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Sempra
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Our Commitment to Safety
Across the Sempra Energy family of companies, our commitment to safety continues to be our number one priority. Whether it is improving wildfire safety or setting new company records in worker efficiency and safety through reductions in lost-time incidents across our companies, strong advocacy for safety occurs at every level of our company and is prioritized on a daily basis. In the coming years, we expect to invest billions of dollars to improve the safety and reliability of our utilities in Texas and California. Focusing on Safety and Reliability at Our Utilities To fulfill our mission to be North America’s premier energy infrastructure company, safety and reliability are necessary to serve over 36 million consumers. In California, our utilities continue to make strides in advancing safety. For instance, San Diego Gas & Electric ( SDG&E) has invested in wildfire safety and management; starting with building one of the largest utility-owned weather monitoring networks in the nation and leveraging artificial intelligence to help better predict which circuits are most prone to fires due to adverse weather conditions. Also, out of over 500 companies surveyed in the National Safety Council’s (NSC) Safety Barometer, SDG&E scored in the top 1% due to its overall commitment to safety. This includes the company’s superb employee safety trainings, safety communications, employee commitment to safety, and community response. Meanwhile, Southern California Gas Company ( SoCalGas) continues to upgrade its natural gas distribution systems through improvements in safety, reliability and reduction of fugitive emissions through programs such as the company’s Pipeline Safety Enhancement Plan. SoCalGas checks and maintains over 500 million feet of pipeline throughout the year — actions that are critical to the safety of our employees and the public. In Texas, we experienced remarkable safety results, as Oncor logged 10 million labor hours without a lost-time incident in 2020. Advancing Safe Operations at Our Energy Infrastructure Companies Recently, Cameron LNG received the Perfect Record Award from the NSC in recognition of the more than 89 million hours worked without a lost-time incident during construction and transition to operations at Phase 1 of the liquefied natural gas export facility. This is a world-class achievement by industry standards. In Mexico, IEnova’s Health & Safety Culture achieved a 99th overall percentile score in 2020 according to a survey conducted in coordination with the U.S. NSC; an improvement from three years prior when a score in the 96th percentile was achieved. IEnova also maintained a 5-year positive trend in injury metrics, outperforming the goals set in 2020. As we look forward to 2021, emphasis on sustainability, innovation and leadership will help to continue our strong safety performance. Learn more in our corporate sustainability report.
SoCalGas Declares Preferred Dividends
LOS ANGELES, May 20, 2021 /PRNewswire/ -- The board of directors of Southern California Gas Co. (SoCalGas) has declared regular quarterly dividends for the preferred series stock of the company as follows: SoCalGas: Preferred Stock $0.375 per share Preferred Stock, Series A $0.375 per share The dividends are payable on July 15, 2021, to shareholders of record on June 10, 2021. About SoCalGas Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. SoCalGas' mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas is committed to achieving net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by dairy farms, landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. Over the past five years, the company invested nearly $7.5 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. ### SOURCE Southern California Gas Company
Sempra Energy Recognized For ESG Performance And Transparency On '100 Best Corporate Citizens' List
SAN DIEGO, May 19, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) has been named to 3BL Media's "100 Best Corporate Citizens" list for 2021, recognizing companies for outstanding environmental, social and governance (ESG) performance and transparency. This is the 12th consecutive year Sempra Energy has appeared on the list and this year the company was the third highest-ranking employer in the utility industry, out of 38 utility industry companies on the Russell 1000 Index. "At Sempra Energy, we have long believed that delivering long-term sustainable value depends on serving all our stakeholders," said Lisa Alexander, senior vice president of corporate affairs and chief sustainability officer for Sempra Energy. "Our business strategy includes strong climate-related objectives and we are proud that our infrastructure helps shape the global energy transition by enabling the delivery of lower-carbon energy in every market we serve." Recognizing the Best Corporate CitizensThe "100 Best Corporate Citizens" ranking is based on an assessment of the companies on the Russell 1000 Index – a stock market index that tracks 1,000 of the largest companies in the United States. Companies are measured on 146 ESG transparency and performance factors in eight pillars: climate change, employee relations, environment, finance, governance, human rights, stakeholders and society, and ESG performance. "Achieving the transformational targets in the Paris Agreement and UN Sustainable Development Goals in this decade requires all companies truly embed ESG issues into the core of their business," said Dave Armon, CEO of 3BL Media. "The best corporate citizens of 2021 are answering the call by demonstrating the societal and bottom-line value of leadership and transparency around ESG topics. They are setting ambitious goals, outlining robust strategies for achieving them, disclosing data to measure progress, and accounting for all stakeholders in business decisions." Creating Sustainable ValueSempra Energy is focused on creating long-term value for stakeholders by managing risks and capturing opportunities related to ESG factors. The company's actions are anchored to its four key sustainability pillars: achieving world-class safety, enabling the energy transition, driving resilient operations, and championing people. View the full details Sempra Energy's recently release corporate sustainability report at: sempra.com/sustainability/sustainability-report. About Sempra Energy Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at www.sempra.com and on Twitter @SempraEnergy. This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; actions to reduce or eliminate reliance on natural gas, including any deterioration of or increased uncertainty in the political or regulatory environment for local natural gas distribution companies operating in California, and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra Energy's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. SOURCE Sempra Energy
Championing Biodiversity and Using Land Efficiently
Across the Sempra family of companies, we are committed to integrating biodiversity preservation and enhancement considerations into our planning and decision-making processes. This commitment is underpinned by our biodiversity policy, which describes how we integrate biodiversity considerations into the planning, permitting, construction and operation of our infrastructure. Partnering to Protect Biodiversity We partner with local groups, government agencies, academia and nongovernmental organizations at all stages of project development and operation to help ensure we avoid or minimize impacts to local wildlife. This outreach includes working with local partners including the San Diego Audubon Society, San Diego Zoo, Ventura Land Trust, U.S. Forest Service, Bureau of Land Management, U.S. Fish and Wildlife Service, Universidad Autónoma de Nuevo León and many others. Our biodiversity efforts include robust avian protection programs, vegetation management and habitat enhancement and restoration and remediation. Our biodiversity targets vary by project and include: No net loss of wetlands and waters of the U.S., including coastal wetlands. No net loss of sensitive upland vegetation communities, habitats and rare plants. Net improvement in ecological condition and habitat values for any sensitive habitats that have been temporarily impacted by our projects or operations. Net improvement in habitat values for the coastal California gnatcatcher, least Bell’s vireo, southwestern willow flycatcher, arroyo toad, peninsular bighorn sheep and many other listed species, by establishing permanently protected habitat preserve(s) and enhancing the existing habitat for the species. Net benefit to state-listed threatened or endangered species. Net benefit to federally listed threatened or endangered species. Conservation in Action at SDG&E One example of our approach to environmental compliance and stewardship comes from SDG&E. For more than 25 years, SDG&E has helped ensure compliance with endangered species regulations during its activities through its Subregional Natural Community Conservation Plan and Habitat Conservation Plan (collectively, the Subregional Plan). The Subregional Plan was ultimately approved in 1995 and SDG&E has been successfully operating under it since its issuance. The Subregional Plan has helped create company awareness about constructing and operating facilities in a way that avoids or minimizes impacts to the natural communities and wildlife within the San Diego region and has defined how mitigation would be pursued for any unavoidable impacts. As we build and maintain critical energy infrastructure in North America, we remain committed to integrating biodiversity preservation and enhancement considerations into our planning and decision-making processes. In 2020, all SDG&E’s projects, facilities, and operations and maintenance activities were reviewed for potential impacts to state and federally listed endangered, threatened and candidate species. Potential direct or indirect impacts to the species or their habitats were: Avoided or minimized through operational protocols outlined in the SDG&E Subregional Plan; Mitigated through project-specific mitigation measures or applicant proposed measures approved by the CPUC and other regulatory agencies; and/or Mitigated through post-construction mitigation measures as outlined in the plans and permits approved by the regulatory and wildlife agencies for those projects, facilities and/or operations and maintenance activities. As a result of SDG&E’s conservation strategy, SDG&E’s activities in 2020 resulted in no documented “take” of any species listed under either the state or federal Endangered Species Act.
Paul Yong Q&A: Shaping the Future and Fostering Inclusion
Paul H. Yong is vice president of corporate tax and chief tax counsel for Sempra Energy. He is co-author of Corporate Income Tax Accounting, a desktop treatise published by Thomson Reuters, and is an adjunct professor at the University of San Diego School of Law. Learn more about Paul Yong and his Chinese-American heritage in this Q&A: You are vice president of corporate tax and chief tax counsel for Sempra Energy. Tell us more about your role. What are your department’s responsibilities? My overarching responsibility is to help Sempra Energy and its operating companies optimize the earnings that they work so hard to generate, while also managing our compliance with all tax laws. The easiest way to describe the most critical part of our job is to use a “circle of life” example: Beginning: When the company is evaluating an acquisition of a business, selling an existing business, or restructuring a business, we analyze and help structure these processes in an effort to enhance their benefits to our businesses. Middle: We file hundreds of tax returns and estimated tax payments. End: We work with the appropriate tax authorities in each taxing jurisdiction where we do business when they conduct routine audits of the company’s tax positions. We respond to requests for information, submit supporting legal research and negotiate settlements. Sempra’s values are to do the right thing, champion people, and shape the future. Which one of these values resonates with you most and why? Shape the Future. Why? First, I believe it encompasses the other two values. If we don’t do the right thing or champion people, we can’t shape the future. Second, the past year has led many to reassess their priorities. Many want a life with purpose — a purpose that aligns with their values. These could be values such as more quality family time, a cleaner environment, a just society or a better future for our children. Finally, some of the greatest breakthroughs start as dreams. As the son of an immigrant mother with a third-grade education, she encouraged me to dream. As the son of a man who was blind in one eye and worked as a line cook, he too encouraged me to dream. As a young child running barefoot and living in a housing project, I sometimes wondered if those dreams would ever come true. They did! Now it’s my turn to help others achieve their dreams and shape their future and, together, shape Sempra’s future. Photo: Paul and his family Sempra Energy is committed to fostering an inclusive environment and advancing diverse backgrounds and perspectives. What are some of the ways Sempra has advanced diversity and inclusion throughout your time here? There is a huge difference between “mathematical diversity” and “melting pot diversity.” A bit of background — I grew up in Hawaii and it truly is a “melting pot” of people and cultures. I was surprised when I first moved to Los Angeles that while it was considered one of the most diverse major cities in the world, ethnic groups clustered in certain areas. As leaders, we need to encourage and create opportunities to move from mathematical diversity to melting pot diversity. For instance, shortly after I arrived at Sempra, we commissioned the equivalent of the company’s bi-annual employee engagement survey. Over the years, we implemented several operational changes and initiatives to enhance engagement and teamwork. Within the tax department, we have a “recognition team” that develops team building events, such as our annual Tax Olympics, which helped to keep our team engaged throughout the past year while we continue working remotely. I was delighted when the company sponsored more employee events, such as Lunch Meets, a speaker series, and diversity town halls. In Dr. Martin Luther King’s famous “I Have a Dream” speech, he gave us an image of true diversity: “I have a dream that one day little black boys and girls will be holding hands with little white boys and girls.” Hiring a black candidate, or a white candidate, or a Hispanic candidate or an Asian candidate based solely on merit is a big first step in our journey. Along that journey we will find these four employees enjoying lunch together at Sempra HQ when it’s safe to do so. Personally, I was pleased to be one of the executive sponsors for our I Belong campaign last year. I shared my heart condition and hearing difficulties as a way to hopefully normalize conversations around disability. There is so much stigma around these issues, and it’s really important we help individuals with disability feel a sense of belonging at Sempra. May is Asian American and Pacific Islander Heritage Month. What does your heritage mean to you? I’m proud to be Chinese American. Like most Americans, whether they arrived by ship to Ellis Island, trekked thousands of miles to the U.S. border, or simply walked off an airplane, we all have a story to tell. My story? I believe it was my great-great-grandfather who first arrived in California to work on the railroad. He fulfilled his labor contract when the tracks reached San Francisco. With part of his savings, he bought a cuckoo clock. He returned to China and forbade his children and descendants from going to America — it was too uncivilized! A hundred years later, his great-granddaughter married a line cook from Hawaii. Months after she arrived in Honolulu, I was born. A few months after I arrived, Hawaii became the 50th state. His great-great-grandson was an American living in America! During my annual pilgrimage to Hawaii, the family will get together and “talk story” — that’s how we preserve and honor our heritage. Photo: Paul as a child
Sempra LNG's Environmental Champions
From the coast of Southern California to the Texas and Louisiana shoreline and waterways, our employees work to advance our company’s commitment to the safety and sustainability of our communities. In support of our environment, we roll up our sleeves and participate in campaigns and events to preserve and protect wildlife habitats, restore coastal beach and wetland areas, and support beautification efforts to sustain healthy and vibrant communities. As part of Sempra LNG’s Environmental Champions program, hundreds of our employees and their families recently came together to clean up parks and beaches where we operate and also continue to donate to environmental charities that share our passion. Employees had the opportunity to participate virtually with their families within their own neighborhoods or nearby parks. In San Diego, the team supported the annual "I Love a Clean San Diego Creek to Bay Clean-up." In Houston, participants picked up safety kits, which included gloves, masks, hand sanitizer and trash pickers at Memorial Park Conservancy near our new Center of Excellence, and then volunteered to clean up at designated sites such as Buffalo Bayou or adopted an area of their choice. At the Adopt-a-Park Clean-up at Bert Karrer Lions Park in Sabine Pass, Texas, more than 40 bags of trash were collected and the park benches, planters and playground equipment were repaired. To preserve the safety of the park, over three dozen holes that were safety hazards were filled and seven rusted metal picnic tables and awnings, as well as a damaged and rusted swing set, were removed from the area completely. These volunteer and sustainability initiatives will only grow as we find new ways to help sustain our environment as a team and a business. Building on this commitment for the year, we have plans to host a fishing and crabbing clinic in partnership with Texas Parks and Wildlife. We will be planting trees and native plants in the fall and as always, will return to Sea Rim State Park’s Annual Kid Fish event. In everything we do, living our values of doing the right thing, championing people and shaping the future are central, and this is especially true when it comes to our environment. Subscribe to our Texas Newsletter
Sustainability Is a Journey with No Shortcuts
I am pleased to share our 13th annual sustainability report entitled Innovation, Sustainability and Leadership. Every year, we look forward to this opportunity. By publishing these reports, it allows us to share how we create value by managing risks and capturing opportunities related to environmental stewardship, stakeholder engagement, responsible governance and a high-performance culture. Please review the full report for more information. 2020 illuminated the growing relevance of environmental, social and governance factors. Amid severe global and community health impacts, rapidly changing work environments, critical conversations about equity and justice, devastating weather events, and other challenges, the 19,000 employees of the Sempra Energy family of companies delivered on our commitments. Our dedicated workers energized our hospitals and data centers, fueled the nation’s largest ports and logistics operations, warmed our homes and helped lift our communities. I could not be more proud of all our colleagues. Our 2020 corporate sustainability report highlights examples of our high-performance culture and how our shared purpose and values drive continuous improvement in our performance, including: Achieving World-Class Safety Safety remains at the forefront of everything we do. This past year has been no different. Sempra Energy took swift action in response to the COVID-19 pandemic to help protect our employees, contractors and the communities we serve, putting in place comprehensive health and safety protocols across our family of companies. In fact, among other notable accomplishments in 2020 we improved our safety performance, with decreases in the employee recordable injury rate, at every operating company. Championing People We continue to advance our high-performance culture in alignment with our vision, mission and values. Essential to this is fostering an inclusive environment and embracing diverse perspectives and backgrounds. This year, our sustainability report includes our action plan to continue our work to make meaningful progress towards this for all our employees, and the communities we serve. In addition, later this spring we will be disclosing our company’s Equal Employment Opportunity 1 (EEO-1) data for the first time to share important progress we are making in and around diversity and workforce composition. Enabling the Energy Transition and Driving Resilient Operations We recognize that climate challenges pose risks to the health, safety and prosperity of billions around the globe. Long before the phrase “ energy transition” dominated headlines, Sempra’s family of companies were advancing programs to decarbonize, diversify and digitalize our energy infrastructure while continuing to deliver reliable and affordable energy to more consumers — 36 million — than any other U.S. utility company. In addition, our report includes Sempra Energy’s enterprise-wide action plan to continue growing our company to meet the evolving needs of our customers, while making critical infrastructure investments with the aim of net-zero across all three scopes by 2050 — emitting no more greenhouse gases than we remove from the atmosphere. In our company’s own unique journey to net-zero, we expect that technology and innovation will be central to our success. But we also understand that our goals require bold leadership, deep collaboration across government, business and communities, and thoughtful, targeted investment. We are excited to tackle this challenge. Ultimately, we have long believed that delivering durable value depends on serving our stakeholders with purpose. Our clear vision and mission, high-performance culture, disciplined management of risks and opportunities, and authentic, active stakeholder engagement all underpin our performance. On behalf of all our employees across our family of companies, I appreciate your thoughtful interest in our sincere efforts to build a better, more impactful company. Onward, Lisa Larroque Alexander Senior Vice President, Corporate Affairs, and Chief Sustainability Officer This article contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this article. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this article, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; actions to reduce or eliminate reliance on natural gas, including any deterioration of or increased uncertainty in the political or regulatory environment for local natural gas distribution companies operating in California, and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
TRAFFIC ADVISORY: Lanes Reduced Along Lindley Ave. from Burbank Blvd. to Killion St. in Los Angeles Beginning May 10
WHAT: SoCalGas will be performing pipeline maintenance work along Lindley Ave. from Burbank Blvd. to Killion St. in Los Angeles. Work is scheduled to begin Monday, May 10 and is expected to continue through July 2021. To perform this project safely, lane reductions will be in place for north & southbound traffic on Lindley Ave. from Burbank Blvd. to Killion St. Lane reductions will also be in place for east and westbound traffic on Burbank Blvd. between Newcastle Ave. and 200 ft. west of Lindley Ave., during construction. There will be no left turn for northbound or southbound traffic from Lindley Ave. onto Burbank Blvd. and no left turn for westbound traffic from Burbank Blvd onto Lindley Ave., during construction. Traffic control cones, k-rails and flaggers will help direct the flow of traffic. Residents, local businesses, and commuters may hear work-related noise and see excavation equipment and vehicles during construction hours. No interruption to natural gas service is anticipated. Customers may smell the odor of natural gas. Although this is normal when crews are working, SoCalGas encourages anyone who smells gas to call us at 1-800-427-2200. SoCalGas is available 24 hours a day, seven days a week. WHERE: Lindley Ave. from Burbank Blvd. to Killion St. in Los Angeles, as shown here. WHEN: Work hours are from 9:00 a.m. to 3:00 p.m. and 9:00 p.m. to 7:00 a.m., Monday through Friday, subject to change. Work is scheduled to begin Monday, May 10 and is expected to continue through July 2021, weather and other conditions permitting. PUBLIC CONTACT: Customers with questions or concerns about the construction work may call SoCalGas’ Customer Contact Center 24-hours a day, seven-days a week at 800-427-2200. Our top priorities are to work safely and to provide the communities we serve with safe and reliable natural gas service.
Sempra Energy Reports Strong First-Quarter 2021 Earnings Results
SAN DIEGO, May 5, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today announced first-quarter 2021 earnings of $874 million, or $2.87 per diluted share, compared to first-quarter 2020 earnings of $760 million, or $2.53 per diluted share. On an adjusted basis, the company's first-quarter 2021 earnings were $900 million, or $2.95 per diluted share, compared to $741 million, or $2.47 per diluted share, in the first quarter of 2020. "Over the last several years, we have narrowed our market focus, expanded investment in our utilities and worked hard to improve safety and operating results," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "Taken together, these activities also support our financial commitments and, in part, are reflected in the strength of our first quarter results. The company is well positioned to deliver another strong year of financial performance." The reported financial results reflect certain significant items as described on an after-tax basis in the following table of GAAP (generally accepted accounting principles in the United States of America) earnings, reconciled to adjusted earnings, for the first quarter of 2021 and 2020. Three months ended March 31, (Dollars, except EPS, and shares in millions) 2021 2020 (Unaudited) GAAP Earnings $ 874 $ 760 Impact from Foreign Currency and Inflation and Associated Undesignated Derivatives (1) (3) (150) Net Unrealized Losses (Gains) on Commodity Derivatives (1) 29 (41) Impacts Associated with Aliso Canyon Litigation - 72 Losses from Investment in RBS Sempra Commodities LLP - 100 Adjusted Earnings (2) $ 900 $ 741 Diluted Weighted-Average Common Shares Outstanding 308 314 GAAP EPS (3),(4) $ 2.87 $ 2.53 Diluted Weighted-Average Common Shares Outstanding 308 314 Adjusted EPS (2),(3),(4) $ 2.95 $ 2.47 1) Q1-2020 Adjusted Earnings and Adjusted earnings-per-common-share (EPS) have been updated to exclude this item to conform to current year presentation. 2) Represents a non-GAAP financial measure. Q1-2020 Adjusted Earnings and Adjusted EPS have been updated to exclude additional items to conform to current year presentation. See Table A for information regarding non-GAAP financial measures and descriptions of adjustments. 3) To calculate Q1-2021 GAAP EPS and Adjusted EPS, preferred dividends of $10 million are added back to GAAP Earnings and Adjusted Earnings because of the dilutive effect of Series B mandatory convertible preferred stock in the quarter. 4) To calculate Q1-2020 GAAP EPS and Adjusted EPS, preferred dividends of $36 million are added back to GAAP Earnings and Adjusted Earnings because of the dilutive effect of Series A and Series B mandatory convertible preferred stock in the quarter. Building Resiliency in California Utilities Sempra Energy's California utilities, San Diego Gas & Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas), both recently announced net-zero emissions goals, contributing to Sempra Energy's overall efforts to help shape a more sustainable future. In March 2021, SoCalGas announced its goal to achieve net-zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045. With this commitment, SoCalGas becomes the largest gas distribution utility in North America to set a net-zero GHG emissions target across all three scopes. Building on the sustainability strategy SDG&E released last October and its goal to reach net-zero GHG emissions by 2045, the utility announced it is developing two hydrogen pilot projects, it is nearing completion of an additional battery storage facility and it has begun construction on another, while also launching a vehicle-to-grid pilot program featuring electric school buses, among other efforts. Additionally, SDG&E and SoCalGas recently received a proposed decision for attrition rates for 2022 and 2023, providing improved visibility into funding in support of safety and reliability programs. SDG&E's attrition rate would be 3.92% for 2022 and 3.7% for 2023, and SoCalGas' attrition rate would be 4.53% for 2022 and 3.97% for 2023. Continuing Growth at Oncor In Texas, Oncor Electric Delivery Company LLC (Oncor) continues to play a key role in meeting the growing energy needs of Texas' economy through the execution of its 2021-2025 capital plan. In the first quarter of 2021, Oncor continued to see strong organic growth and connected approximately 19,000 new premises, compared to approximately 18,000 in the first quarter of 2020. Making Progress on Sempra Infrastructure Last month, Sempra Energy announced that it has entered into a definitive agreement to sell a non-controlling 20% interest in Sempra Infrastructure to KKR for $3.37 billion in cash, subject to adjustments. The transaction values Sempra Infrastructure at approximately $25.2 billion, including expected asset-related debt at closing of $8.37 billion. Proceeds from the sale will be used to help fund growth in Sempra Energy's U.S. utilities and to further strengthen the company's balance sheet. The sale is expected to be accretive to earnings. The transaction is forecasted to be completed in mid-2021, subject to customary closing conditions, including consents from third parties and regulators. On April 26, 2021, Sempra Energy launched its exchange offer to acquire all the outstanding shares of Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) not owned by Sempra Energy. As part of the exchange offer, Sempra Energy intends to list its shares of common stock on the Mexican stock exchange (Bolsa Mexicana de Valores, S.A.B de C.V.). The exchange offer is expected to be completed by the end of May. Additionally, IEnova continues to advance its development projects in Mexico with a focus on improving the country's energy security. In March, IEnova achieved commercial operations on its Border Solar project, a 150-megawatt solar facility in northern Mexico, and completed the acquisition of the remaining 50% equity interest in Energía Sierra Juárez, a cross-border wind generation complex in Baja California, Mexico. Earnings Guidance Sempra Energy is updating its full-year 2021 GAAP EPS guidance range to $7.42 to $8.02 and affirming its full-year 2021 adjusted EPS guidance range of $7.50 to $8.10. Non-GAAP Financial Measures Non-GAAP financial measures include Sempra Energy's adjusted earnings, adjusted EPS and adjusted EPS guidance range. See Table A for additional information regarding these non-GAAP financial measures. Internet Broadcast Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 12 p.m. ET with senior management of the company. Access is available by logging onto the website at www.sempra.com. For those unable to log on to the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 6657833. About Sempra Energy Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at www.sempra.com and on Twitter @SempraEnergy. This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; actions to reduce or eliminate reliance on natural gas, including any deterioration of or increased uncertainty in the political or regulatory environment for local natural gas distribution companies operating in California, and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, inflation and interest rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. SEMPRA ENERGY Table A CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in millions, except per share amounts; shares in thousands) Three months ended March 31, 2021 2020 (unaudited) REVENUES Utilities $ 2,845 $ 2,665 Energy-related businesses 414 364 Total revenues 3,259 3,029 EXPENSES AND OTHER INCOME Utilities: Cost of natural gas (349) (337) Cost of electric fuel and purchased power (232) (229) Energy-related businesses cost of sales (109) (59) Operation and maintenance (1,001) (851) Aliso Canyon litigation and regulatory matters — (100) Depreciation and amortization (442) (412) Franchise fees and other taxes (153) (137) Other income (expense), net 35 (254) Interest income 19 27 Interest expense (259) (280) Income from continuing operations before income taxes and equity earnings 768 397 Income tax (expense) benefit (158) 207 Equity earnings 318 263 Income from continuing operations, net of income tax 928 867 Income from discontinued operations, net of income tax — 80 Net income 928 947 Earnings attributable to noncontrolling interests (33) (151) Preferred dividends (21) (36) Earnings attributable to common shares $ 874 $ 760 Basic earnings per common share (EPS): Earnings $ 2.91 $ 2.60 Weighted-average common shares outstanding 300,905 292,790 Diluted EPS: Earnings $ 2.87 $ 2.53 Weighted-average common shares outstanding 308,458 313,925 SEMPRA ENERGY Table A (Continued) RECONCILIATION OF SEMPRA ENERGY ADJUSTED EARNINGS TO SEMPRA ENERGY GAAP EARNINGS (Unaudited) Sempra Energy Adjusted Earnings and Adjusted EPS exclude items (after the effects of income taxes and, if applicable, noncontrolling interests) in 2021 and 2020 as follows: Three months ended March 31, 2021: $3 million impact from foreign currency and inflation and associated undesignated derivatives $(29) million net unrealized losses on commodity derivatives Three months ended March 31, 2020: $150 million impact from foreign currency and inflation and associated undesignated derivatives $41 million net unrealized gains on commodity derivatives $(72) million from impacts associated with Aliso Canyon natural gas storage facility litigation at Southern California Gas Company (SoCalGas) $(100) million equity losses at RBS Sempra Commodities LLP, which represents an estimate of our obligations to settle pending tax matters and related legal costs at our equity method investment at Parent and Other Sempra Energy Adjusted Earnings and Adjusted EPS are non-GAAP financial measures (GAAP represents generally accepted accounting principles in the United States of America). These non-GAAP financial measures exclude significant items that are generally not related to our ongoing business activities and/or are infrequent in nature. These non-GAAP financial measures also exclude the impact from foreign currency and inflation effects and associated undesignated derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles for historical periods these non-GAAP financial measures to Sempra Energy GAAP Earnings and GAAP EPS, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. SEMPRA ENERGY Table A (Continued) RECONCILIATION OF ADJUSTED EARNINGS TO GAAP EARNINGS (Dollars in millions, except per share amounts; shares in thousands) Pretaxamount Income tax benefit (1) Non-controlling interests Earnings Pretax amount Income tax(benefit)expense (1) Non-controllinginterests Earnings Three months ended March 31, 2021 Three months ended March 31, 2020 Sempra Energy GAAP Earnings $ 874 $ 760 Excluded items: Impact from foreign currency and inflation and associated undesignated derivatives $ 30 $ (42) $ 9 (3) $ 95 $ (353) $ 108 (150) Net unrealized losses (gains) on commodity derivatives 46 (13) (4) 29 (57) 16 — (41) Impacts associated with Aliso Canyon litigation — — — — 100 (28) — 72 Losses from investment in RBS Sempra Commodities LLP — — — — 100 — — 100 Sempra Energy Adjusted Earnings (2) $ 900 $ 741 Diluted EPS: Sempra Energy GAAP Earnings $ 874 $ 760 Add back dividends for dilutive series A preferred stock — 26 Add back dividends for dilutive series B preferred stock 10 10 Sempra Energy GAAP Earnings for GAAP EPS $ 884 $ 796 Weighted-average common shares outstanding, diluted 308,458 313,925 Sempra Energy GAAP EPS $ 2.87 $ 2.53 Sempra Energy Adjusted Earnings (2) $ 900 $ 741 Add back dividends for dilutive series A preferred stock — 26 Add back dividends for dilutive series B preferred stock 10 10 Sempra Energy Adjusted Earnings for Adjusted EPS (2) $ 910 $ 777 Weighted-average common shares outstanding, diluted 308,458 313,925 Sempra Energy Adjusted EPS (2) $ 2.95 $ 2.47 (1) Income taxes were primarily calculated based on applicable statutory tax rates. We did not record an income tax benefit for the equity losses from our investment in RBS Sempra Commodities LLP because, even though a portion of the liabilities may be deductible under United Kingdom tax law, it is not probable that the deduction will reduce United Kingdom taxes. (2) Adjusted Earnings, Adjusted Earnings for Adjusted EPS and Adjusted EPS have been updated to reflect impact from foreign currency and inflation and associated undesignated derivatives and net unrealized gains on commodity derivatives for the three months ended March 31, 2020. SEMPRA ENERGY Table A (Continued) RECONCILIATION OF SEMPRA ENERGY 2021 ADJUSTED EPS GUIDANCE RANGE TO SEMPRA ENERGY 2021 GAAP EPS GUIDANCE RANGE (Unaudited) Sempra Energy 2021 Adjusted EPS Guidance Range of $7.50 to $8.10 excludes items (after the effects of income taxes and, if applicable, noncontrolling interests) as follows: $3 million impact from foreign currency and inflation and associated undesignated derivatives for the three months ended March 31, 2021 $(29) million net unrealized losses on commodity derivatives for the three months ended March 31, 2021 Sempra Energy 2021 Adjusted EPS Guidance is a non-GAAP financial measure. This non-GAAP financial measure excludes the impact from foreign currency and inflation and associated undesignated derivatives and unrealized gains and losses on commodity derivatives, which we expect to occur in future periods, and which can vary significantly from one period to the next. Exclusion of these items is useful to management and investors because it provides a meaningful comparison of the performance of Sempra Energy's business operations to prior and future periods. Sempra Energy 2021 Adjusted EPS Guidance Range should not be considered an alternative to Sempra Energy 2021 GAAP EPS Guidance Range. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles Sempra Energy 2021 Adjusted EPS Guidance Range to Sempra Energy 2021 GAAP EPS Guidance Range, which we consider to be the most directly comparable financial measure calculated in accordance with GAAP. RECONCILIATION OF ADJUSTED EPS GUIDANCE RANGE TO GAAP EPS GUIDANCE RANGE Full-Year 2021 Sempra Energy GAAP EPS Guidance Range (1) $ 7.42 to $ 8.02 Excluded items: Impact from foreign currency and inflation and associated undesignated derivatives (0.01) (0.01) Net unrealized losses on commodity derivatives 0.09 0.09 Sempra Energy Adjusted EPS Guidance Range $ 7.50 to $ 8.10 Weighted-average common shares outstanding, diluted (millions) (2) 308 (1) Sempra Energy's prior GAAP EPS Guidance Range for full-year 2021 of $7.50 to $8.10 has been updated to reflect the impact from foreign currency and inflation and undesignated derivatives and net unrealized losses on commodity derivatives for the three months ended March 31, 2021. (2) Weighted-average common shares outstanding does not include the dilutive effect of mandatory convertible preferred stock, as they are assumed to be antidilutive for full-year 2021. If such mandatory convertible preferred stock were dilutive for the full year, the 2021 GAAP EPS Guidance Range would differ from the range presented above. SEMPRA ENERGY Table B CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31,2021 December 31, 2020(1) (unaudited) ASSETS Current assets: Cash and cash equivalents $ 725 $ 960 Restricted cash 38 22 Accounts receivable – trade, net 1,595 1,578 Accounts receivable – other, net 393 403 Due from unconsolidated affiliates 26 20 Income taxes receivable 78 113 Inventories 274 308 Regulatory assets 183 190 Greenhouse gas allowances 555 553 Other current assets 333 364 Total current assets 4,200 4,511 Other assets: Restricted cash 15 3 Due from unconsolidated affiliates 674 780 Regulatory assets 2,010 1,822 Nuclear decommissioning trusts 1,014 1,019 Investment in Oncor Holdings 12,553 12,440 Other investments 1,505 1,388 Goodwill 1,602 1,602 Other intangible assets 397 202 Dedicated assets in support of certain benefit plans 494 512 Insurance receivable for Aliso Canyon costs 414 445 Deferred income taxes 132 136 Greenhouse gas allowances 181 101 Right-of-use assets – operating leases 528 543 Wildfire fund 356 363 Other long-term assets 765 753 Total other assets 22,640 22,109 Property, plant and equipment, net 40,981 40,003 Total assets $ 67,821 $ 66,623 (1) Derived from audited financial statements. SEMPRA ENERGY Table B (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in millions) March 31,2021 December 31, 2020(1) (unaudited) LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 1,817 $ 885 Accounts payable – trade 1,354 1,359 Accounts payable – other 141 154 Due to unconsolidated affiliates 42 45 Dividends and interest payable 595 551 Accrued compensation and benefits 273 446 Regulatory liabilities 437 140 Current portion of long-term debt and finance leases 505 1,540 Reserve for Aliso Canyon costs 152 150 Greenhouse gas obligations 555 553 Other current liabilities 1,004 1,016 Total current liabilities 6,875 6,839 Long-term debt and finance leases 22,023 21,781 Deferred credits and other liabilities: Due to unconsolidated affiliates 258 234 Pension and other postretirement benefit plan obligations, net of plan assets 1,069 1,059 Deferred income taxes 3,114 2,871 Regulatory liabilities 3,333 3,372 Reserve for Aliso Canyon costs 285 301 Asset retirement obligations 3,121 3,113 Greenhouse gas obligations 41 — Deferred credits and other 2,094 2,119 Total deferred credits and other liabilities 13,315 13,069 Equity: Sempra Energy shareholders' equity 23,999 23,373 Preferred stock of subsidiary 20 20 Other noncontrolling interests 1,589 1,541 Total equity 25,608 24,934 Total liabilities and equity $ 67,821 $ 66,623 (1) Derived from audited financial statements. SEMPRA ENERGY Table C CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in millions) Three months ended March 31, 2021 2020 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 928 $ 947 Less: Income from discontinued operations, net of income tax — (80) Income from continuing operations, net of income tax 928 867 Adjustments to reconcile net income to net cash provided by operating activities 446 175 Net change in working capital components 84 217 Distributions from investments 208 73 Insurance receivable for Aliso Canyon costs 31 (172) Changes in other noncurrent assets and liabilities, net (195) 90 Net cash provided by continuing operations 1,502 1,250 Net cash provided by discontinued operations — 68 Net cash provided by operating activities 1,502 1,318 CASH FLOWS FROM INVESTING ACTIVITIES Expenditures for property, plant and equipment (1,181) (1,010) Expenditures for investments and acquisitions (115) (86) Proceeds from sale of assets — 5 Purchases of nuclear decommissioning trust assets (288) (552) Proceeds from sales of nuclear decommissioning trust assets 288 552 Advances to unconsolidated affiliates (8) (30) Intercompany activities with discontinued operations, net — (3) Other 3 8 Net cash used in continuing operations (1,301) (1,116) Net cash used in discontinued operations — (65) Net cash used in investing activities (1,301) (1,181) CASH FLOWS FROM FINANCING ACTIVITIES Common dividends paid (301) (269) Preferred dividends paid (36) (36) Issuances of common stock — 11 Repurchases of common stock (37) (57) Issuances of debt (maturities greater than 90 days) 102 1,619 Payments on debt (maturities greater than 90 days) and finance leases (1,093) (1,433) Increase in short-term debt, net 932 2,127 Advances from unconsolidated affiliates 20 64 Proceeds from sale of noncontrolling interests 7 — Purchases of noncontrolling interests — (16) Intercompany activities with discontinued operations, net — (2) Other (1) (5) Net cash (used in) provided by continuing operations (407) 2,003 Net cash provided by discontinued operations — 111 Net cash (used in) provided by financing activities (407) 2,114 Effect of exchange rate changes in continuing operations (1) (6) Effect of exchange rate changes in discontinued operations — (8) Effect of exchange rate changes on cash, cash equivalents and restricted cash (1) (14) (Decrease) increase in cash, cash equivalents and restricted cash, including discontinued operations (207) 2,237 Cash, cash equivalents and restricted cash, including discontinued operations, January 1 985 217 Cash, cash equivalents and restricted cash, including discontinued operations, March 31 $ 778 $ 2,454 SEMPRA ENERGY Table D SEGMENT EARNINGS (LOSSES) AND CAPITAL EXPENDITURES, INVESTMENTS AND ACQUISITIONS (Dollars in millions) Three months ended March 31, 2021 2020 (unaudited) Earnings (Losses) Attributable to Common Shares SDG&E $ 212 $ 262 SoCalGas 407 303 Sempra Texas Utilities 135 105 Sempra Mexico 57 191 Sempra LNG 146 75 Parent and other (83) (248) Discontinued operations — 72 Total $ 874 $ 760 Three months ended March 31, 2021 2020 (unaudited) Capital Expenditures, Investments and Acquisitions SDG&E $ 555 $ 402 SoCalGas 459 388 Sempra Texas Utilities 50 86 Sempra Mexico 142 170 Sempra LNG 89 47 Parent and other 1 3 Total $ 1,296 $ 1,096 SEMPRA ENERGY Table E OTHER OPERATING STATISTICS Three months ended March 31, 2021 2020 (unaudited) UTILITIES SDG&E and SoCalGas Gas sales (Bcf) (1) 127 129 Transportation (Bcf) (1) 137 148 Total deliveries (Bcf) (1) 264 277 Total gas customer meters (thousands) 6,975 6,933 SDG&E Electric sales (millions of kWhs) (1) 3,289 3,460 Direct Access and Community Choice Aggregation (millions of kWhs) 813 769 Total deliveries (millions of kWhs) (1) 4,102 4,229 Total electric customer meters (thousands) 1,486 1,475 Oncor (2) Total deliveries (millions of kWhs) 30,677 30,420 Total electric customer meters (thousands) 3,781 3,703 Ecogas Natural gas sales (Bcf) 1 1 Natural gas customer meters (thousands) 136 135 ENERGY-RELATED BUSINESSES Power generated and sold Sempra Mexico Termoeléctrica de Mexicali (TdM) (millions of kWhs) 845 826 Wind and solar (millions of kWhs) (3) 543 422 (1) Include intercompany sales. (2) Includes 100% of the electric deliveries and customer meters of Oncor Electric Delivery Company LLC (Oncor), in which we hold an indirect 80.25% interest through our investment in Oncor Electric Delivery Holdings Company LLC. (3) Includes 50% of the total power generated and sold at the Energía Sierra Juárez wind power generation facility through March 19, 2021. As of March 19, 2021, ESJ became a wholly owned, consolidated subsidiary of IEnova. SEMPRA ENERGY Table F (Unaudited) STATEMENTS OF OPERATIONS DATA BY SEGMENT (Dollars in millions) Three months ended March 31, 2021 SDG&E SoCalGas Sempra TexasUtilities SempraMexico Sempra LNG Consolidating Adjustments, Parent & Other Total Revenues $ 1,337 $ 1,508 $ — $ 367 $ 196 $ (149) $ 3,259 Cost of sales and other expenses (801) (834) (2) (195) (139) 127 (1,844) Depreciation and amortization (213) (173) — (51) (3) (2) (442) Other income (expense), net 35 39 — (43) — 4 35 Income (loss) before interest and tax (1) 358 540 (2) 78 54 (20) 1,008 Net interest (expense) income (101) (39) — (26) 6 (80) (240) Income tax (expense) benefit (45) (94) — (8) (49) 38 (158) Equity earnings, net — — 137 47 134 — 318 (Earnings) losses attributable to noncontrolling interests — — — (34) 1 — (33) Preferred dividends — — — — — (21) (21) Earnings (losses) attributable to common shares $ 212 $ 407 $ 135 $ 57 $ 146 $ (83) $ 874 Three months ended March 31, 2020 SDG&E SoCalGas Sempra TexasUtilities SempraMexico Sempra LNG Consolidating Adjustments, Parent & Other Total Revenues $ 1,269 $ 1,395 $ — $ 309 $ 123 $ (67) $ 3,029 Cost of sales and other expenses (679) (872) (1) (137) (87) 63 (1,713) Depreciation and amortization (201) (159) — (47) (2) (3) (412) Other income (expense), net 31 30 — (283) — (32) (254) Income (loss) before interest and tax (1) 420 394 (1) (158) 34 (39) 650 Net interest (expense) income (100) (39) — (14) 6 (106) (253) Income tax (expense) benefit (58) (52) — 307 (23) 33 207 Equity earnings (losses), net — — 106 200 57 (100) 263 (Earnings) losses attributable to noncontrolling interests — — — (144) 1 — (143) Preferred dividends — — — — — (36) (36) Earnings (losses) from continuing operations $ 262 $ 303 $ 105 $ 191 $ 75 $ (248) 688 Earnings from discontinued operations 72 Earnings attributable to common shares $ 760 (1) Management believes Income (Loss) Before Interest and Tax is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations. SOURCE Sempra Energy
Sempra Energy Named One Of 'America's Best Employers For Diversity' By Forbes
SAN DIEGO, April 30, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) has been named to Forbes' "America's Best Employers for Diversity" list for 2021, marking the third consecutive year that the company has been recognized. Sempra Energy ranked 79 th out of 500 companies this year, up from 328 th last year, and was the second highest-ranking employer in the utility industry. "At the Sempra family of companies, we are committed to building a high-performance culture that advances the interest of all of our stakeholders," said Karen Sedgwick, senior vice president and chief human resources officer for Sempra Energy. "Consistent with that commitment, we believe that advancing diversity and inclusion helps to shape an innovative workforce, where employees are encouraged and empowered to be their authentic selves. This is critical to elevating performance and allowing us to partner responsibly with our communities as we look to build North America's premier energy infrastructure company." Promoting a High-Performance Culture Across the Company Sempra Energy's focus on building a high-performance culture across its family of companies is underpinned by its long history of promoting safety, advancing workforce training and development, and fostering an inclusive environment where diverse perspectives and backgrounds are embraced. The Sempra Energy family of companies offer a variety of programs to enhance diversity and inclusivity in the workplace, including 16 employee councils, mentorship programs, trainings and an annual Diversity & Inclusion Summit. Understanding that a commitment to diversity and inclusion starts at the top, Sempra Energy is a founding member of the CEO Action for Diversity & Inclusion initiative and a member of the Paradigm for Parity coalition, which promotes gender parity in the workplace. The company has held dozens of enterprise-wide and department-level conversations and engaged thousands of employees at all levels to actively participate in discussions on the impacts of racism. The feedback from these conversations provided a framework for Sempra Energy's Racial Equity Action Plan which has been integrated into leadership and company goals. The company also introduced a virtual summit series offering monthly webinars on a variety of topics aimed at advancing the company's overall performance, including topics such as increasing cultural competency, celebrating diversity, and sustaining personal connections that are critical for an inclusive and engaging workforce. Advancing Economic Opportunity and Well-Being Within Communities Sempra Energy serves the basic energy needs of more than 36 million consumers, and with that commitment to service comes opportunities to invest in and promote economic opportunity and well-being within the communities it serves. In 2020, Sempra Energy and the Sempra Energy Foundation launched a giving campaign focused on social justice across communities the company serves, raising more than $700,000 in employee donations and company matches. This campaign was part of a larger set of community investments totaling over $17 million that directly benefitted people of color, immigrants, women- and minority-owned small businesses, the LGBTQ community and other underrepresented populations, including the company's commitment to a number of STEM programs that work with schools and nonprofits to advance the mentorship of young women who are seeking careers in science, technology, engineering and math. Additionally, the Sempra Energy family of companies has programs dedicated to advancing supplier opportunities for businesses owned by women, minorities, service-disabled veterans, and members of the LGBTQ community. In 2020, both of the company's California utilities, San Diego Gas & Electric and Southern California Gas Co., purchased a total of more than $1.7 billion in goods and services from diverse suppliers, marking the eight consecutive year that each company's supplier diversity spending exceeded 40%, surpassing the California Public Utilities Commission's goal of 21.5%. In Texas, Oncor's supplier diversity accounted for nearly $335 million or 12% of its procurement spend, and the company issued $450 million in sustainable bonds with proceeds designated for investments in or expenditures with women- and minority-owned business suppliers. Recognizing Leading Diversity Practices Forbes' ranking was determined from an independent survey of 50,000 employees working for major companies in the U.S. Respondents were asked about their employers' diversity practices related to age, gender equality, ethnicity, disability, sexual orientation equality and general diversity. The ranking also considered diversity among board and executive teams, as well as the most proactive diversity and inclusion initiatives. About Sempra Energy Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at sempra.com and on Twitter @SempraEnergy. SOURCE Sempra Energy
Sempra Energy Releases 2020 Corporate Sustainability Report
SAN DIEGO, April 28, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today released its 2020 Corporate Sustainability Report, highlighting the company's actions to create long-term value for shareholders and other stakeholders by managing risks and capturing opportunities related to environmental, social and governance (ESG) factors. The company's actions are anchored to its four key sustainability pillars: Achieving world-class safety; Enabling the energy transition; Driving resilient operations; and Championing people. View the full details in the report at: sempra.com/sustainability/sustainability-report. "Over the last two decades, the United States has doubled its gross domestic product, while registering the largest absolute decline in energy-related CO 2 emissions of any country in the world," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "We think there is an opportunity to continue making real progress and are committed to advancing critical new infrastructure investments that support decarbonizing the economies of North America, while making lower- to zero-carbon energy sources available to our global partners. Our multi-factor approach to managing our business is directly aligned with the value proposition of creating durable value for our shareholders, customers, employees and other stakeholders." Achieving World-Class Safety Safety underpins the high-performance culture seen across the Sempra Energy family of companies, where community safety is prioritized and every employee feels responsible for their own safety as well as the safety of others. The Sempra Energy board of directors oversees this mandate across the organization through its Safety, Sustainability and Technology Committee. The unprecedented challenges presented by COVID-19 reinforced the company's unwavering commitment to health and safety. Identified among the country's critical infrastructure, Sempra Energy and its operating companies activated business continuity plans and safety protocols aimed at identifying and mitigating risks while continuing to work to deliver energy safely. Through these actions, Sempra Energy's safety performance improved in 2020 with all operating companies achieving decreases in their employee recordable injury rate. Examples of safety highlights at each of Sempra Energy's operating companies can be found on pages 55 and 80 of the report. Enabling the Energy Transition Sempra Energy and its family of companies have been advancing programs to decarbonize, diversify and digitalize its energy infrastructure while continuing to work hard to deliver safe, reliable and affordable energy to more than 36 million consumers across North America. The company's "3Ds" framework supports its enterprise-wide goal to achieve net-zero emissions by 2050 across scopes 1, 2, and 3 for its operations and the customers it serves. Sempra Energy is investing in the energy infrastructure needed in the following three key areas to expand its energy systems and help achieve its climate goals: Decarbonization: Reducing the carbon content of energy in critical economic sectors – industrial, transportation and power generation – and emitting no more carbon in its operations than it removes from the atmosphere. Diversification: Bringing new lower- to zero-carbon fuel choices to every market it serves, coupled with the expansion of advanced energy networks and storage to improve resiliency. Digitalization: Integrating real-time information and cutting-edge analytics to benefit network operators and consumers with improved operational reliability and safety. "Climate is at the center of our business strategy. That is why we have introduced an action-oriented framework around these three areas in this year's report – all with a focus on building a stronger and more growth-oriented business, while allocating capital with a view toward emitting less carbon dioxide than we remove from the atmosphere by the middle of this century," said Lisa Alexander, senior vice president of corporate affairs and chief sustainability officer for Sempra Energy. "We are optimistic about the future and committed to living our values – doing the right thing, championing people, and shaping the future – and I could not be more proud of the contributions of our more than 19,000 employees towards serving our stakeholders every day." The company's action plan towards net-zero emissions includes interim goals and infrastructure deployment plans through three time periods: 2025, 2030 and 2050. Planned activities are outlined on page 22 of the report. Driving Resilient Operations Amidst the pandemic, employees across the Sempra Energy family of companies have continued to deliver essential energy to more than 36 million consumers in North America. With global energy demand projected to increase by 50% by 2050 according to the U.S. Energy Information Administration, resilient energy infrastructure will take on even greater importance. That is why Sempra Energy is continuing to invest in and expand its energy transmission and distribution networks. Examples include, among others: Oncor Electric Delivery Company LLC (Oncor) connected more than 60 central-station renewable generators to the energy grid in 2020 with the capability of producing 11,000 megawatts of energy, while also connecting more than 40% of the state's wind generation capacity to the energy grid through its transmission facilities. San Diego Gas & Electric (SDG&E) is leveraging artificial intelligence and satellite technology to improve wildfire mitigation initiatives and help keep its communities safe from wildfire risks with one of the largest utility-owned weather monitoring networks in the nation. Southern California Gas Co.'s (SoCalGas) natural gas system provides flexible fuel delivery, long-term storage and reliable energy, especially for critical end-uses. The flexibility of natural gas as an energy resource has been critical in helping California's electricity providers increase renewable energy penetration. Sempra LNG's design standards for infrastructure resiliency were demonstrated as Cameron LNG experienced the effects of two Category 4 hurricanes in 2020 with no injuries and minimal damage to the newly constructed liquefaction facilities. IEnova, as a top renewable energy generator in Mexico, is making critical infrastructure investments with a goal of achieving 97% availability for its renewable generation fleet by 2030 and supporting clean and sustainable economic growth in Mexico. Championing People to Advance a High-Performance Culture Sempra Energy is continuing to advance its high-performing culture centered on the company's vision, mission and values to provide a clear sense of purpose for its more than 19,000 employees with an unwavering focus on safety. Other key factors in the company's high-performance culture are a commitment to workforce development and training and a focus on fostering an inclusive environment where diverse perspectives and backgrounds are embraced. In 2020, Sempra Energy created an enterprise-wide action plan centered on five strategic pillars designed to advance the company's goals for promoting diversity, economic prosperity and social justice. The five pillars include: Leading from the top Accelerating engagement Creating opportunity Driving conscious inclusion Partnering with our communities Learn more about Sempra's action plan on page 57 of the report. Sempra Energy's operating companies are also committed to promoting an inclusive supplier base that represents the communities they serve. Moreover, the Sempra Energy family of companies is championing people with a focus on promoting economic opportunity and well-being within these communities. Actions taken include, among others: SDG&E and SoCalGas purchased more than $1.7 billion in goods and services from businesses owned by women, minorities, service-disabled veterans and members of the LGBTQ community in 2020, marking the eighth consecutive year that each company's supplier diversity spending exceeded 40% in total, consistently surpassing the California Public Utilities Commission's goal of 21.5%. Oncor's supplier diversity accounted for nearly $335 million or 12% of its procurement spend, while the company issued $450 million in sustainable bonds with proceeds designated for investments or expenditures with women- and minority-owned suppliers. Sempra Energy, its operating companies and the Sempra Energy Foundation contributed nearly $52 million to charities and other nonprofit civic and community groups in 2020. This includes more than $14 million to support community-based organizations engaged in responding to the COVID-19 pandemic. Guidelines for the Report This is the company's 13 th annual sustainability report. This year's report draws guidance from leading global disclosure frameworks, including the Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-Related Financial Disclosures and the United Nations Sustainable Development Goals, together with the company's stakeholder materiality assessment introduced in its 2019 report. In addition, the report pilots 22 of the World Economic Forum's Stakeholder Capitalism Metrics introduced in Fall 2020. About Sempra Energy Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at www.sempra.com and on Twitter @SempraEnergy, and sempra.com/sustainability/sustainability-report for Sempra Energy's latest sustainability report. This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange and interest and inflation rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. SOURCE Sempra Energy
Innovation, Sustainability and Leadership
As we publish our 13th corporate sustainability report, Innovation, Sustainability and Leadership, I am filled with optimism for what lies ahead. We are witnessing the power and perseverance of the human spirit as recovery around the world progresses. People from all walks of life have come together to support one another as we collectively confronted the challenges of this past year. 2020 put into sharp focus the vital role of energy. Critical energy infrastructure has delivered the power needed for hospitals, medical research centers, and manufacturing plants to operate and has supported the millions of people who have worked, studied or cared for their families from home. Committed to Doing the Right Thing 2020 also bore witness to the talent and dedication of Sempra Energy employees who have continued to safely deliver energy with purpose to more than 36 million consumers in North America, and many more around the world. They have displayed great leadership, resilience and an unwavering commitment to doing the right thing. Delivering that energy safely and reliably every day is at our company’s core and guides how we serve our customers and communities regardless of the moment. Our operating companies found innovative solutions and new ways to continue to work safely this past year when the world around us required it the most. The perseverance on display during 2020 inspires confidence that the world can come together with a collective determination to address another global challenge: achieving carbon neutrality globally by mid-century. Meeting this challenge will require mission-focused leadership, national and international collaboration and, perhaps most importantly, innovation. It will also require a dramatic change in our energy systems over the next 30 years. That change will include a universal focus on decarbonizing the industrial, transportation and power generation sectors. Energy grids will need to expand and zero-carbon electricity and increasingly green gases, such as hydrogen, will need to work in tandem. Over this same period, we will need to account for the global energy demand that is expected to increase exponentially as emerging economies develop and energy poverty is addressed. I am confident that this can be done, and that the U.S. will lead by demonstrating a commitment to expanding electrification and renewable gases at home, while fostering innovation and supporting energy diversification, particularly in developing economies. Investing in the Future At Sempra Energy, we will continue to play a leading role by investing in the critical new infrastructure that is needed to create the net-zero energy systems of tomorrow. Our demonstrated leadership over the last two decades in decarbonizing energy together with our disciplined approach to innovation and operational excellence has allowed us to create a strong position in large North American markets and uniquely positions us to be a leader in this energy transition. Through our infrastructure, we strive to create enduring, sustainable value for all our stakeholders as we chart our path to achieve our goal of net-zero emissions by 2050 in both the energy we use in our operations and the energy being delivered to our customers. Delivering long-term sustainable value extends beyond our position as a leader in the energy transition. This past year has demonstrated that we have the best workforce in the industry and that our high-performance culture continues to be our differentiator. As part of Sempra Energy’s unwavering commitment to its values, we remain committed to an inclusive workplace, where we embrace diverse views, backgrounds, and experiences. We will continue to demonstrate that commitment through concrete actions to advance that culture and maintain a workplace where everyone feels empowered to bring their authentic and best selves to work. Guided by our values — do the right thing, champion people and shape the future — we can help solve some of our society’s greatest and most pressing challenges. At Sempra Energy, this is our calling. Ever forward together, Jeffrey W. Martin Chairman and Chief Executive Officer Meet Jeffrey Martin This article contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. In this article, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange and interest and inflation rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
SoCalGas & California Energy Commission to Provide Funding to Test Hydrogen Fuel Cell Technology for Marine Vessels
LOS ANGELES, April 27, 2021 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced the company will provide $200,000 in funding for Zero Emission Industries' (ZEI), formerly Golden Gate Zero Emission Marine, hydrogen fuel cell technology project that aims to develop a zero emissions solution for small commercial marine vessels by modifying a commercial boat with a hydrogen fuel cell in place of a combustion engine. Once brought to market, the fuel cell technology could vastly reduce greenhouse gas (GHG) emissions and air pollution from thousands of small commercial boats throughout California including patrol, fishing, fire, rescue, ferry, taxi, recreational and other vessels. "SoCalGas is committed to helping California reach its climate goals, and we look at how we can support reducing GHG emissions in every sector," said Neil Navin, vice president of clean energy innovations at SoCalGas. "We recently announced our pledge to reach net zero greenhouse gas emissions in our operations and delivery of energy by 2045, and our work with the CEC and ZEI to develop fuel cell technology for commercial boats could aid this commitment. This innovative technology has the potential to decrease pollution in California in a meaningful way." "This project exemplifies our approach at Zero Emission Industries, which is to solve difficult challenges with hydrogen in ways that make it accessible for everyone," said Dr. Joseph Pratt, CEO of ZEI. "With California being home to over 1 million vessels, 98% of which are under 40 feet long, developing a small fast zero emission vessel solution will have a profound impact on the market, the economy, and air quality. The support from SoCalGas on low- and zero-emission efforts like this project play a large role in the ongoing effort to eliminate California's and ultimately, the world's emissions." "As California works to reduce greenhouse gas emissions from various sectors within our state, I am thrilled to see SoCalGas, in partnership with the CEC and Zero Emission Industries, leading and supporting the development of innovative technologies to help meet the state's goals," said Mario Cordero, Executive Director, Port of Long Beach. "The Port of Long Beach is proud to be one of two locations in which this technology will be utilized." The project will test a commercial marine vessel modified to incorporate a hydrogen fuel cell powertrain. While boats are typically propelled with a combustion engine, the hydrogen fuel cell powertrain will use the latest automotive-style fuel cell technology and will be designed to optimize overall performance, with boat speeds ranging from a few knots to over 50 knots. The boat will be fueled with hydrogen through mobile, portable systems developed by ZEI for marine vessel fueling. These portable fueling systems will be built as part of the project, using hydrogen sourced from California's retail hydrogen stations. The project will demonstrate the vessel for six months, split between the San Francisco Bay and Long Beach. This project will be led by Zero Emission Industries with the following ports and commercial boating companies assisting in testing the technologies; Port of San Francisco, Red and White Fleet, Port of Long Beach and Harbor Breeze Cruises. The California Energy Commission (CEC) will provide $2 million for this project. On March 23, SoCalGas announced its commitment to achieve net zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045, reducing not only the company's own direct emissions, but also those generated by its customers to support a carbon neutral economy. SoCalGas is demonstrating this commitment by also advancing numerous low- and zero-carbon energy technologies. Late last year, the company announced it will build a home to demonstrate, in a microgrid setting, the use of hydrogen produced from solar energy. Called the "H2 Hydrogen Home," the project will use solar panels to create electricity that can be used to produce green hydrogen via electrolysis. The hydrogen will be blended with natural gas for the home's appliances as well as converted back to electricity using a residential fuel cell. In addition, SoCalGas will field test a new technology that separates and compresses hydrogen from a blend of hydrogen and natural gas, allowing hydrogen to be delivered wherever a natural gas distribution system exists. Details on these efforts are available here. SoCalGas' mission is to build the cleanest, safest, and most innovative energy company in North America. More information on the company's mission and strategic priorities can be found at socalgas.com/mission. About Zero Emission Industries TM: Zero Emission Industries TM formerly Golden Gate Zero Emission Marine, launched 2017, is a cutting-edge hydrogen technology company that develops and sells power systems for a range of applications. The company received a grant in 2018 for $3 million from the California Air Resources Board (CARB) to build the first hydrogen fuel cell vessel in the United States, the Water-Go-Round. For more information on GGZEM: http://ggzeromarine.com/ About Port of Long Beach The Port of Long Beach is one of the world's premier seaports, a gateway for trans-Pacific trade and a trailblazer in goods movement and environmental stewardship. With 175 shipping lines connecting Long Beach to 217 seaports, the Port handles $170 billion in trade annually, supporting more than 575,000 Southern California jobs." About SoCalGas Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. SoCalGas' mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas is committed to achieving net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by dairy farms, landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. Over the past five years, the company invested nearly $7.5 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. SOURCE Southern California Gas Company
Sempra Energy Launches Exchange Offer For Publicly Owned Shares Of IEnova
SAN DIEGO, April 26, 2021 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today announced that it has launched its exchange offer to acquire all the outstanding shares of IEnova ( Infraestructura Energética Nova, S.A.B de C.V.) not owned by Sempra Energy. As part of the exchange offer, Sempra Energy intends to list its shares of common stock on the Mexican stock exchange ( Bolsa Mexicana de Valores, S.A.B de C.V. – "BMV") . "At Sempra Energy, we are excited to launch the process to list our company's shares on the BMV," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "As part of the Sempra Energy family of companies, IEnova has delivered critical energy infrastructure to the country of Mexico for over two decades, supporting economic growth and the health and prosperity of millions. We look forward to building on that track record of success and collaboration." In the exchange offer, Sempra Energy is offering to exchange each outstanding IEnova ordinary share that it does not own for 0.0323 shares of Sempra Energy's common stock. The exchange offer was launched today and is expected to expire at 3 p.m. ET (New York City Time) or 2 p.m. CT (Mexico City Time), on May 24, 2021, unless the offer period is extended. "We are excited to continue contributing to Mexico's bright future through our investments in critical energy infrastructure to support economic collaboration, expansion and prosperity in the country," said Tania Ortiz, CEO of IEnova. The exchange offer is part of a series of transactions originally announced in December 2020 that are intended to simplify Sempra Energy's non-utility infrastructure investments under one self-funding platform, Sempra Infrastructure Partners, combining the strengths of Sempra LNG, a leading developer of liquefied natural gas (LNG) export infrastructure, and IEnova, one of the largest private energy companies in Mexico and a leading developer and operator of renewables and natural gas infrastructure in that country. The new platform is expected to create scale, unlock portfolio synergies, highlight value and better position the business for growth. Earlier this month, Sempra Energy announced that it has entered into a definitive agreement to sell a non-controlling, 20% interest in Sempra Infrastructure Partners to KKR for $3.37 billion in cash, subject to adjustments. About Sempra Energy Sempra Energy's mission is to be North America's premier energy infrastructure company. The Sempra Energy family of companies have more than 19,000 talented employees who deliver energy with purpose to over 36 million consumers. With more than $66 billion in total assets at the end of 2020, the San Diego-based company is the owner of one of the largest energy networks in North America serving some of the world's leading economies. The company is helping to advance the global energy transition by enabling the delivery of lower-carbon energy solutions in each market it serves, including California, Texas, Mexico and the LNG export market. Sempra Energy is consistently recognized as a leader in sustainable business practices and for its long-standing commitment to building a high-performing culture including safety, workforce development and training, and diversity and inclusion. Sempra Energy is the only North American utility sector company included on the Dow Jones Sustainability World Index and was also named one of the "World's Most Admired Companies" for 2021 by Fortune Magazine. For additional information about Sempra Energy, please visit Sempra Energy's website at www.sempra.com and on Twitter @SempraEnergy. About IEnova IEnova develops, builds and operates energy infrastructure in Mexico. As of the end of 2020, the company has more than 1,400 employees and approximately $10.5 billion in total assets, making it one of the largest private energy companies in the country. IEnova was the first energy infrastructure company to be listed on the Mexican Stock Exchange. Additional Information and Where to Find It The exchange offer has been submitted to shareholders of Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) for their consideration. In connection with the exchange offer, Sempra Energy has filed a registration statement on Form S-4 (File No. 333-252030) with the U.S. Securities and Exchange Commission (SEC) that includes a prospectus relating to the offer and sale of the Sempra Energy common stock to be issued in the exchange offer, which registration statement has been declared effective by the SEC, and has filed a prospectus and exchange offer documents with the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) (CNBV) and the Mexican Stock Exchange (Bolsa Mexicana de Valores, S.A.B de C.V.), which has been approved by the CNBV (such registration statement, the prospectus included therein, and prospectus and exchange offer documents are referred to collectively as the Offer Documents). Shareholders are urged to read the Offer Documents carefully and in their entirety, along with any other relevant documents or materials filed or to be filed with the SEC or the CNBV in connection with the exchange offer or incorporated by reference therein, because they contain important information about the exchange offer and the parties thereto. The Offer Documents are available free of charge at the SEC's internet website, www.sec.gov, and on the CNBV's website, www.gob.mx/cnbv. The Offer Documents may also be obtained free of charge by directing a written request to Sempra Energy, Attn: Corporate Secretary, at 488 8th Avenue, San Diego, California 92101. Neither this press release nor the information contained herein shall constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities in the United States or Mexico will be made except pursuant to the Offer Documents and by means of the prospectuses included therein and the related materials filed with the SEC and the CNBV. Certain Information Concerning Participants Sempra Energy and its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of tenders of securities in connection with the proposed exchange offer. Information about Sempra Energy's directors and executive officers is included or incorporated by reference in its Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 25, 2021. Forward-Looking Statements This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors. Forward-looking statements in this press release include any statements regarding the ability to complete the proposed transactions described herein on the anticipated timeline or at all, the anticipated benefits of these transactions if completed, the projected impact of these transactions on Sempra Energy's performance or opportunities, and any other statements regarding Sempra Energy's expectations, beliefs, plans, objectives or prospects or future performance or financial condition as a result of or in connection with these transactions. In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. Factors, among others, that could cause our actual results and future actions to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: the timing of the proposed transactions described herein; the ability to satisfy the conditions to closing these transactions; the ability to obtain regulatory approvals necessary to complete these transactions; the ability to achieve the anticipated benefits of these transactions; the effect of this communication on Sempra Energy's or IEnova's stock prices; transaction costs; the diversion of management time on transaction-related issues; the effects on these transactions of industry, market, economic, political or regulatory conditions outside of Sempra Energy's control; the effects on these transactions of disruptions to Sempra Energy's or IEnova's respective businesses; California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover costs from insurance, the wildfire fund established by California Assembly Bill 1054 or in rates from customers; decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the Comisión Federal de Electricidad, California Public Utilities Commission (CPUC), U.S. Department of Energy, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and major acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid, limitations on the withdrawal of natural gas from storage facilities, and equipment failures; cybersecurity threats to the energy grid, storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; expropriation of assets, failure of foreign governments and state-owned entities to honor their contracts, and property disputes; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange and interest and inflation rates and commodity prices and our ability to effectively hedge these risks; changes in tax and trade policies, laws and regulations, including tariffs and revisions to international trade agreements that may increase our costs, reduce our competitiveness, or impair our ability to resolve trade disputes; and other uncertainties, some of which may be difficult to predict and are beyond our control. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the SEC. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra Energy's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC. Website References None of the website references in this press release are active hyperlinks, and the information contained on, or that can be accessed through, any such website is not, and shall not be deemed to be, part of this document. SOURCE Sempra Energy
SoCalGas Announces Plans to Convert 200 New Field Service Trucks to Run on Renewable Natural Gas
LOS ANGELES, April 22, 2021 /PRNewswire/ -- Southern California Gas Co. (SoCalGas) today announced it will convert 200 new Ford F-250 service pickup trucks to run on renewable natural gas (RNG) - a renewable form of energy produced from a variety of waste streams. The service trucks will be outfitted with the newest Landi Renzo Eco Ready™ equipment, a California Air Resource Board certified ultra-low emissions vehicles system. Equipping these 200 service vehicles to run on RNG is expected to reduce over 2,000 metric tons of CO2 equivalent (CO2e) per year which is equivalent to removing 1,800 passenger vehicles from our roads for one year. With the addition of these 200 new net-zero emissions service trucks, nearly 40 percent of SoCalGas' service vehicles will run on clean fuels. "This project is one of the many decarbonizing initiatives we're implementing here at SoCalGas as we continue to move towards a net zero future," said Sandra Hrna, vice president of supply chain and operations support at SoCalGas. "In order to achieve our sustainability goals, we work to build strong relationships with innovative partners to help us continue delivering technologies to further decarbonize the transportation sector." Putting more clean trucks on the road is a key part of SoCalGas' commitment to achieve net zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045. SoCalGas is the largest gas distribution utility in North America to set a net zero emissions target including scopes 1, 2, and 3 GHG emissions, which would eliminate not only its own direct emissions, but also those generated by customers' energy delivered by SoCalGas' energy infrastructure. RNG is a renewable form of energy produced from the waste streams at dairy farms, wastewater treatment plants, landfills, and other sources. Depending on its source, RNG can be carbon negative, meaning it avoids more emissions than it emits when produced and used as a fuel. Capturing the methane from these waste sources and converting it into RNG keeps greenhouse gas emissions with high global warming potential from entering the atmosphere and reduces the use of fossil fuels. "SoCalGas and Landi Renzo USA have been longstanding partners and we're thrilled to collaborate and expand our partnership to produce a clean fleet of vehicles for SoCalGas and expand our partnership for the future of clean transportation," said Andrea Landi, president of Landi Renzo USA. "We are thankful for this opportunity, it supports our local community and partners while also promoting the importance of clean transportation and technologies to help us support a sustainable future." Last year, SoCalGas and the South Coast Air Quality Management District (South Coast AQMD) provided $600,000 towards Landi Renzo's natural gas engine development program to modify and develop a 7.3-liter CARB and Environmental Protection Agency (EPA) certified Heavy Duty CNG engine for commercial vehicle applications. "By committing to their sustainability goals with real action, SoCalGas and Landi Renzo USA are providing a model for businesses to make the switch to cleaner fuels," said South Coast AQMD's Executive Officer Wayne Nastri. "These efforts will go a long way in helping South Coast AQMD achieve its clean air goals." Landi Renzo USA is partnering with two local companies on this project - Phenix Truck Body and CTEC Truck Body. The Landi Renzo Eco Ready™ CNG system is designed and engineered from the base Ford 6.2L engine in partnership between Landi Renzo USA and Ford Motor Company. The fleet conversion is expected to be complete by the end of the year. About SoCalGas Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. SoCalGas' mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas is committed to achieving net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by dairy farms, landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. Over the past five years, the company invested nearly $7.5 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. About Landi Renzo USA Landi Renzo is the global leader in ecological mobility. With nearly 70 years of history, Landi Renzo has been a pioneer of clean transportation, specializing in the designing and manufacturing of CNG, RNG, LPG and Hydrogen systems for the automotive industry. Landi Renzo USA was established in Torrance, CA in 2010 and today is the only CARB certified Ford QVM manufacturer of CNG/RNG systems for commercial vehicles. Landi Renzo USA's portfolio of CARB and EPA certified natural gas systems is the most comprehensive in the marketplace. SOURCE Southern California Gas Company

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Sempra Infrastructure Partners and its subsidiaries, and the Sempra Texas utilities (Oncor and Sharyland Utilities) are not the same companies as the Sempra California utilities, SDG&E or SoCalGas, nor are they regulated by the California Public Utilities Commission (CPUC).