June 18, 2001

Sempra Agrees to Sell Power Lines to California for $1 Billion

(Sacramento, California) Sempra Energy’s San Diego Gas & Electric, California’s third-largest electric utility, agreed to sell 1,800 miles of power lines to the state for $1 billion, an aide to Governor Gray Davis said.

Under the agreement, which requires state Legislature approval, the utility would absorb $750 million in power-buying losses rather than make customers pay for them, said Joseph Fichera, president of Saber Partners and an adviser to Davis.

–Daniel Taub in (Sacramento, California) (310) 770-1292 or dtaub@bloomberg.net, through the San Francisco newsroom

(415) 912-2980/dfr