Sempra Energy Global Enterprises' projects, including a new 600-megawatt power plant and a major transmission pipeline, are helping to fuel growth in Baja, California, Mexico. The Sempra Energy Global Enterprises group of businesses successfully navigated the difficulties of the energy industry in 2002 and produced solid results.   Donald E. Felsinger   Group President Sempra Energy Global Enterprises is implementing a critical part of Sempra Energy's strategy: to develop a broad energy footprint in key markets, with power plants, natural gas transmission pipelines, supply facilities, and energy products and services. Sempra Energy Trading Prospering through tight risk controls and geographic and product diversity In a year when many energy companies eliminated or significantly reduced their energy-trading operations because of financial or regulatory problems, Sempra Energy Trading maintained a consistently profitable operation and charted a stable course for the future. A leader in energy trading, the company gained additional market share as competitors exited the business. In 2002, Sempra Energy Trading completed the acquisition of London-based Enron Metals Limited, the leading metals trader on the London Metal Exchange, as well as associated metals concentrates and warehousing businesses. The group of acquired companies has been renamed Sempra Metals Group Ltd. Sempra Energy Trading differs from its industry peers by carefully managing its price and credit risk, and concentrating on shorter-dated transactions that convert into cash relatively quickly in a competitive market. The majority of Sempra Energy Trading's business originates from large wholesale energy customers that require risk-management services. The company has further stabilized its earnings base by cultivating a diverse product mix, including natural gas, power, oil and base metals. With business in 20 countries, Sempra Energy Trading also benefits from geographic diversity. Sempra Energy Resources Supplying clean, efficient, reliable power for North American markets Sempra Energy Resources is building natural gas-fired power plants near Phoenix, Ariz., Bakersfield, Calif., and Mexicali, Mexico. All are on schedule to begin operations in the summer of 2003. In October 2002, Sempra Energy Resources acquired the 305-megawatt, coal-fired Twin Oaks power plant in Bremond, Texas, from Texas-New Mexico Power Company. The facility, which utilizes "clean coal" technology, diversifies the fuel mix for Sempra Energy Resources' fleet of power plants. By the end of 2003, Sempra Energy Resources will have invested more than $1.5 billion in generating facilities, producing 2,660 megawatts. More than 80 percent of the peak-generating capability of these facilities already is hedged or under contract, providing more stable and predictable earnings and cash flow.

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