Court approves Sempra Energy settlement for energy-crisis class-action litigation

Jun 14, 2006

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Sempra Energy

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        SAN DIEGO, June 14, 2006 – San Diego Superior Court Judge Ronald S. Prager today gave final approval to a previously announced settlement resolving the major claims filed against Sempra Energy (NYSE: SRE) and its two California utilities, Southern California Gas Co. (SoCalGas) and San Diego Gas & Electric (SDG&E), in class-action litigation related to the Western U.S. energy crisis of 2000-01.

        Under the terms of the settlement, which was announced Jan. 4, 2006, Sempra Energy and its utilities vigorously deny any wrongdoing.

        “We are pleased that the court has approved the settlement to end this class-action litigation,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “We now can focus firmly on the future – investing in critically needed energy infrastructure and supplies for California and our nation – while putting the major pieces of energy-crisis litigation behind us.  Additionally, the company already has recorded the financial impact of this settlement in prior reporting periods and our earnings in future years will not be materially impacted by the settlement.”

        Sempra Energy reported that the after-tax cost to the company of the settlements announced in January 2006 would be approximately $350 million.

        Judge Prager is overseeing the distribution of the settlement proceeds to the litigation class members in California.

        Today’s approval of the Continental Forge and price-reporting class-action cases does not terminate other ongoing energy-crisis-related litigation against Sempra Energy and its affiliates, including some claims by individual plaintiffs.  Final approval of the $30 million settlement of the related Nevada class-action lawsuit is expected later this year. 

        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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