Sempra Generation finalizes sale of Twin Oaks Power

Media Contact:
Art Larson

Financial Contact:
Karen Sedgwickn

Sempra Energy

Sempra Energy

(877) 866-2066

(877) 736-7727

www.sempra.com

investor@sempra.com

 

        SAN DIEGO, April 18, 2006 – Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), has finalized the previously announced sale of its 305-megawatt, coal-fired Twin Oaks Power plant in Robertson County, Texas, to PNM Resources Inc. (NYSE: PNM), an energy holding company based in Albuquerque, N.M., for $480 million in cash.

        The cash proceeds from the sale, which was announced in January 2006, will be used to help fund Sempra Energy’s capital investments in energy infrastructure.  Sempra Generation was advised by Goldman, Sachs & Co. on the transaction.

        Sempra Generation operates and maintains a fleet of gas fired power plants serving the Western U.S. market and provides energy infrastructure for competitive markets. 

        Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2005 revenues of $11.7 billion.  The Sempra Energy companies’ 14,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.

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Sempra Generation is not the same company as the utilities, SDG&E or SoCalGas, and is not regulated by the California Public Utilities Commission.