITIES<br />We consolidate a variable interest entity (VIE) if we are the primary beneficiary of the VIE’s activities. Our determination of whether we are the primary beneficiary is based upon qualitative and quantitative analyses, which assess<br /></p><ul><li>the purpose and design of the VIE;<br /></li><li>the nature of the VIE's risks and the risks we absorb; <br /></li><li>the power to direct activities that most significantly impact the economic performance of the VIE; and<br /></li><li>the obligation to absorb losses or right to receive benefits that could be significant to the VIE. <br /></li></ul><p>Otay Mesa VIE<br />SDG&E has a 10-year agreement to purchase power generated at the Otay Mesa Energy Center (OMEC), a 573-megawatt (MW) generating facility that began commercial operations in October 2009. SDG&E supplies all of the natural gas to fuel the power plant and purchases its electric generation output (i.e., tolling). The agreement provides SDG&E with the option to purchase the power plant at the end of the contract term in 2019, or upon earlier termination of the purchased-power agreement, at a predetermined price subject to adjustments based on performance of the facility. If SDG&E does not exercise its option, under certain circumstances, it may be required to purchase the power plant at a predetermined price. <br />The facility owner, Otay Mesa Energy Center LLC (OMEC LLC), is a VIE (Otay Mesa VIE), of which SDG&E is the primary beneficiary. SDG&E has no OMEC LLC voting rights and does not operate OMEC.<br />SDG&E has the power to direct the dispatch of OMEC's electrical production. Based upon our analysis, this power most significantly impacts the economic performance of Otay Mesa VIE because of the associated exposure to the cost of natural gas, which fuels the plant, and the value of electricity produced. In addition, SDG&E absorbs significant risks of Otay Mesa VIE under the tolling agreement, whereby SDG&E is obligated to purchase and provide fuel to Otay Mesa VIE and purchase all output for the term of the agreement. Separately, through the put option, SDG&E absorbs a significant portion of the risk that the value of Otay Mesa VIE could decline. Accordingly, Sempra Energy and SDG&E have consolidated Otay Mesa VIE since the second quarter of 2007, and have continued to consolidate it in the first quarter of 2010. Otay Mesa VIE's equity of $138 million and $146 million is included on the Condensed Consolidated Balance Sheets in Other Noncontrolling Interests for Sempra Energy and in Noncontrolling Interests for SDG&E at March 31, 2010 and December 31, 2009, respectively. <br />OMEC LLC has a loan outstanding of $372 million at March 31, 2010, the proceeds of which were used for the construction of OMEC. The loan is with third party lenders and is secured by OMEC's property, plant and equipment. SDG&E is not a party to the loan agreement and does not have any additional implicit or explicit financial responsibility to OMEC LLC. The loan matures in April 2019 and bears interest at rates varying with market rates. In addition, OMEC LLC has entered into interest rate swap agreements to moderate its exposure to interest rate changes. We provide additional information concerning the interest rate swaps in Note 7. </p><p>Orange Grove VIE<br />SDG&E has a 25-year tolling agreement to purchase power generated by Orange Grove Energy L.P. (Orange Grove), at its 94-MW generating facility located in San Diego County, California. We expect the facility to be available for commercial operation during the second quarter of 2010. Orange Grove is a VIE (Orange Grove VIE) of which SDG&E is the primary beneficiary. SDG&E has the power to direct the dispatch of electrical production of Orange Grove VIE. Based on our analysis, this power most significantly impacts the economic performance of Orange Grove VIE because of the corresponding exposure to the cost of natural gas, which fuels the plant, and the value of electricity produced. In addition, SDG&E absorbs significant risks of Orange Grove VIE under the tolling arrangement, whereby SDG&E is obligated to purchase and provide fuel to Orange Grove VIE and purchase all output for the term of the agreement. Sempra Energy and SDG&E consolidated Orange Grove VIE beginning with the third quarter of 2009, when all of the conditions precedent in the purchased-power agreement were satisfied, and continued to do so in the first quarter of 2010.<br />Orange Grove has credit facilities that provide for a total of $100 million for construction of the generating facility. These credit agreements are with a third party lender and are secured by Orange Grove's assets. SDG&E is not a party to the credit agreements and does not have any additional implicit or explicit financial responsibility to Orange Grove. When Orange Grove completes construction of the generating facility, or on June 30, 2010 if construction is not completed by that date, the credit facilities will convert to a term loan that matures in June 2035. Borrowings under the credit facilities bear interest at rates varying with market rates. At March 31, 2010, Orange Grove had $90 million of outstanding borrowings under the credit facilities and $3 million of letters of credit supported by the facilities. In addition, Orange Grove has a short-term loan outstanding of $36 million.<br />We provide additional information about Otay Mesa VIE and Orange Grove VIE in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.<br />Other Variable Interest Entities<br />SDG&E's power procurement is subject to reliability requirements that may require SDG&E to enter into various power purchase arrangements which include variable interests. SDG&E evaluates these contracts to determine if variable interests exist and, based on the qualitative and quantitative analyses described above, if SDG&E, and thereby Sempra Energy, is the primary beneficiary. SDG&E has determined that no contracts other than those relating to Otay Mesa VIE and Orange Grove VIE result in SDG&E being the primary beneficiary. Other variable interests involve various elements of fuel and power costs, including certain construction costs, tax credits, and other components of cash flow expected to be paid to or received by our counterparties. In most of theses cases, the expectation of variability is not substantial, and SDG&E generally does not have the power to direct activities that most significantly impact the economic performance of the other VIEs. If our ongoing evaluation of these VIEs were to conclude that SDG&E becomes the primary beneficiary and consolidation by SDG&E becomes necessary, the effects are not expected to significantly affect the financial position, results of operations, or liquidity of SDG&E. SDG&E is not exposed to losses or gains as a result of these other VIEs, because all such variability would be recovered in rates. <br />Sempra Energy’s other business units also enter into arrangements which could include variable interests.  We evaluate these contracts based upon the qualitative and quantitative analyses described above.  We have determined that these contracts are not variable interests in a VIE and therefore are not subject to the requirements of ASU 2009-17. </p><p>PENSION AND OTHER POSTRETIREMENT BENEFITS<br />Net Periodic Benefit Cost<br />The following three tables provide the components of net periodic benefit cost:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="626" align="left" colspan="9" style="border-top: 1px solid #000000;" height="19"><b>NET PERIODIC BENEFIT COST -- SEMPRA ENERGY CONSOLIDATED</b></td></tr><tr><td width="626" align="left" height="19" colspan="9"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="250" align="left"> </td><td width="188" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Pension Benefits</td><td width="188" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Other Postretirement Benefits</td></tr><tr><td height="14" width="250" align="left"><b> </b></td><td width="188" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td><td width="188" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="250"> </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="250">Service cost</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 22 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 19 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 7 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 7 </td></tr><tr><td height="16" width="250" align="left">Interest cost</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 43 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 43 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 15 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 14 </td></tr><tr><td height="16" width="250" align="left">Expected return on assets</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (36)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (35)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (12)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (12)</td></tr><tr><td height="16" width="250" align="left">Amortization of:</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td></tr><tr><td height="16" width="250" align="left">    Prior service cost </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> - </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> - </td></tr><tr><td height="16" width="250" align="left">    Actuarial loss</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 8 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 6 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 2 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td></tr><tr><td height="16" width="250" align="left">Regulatory adjustment</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> (29)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> (26)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> 2 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> (1)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="250">Total net periodic benefit cost</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 9 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 8 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 14 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 9 </td></tr></table><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="626" align="left" colspan="9" style="border-top: 1px solid #000000;" height="19"><b>NET PERIODIC BENEFIT COST -- SDG&E</b></td></tr><tr><td width="626" align="left" height="19" colspan="9"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="250" align="left"> </td><td width="188" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Pension Benefits</td><td width="188" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Other Postretirement Benefits</td></tr><tr><td height="14" width="250" align="left"><b> </b></td><td width="188" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td><td width="188" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="250"><b> </b></td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="94" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="250">Service cost</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 7 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 6 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 2 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 2 </td></tr><tr><td height="16" width="250" align="left">Interest cost</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 12 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 12 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 2 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 2 </td></tr><tr><td height="16" width="250" align="left">Expected return on assets</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (10)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (8)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (2)</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> (1)</td></tr><tr><td height="16" width="250" align="left">Amortization of:</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="left"> </td></tr><tr><td height="16" width="250" align="left">    Prior service cost </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 1 </td></tr><tr><td height="16" width="250" align="left">    Actuarial loss</td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 3 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> 4 </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> - </td><td height="16" width="26" align="left"> </td><td height="16" width="68" align="right"> - </td></tr><tr><td height="16" width="250" align="left">Regulatory adjustment</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> (12)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> (14)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="68"> - </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="250">Total net periodic benefit cost</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 1 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 1 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 4 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="68"> 4 </td></tr></table><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="630" align="left" colspan="9" style="border-top: 1px solid #000000;" height="19"><b>NET PERIODIC BENEFIT COST -- SOCALGAS</b></td></tr><tr><td width="630" align="left" height="19" colspan="9"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="250" align="left"> </td><td width="190" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Pension Benefits</td><td width="190" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Other Postretirement Benefits</td></tr><tr><td height="14" width="250" align="left"><b> </b></td><td width="190" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td><td width="190" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="250"><b> </b></td><td width="95" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="95" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td><td width="95" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="95" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="250">Service cost</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="69"> 12 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="69"> 11 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="69"> 5 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="69"> 5 </td></tr><tr><td height="16" width="250" align="left">Interest cost</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 25 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 25 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 12 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 11 </td></tr><tr><td height="16" width="250" align="left">Expected return on assets</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (23)</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (24)</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (10)</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (11)</td></tr><tr><td height="16" width="250" align="left">Amortization of:</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="left"> </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="left"> </td></tr><tr><td height="16" width="250" align="left">    Prior service cost (credit)</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 1 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (1)</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> (1)</td></tr><tr><td height="16" width="250" align="left">    Actuarial loss</td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 3 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> - </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 2 </td><td height="16" width="26" align="left"> </td><td height="16" width="69" align="right"> 1 </td></tr><tr><td height="16" width="250" align="left">Regulatory adjustment</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="69"> (17)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="69"> (12)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="69"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="69"> (1)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="250">Total net periodic benefit cost</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="69"> 1 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="69"> 1 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="69"> 9 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="26">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="69"> 4 </td></tr></table><p>Future Payments<br />The following table shows our year-to-date contributions to our pension and other postretirement benefit plans and the amounts we expect to contribute in 2010:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td height="14" width="250" align="left"> </td><td width="97" align="center" height="14" colspan="2">Sempra Energy</td><td width="97" align="center" height="14" colspan="2"> </td><td width="97" align="center" height="14" colspan="2"> </td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="250"><i>(Dollars in millions)</i></td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Consolidated</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">SDG&E</td><td width="97" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">SoCalGas</td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="250">Contributions through March 31, 2010:</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="75"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="75"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="75"> </td></tr><tr><td height="16" width="250" align="left">    Pension plans</td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 13 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 4 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 1 </td></tr><tr><td height="16" width="250" align="left">    Other postretirement benefit plans</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right"> 14 </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right"> 4 </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right"> 9 </td></tr><tr><td height="16" width="250" align="left">Total expected contributions in 2010:</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td></tr><tr><td height="16" width="250" align="left">    Pension plans</td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 175 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 62 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right"> 82 </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="250">    Other postretirement benefit plans</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 55 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 16 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75"> 36 </td></tr></table><p>EARNINGS PER SHARE <br />The following table provides the per share computations for our earnings for the three months ended March 31, 2010 and 2009. Basic earnings per common share (EPS) is calculated by dividing earnings attributable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS includes the potential dilution of common stock equivalent shares that could occur if securities or other contracts to issue common stock were exercised or converted into common stock.<br /></p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="679" align="left" colspan="5" style="border-top: 1px solid #000000;" height="19"><b>EARNINGS PER SHARE COMPUTATIONS</b></td></tr><tr><td width="679" align="left" height="19" colspan="5"><i>(Dollars in millions, except per share amounts; shares in thousands)</i></td></tr><tr><td height="14" width="485" align="left"><b> </b></td><td width="194" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="485"> </td><td width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="97" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="485">Numerator:</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="75"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="75"> </td></tr><tr><td height="16" width="485" align="left">    Earnings</td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right">106 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right">316 </td></tr><tr><td height="16" width="485" align="left">Denominator:</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td></tr><tr><td height="16" width="485" align="left">    Weighted-average common shares outstanding for basic EPS</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">246,083 </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">241,766 </td></tr><tr><td height="16" width="485" align="left">    Dilutive effect of stock options, restricted stock awards and restricted stock units </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">4,290 </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">3,251 </td></tr><tr><td height="16" width="485" align="left">    Weighted-average common shares outstanding for diluted EPS</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">250,373 </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="right">245,017 </td></tr><tr><td height="16" width="485" align="left">Earnings per share:</td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="75" align="left"> </td></tr><tr><td height="16" width="485" align="left">    Basic</td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right">0.43 </td><td height="16" width="22" align="left">$</td><td height="16" width="75" align="right">1.31 </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="485">    Diluted</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75">0.42 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="75">1.29 </td></tr><tr><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="485"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="75"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="75"> </td></tr></table><p>The dilution from common stock options is based on the treasury stock method. Under this method, proceeds based on the exercise price plus unearned compensation and windfall tax benefits or minus tax shortfalls related to the options are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits are tax deductions we would receive upon the assumed exercise of stock options in excess of the deferred income taxes we recorded related to the compensation expense on the stock options. Tax shortfalls occur when the assumed tax deductions are less than recorded deferred income taxes. The calculation excludes options for which the exercise price on common stock was greater than the average market price during the period. We had 2,180,900 and 3,153,534 such stock options outstanding during the three months ended March 31, 2010 and 2009, respectively. <br />During the three months ended March 31, 2010, we had 9,900 stock options outstanding that were antidilutive because of the unearned compensation and windfall tax benefits included in the assumed proceeds under the treasury stock method. We had no such antidilutive stock options outstanding during the three months ended March 31, 2009.<br />The dilution from unvested restricted stock awards and units is also based on the treasury stock method. Assumed proceeds equal to the unearned compensation and windfall tax benefits or minus tax shortfalls related to the awards and units are assumed to be used to repurchase shares on the open market at the average market price for the period. The windfall tax benefits or tax shortfalls are the difference between tax deductions we would receive upon the assumed vesting of restricted stock awards and units and the deferred income taxes we recorded related to the compensation expense on the restricted stock awards and units. There were no such anti-dilutive restricted stock awards or units during the three months ended March 31, 2010 or 2009.<br /><br /></p><p>SHARE-BASED COMPENSATION<br />We discuss our share-based compensation plans in Note 10 of the Notes to Consolidated Financial Statements in the Annual Report. We recorded share-based compensation expense, net of income taxes, of $7 million and $6 million for the three months ended March 31, 2010 and 2009, respectively. Pursuant to our share-based compensation plans, we granted 687,600 non-qualified stock options and 769,800 restricted stock units during the three months ended March 31, 2010, primarily in January 2010. </p><p>CAPITALIZED FINANCING COSTS<br />Capitalized financing costs include capitalized interest costs and, at the Sempra Utilities, an allowance for funds used during construction (AFUDC) related to both debt and equity financing of construction projects. The following table shows capitalized financing costs for the three months ended March 31, 2010 and 2009.</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="373" align="left" colspan="5" style="border-top: 1px solid #000000;" height="19"><b>CAPITALIZED FINANCING COSTS</b></td></tr><tr><td width="373" align="left" height="19" colspan="5"><i>(Dollars in millions)</i></td></tr><tr><td height="31" width="229" align="left"><b> </b></td><td width="144" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="31">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="229"> </td><td width="72" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="72" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="229"><b>SDG&E:</b></td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td></tr><tr><td height="16" width="229" align="left">    AFUDC related to debt</td><td height="16" width="22" align="left">$</td><td height="16" width="50" align="right"> 3 </td><td height="16" width="22" align="left">$</td><td height="16" width="50" align="right"> 2 </td></tr><tr><td height="16" width="229" align="left">    AFUDC related to equity</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 9 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 6 </td></tr><tr><td height="16" width="229" align="left">        Total SDG&E</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="50"> 12 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="50"> 8 </td></tr><tr><td height="16" width="229" align="left"><b>SoCalGas:</b></td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td></tr><tr><td height="16" width="229" align="left">    AFUDC related to debt</td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="right"> 2 </td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="right"> 1 </td></tr><tr><td height="16" width="229" align="left">    AFUDC related to equity</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 4 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 2 </td></tr><tr><td height="16" width="229" align="left">        Total SoCalGas</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="50"> 6 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="right" width="50"> 3 </td></tr><tr><td height="16" width="229" align="left"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="50"> </td></tr><tr><td height="16" width="229" align="left"><b>Sempra Global:</b></td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="left"> </td></tr><tr><td height="16" width="229" align="left">    Capitalized financing costs</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 7 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="50"> 22 </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="229"><b>Total Sempra Energy Consolidated</b></td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="50"> 25 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="50"> 33 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="left" width="229"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="50"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="50"> </td></tr><tr><td height="16" width="229" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="50" align="left"> </td></tr></table><p>COMPREHENSIVE INCOME<br />The following tables provide a reconciliation of net income to comprehensive income.</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="713" align="left" colspan="14" style="border-top: 1px solid #000000;" height="19"><b>COMPREHENSIVE INCOME</b></td></tr><tr><td width="713" align="left" height="19" colspan="14"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="229" align="left"> </td><td width="484" align="center" colspan="13" style="border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" width="229" align="left"><b> </b></td><td width="228" align="center" colspan="6" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="28"> </td><td width="228" align="center" colspan="6" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="14" width="229" align="left"><b> </b></td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Share-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Non-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14"> </td><td height="14" width="28" align="center"> </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Share-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Non-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14"> </td></tr><tr><td height="14" width="229" align="left"> </td><td width="76" align="center" height="14" colspan="2">holders'</td><td width="76" align="center" height="14" colspan="2">controlling</td><td width="76" align="center" height="14" colspan="2">Total</td><td height="14" width="28" align="center"> </td><td width="76" align="center" height="14" colspan="2">holders'</td><td width="76" align="center" height="14" colspan="2">controlling</td><td width="76" align="center" height="14" colspan="2">Total</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="229"> </td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity(1)</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Interests</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="28"> </td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity(1)</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Interests</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity</td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="229"><b>Sempra Energy Consolidated:</b></td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="28"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td></tr><tr><td height="16" width="229" align="left">Net income (loss)(2)</td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 108 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> (8)</td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 100 </td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 318 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 7 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 325 </td></tr><tr><td height="16" width="229" align="left">Foreign currency translation</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="left"> </td></tr><tr><td height="16" width="229" align="left">    adjustments</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (4)</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (4)</td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 26 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 26 </td></tr><tr><td height="16" width="229" align="left">Financial instruments</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 2 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 2 </td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 3 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> (3)</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td></tr><tr><td height="16" width="229" align="left">Available-for-sale securities</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 9 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 9 </td></tr><tr><td height="16" width="229" align="left">Net actuarial gain</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="28"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="229">Comprehensive income (loss)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 105 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> (6)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 99 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="28"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 357 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 4 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 361 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="left" width="229"><b>SDG&E:</b></td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="28"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="54"> </td></tr><tr><td height="16" width="229" align="left">Net income (loss)</td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 84 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> (8)</td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 76 </td><td height="16" width="28" align="left"> </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 100 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 7 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 107 </td></tr><tr><td height="16" width="229" align="left">Financial instruments</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 2 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 2 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="28"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> 2 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> (4)</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="54"> (2)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="229">Comprehensive income (loss)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 84 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> (6)</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 78 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="28"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 102 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 3 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 105 </td></tr><tr><td height="18" style="border-top: 3px solid #000000;" align="left" width="229"><b>PE:</b></td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="28"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td></tr><tr><td height="17" width="229" align="left">Net income(2)</td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 65 </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> - </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 65 </td><td height="17" width="28" align="left"> </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 59 </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> - </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 59 </td></tr><tr><td height="17" width="229" align="left">Financial instruments</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="28"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="229">Comprehensive income</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 65 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 65 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="28"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 60 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 60 </td></tr><tr><td height="18" style="border-top: 3px solid #000000;" align="left" width="229"><b>SoCalGas:</b></td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="28"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td><td height="18" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="54"> </td></tr><tr><td height="17" width="229" align="left">Net income</td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 65 </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> - </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 65 </td><td height="17" width="28" align="left"> </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 59 </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> - </td><td height="17" width="22" align="left">$</td><td height="17" width="54" align="right"> 59 </td></tr><tr><td height="17" width="229" align="left">Financial instruments</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="28"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="54"> 1 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="229">Comprehensive income</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 65 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 65 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="28"> </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 60 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> - </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="54"> 60 </td></tr><tr><td width="713" align="left" colspan="14" style="border-top: 3px solid #000000;" height="18"><i>(1) Shareholders' equity of Sempra Energy Consolidated, SDG&E, PE or SoCalGas as indicated in left margin.</i></td></tr><tr><td width="713" align="left" height="17" colspan="14"><i>(2) Before preferred dividends of subsidiaries.</i></td></tr></table><p>The amounts for comprehensive income in the tables above are net of income tax expense (benefit) as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="726" align="left" colspan="14" style="border-top: 1px solid #000000;" height="19"><b>INCOME TAX EXPENSE (BENEFIT) ASSOCIATED WITH OTHER COMPREHENSIVE INCOME</b></td></tr><tr><td width="726" align="left" height="19" colspan="14"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="244" align="left"> </td><td width="482" align="center" colspan="13" style="border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" width="244" align="left"><b> </b></td><td width="228" align="center" colspan="6" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="26"> </td><td width="228" align="center" colspan="6" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="14" width="244" align="left"><b> </b></td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Share-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Non-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14"> </td><td height="14" width="26" align="center"> </td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Share-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14">Non-</td><td width="76" align="center" colspan="2" style="border-top: 1px solid #000000;" height="14"> </td></tr><tr><td height="14" width="244" align="left"> </td><td width="76" align="center" height="14" colspan="2">holders'</td><td width="76" align="center" height="14" colspan="2">controlling</td><td width="76" align="center" height="14" colspan="2">Total</td><td height="14" width="26" align="center"> </td><td width="76" align="center" height="14" colspan="2">holders'</td><td width="76" align="center" height="14" colspan="2">controlling</td><td width="76" align="center" height="14" colspan="2">Total</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="244"> </td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity(1)</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Interests</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="26"> </td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity(1)</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Interests</td><td width="76" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">Equity</td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="244"><b>Sempra Energy Consolidated:</b></td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="26"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="22"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="54"> </td></tr><tr><td height="16" width="244" align="left">Financial instruments</td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> - </td><td height="16" width="26" align="left"> </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 2 </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left">$</td><td height="16" width="54" align="right"> 2 </td></tr><tr><td height="16" width="244" align="left">Available-for-sale securities</td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="26" align="left"> </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 3 </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> - </td><td height="16" width="22" align="left"> </td><td height="16" width="54" align="right"> 3 </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="244">Net actuarial gain</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td></tr><tr><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="244"><b>SDG&E:</b></td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="16" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="244">Financial instruments</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td></tr><tr><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="244"><b>PE:</b></td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td></tr><tr><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="244">Financial instruments</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td></tr><tr><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="244"><b>SoCalGas:</b></td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="center" width="22"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="54"> </td></tr><tr><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="244">Financial instruments</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="26"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> - </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="22">$</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="54"> 1 </td></tr><tr><td width="726" align="left" colspan="14" style="border-top: 3px solid #C0C0C0;" height="18"><i>(1) Shareholders' equity of Sempra Energy Consolidated, SDG&E, PE or SoCalGas as indicated in left margin.</i></td></tr></table><p>SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS<br />The following two tables provide a reconciliation of Sempra Energy and SDG&E shareholders’ equity and noncontrolling interests for the three months ended March 31, 2010 and 2009. There were no changes in the equity of PE's noncontrolling interests for the three months ended March 31, 2010 or 2009.</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="564" align="left" colspan="7" style="border-top: 1px solid #000000;" height="19"><b>SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS</b></td></tr><tr><td width="564" align="left" height="19" colspan="7"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="281" align="left"><b> </b></td><td height="14" width="22" align="center"> </td><td height="14" width="83" align="center">Sempra </td><td height="14" width="22" align="center"> </td><td height="14" width="73" align="left"> </td><td height="14" width="22" align="center"> </td><td height="14" width="61" align="center"> </td></tr><tr><td height="14" width="281" align="left"><b> </b></td><td height="14" width="22" align="center"> </td><td height="14" width="83" align="center">Energy</td><td height="14" width="22" align="center"> </td><td height="14" width="73" align="center">Non-</td><td height="14" width="22" align="center"> </td><td height="14" width="61" align="center"> </td></tr><tr><td height="14" width="281" align="left"> </td><td height="14" width="22" align="center"> </td><td height="14" width="83" align="center">Shareholders' </td><td height="14" width="22" align="center"> </td><td height="14" width="73" align="center">controlling</td><td height="14" width="22" align="center"> </td><td height="14" width="61" align="center">Total</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="281"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="83">Equity</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="73">Interests</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="61">Equity</td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="281">Balance at December 31, 2009</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="83"> 9,007 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="73"> 244 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="61"> 9,251 </td></tr><tr><td height="16" width="281" align="left">Comprehensive income (loss)</td><td height="16" width="22" align="left"> </td><td height="16" width="83" align="right"> 105 </td><td height="16" width="22" align="left"> </td><td height="16" width="73" align="right"> (6)</td><td height="16" width="22" align="left"> </td><td height="16" width="61" align="right"> 99 </td></tr><tr><td height="17" width="281" align="left">Share-based compensation expense</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 13 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 13 </td></tr><tr><td height="17" width="281" align="left">Common stock dividends declared</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> (96)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> (96)</td></tr><tr><td height="17" width="281" align="left">Preferred dividends of subsidiaries</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> (2)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> (2)</td></tr><tr><td height="17" width="281" align="left">Issuance of common stock</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 27 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 27 </td></tr><tr><td height="17" width="281" align="left">Tax benefit related to share-based compensation</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 1 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 1 </td></tr><tr><td height="17" width="281" align="left">Repurchase of common stock</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> (2)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> (2)</td></tr><tr><td height="17" width="281" align="left">Common stock released from ESOP</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 7 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 7 </td></tr><tr><td height="17" width="281" align="left">Distributions to noncontrolling interests</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="83"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="73"> (3)</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="61"> (3)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="281">Balance at March 31, 2010</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="83"> 9,060 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="73"> 235 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 9,295 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="left" width="281">Balance at December 31, 2008</td><td height="16" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 3px solid #000000;" align="right" width="83"> 7,969 </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 3px solid #000000;" align="right" width="73"> 340 </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 3px solid #000000;" align="right" width="61"> 8,309 </td></tr><tr><td height="16" width="281" align="left">Comprehensive income</td><td height="16" width="22" align="left"> </td><td height="16" width="83" align="right"> 357 </td><td height="16" width="22" align="left"> </td><td height="16" width="73" align="right"> 4 </td><td height="16" width="22" align="left"> </td><td height="16" width="61" align="right"> 361 </td></tr><tr><td height="16" width="281" align="left">Purchase of noncontrolling interest in subsidiary</td><td height="16" width="22" align="left"> </td><td height="16" width="83" align="right"> (10)</td><td height="16" width="22" align="left"> </td><td height="16" width="73" align="right"> (84)</td><td height="16" width="22" align="left"> </td><td height="16" width="61" align="right"> (94)</td></tr><tr><td height="17" width="281" align="left">Share-based compensation expense</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 10 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 10 </td></tr><tr><td height="17" width="281" align="left">Common stock dividends declared</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> (95)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> (95)</td></tr><tr><td height="17" width="281" align="left">Preferred dividends of subsidiaries</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> (2)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> (2)</td></tr><tr><td height="17" width="281" align="left">Issuance of common stock</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 14 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 14 </td></tr><tr><td height="17" width="281" align="left">Common stock released from ESOP</td><td height="17" width="22" align="left"> </td><td height="17" width="83" align="right"> 4 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="61" align="right"> 4 </td></tr><tr><td height="17" width="281" align="left">Equity contributed by noncontrolling interests</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="83"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="73"> 6 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="61"> 6 </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="281">Balance at March 31, 2009</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="83"> 8,247 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="73"> 266 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 8,513 </td></tr></table><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="567" align="left" colspan="7" style="border-top: 1px solid #000000;" height="17"><b>SHAREHOLDERS' EQUITY AND NONCONTROLLING INTERESTS</b></td></tr><tr><td width="567" align="left" height="17" colspan="7"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="256" align="left"><b> </b></td><td height="14" width="22" align="center"> </td><td height="14" width="92" align="center">SDG&E</td><td height="14" width="22" align="center"> </td><td height="14" width="80" align="center">Non-</td><td height="14" width="22" align="center"> </td><td height="14" width="73" align="center"> </td></tr><tr><td height="14" width="256" align="left"> </td><td height="14" width="22" align="center"> </td><td height="14" width="92" align="center">Shareholders'</td><td height="14" width="22" align="center"> </td><td height="14" width="80" align="center">controlling</td><td height="14" width="22" align="center"> </td><td height="14" width="73" align="center">Total</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="256"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="92">Equity</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="80">Interests</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="22"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="73">Equity</td></tr><tr><td height="17" style="border-top: 1px solid #000000;" align="left" width="256">Balance at December 31, 2009</td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="92"> 2,739 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="80"> 146 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="22">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="73"> 2,885 </td></tr><tr><td height="17" width="256" align="left">Comprehensive income (loss)</td><td height="17" width="22" align="left"> </td><td height="17" width="92" align="right"> 84 </td><td height="17" width="22" align="left"> </td><td height="17" width="80" align="right"> (6)</td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> 78 </td></tr><tr><td height="17" width="256" align="left">Preferred stock dividends declared</td><td height="17" width="22" align="left"> </td><td height="17" width="92" align="right"> (1)</td><td height="17" width="22" align="left"> </td><td height="17" width="80" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> (1)</td></tr><tr><td height="17" width="256" align="left">Distributions to noncontrolling interests</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="92"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="80"> (2)</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="73"> (2)</td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="256">Balance at March 31, 2010</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="92"> 2,822 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="80"> 138 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="73"> 2,960 </td></tr><tr><td height="18" style="border-top: 3px solid #000000;" align="left" width="256">Balance at December 31, 2008</td><td height="18" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 3px solid #000000;" align="right" width="92"> 2,542 </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 3px solid #000000;" align="right" width="80"> 128 </td><td height="18" style="border-top: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 3px solid #000000;" align="right" width="73"> 2,670 </td></tr><tr><td height="17" width="256" align="left">Comprehensive income</td><td height="17" width="22" align="left"> </td><td height="17" width="92" align="right"> 102 </td><td height="17" width="22" align="left"> </td><td height="17" width="80" align="right"> 3 </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> 105 </td></tr><tr><td height="17" width="256" align="left">Common stock dividends declared</td><td height="17" width="22" align="left"> </td><td height="17" width="92" align="right"> (150)</td><td height="17" width="22" align="left"> </td><td height="17" width="80" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> (150)</td></tr><tr><td height="17" width="256" align="left">Preferred stock dividends declared</td><td height="17" width="22" align="left"> </td><td height="17" width="92" align="right"> (1)</td><td height="17" width="22" align="left"> </td><td height="17" width="80" align="right"> - </td><td height="17" width="22" align="left"> </td><td height="17" width="73" align="right"> (1)</td></tr><tr><td height="17" width="256" align="left">Equity contributed by noncontrolling interests</td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="92"> - </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="80"> 6 </td><td height="17" style="border-bottom: 1px solid #000000;" align="left" width="22"> </td><td height="17" style="border-bottom: 1px solid #000000;" align="right" width="73"> 6 </td></tr><tr><td height="18" style="border-bottom: 3px solid #000000;" align="left" width="256">Balance at March 31, 2009</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="92"> 2,493 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="80"> 137 </td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="22">$</td><td height="18" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="73"> 2,630 </td></tr></table><p>TRANSACTIONS WITH AFFILIATES <br />Loans to Unconsolidated Affiliates <br />Sempra Pipelines & Storage has a U.S. dollar-denominated loan to Camuzzi Gas del Sur S.A., an affiliate of Sempra Pipelines & Storage’s Argentine investments, which we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. The loan to Camuzzi Gas del Sur S.A has a $27 million balance outstanding at a variable interest rate (7.29 percent as of March 31, 2010). The loan is due in June 2010 and is fully reserved at March 31, 2010. <br />Investments<br />In November 2009, Sempra Pipelines & Storage purchased $50 million of 2.75-percent bonds issued by Chilquinta Energía S.A., an unconsolidated affiliate, that are denominated in Chilean Unidades de Fomento. The bonds mature on October 30, 2014. The carrying value of the bonds after the effect of foreign currency translation was $50 million at March 31, 2010. We discuss this investment in Note 4 of the Notes to Consolidated Financial Statements in the Annual Report.<br /></p><p>Other Affiliate Transactions<br />Sempra Energy, SDG&E and SoCalGas provide certain services to each other and are charged an allocable share of the cost of such services. Amounts due to/from affiliates are as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="598" align="left" colspan="7" style="border-top: 1px solid #000000;" height="19"><b>AMOUNTS DUE TO AND FROM AFFILIATES AT SDG&E, PE AND SOCALGAS</b></td></tr><tr><td width="598" align="left" height="19" colspan="7"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="26" align="left"> </td><td height="14" width="390" align="left"> </td><td width="84" align="center" height="14" colspan="2">March 31,</td><td height="14" width="14" align="center"> </td><td width="84" align="center" height="14" colspan="2">December 31,</td></tr><tr><td width="416" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="14"> </td><td width="84" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">2010 </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="14"> </td><td width="84" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td width="416" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16"><b>SDG&E</b></td><td height="16" style="border-top: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">Current:</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from Sempra Energy</td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> - </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> 2 </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from SoCalGas</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="right"> - </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="right"> 3 </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from various affiliates</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 3 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 1 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 8 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due to Sempra Energy</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 29 </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> - </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Income taxes due to (from) Sempra Energy(1)</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 10 </td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> (37)</td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">Noncurrent:</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Promissory note due from Sempra Energy, variable rate based on </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">        short-term commercial paper rates (0.13% at March 31, 2010)</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 1 </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 2 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2"><b>Pacific Enterprises</b></td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">Current:</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from Sempra Energy</td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> 150 </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> 7 </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from various affiliates</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 5 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 5 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 155 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 12 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due to affiliate</td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> 84 </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left">$</td><td height="16" width="61" align="right"> 84 </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due to SDG&E</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="23"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="61"> 3 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 84 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="61"> 87 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Income taxes due to (from) Sempra Energy(1)</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 57 </td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> (2)</td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">Noncurrent:</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Promissory note due from Sempra Energy, variable rate based on </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">        short-term commercial paper rates (0.13% at March 31, 2010)</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 507 </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 513 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2"><b>SoCalGas</b></td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">Current:</td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td><td height="16" width="14" align="left"> </td><td height="16" width="23" align="left"> </td><td height="16" width="61" align="left"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due from Sempra Energy</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 150 </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 6 </td></tr><tr><td width="416" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" height="16" colspan="2">    Due to SDG&E</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> - </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 3 </td></tr><tr><td height="16" width="26" align="left"> </td><td height="16" width="390" align="left"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="14"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="23"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="61"> </td></tr><tr><td width="416" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16">    Income taxes due to (from) Sempra Energy(1)</td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> 61 </td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="14"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="23">$</td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="61"> (2)</td></tr><tr><td height="52" style="border-top: 3px solid #000000;" align="right" width="26"><i>(1)</i></td><td width="572" align="left" colspan="6" style="border-top: 3px solid #000000;" height="52"><i>SDG&E, PE and SoCalGas are included in the consolidated income tax return of Sempra Energy and are allocated income tax expense from Sempra Energy in an amount equal to that which would result from the companies' having always filed a separate return.</i></td></tr></table><p>Revenues from unconsolidated affiliates at the Sempra Utilities are as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="480" align="left" colspan="5" style="border-top: 1px solid #000000;" height="19"><b>REVENUES FROM UNCONSOLIDATED AFFILIATES AT THE SEMPRA UTILITIES</b></td></tr><tr><td width="480" align="left" height="19" colspan="5"><i>(Dollars in millions)</i></td></tr><tr><td height="16" width="320" align="left"><b> </b></td><td width="160" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="16">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="320"> </td><td width="80" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="80" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="16" style="border-top: 1px solid #000000;" align="left" width="320">SDG&E</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 1 </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;" align="right" width="68"> 2 </td></tr><tr><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="320">SoCalGas</td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="12"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="68"> 11 </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="left" width="12"> </td><td height="16" style="border-bottom: 3px solid #C0C0C0;" align="right" width="68"> 8 </td></tr></table><p>Transactions with RBS Sempra Commodities<br />Several of our business units engage in transactions with RBS Sempra Commodities. Amounts in our Condensed Consolidated Financial Statements related to these transactions are as follows:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="592" align="left" colspan="7" style="border-top: 1px solid #000000;" height="19"><b>AMOUNTS RECORDED FOR TRANSACTIONS WITH RBS SEMPRA COMMODITIES</b></td></tr><tr><td width="592" align="left" height="19" colspan="7"><i>(Dollars in millions)</i></td></tr><tr><td height="17" width="30" align="left"> </td><td height="17" width="355" align="left"> </td><td width="207" align="center" colspan="5" style="border-bottom: 1px solid #000000;" height="17">Three months ended March 31,</td></tr><tr><td width="385" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="16"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="12"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="82">2010 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="19"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="12"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="82">2009 </td></tr><tr><td width="385" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16">Revenues:</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td width="195" align="left" colspan="4" style="border-top: 1px solid #000000;" height="16"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra LNG(1)</td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right">73 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 7 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Commodities</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right">6 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 2 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    SoCalGas</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right">4 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 1 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Generation</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82">3 </td><td height="16" width="19" align="right"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 1 </td></tr><tr><td width="385" align="left" height="16" colspan="2">        Total revenues</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82">86 </td><td height="16" width="19" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82">11 </td></tr><tr><td width="385" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="82"> </td><td height="16" width="19" align="left"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="82"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">Cost of natural gas:</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="left"> </td><td height="16" width="19" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="left"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra LNG</td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 67 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> - </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Generation</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 16 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> - </td></tr><tr><td width="385" align="left" height="16" colspan="2">    SoCalGas</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 12 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 4 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Pipelines & Storage</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 9 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 6 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    SDG&E</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 1 </td><td height="16" width="19" align="left"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> - </td></tr><tr><td width="385" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16">        Total cost of natural gas</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 105 </td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="19"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 10 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="left" width="30"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="355"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="82"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="19"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="right" width="82"> </td></tr><tr><td width="385" align="left" height="16" colspan="2"> </td><td width="94" align="center" height="16" colspan="2">March 31,</td><td height="16" width="19" align="center"> </td><td width="94" align="center" height="16" colspan="2">December 31,</td></tr><tr><td width="385" align="left" colspan="2" style="border-bottom: 1px solid #000000;" height="16"> </td><td width="94" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="16">2010 </td><td height="16" style="border-bottom: 1px solid #000000;" align="center" width="19"> </td><td width="94" align="center" colspan="2" style="border-bottom: 1px solid #000000;" height="16">2009 </td></tr><tr><td width="385" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16">Fixed-price contracts and other derivatives - Net Asset (Liability):</td><td height="16" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="82"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="19"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="82"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Generation</td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 19 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 7 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra LNG</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> (37)</td><td height="16" width="19" align="right"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> (47)</td></tr><tr><td width="385" align="left" height="16" colspan="2">        Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> (18)</td><td height="16" width="19" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> (40)</td></tr><tr><td width="385" align="left" height="14" colspan="2"> </td><td height="14" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="14" style="border-top: 3px solid #000000;" align="right" width="82"> </td><td height="14" width="19" align="right"> </td><td height="14" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="14" style="border-top: 3px solid #000000;" align="left" width="82"> </td></tr><tr><td width="385" align="left" height="14" colspan="2">Due to unconsolidated affiliates:</td><td height="14" width="12" align="left"> </td><td height="14" width="82" align="right"> </td><td height="14" width="19" align="right"> </td><td height="14" width="12" align="left"> </td><td height="14" width="82" align="left"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Generation</td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 1 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 13 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra LNG</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> - </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 13 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Pipelines & Storage</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 3 </td><td height="16" width="19" align="right"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 3 </td></tr><tr><td width="385" align="left" height="16" colspan="2">        Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 4 </td><td height="16" width="19" align="right"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 29 </td></tr><tr><td width="385" align="left" height="16" colspan="2"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="82"> </td><td height="16" width="19" align="left"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="12"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="82"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">Due from unconsolidated affiliates:</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="left"> </td><td height="16" width="19" align="left"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="left"> </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Commodities</td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 1 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left">$</td><td height="16" width="82" align="right"> 1 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra Generation</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 6 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 22 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Sempra LNG</td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 18 </td><td height="16" width="19" align="right"> </td><td height="16" width="12" align="left"> </td><td height="16" width="82" align="right"> 15 </td></tr><tr><td width="385" align="left" height="16" colspan="2">    Parent and other</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 4 </td><td height="16" width="19" align="right"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="12"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="82"> 3 </td></tr><tr><td width="385" align="left" colspan="2" style="border-bottom: 3px solid #000000;" height="16">        Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 29 </td><td height="16" style="border-bottom: 3px solid #000000;" align="right" width="19"> </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="12">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="82"> 41 </td></tr><tr><td height="16" style="border-top: 3px solid #000000;" align="center" width="30"><i>(1)</i></td><td width="562" align="left" colspan="6" style="border-top: 3px solid #000000;" height="16"><i>Includes $11 million in 2010 and $5 million in 2009 related to a natural gas sales agreement with RBS Sempra Commodities which is subject to mark-to-market accounting. Under this agreement, which extends for five years beginning September 1, 2009, RBS Sempra Commodities will market natural gas that Sempra LNG purchases and does not sell under other contracts.</i></td></tr></table><p>OTHER INCOME, NET<br />Other Income, Net on the Condensed Consolidated Statements of Operations consists of the following:</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="512" align="left" colspan="6" style="border-top: 1px solid #000000;" height="19"><b>OTHER INCOME, NET</b></td></tr><tr><td width="512" align="left" height="19" colspan="6"><i>(Dollars in millions)</i></td></tr><tr><td height="32" width="31" align="left"> </td><td height="32" width="355" align="left"><b> </b></td><td width="126" align="center" colspan="4" style="border-bottom: 1px solid #000000;" height="32">Three months ended March 31,</td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="31"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="355"> </td><td width="63" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td width="63" align="center" colspan="2" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td width="386" align="left" colspan="2" style="border-top: 1px solid #000000;" height="16"><b>Sempra Energy Consolidated:</b></td><td height="16" style="border-top: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="47"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="47"> </td></tr><tr><td width="386" align="left" height="16" colspan="2">Allowance for equity funds used during construction</td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 13 </td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 8 </td></tr><tr><td width="386" align="left" height="16" colspan="2">Regulatory interest, net</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> (1)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> - </td></tr><tr><td width="386" align="left" height="16" colspan="2">Investment gains (losses)(1)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> 3 </td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> (17)</td></tr><tr><td width="386" align="left" height="16" colspan="2">Gains (losses) on interest rate swaps (Otay Mesa VIE)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> (9)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> 10 </td></tr><tr><td width="386" align="left" height="16" colspan="2">Sundry, net</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> 2 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> 2 </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="31">   </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="355">Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> 8 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> 3 </td></tr><tr><td width="386" align="left" colspan="2" style="border-top: 3px solid #000000;" height="16"><b>SDG&E:</b></td><td height="16" style="border-top: 1px solid #000000;" align="center" width="16"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="47"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="16"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="47"> </td></tr><tr><td width="386" align="left" height="16" colspan="2">Allowance for equity funds used during construction</td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 9 </td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 6 </td></tr><tr><td width="386" align="left" height="16" colspan="2">Regulatory interest, net</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> (1)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> - </td></tr><tr><td width="386" align="left" height="16" colspan="2">Gains (losses) on interest rate swaps (Otay Mesa VIE)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> (9)</td><td height="16" width="16" align="left"> </td><td height="16" width="47" align="right"> 10 </td></tr><tr><td width="386" align="left" height="16" colspan="2">Sundry, net</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> 1 </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> 1 </td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="31">   </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="355">Total</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> - </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> 17 </td></tr><tr><td width="386" align="left" colspan="2" style="border-top: 3px solid #000000;" height="16"><b>SoCalGas and PE:</b></td><td height="16" style="border-top: 1px solid #000000;" align="center" width="16"> </td><td height="16" style="border-top: 3px solid #000000;" align="left" width="47"> </td><td height="16" style="border-top: 1px solid #000000;" align="center" width="16"> </td><td height="16" style="border-top: 1px solid #000000;" align="left" width="47"> </td></tr><tr><td width="386" align="left" height="16" colspan="2">Allowance for equity funds used during construction</td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 4 </td><td height="16" width="16" align="left">$</td><td height="16" width="47" align="right"> 2 </td></tr><tr><td width="386" align="left" height="16" colspan="2">Sundry, net</td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> - </td><td height="16" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="16" style="border-bottom: 1px solid #000000;" align="right" width="47"> (1)</td></tr><tr><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="31"> </td><td height="16" style="border-bottom: 3px solid #000000;" align="left" width="355">Total at SoCalGas and PE</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> 4 </td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="left" width="16">$</td><td height="16" style="border-top: 1px solid #000000;border-bottom: 3px solid #000000;" align="right" width="47"> 1 </td></tr><tr><td height="47" style="border-top: 3px solid #000000;" align="center" width="31"><i>(1)</i></td><td width="481" align="left" colspan="5" style="border-top: 3px solid #000000;" height="47"><i>Represents investment gains (losses) on dedicated assets in support of our executive retirement and deferred compensation plans. These amounts are partially offset by corresponding changes in compensation expense related to the plans.</i></td></tr></table><p>INCOME TAXES</p><table style="border-collapse: collapse; margin-top: 20px;"><tr><td width="560" align="left" colspan="12" style="border-top: 1px solid #000000;" height="17"><b>INCOME TAX EXPENSE AND EFFECTIVE INCOME TAX RATES</b></td></tr><tr><td width="560" align="left" height="17" colspan="12"><i>(Dollars in millions)</i></td></tr><tr><td height="14" width="17" align="left"> </td><td height="14" width="178" align="left"> </td><td height="14" width="16" align="left"> </td><td width="349" align="center" colspan="9" style="border-bottom: 1px solid #000000;" height="14">Three months ended March 31,</td></tr><tr><td height="14" width="17" align="left"> </td><td height="14" width="178" align="left"> </td><td height="14" width="16" align="left"> </td><td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2010 </td><td height="14" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" align="center" width="15"> </td><td width="167" align="center" colspan="4" style="border-top: 1px solid #000000;border-bottom: 1px solid #000000;" height="14">2009 </td></tr><tr><td height="14" width="17" align="left"> </td><td height="14" width="178" align="left"> </td><td height="14" width="16" align="left"> </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="64">Income Tax </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="64">Effective Income</td><td height="14" style="border-top: 1px solid #000000;" align="left" width="20"> </td><td height="14" style="border-top: 1px solid #000000;" align="left" width="15"> </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="64">Income Tax </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="19"> </td><td height="14" style="border-top: 1px solid #000000;" align="center" width="64">Effective Income</td><td height="14" style="border-top: 1px solid #000000;" align="left" width="20"> </td></tr><tr><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="17"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="178"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="16"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64">Expense</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64">Tax Rate</td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="15"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64">Expense</td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="19"> </td><td height="14" style="border-bottom: 1px solid #000000;" align="center" width="64">Tax Rate</td><td height="14" style="border-bottom: 1px solid #000000;" align="left" width="20"> </td></tr><tr><td width="195" align="left" colspan="2" style="border-top: 1px solid #000000;" height="17">Sempra Energy Consolidated</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="16">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64"> 58 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="19"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64">42 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="20">%</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="15">$</td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64"> 109 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="19"> </td><td height="17" style="border-top: 1px solid #000000;" align="right" width="64">26 </td><td height="17" style="border-top: 1px solid #000000;" align="left" width="20">%</td></tr><tr><td width="195" align="left" height="17" colspan="2">SDG&E</td><td height="17" width="16" align="left"> </td><td height="17" width="64" align="right">31 </td><td height="17" width="19" align="left"> </td><td height="17" width="64" align="right">29 </td><td height="17" width="20" align="left"> </td><td height="17" width="15" align="left"> </td><td height="17" width="64" align="right">60 </td><td height="17" width="19" align="left"> </td><td height="17" width="64" align="right">36 </td><td height="17" width="20" align="left"> </td></tr><tr><td width="195" align="left" height="17" colspan="2">PE</td><td height="17" width="16" align="left"> </td><td height="17" width="64" align="right">57 </td><td height="17" width="19" align="left"> </td><td height="17" width="64" align="right">47 </td><td height="17" width="20" align="left"> </td><td height="17" width="15" align="left"> </td><td height="17" width="64" align="right">36 </td><td height="17" width="19" align="left"> </td><td height="17" width="64" align="right">38 </td><td height="17" width="20" align="left"> </td></tr><tr><td width="195" align="left" colspan="2" style="border-bottom: 3px solid #C0C0C0;" height="18">SoCalGas</td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="16"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64">56 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64">46 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="15"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64">36 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="19"> </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="right" width="64">38 </td><td height="18" style="border-bottom: 3px solid #C0C0C0;" align="left" width="20"> </td></tr><tr><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="17"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="178"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="16"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="19"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="20"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="15"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="19"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="64"> </td><td height="18" style="border-top: 3px solid #C0C0C0;" align="left" width="20"> </td></tr></table><p>Changes in Effective Income Tax Rates<br />Sempra Energy Consolidated<br />For the three months ended March 31, 2010, the increase in effective tax rate was primarily due to:<br /></p><ul><li>lower pretax income in countries with lower statutory rates;<br /></li><li>$12 million tax expense in 2010 compared to a $9 million tax benefit in 2009 due to Mexican currency translation and inflation adjustments; and<br /></li><li>a $16 million write-down of deferred tax assets related to other post employment benefits, as a result of a change in U.S. tax law that eliminates a future deduction, starting in 2013, for retiree healthcare funded by the Medicare Part D subsidy; offset by<br /></li><li>higher tax deductions for self-developed software costs; <br /></li><li>higher favorable impact from the resolution of prior years' income tax issues; and<br /></li><li>higher planned investment tax credits.<br /></li></ul><p>SDG&E<br />For the three months ended March 31, 2010, the decrease in SDG&E's effective tax rate was primarily due to:<br /></p><ul><li>higher favorable impact from the resolution of prior years' income tax issues; <br /></li><li>higher deductions for self-developed software costs; and<br /></li><li>lower state and local tax expense; offset by<br /></li><li>a $3 million write-down of deferred tax assets related to other post employment benefits, as a result of a change in U.S. tax law, as we discuss above.<br /></li></ul><p>PE and SoCalGas<br />For the three months ended March 31, 2010, the increase in PE’s and SoCalGas’ effective tax rate was primarily due to:<br /></p><ul><li>a $13 million write-down of deferred tax assets related to other post employment benefits, as a result of a change in U.S. tax law, as we discuss above; offset by<br /></li><li>higher deductions for self-developed software costs; and<br /></li><li>lower state and local tax expense.</li></ul><p></p></div>
NOTE 5. OTHER FINANCIAL DATAVARIABLE INTEREST ENTITIESWe consolidate a variable interest entity (VIE) if we are the primary beneficiary of the VIE’s
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