SAN DIEGO, Jan. 18, 2006 – Sempra Generation, a subsidiary of Sempra Energy (NYSE: SRE), has agreed to sell its 305-megawatt (MW), 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 sale includes PNM Resources’ assumption of certain contracts.
“This sale reinforces the increased market value of Texas-based coal-fired generation assets,” said Michael R. Niggli, president of Sempra Generation. “We look forward to closing this transaction during the second quarter of 2006.”
The completion of the transaction is subject to clearance by the U.S. Department of Justice under the Hart-Scott-Rodino Act.
The cash proceeds from the sale will be used to help fund the company’s other capital projects, such as liquefied natural gas receipt terminals, new interstate natural gas transmission pipelines and natural gas storage facilities.
Sempra Generation was advised by Goldman, Sachs & Co. on the transaction.
Sempra Generation acquires, operates and maintains power plants and energy infrastructure for competitive markets. Sempra Energy based in San Diego, is a Fortune 500 energy services holding company with 2004 revenues of $9.4 billion. The Sempra Energy companies’ 13,000 employees serve more than 29 million consumers in the United States, Europe, Canada, Mexico, South America and Asia.
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
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.
Sempra Generation is not the same company as the utilities, SDG&E or SoCalGas, and is not regulated by the California Public Utilities Commission.