Profile: Sempra Energy (SRE)

SRE on New York Consolidated

114.86USD
26 Dec 2014
Price Change (% chg)

$2.77 (+2.47%)
Prev Close
$112.09
Open
$112.14
Day's High
$115.03
Day's Low
$112.14
Volume
987,362
Avg. Vol
1,180,264
52-wk High
$115.03
52-wk Low
$86.73

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Sempra Energy, incorporated on October 11, 1996, is a holding company. During the year ended December 31, 2011, Sempra Energy’s business was organized in five segments consisting of San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCalGas), Sempra Generation, Sempra Pipelines & Storage and Sempra LNG (liquefied natural gas). Sempra Generation, Sempra Pipelines & Storage and Sempra LNG are subsidiaries of Sempra Global. Sempra Global is a holding company for most of its subsidiaries. As of December 31, 2011, SDG&E owed and operated four natural gas-fired power plants: a 560-megawatt electric generation facility (the Palomar generation facility) in Escondido, California; a 495-megawatt electric generation facility (the Desert Star generation facility) in Boulder City, Nevada; a 47.6-megawatt electric generation peaking facility (the Miramar I generation facility) in San Diego, California, and a 48.6-megawatt electric generation peaking facility (the Miramar II generation facility) in San Diego, California. In September 2013, Sempra Energy's Sempra United States Gas & Power acquired and will develop the Broken Bow 2 wind project in Nebraska.

SDG&E purchased the 495-megawatt Desert Star (formerly El Dorado) natural gas-fired power plant from Sempra Generation in October 2011. On January 1, 2012, SDG&E purchased a fifth natural gas-fired power plant, the 52-megawatt Cuyamaca Peak Energy Plant (formerly CalPeak El Cajon Energy Facility) located in El Cajon, California from CalPeak Power-El Cajon LLC. As of December 31, 2011, SDG&E’s electric transmission and distribution facilities included substations, and overhead and underground lines. These electric facilities are located in San Diego, Imperial and Orange counties of California, and in Arizona and Nevada. The facilities consist of 1,896 miles of transmission lines and 22,449 miles of distribution lines. As of December 31, 2011, SDG&E’s natural gas facilities consisted of the Moreno and Rainbow compressor stations, 168 miles of transmission pipelines, 8,490 miles of distribution mains and 6,388 miles of service lines. As of December 31, 2011, SoCalGas’ natural gas facilities included 2,960 miles of transmission and storage pipelines, 49,773 miles of distribution pipelines and 48,572 miles of service pipelines. They also included 11 transmission compressor stations and four underground natural gas storage reservoirs with a combined working capacity of 134 billion cubic feet (Bcf).

As of December 31, 2011, Sempra Generation operated or owned interests in power plants and renewable generation facilities in North America with a total capacity of 2,200 megawatts. Sempra Generation leases or owns property in Arizona, California, Nevada, and Mexico for potential development of solar and wind electric generation facilities. As of December 31, 2011, Sempra Pipelines & Storage’s operations in Mexico included 1,903 miles of distribution pipelines, 224 miles of transmission pipelines and 3 compressor stations. Sempra Pipelines & Storage operates Mobile Gas, a natural gas distribution utility located in Mobile and Baldwin counties in Alabama. Its property consists of distribution mains, service lines and regulating equipment. Sempra Pipelines & Storage operates Chilquinta Energia located in Valparaiso, Chile. Its property consists of 9,622 miles of distribution lines, 339 miles of transmission lines and 45 substations. Sempra Pipelines & Storage operates Luz del Sur located in Lima, Peru. Its property consists of 11,806 miles of distribution lines and 173 miles of transmission lines. In Washington County, Alabama, Sempra Pipelines & Storage operates a 15.5 billion cubic feet natural gas storage facility under a land lease. Sempra Pipelines & Storage also owns land in Simpson County, Mississippi, on which it operates a 7.5 billion cubic feet natural gas storage facility. Sempra LNG operates its Energia Costa Azul LNG terminal on land it owns in Baja California, Mexico and has a land lease in Hackberry, Louisiana, where it operates its Cameron LNG terminal. Sempra LNG also owns land in Port Arthur, Texas, for potential development.

California Natural Gas Utility Operations

SoCalGas and SDG&E sell, distribute and transport natural gas. SoCalGas purchases and stores natural gas for itself and SDG&E on a combined portfolio basis and provides natural gas storage services for others. Core customers are primarily residential and small commercial and industrial customers. Noncore customers at SoCalGas consist primarily of electric generation, wholesale, commercial, industrial, and oil recovery customers. Wholesale customers are primarily other investor-owned utilities (IOUs), including SDG&E, or municipally owned natural gas distribution systems. Noncore customers at SDG&E consist primarily of electric generation and commercial and industrial customers.

SoCalGas purchases natural gas under short-term and long-term contracts for the Sempra Utilities’ core customers. SoCalGas purchases natural gas from Canada, the United States Rockies and the southwestern United States. It also purchases some California natural gas production and additional supplies delivered directly to California for its remaining requirements. Pipeline companies, primarily El Paso Natural Gas Company, Transwestern Pipeline Company, Gas Transmission Northwest, Pacific Gas & Electric Company, and Kern River Gas Transmission Company, provide transportation services into SoCalGas’ intrastate transmission system for supplies purchased by SoCalGas or its transportation customers from outside of California. SoCalGas has natural gas transportation contracts with various interstate pipelines. SoCalGas provides natural gas storage services for core, noncore and non-end-use customers. The Sempra Utilities’ core customers are allocated a portion of SoCalGas’ storage capacity. SoCalGas offers the remaining storage capacity for sale to others through an open bid process.

Electric Utility Operations

SDG&E’s service area covers 4,100 square miles. At December 31, 2011, SDG&E had 1.4 million customer meters consisting of 1,238,900 residential; 147,700 commercial, 500 industrial, 2,100 street and highway lighting, and 4,900 direct access. SDG&E buys natural gas under short-term contracts for its Palomar, Miramar, Desert Star and Cuyamaca Peak generating facilities and for the Otay Mesa Energy Center LLC, Orange Grove Energy L.P., and El Cajon Energy, LLC tolling contracts. SDG&E’s natural gas is delivered from southern California border receipt points to the SoCal CityGate pool via backbone transmission system rights. The natural gas is then delivered from the SoCal CityGate pool to the generating facilities through SoCalGas’ pipelines. SDG&E has also contracted with SoCalGas for natural gas storage from April 1, 2011 to March 31, 2012.

SDG&E has a 20% ownership interest in SONGS, which is located south of San Clemente, California. SONGS consists of two operating nuclear generating units. The city of Riverside owns 1.79% and Southern California Edison Company (Edison), the operator of SONGS, owns the remaining interest. SDG&E’s share of the capacity from the two units is 430 megawatts. The nuclear fuel supply cycle includes materials and services performed by others under various contracts. SDG&E is a participant in the Western Systems Power Pool, which includes an electric-power and transmission-rate agreement with utilities and power agencies located throughout the United States and Canada. Chilquinta Energia is an electric distribution utility serving approximately 600,000 customers in the cities of Valparaiso and Vina del Mar in central Chile, with a main service area covering 4,400 square miles. As of December 31, 2011, its customers consisted of 563,400 residential, 35,400 commercial, 1,400 industrial, 4,800 street and highway lighting and 4,400 agricultural. Luz del Sur is an electric distribution utility serving approximately 900,000 customers in the southern zone of metropolitan Lima, Peru, with a main service area covering 1,160 square miles. As of December 31, 2011, its customers consisted of 859,900 residential, 56,200 commercial, 3,500 industrial, 4,800 street and highway lighting and 1,200 agricultural.

The Company competes with Calpine, GenOn Energy, Dynegy, NextEra Energy Resources, Edison Mission Energy, NRG Energy, AES Corporation, Boardwalk Pipeline Partners, Duke Energy, El Paso, Endesa, Energy Transfer Partners, Enterprise Product Partners, Iberdrola Renewables (Enstor), Iberdrola, Kinder Morgan, Plains All-American, Spectra Energy, TransCanada, The Williams Companies, BG, BP, Cheniere Energy, Chevron, ConocoPhillips, Dominion Resources, Eni, Excelerate Energy, Gas Natural Fenosa, GDF Suez, OAO Gazprom, Repsol, Royal Dutch Shell, Southern Union and Statoil.

Company Address

Sempra Energy

101 ASH STREET
SAN DIEGO   CA   92101
P: +1619.6962000

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