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Q&A "Unprecedented' Era Will Lead To Changes, Energy CEO Predicts.(A)

Investor's Business Daily

| March 04, 2003 | COPYRIGHT 2003 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: AMY REEVES

Sempra Energy is a conglomeration of six energy firms that seem to be right in the middle of the industry's hot issues.

The firm's two utilities -- Southern California Gas Co. and San Diego Gas & Electric -- have been major players in California's struggle with deregulation.

Other units are in the much-discussed fields of independent power production, outsourcing, commodities trading and international markets.

While taking hits from various crises in these markets, Sempra as a whole has maintained a steady financial course. Its 2002 earnings gained 6% from the prior year to $2.68 a share, despite a 22% revenue decline. The firm's stock trades as SRE near 23.

Sempra Chief Executive Stephen Baum recently spoke with IBD about the issues facing his company and the industry in general.

IBD: What's the outlook for integrated energy companies like Sempra this year?

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