Salt River Project Agrees to Buy 625 MW Block of Sempra U.S. Gas & Power's Arizona Power Plant

  Salt River Project Agrees to Buy 625 MW Block of Sempra U.S. Gas & Power's
                             Arizona Power Plant

PR Newswire

SAN DIEGO, Dec. 26, 2012

SAN DIEGO, Dec. 26, 2012 /PRNewswire/ --Sempra U.S. Gas & Power today
announced it has entered into a definitive agreement to sell one 625-megawatt
(MW) block of its 1,250 MW Mesquite Power natural gas-fired power plant to the
Salt River Project (SRP) Agricultural Improvement and Power District for $371
million.

The SRP Board of Directors approved a management proposal to acquire 100
percent ownership of the 625 MW block and a 50-percent undivided interest in
the infrastructure facilities shared by the two blocks at their November
meeting. The agreement is subject to approvals from the Federal Energy
Regulatory Commission and other regulatory agencies. The companies anticipate
receiving these approvals in the first quarter of 2013.

"This strategic sale comes at the right time for Sempra U.S. Gas and Poweras
we continue to reduce our exposure to the merchant power markets, while also
allowing us to put greater emphasis on growing our southeast natural gas
portfolio," said Jeffrey W. Martin, president and CEO of Sempra U.S. Gas &
Power. "This transaction will enable us to redeploy capital to expand our
growing presence in the natural gas sector."

"We studied the market very carefully and determined that this purchase would
provide an economic benefit to SRP and its customers," said SRP general
manager Mark Bonsall. "Load growth is relatively small right now, but when it
returns, this plant will position us well in the long term to meet our
customers' needs at a reasonable cost."

SRP, which is the largest supplier of raw water to the greater-Phoenix
metropolitan area, has acquired one of Mesquite Power's two 625 MW power
blocks. Each block is comprised of two gas turbines and a steam turbine. As
part of the transaction, SRP also will become the operator of both Mesquite
units.

Mesquite Power, which has been in operation since 2003 in Arlington, Ariz., is
among the nation's cleanest and most efficient gas-fired power plants. It was
the first power plant in Arizona to receivethe Voluntary Protection Programs'
award, the highest recognition for exemplary safety performance, in 2009. The
plant recently was awarded Voluntary Protection Programs recertification for
2012 to 2015.

About Salt River Project Agricultural Improvement and Power District

SRP is the largest provider of electricity to the greater Phoenix area,
serving more than 950,000 electric customers.

About Sempra U.S. Gas & Power

Sempra U.S. Gas & Power, LLC is a leading developer of renewable energy and
natural gas solutions. The company operates solar, wind and natural gas power
plants that generate enough electricity for nearly 1 million homes, along with
natural gas storage and pipelines and distribution utilities. Sempra U.S. Gas
& Power is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy
services holding company with 2011 revenues of $10 billion. The Sempra Energy
companies' nearly 17,500 employees serve about 31 million consumers
worldwide. For more information, visit www.SempraUSGP.com.

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This press release contains statements that are not historical fact and
constitute forward-looking statements within the meaning of the Private
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by words like "believes," "expects," "anticipates," "intends," "plans,"
"estimates," "may," "will," "would," "could," "should," "potential," "target,"
"outlook," "depends," "pursue" or similar expressions, or discussions of
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Forward-looking statements are not guarantees of performance. They involve
risks, uncertainties and assumptions. Future results may differ materially
from those expressed in the forward-looking statements. Forward-looking
statements are necessarily based upon various assumptions involving judgments
with respect to the future and other risks, including, among others: local,
regional, national and international economic, competitive, political,
legislative and regulatory conditions and developments; actions and the timing
of actions by the California Public Utilities Commission, California State
Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy,
Nuclear Regulatory Commission, California Energy Commission, California Air
Resources Board, and other regulatory, governmental and environmental bodies
in the United States and other countries where the company does business;
capital market conditions, including the availability of credit and the
liquidity of investments; inflation, interest and exchange rates; the impact
of benchmark interest rates, generally the U.S. Treasury bond and Moody's
A-rated utility bond yields, on the California utilities' cost of capital; the
timing and success of business development efforts and construction,
maintenance and capital projects, including risks inherent in the ability to
obtain, and the timing of the granting of, permits, licenses, certificates and
other authorizations; energy markets, including the timing and extent of
changes and volatility in commodity prices; the availability of electric
power, natural gas and liquefied natural gas, including disruptions caused by
failures in the North American transmission grid, pipeline explosions and
equipment failures; weather conditions, natural disasters, catastrophic
accidents, and conservation efforts; risks inherent in nuclear power
generation and radioactive materials storage, including catastrophic release
of such materials, the disallowance of the recovery of the investment in, or
operating costs of, the generation facility due to an extended outage, and
increased regulatory oversight; risks posed by decisions and actions of third
parties who control the operations of investments in which the company does
not have a controlling interest; wars, terrorist attacks and cyber security
threats; business, regulatory, environmental and legal decisions and
requirements; expropriation of assets by foreign governments and title and
other property disputes; the status of deregulation of retail natural gas and
electricity delivery; the inability or determination not to enter into
long-term supply and sales agreements or long-term firm capacity agreements;
the resolution of litigation; and other uncertainties, all of which are
difficult to predict and many of which are beyond the control of the company.
These risks and uncertainties are further discussed in the reports that Sempra
Energy has filed with the Securities and Exchange Commission. 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 at www.sempra.com.

These forward-looking statements speak only as of the date hereof, and the
company undertakes no obligation to update or revise these forecasts or
projections or other forward-looking statements, whether as a result of new
information, future events or otherwise.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same
companies as San Diego Gas & Electric (SDG&E) or Southern California Gas
Company (SoCalGas) and Sempra International, LLC and Sempra U.S. Gas & Power,
LLC are not regulated by the California Public Utilities Commission.Sempra
International's underlying entities include Sempra Mexico and Sempra South
American Utilities. Sempra U.S. Gas & Power's underlying entities include
Sempra Renewables and Sempra Natural Gas.

SOURCE Sempra U.S. Gas & Power

Website: http://www.SempraUSGP.com
Contact: Media, Art Larson, Sempra Energy, +1-877-340-8875,
arlarson@sempra.com, or Scott Harelson, Salt River Project, +1-602-236-2500,
Scott.Harelson@srpnet.com, or Financial, Victor Vilaplana, Sempra Energy,
+1-877-736-7727, investor@sempra.com