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          <NonNumbericText>&lt;div style="font-size:12pt"&gt;&lt;p&gt;NOTE 1. GENERAL  &lt;br /&gt;Principles of Consolidation&lt;br /&gt;Sempra Energy&lt;br /&gt;Sempra Energy's Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a California-based Fortune 500 holding company, its consolidated subsidiaries, and variable interest entities. Sempra Energy&amp;#8217;s principal subsidiaries are&lt;br /&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;San Diego Gas &amp;amp; Electric Company (SDG&amp;amp;E) and Southern California Gas Company (SoCalGas), which we collectively refer to as the Sempra Utilities; and&lt;br /&gt;&lt;/li&gt;&lt;li&gt;Sempra Global, which is the holding company for Sempra Commodities, Sempra Generation, Sempra Pipelines &amp;amp; Storage, Sempra LNG and other, smaller businesses.  &lt;br /&gt;&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;Sempra Energy uses the equity method to account for investments in affiliated companies over which we have the ability to exercise significant influence, but not control.  We discuss our investments in unconsolidated subsidiaries in Note 4 below and Note 4 of the Notes to Consolidated Financial Statements in the Annual Report. &lt;br /&gt;SDG&amp;amp;E&lt;br /&gt;SDG&amp;amp;E's Condensed Consolidated Financial Statements include its accounts and the accounts of Otay Mesa Energy Center LLC (Otay Mesa VIE) and Orange Grove Energy L.P. (Orange Grove VIE), which are variable interest entities of which SDG&amp;amp;E is the primary beneficiary, as we discuss in Note 5 under "Variable Interest Entities."  SDG&amp;amp;E&amp;#8217;s common stock is wholly owned by Enova Corporation, which is a wholly owned subsidiary of Sempra Energy. &lt;br /&gt;Pacific Enterprises and SoCalGas&lt;br /&gt;The Condensed Consolidated Financial Statements of Pacific Enterprises include the accounts of Pacific Enterprises (PE) and its subsidiary, SoCalGas.  Sempra Energy owns all of PE&amp;#8217;s common stock and PE owns all of SoCalGas&amp;#8217; common stock. SoCalGas&amp;#8217; Condensed Consolidated Financial Statements include its subsidiaries, which comprise less than one percent of its consolidated financial position and results of operations. &lt;br /&gt;PE's operations consist solely of those of SoCalGas and additional items (e.g., cash, intercompany accounts and equity) attributable to serving as a holding company for SoCalGas.&lt;/p&gt;&lt;p&gt;Basis of Presentation&lt;br /&gt;This is a combined report of Sempra Energy, SDG&amp;amp;E, PE and SoCalGas. We provide separate information for SDG&amp;amp;E, PE and SoCalGas as required. In the Notes to Condensed Consolidated Financial Statements (except in Note 11), when only information for SoCalGas is provided, it is the same for PE. References in this report to "we," "our" and "Sempra Energy Consolidated" are to Sempra Energy and its consolidated entities, unless otherwise indicated by the context. We have eliminated intercompany accounts and transactions within each set of consolidated financial statements.&lt;br /&gt;We have prepared the Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the interim-period-reporting requirements of Form 10-Q. Results of operations for interim periods are not necessarily indicative of results for the entire year. We evaluated events and transactions that occurred after March 31, 2010 through the date the financial statements were issued, and in the opinion of management, the accompanying statements reflect all adjustments necessary for a fair presentation.  These adjustments are only of a normal, recurring nature. &lt;br /&gt;You should read the information in this Quarterly Report in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2009 (the Annual Report), which is a combined report for Sempra Energy, SDG&amp;amp;E, PE and SoCalGas.&lt;br /&gt;Our significant accounting policies are described in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report. We follow the same accounting policies for interim reporting purposes, except for the adoption of new accounting standards as we discuss in Note 2.&lt;br /&gt;The Sempra Utilities and Sempra Pipelines &amp;amp; Storage's Mobile Gas Service Corporation (Mobile Gas) and Ecogas Mexico, S de RL de CV (Ecogas) prepare their financial statements in accordance with GAAP provisions governing regulated operations, as we discuss in Note 1 of the Notes to Consolidated Financial Statements in the Annual Report.&lt;/p&gt;&lt;/div&gt;</NonNumbericText>
          <NonNumericTextHeader>NOTE 1. GENERAL  Principles of ConsolidationSempra EnergySempra Energy's Condensed Consolidated Financial Statements include the accounts of Sempra Energy, a</NonNumericTextHeader>
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