Sempra Energy board of directors adopts revised voting requirements

Dec 5, 2007

Media Contact:
Doug Kline

Financial Contact:
Glen Donovan

Sempra Energy

Sempra Energy

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        SAN DIEGO, Dec. 5, 2007 – The board of directors of Sempra Energy (NYSE: SRE) today announced that it has amended the company’s bylaws to require that directors be elected by a majority vote in uncontested elections.  The board also adopted amendments to the company’s articles of incorporation to eliminate supermajority requirements for shareholder approvals.

        The measure establishing majority election of directors is effective immediately and will be applicable to director elections at Sempra Energy’s 2008 annual meeting of shareholders.  The proposal to eliminate supermajority voting is subject to approval by shareholders at the annual meeting and requires the favorable vote of two-thirds of the outstanding shares.

        “Our shareholders have recommended changes in our voting requirements,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “After careful review of the proposals, our board of directors is pleased to endorse these new governance measures.”

        Previously, Sempra Energy’s method for electing directors was through a plurality vote:  The director nominees who received the highest number of votes cast were elected, even if those votes did not represent a majority of all votes.  Under the new majority-voting method, to be elected in an uncontested election, a director nominee must receive a majority of all votes cast. 

        For other issues requiring fundamental changes in Sempra Energy’s governance, the company’s articles of incorporation have required a supermajority vote of two-thirds of all outstanding shares. 

        Subject to receiving required shareholder approval, these changes would only require the minimum shareholder approvals mandated by California law.

        Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2006 revenues of nearly $12 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers worldwide.

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This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  When the company uses words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should” or similar expressions, or when the company discusses its strategy or plans, the company is making forward-looking statements.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, U.K. Financial Services Authority, and other environmental and regulatory bodies in the United States and other countries; capital market conditions, inflation rates, interest rates and exchange rates; energy and trading markets, including the timing and extent of changes in commodity prices; the availability of natural gas, electric power and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the company’s reports filed with the Securities and Exchange Commission that are available through the EDGAR system without charge at its Web site, www.sec.gov and on the company’s Web site, www.sempra.com.


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