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SUBSEQUENT EVENT&lt;/font&gt;&lt;font style="font-family:Arial;font-size:11pt;"&gt; &lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;On January 19, 2011, Sempra Pipelines &amp;amp; Storage agreed to acquire from AEI its interests in Chilquinta Energ&amp;#237;a S.A&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;.&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; (Chilquinta Energ&amp;#237;a) and Luz del Sur S.A. (Luz del Sur) for approximately $875 million.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;As of December 31, 2010&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, Sempra Pipelines &amp;amp; Storage and AEI each own 50 pe&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;rcent of Chilquinta Energ&amp;#237;a&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; and approximately 3&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;8 percent of Luz del Sur&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;.  &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;When this transaction is completed&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;, Sempra Pipelines &amp;amp; Storage will own 100 percent of Chilquinta Energ&amp;#237;a and approximately 76 percent of Luz del Sur, with the remaining shares of Luz del Sur held by institutional investors and the general public.  &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;As part of our acquisition of AEI's interest in Luz del Sur, we are required to launch a tender offer to the minority shareholders of Luz del Sur to purchase their shares at a price as determined by an independent appraiser.  &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;As part of this transaction, Sempra Pipelines &amp;amp; Storage has also &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;agreed to acquire AEI's interests in two energy-services companies, Tecnored S.A. and Tecsur S.A.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;We expect the transaction &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;to close in t&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;he second quarter of 2011,&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;subject to closing conditions, including obtaining regulatory approvals and resolution of certain tax matters.&lt;/font&gt;&lt;/p&gt;&lt;p style='margin-top:0pt; margin-bottom:6pt'&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;margin-left:0px;"&gt;We provide additional information about Sempra Pipelines &amp;amp; Storage's investments in &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;Chilquinta Energ&amp;#237;a&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; and &lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt;Luz del Sur&lt;/font&gt;&lt;font style="font-family:Times New Roman;font-size:10pt;"&gt; in Note 4.&lt;/font&gt;&lt;/p&gt;</NonNumbericText><NonNumericTextHeader>NOTE 19. 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 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 5
 -Paragraph 11

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