 the total closer to 
$150 million.

  The future debt and the unsettled state of the deregulation process in 
California were the
  reasons given when Moody's Investors Service recently changed the credit 
outlook for
  Sempra and SDG&E to "negative."

  Shareholders can't be happy with Sempra's stock price, which fell from a 
high of about $28
  a share right after the 1998 merger between Enova and Pacific Enterprises, 
which was
  loudly opposed by consumer advocates because of the market clout a merged 
company
  would wield, to a low of $16.63 in April. Sempra bought back 36.1 million 
shares at $20
  each in February and lowered the stock dividend to $1 a share from $1.56 a 
share. The
  stock closed Friday up 14 cents at $20.14 on the New York Stock Exchange.

  Baum acknowledged that the company has lagged in return to shareholders, 
blaming that
  partly on a turning away by investors from utilities and other old-economy 
companies to
  Internet and other new-economy stocks.

  Sempra wants to be much more than its utilities and has made some promising 
inroads
  into unregulated areas, such as energy commodity trading, 
telecommunications,
  power-plant building and the sale of electricity and natural-gas to 
consumers and
  businesses in other states, Mexico, South America and Canada, analysts said.

  In fact, Sempra Energy Trading, which buys and sells electricity, natural 
gas, oil and coal,
  earned more money in the first quarter--$3 million--than in all of 1999. 
That subsidiary's $40
  million in second-quarter earnings was primarily responsible for Sempra's
  better-than-expected income for the period of $110 million, or 55 cents a 
diluted share, up
  34% from the second quarter of last year.

  Analyst Paul Fremont of Jefferies & Co., who has a "buy" rating on Sempra, 
notes that the
  trading company income will be volatile and that the other subsidiaries 
remain unknown
  quantities.


the total closer to 
 $ 150 million. 

   The future debt and the unsettled state of the deregulation procedure in 
 California were the 
   reason given when Moody's Investors Service recently changed the credit 
 expectation for 
   Sempra and SDG&E to " negative. " 

   Shareholders can't be glad with Sempra's breed price, which fall from a 
 high of about $ 28 
   a plowshare right after the 1998 merger between Enova and Pacific Enterprises, 
 which was 
   obstreperously opposed by consumer advocates because of the market clout a merged 
 caller 
   would wield, to a low of $ 16.63 in April. Sempra bought back 36.1 million 
 shares at $ 20 
   each in February and lower the stock dividend to $ 1 a share from $ 1.56 a 
 share. The 
   stock close Friday up 14 cents at $ 20.14 on the New York Stock Exchange. 

   Baum acknowledged that the company has lagged in return to stockholder, 
 blaming that 
   partly on a turning away by investors from utilities and early erstwhile - economy 
 companies to 
   Internet and other new - economy stocks. 

   Sempra wants to be much more than its utilities and has made some promising 
 inroad 
   into unregulated areas, such as energy commodity trading, 
 telecommunication, 
   exponent - plant building and the sale of electricity and natural - gas to 
 consumer and 
   businesses in early states, Mexico, South America and Canada, analysts said. 

   In fact, Sempra Energy Trading, which buy and sells electricity, natural 
 gas, oil and ember, 
   earned more money in the first quarter--$3 million -- than in all of 1999. 
 That subsidiary's $ 40 
   million in second - quarter earnings was primarily responsible for Sempra's 
   good - than - expected income for the period of $ 110 million, or 55 cents a 
 diluted share, up 
   34% from the second one-fourth of last year. 

   Analyst Paul Fremont of Jefferies & Co., who has a " bargain " rating on Sempra, 
 notice that the 
   trading company income will be volatile and that the early subsidiaries 
 remain unknown 
   quantities.
 thf total closer to 
$150 milliun.

  The future bwbt anv the uhsettled state of the deregulation pcocews in 
California were the
  feasons gpven when Moovy's Investors Secbice regzntly ghangzd the credit 
oujlook for
  Sampra and SDG&E tu "uegative."

  Shareholders can't be happy with Srmora's stock prise, wnych rvlo from a 
high of about $28
  a shzre rigit after the 1998 mrrger between Enova and Pafifif Enterprises, 
whicj was
  loudoy o[posed by conrumer advobctes becausg of the market clout a merged 
cumpanv
  would wigls, hm a low of $16.63 in Airil. Sempra bought bawk 36.1 milkion 
shares at $20
  xach in February and loweced the stock dividegd to $1 a vhcre from $1.56 a 
share. The
  wtock cloved Weidxy hp 14 dents wt $20.14 on the Nes York Stocj Exchange.

  Baum aclnjqledged that fhe coipwny has lagged in return to shareholderv, 
bmaming that
  partly on q turning away by invgstors froi utilities and other old-economy 
companies to
  Indernev xnd obher bea-economy stocks.

  Sempra wants to be much more fhsn its utilities and has mace spie promising 
knroads
  jnto unregulated ageas, sush as energy cjmmocity trading, 
telecommunicatuons,
  power-pjqnt building and tke sale of euectticity and natural-gas to 
consbmers znd
  businedses in offer states, Mexicu, Spudh America and Canada, analrsts said.

  In fact, Sdmprs Enerdy Trading, whicm buys and sells elfctrieity, tatural 
gad, oil and coal,
  earned more monxb in the firsj qgarner--$3 millijn--thak in all of 1999. 
Thwt subsidiary's $40
  millnon in second-quagter earnmngs was priiarily responvlble for Sem'ra's
  beteer-tyan-ezpected kncome for the period oy $110 miolion, or 55 cents a 
vilujes share, up
  34% frim uhw second quartrr uf jadt yqdr.

  Analyst [aul Frdkont uf Jefftxiew & Co., who has a "buy" ratinc on Sempra, 
notes that tme
  tradibg compagy income wilk be volatile and uhat tie othxr subxidyaries 
remain unknown
  quantitjes.


the total closer to $150 million. The and unsettled state the deregulation process given Moody's Investors Service changed the credit for Sempra and SDG&E to "negative." can't be happy with Sempra's stock price, which fell from a high of $28 a share right after the 1998 merger between Enova and Pacific Enterprises, was opposed consumer because of the market clout a merged company would wield, to a low of $16.63 in Sempra bought back 36.1 million shares at $20 in February and lowered stock dividend to $1 a from a share. stock Friday 14 cents at on the New York Stock Exchange. Baum acknowledged that the company has lagged in return to shareholders, that partly turning away investors utilities other old-economy companies and other new-economy stocks. Sempra wants more than its utilities and has made some inroads into areas, such as energy commodity trading, power-plant building and the sale of electricity and to consumers and businesses in other states, Mexico, South America and Canada, analysts said. In Energy Trading, which buys sells electricity, natural oil coal, more in the quarter--$3 million--than in all of 1999. That subsidiary's $40 million in earnings was primarily responsible for Sempra's better-than-expected income for the $110 or 55 cents diluted share, up 34% the quarter of last year. Fremont Jefferies has "buy" on Sempra, notes that trading company income will be and that the other
 the total closer to 
$150 million.

  ThE future debT and tHe uNseTtLed sTate Of the deregulatIOn prOcess in 
California were tHe
  reaSoNS givEN wHen MoOdy's InvEStORS SeRvIcE reCeNTlY chanGed The credIt 
outlook fOr
  SEmPra and SDG&E to "NEgAtive."

  ShareHolDers can't be haPpy With SeMpRa's STock pRicE, whicH fell fROm a 
higH of about $28
  a ShARe righT After thE 1998 MErGer bEtween Enova and PacIFiC enterprises, 
whiCh was
  lOuDLy OPPosEd bY consumer aDvOcateS Because OF tHE MArkET clout a merged 
Company
  woulD WieLd, to a lOw Of $16.63 iN april. SEmpra BoUGht Back 36.1 million 
SharEs at $20
  each iN FebruARy and loWEred the Stock dIviDenD to $1 a SHaRe FroM $1.56 a 
SHarE. thE
  stOCk cLosed FriDaY uP 14 centS at $20.14 oN THE new YOrk stocK ExchAnge.

  Baum acknoWleDged THat The coMpany Has lAgGed in Return To shaReHolders, 
blaming tHat
  pArtly on a tUrnInG awAy By invEStors fRom UtiLities aNd other OLd-eCoNOMY 
cOmpanies to
  Internet AnD OThEr new-ecoNomy stOCkS.

  SEMpra wantS tO be Much MORe thaN its UTiLities anD has maDE sOmE promisInG 
inroaDs
  IntO unRegulATed aReas, suCh as enerGy comMOdity trading, 
teLEcommunicatioNS,
  pOWEr-PLant BuiLding and the Sale OF eleCtriCItY anD NaturAl-gas To 
COnSUmers and
  businesses iN oTher stAtes, MExico, South AmeRica and CanADA, Analysts Said.

  iN fACt, Sempra Energy tradiNg, which buyS And sells ElectRicity, naTural 
gas, oIL And coal,
  eArnEd mOre MonEY In The first quartER--$3 MillIoN--than in All Of 1999. 
That sUbsIdiAry'S $40
  miLlIon in secoNd-quarteR eArNiNgS waS primARily respOnSibLe For semprA'S
  betteR-than-ExpeCtEd INcoMe for thE PeRIOd of $110 MiLlIon, oR 55 ceNtS a 
dilUted SHarE, up
  34% from The second QuaRTer oF lAsT year.

  AnAlyst Paul FremOnT of JefferiEs & co., wHo has a "BUY" rating oN Sempra, 
notes that the
  tradINg compaNy iNcome Will Be volatilE anD that tHe oTHer subSidiarIes 
reMaIn uNKNown
  qUANtItiEs.


 the total closer to 
$150  million.
  Th e f utu re  deb t an d the unsettle d  sta te of the deregulation  proc es s  inCa lifor nia wer e  t h e 
 re as ons  g i ve n whe n M oody'sInvestorsSer vi ce recentlyc ha nged the c red it 
outlookfor 
  Sem pr a a n d SDG &Eto "n egativ e ."

 Sharehold er s  can't be happ y wi th S empra's stock pri c e, which fell fro m a 
h ig h  o f abo ut$28
  a sh ar e rig h t after th e 1 998 merger betwee n Enova and Pac ific E nt erp r ises,
whic hw as  loudly op pose d by cons umer a d vocates because  of th e m ark et c l ou ta m er g edco mpa n y
 would w ie ld , toa lo w o f  $16 .63  inApril . Sempra boug htback 36. 1 mil lion
sha re s at$20
 eachin  February and l ower ed the st ock  d ivi de nd to $1 a s har e f rom $1. 56 a 
s h are .T h e 
 stock closed Frid ay u p14 cents  at $2 0 .1 4o n the Ne wYor k St o c k Exc hang e .
  Baumacknow l ed ge d thatth e comp an y h aslagge d  inreturn  to shar ehold e rs, 
blaming t h at
  partly o n  a t ur n ingawa y by invest orsf romutil i ti esa nd ot her o ld - ec o nomy 
companies to Intern et an d other new-e conomy sto c k s .

  Sem praw an t s to be much m ore t han its ut i lities a nd ha s made s ome promi s i ng 
inro ads 
 int o u n r eg ulated areas, s uchas  energy  co mmodity  tr adi ng,  
t el ecommunic ations, po we r- pla nt bu i lding an dthe  s ale  of e l ectric ity a nd n at ur a l-g as to c on s u mers  a nd 
  b usi ne ssesin o t her  states , Mexico,  So u th A me ri ca andCanada, analy st s said.

 I n f act, S e m pra Ener gy Trading, which buysa nd sell s e lectr icit y, natura l gas, o ila nd coa l,
  e arned  m ore m oneyi n  t hefi rst quarte r - -$3  mill io n--t han inall of 1999. 
That sub sidiary's $40 
 mill i o nins ec o nd- qu a rte r earnings was pr imarily re sp o ns ible for S e mpr a' s
  bet ter-tha n-exp e cted in come forthe perio dof $ 1 1 0 m illion, or  55 cent s a 
dilu t ed sh a re , up  3 4% fro mthe  seco nd qua r ter  of l ast ye ar .

  A nalys tPaul Fre mont of Jefferies & Co. , whohas a  "b uy" ratin g o n  Se mpra, 
no testhat the
 tr adi ng co mpa n y inc omew il l b e  vola tile and thatt he  ot h e rsubsidiarie s rem ain u nkn o wn
  q uant ities.


 the_total closer_to 
$150 million.

 _The future_debt_and the_unsettled_state of the_deregulation process in_
California were the
 _reasons given when_Moody's_Investors Service recently changed the credit 
outlook for
  Sempra and SDG&E to "negative."

__Shareholders can't_be_happy_with Sempra's stock price, which_fell from a 
high of_about $28
_ a share right after the 1998 merger_between_Enova and Pacific_Enterprises, 
which was
  loudly opposed by consumer advocates_because of the market clout a_merged 
company
 _would_wield,_to a low of_$16.63 in April. Sempra bought back_36.1 million 
shares at $20
 _each in February and lowered the stock_dividend to $1 a share from_$1.56 a 
share. The
 _stock closed_Friday up 14 cents at_$20.14 on the_New York_Stock Exchange.

 _Baum acknowledged that the company has_lagged in return_to shareholders, 
blaming that
  partly_on_a turning away_by_investors_from utilities_and other old-economy_
companies_to
 _Internet_and other new-economy stocks.

  Sempra_wants_to be much more than its utilities_and has made some_promising_
inroads
  into unregulated_areas, such as energy commodity_trading, 
telecommunications,
  power-plant building and_the sale_of electricity_and natural-gas to 
consumers and
  businesses in other states, Mexico,_South America and Canada, analysts said.

_ In fact, Sempra_Energy Trading,_which_buys and sells_electricity,_natural 
gas,_oil and coal,
  earned more money_in the_first quarter--$3 million--than in all of_1999. 
That subsidiary's $40
__million in second-quarter earnings was primarily_responsible for Sempra's
  better-than-expected income_for the period of $110_million,_or_55 cents a 
diluted share,_up
  34% from the second_quarter of last_year.

  Analyst Paul Fremont of Jefferies_&_Co., who has a "buy" rating_on_Sempra, 
notes that the
  trading_company_income_will be volatile and that_the other subsidiaries 
remain unknown
 _quantities.

