Sempra Generation Enters Renewable-Energy Business
La Rumorosa Wind Power Project Slated for Baja California

Media Contact:
Art Larson

Financial Contact:
Glen Donovan

Sempra Energy

Sempra Energy

(877) 866-2066

(877) 736-7727


Media Contact:
Gary Hardke


Cannon Power


(858) 756-0472



        SAN DIEGO, June 29, 2007 – Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), today announced it is entering the renewable-energy-development business, starting with a 250-megawatt (MW) wind-power generation project in Baja California, Mexico.
        Sempra Generation has agreed to acquire the development assets associated with the proposed La Rumorosa Wind Power project under a co-development arrangement with San Diego-based Cannon Power Corp.
        “Environmental public-policy initiatives and escalating demand for clean, renewable energy are creating new opportunities for power developers,” said Michael W. Allman, president and chief executive officer of Sempra Generation. “Combining Sempra Generation’s experience in developing power projects with leaders in renewable power, such as Cannon Power, is a natural fit.”

        Allman said Sempra Generation also is considering other solar investments and renewable-energy-development projects in the Pacific Southwest.
        “We are delighted to be teaming with Sempra Generation in the development of a clean, renewable energy resource in the La Rumorosa area,” said Gary Hardke, managing director of Cannon Power.    “We consider that region ideal for wind generation and look forward to our role in helping establish its reputation as a significant renewable energy producer.”    
        The La Rumorosa project would generate power from as many as 125 wind turbines to be installed along the easterly ridge lines of the Sierra Juarez mountains in the Ejido Jacume near the town of La Rumorosa, about 70 miles east of San Diego and across the U.S.-Mexico border.   The project could be operational by mid-to-late 2010.  Under terms of the proposed purchase agreement, Cannon Power will provide technical assistance and co-develop the project with Sempra Generation.  
       For its wind and solar projects, Sempra Generation will seek renewable-energy-supply contracts with major utilities throughout the southwestern United States and Mexico.  The successful acquisition of long-term power contracts is necessary to ensure the development, construction and operation of such large-scale projects.

        Should Sempra Generation proceed with the development of La Rumorosa, the capital investment for the project is estimated at $400 million.   

        Cannon Power is a San Diego-based developer of wind power projects with more than 26 years experience in developing, constructing and operating wind turbine facilities in the United States and internationally. 
        Sempra Generation operates and maintains a fleet of power plants serving the Western U.S. market.  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.


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,” “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, the California State Legislature, the California Department of Water Resources, the Federal Energy Regulatory Commission and other regulatory bodies in the United States and other countries; capital markets 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; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental, and
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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.