Sempra Energy's takes a pragmatic approach to make money in utility and other energy markets in the US and around the world. In the US Sempra distributes natural gas to more than 7.2 million customer meters and electricity to 3.4 million customer meters through its Southern California Gas (SoCalGas) and San Diego Gas & Electric (SDG&E) utilities. Other reporting segments include Sempra US Gas & Power (natural gas and renewables) and Sempra International (Sempra Mexico and Sempra South American Utilities), which were formerly known as Sempra Global. Sempra Energy companies serve more than 31 million consumers worldwide.
The company has operation in the US, Chile, Peru, and Mexico.
Sempra Energy's California utilities ( SDG&E and ( SoCalGas) accounted for 70% of Sempra Energy's 2014 revenues. Other units include Sempra International (Sempra South American Utilities and Sempra Mexico) and Sempra U.S. Gas & Power (Sempra Renewables and Sempra Natural Gas). The company also develops regasification facilities through Sempra LNG.
Sempra U.S. Gas & Power is a leading developer of renewable energy and natural gas solutions, with a focus on zero- and low-emission fuels. Together with its affiliates and joint-venture partners, it y owns and operates 2,500 MW of generating capacity, fueled by the sun, the wind and low-emission natural gas. Sempra U.S. Gas & Power companies also operate natural gas storage facilities, pipelines and distribution utilities.
SDG&E provides safe and reliable energy service to 3.4 million consumers through 1.4 million electric meters and 868,000 natural gas meters in San Diego and southern Orange counties.
Sempra International develops, builds and operates energy infrastructure assets, and distributes energy in Latin America. In Mexico, the company operates IEnova, the first energy firm to be listed on the Mexican stock exchange and the second-largest energy company in the country. Sempra International also operates electric transmission and distribution utilities in Chile and Peru.
Sales and Marketing
Sempra Energy distributes electricity via distribution lines, transmission lines, overhead and underground lines. In the US Sempra Energy distributes natural gas and electricity to primarily residential customers through its SoCalGas and SDG&E utilities.
SDG&E provides electricity to a population of 3.5 million and natural gas to a population of 3.2 million.
Southern California Gas Company serve Residential, commercial, industrial, utility electric generation and wholesale customers. It covers a population of 21.4 million (5.9 million meters).
The company's net revenues increased by 5% in 2014.
SDG&E’s natural gas revenues increased by 3% while the cost of natural gas increased by 2%. The increase in revenues was primarily due to higher cost of natural gas sold, offset by lower volumes and increase in authorized revenues from 2014 attrition, offset by favorable impact from the retroactive application of the 2012 General Rate Case (GRC) decision.
SoCalGas’ natural gas revenues increased in 2014, as did the cost of natural gas. The revenue increase included a higher market price of natural gas purchased, offset by lower volumes, an increase in authorized revenues from 2014 attrition, and higher revenues from the advanced metering infrastructure project. These gains were offset by the favorable impact from the retroactive application of the 2012 GRC decision, and lower recovery of costs associated with California Public Utilities Commission-authorized refundable programs.
In 2014 Sempra Energy's net income increased by 16% due to low plant closure-related losses, and a decrease in income tax expenses.
Cash from operating activities increased by 21% in 2014.
The company pursues three disciplined growth platforms: U.S. utilities South American utilities and Mexican midstream, U.S. natural gas midstream, including LNG, and renewables.
Operating within these areas, Sempra Energy is focused on generating stable, predictable earnings and cash flows by investing in assets that are primarily regulated or contracted long-term. It is committed to build a new energy infrastructure that is contracted for the long term.
With the success of the 2014 launch of the Cameron LNG project (in Louisiana), Sempra Energy and its partners are considering adding two more liquefaction trains to the current three trains under development. Initial permitting work on the potential expansion already has begun. It is also exploring other LNG development opportunities in on the US Gulf Coast and in Mexico
The company is also responding to a California state mandate (and accompanying financial incentives) to increase the amount of energy generated by utilities from non-fossil fuel sources.
In 2014 Sempra U.S. Gas & Power and Consolidated Edison Development (ConEdison Development) agreed to codevelop five solar projects in Nevada and California. The projects include Sempra U.S. Gas & Power's 250-MW Copper Mountain Solar 3 project near Las Vegas, and Consolidated Edison Development's CED California Holdings, LLC portfolio: the 50-MW Alpaugh 50, 20-MW Alpaugh North and 20-MW White River 1 facilities in Tulare County, and the 20-MW Corcoran 1 facility in Kings County. The renewable power from all of the projects has been sold under long-term contracts.
Mergers and Acquisitions
In 2013 Sempra U.S. Gas & Power acquired the Broken Bow 2 wind project in Nebraska. When Broken Bow 2 is completed, Sempra U.S. Gas & Power will have joint-venture projects totaling more than 1,000 MW of wind generating capacity. Sempra U.S. Gas & Power also agreed to purchase 43 1.7-MW General Electric wind turbines to power the 75-MW wind farm. Located in Custer County, the wind farm will generate enough renewable power for 30,000 Nebraska homes.