BALANCED GROWTH 2016 ANNUAL REPORT Sempra Energy | 2016 Annual Report 488 8th Avenue San Diego, CA 92101 sempra.com This report was printed on 10% recycled paper. © 2017 Sempra Energy. All trademarks belong to their respective owners. All rights reserved. 49973_CVR.indd i-iii 3/13/17 1:55 PM CORPORATE INFORMATION Transfer Agent News and Information Direct Common Stock American Stock Transfer & Trust Sempra Energy’s Annual Report on Investment Plan Company Form 10-K filed with the Securities Sempra Energy offers a Direct Common Stock Attn: Sempra Energy and Exchange Commission is Investment Plan as a simple, convenient and 6201 15th Avenue available to shareholders at no affordable way to invest in the company. Brooklyn, NY 11219 charge by writing to Shareholder Cash dividends from a participant’s account Telephone: 877-773-6772 Services. This information, as can be reinvested automatically in full or in Email: [email protected] well as our corporate governance part (but not less than 10 percent of each Hearing Impaired (TTY): guidelines, code of ethics and dividend) to purchase additional shares, or ABOUT SEMPRA 866-703-9077 or 718-921-8386 standing board committee charters, participants may choose to receive all or a Internet: Amstock.com are also available on the company’s portion of their cash dividends electronically Sempra Energy,® based in San Diego, is a Fortune 500 energy website at Sempra.com. or by check. Participation in the plan requires Shareholder Services an initial investment of as little as $500. The services holding company with 2016 revenues of more than Investors with general questions Investor Relations plan allows additional cash investments of a regarding Sempra Energy or Security analysts, portfolio minimum of $25 up to a maximum of $150,000 Southern California Gas Company managers and other members of the per calendar year. Brokerage commissions $10 billion. The Sempra Energy companies’ more than 16,000 securities should contact the financial community should contact: incurred in the purchase of shares will be paid company at: by Sempra Energy. The plan is offered only employees serve approximately 32 million consumers worldwide. Patrick Billings by the means of a prospectus, which can be Sempra Energy Director – Investor Relations obtained by calling the plan administrator, Shareholder Services Telephone: 619-696-2901 American Stock Transfer & Trust Company, 488 8th Avenue Fax: 619-696-1868 LLC, at 877-773-6772, or through the Internet San Diego, CA 92101 at Amstock.com. Telephone: 877-736-7727 Stock Exchange Listings Fax: 619-696-1868 Sempra Energy Common Stock: Sempra Energy’s Annual Report on Form 10-K Email: [email protected] Ticker Symbol: SRE filed with the Securities and Exchange Internet: Sempra.com Sempra Utilities Sempra Infrastructure New York Stock Exchange Commission, which includes as exhibits the certifications filed by Sempra Energy’s chief executive officer and chief financial officer under the Sarbanes-Oxley Act of 2002, is Southern California Gas Company Sempra Mexico available to shareholders at no charge by writing to the company’s Shareholder SoCalGas has the largest customer Sempra Mexico includes IEnova, Services Department. base of any U.S. natural gas one of the largest private energy Information Regarding Forward-Looking Statements distribution utility, providing safe, companies in Mexico. IEnova We make statements in this report that are not historical fact and constitute forward-looking statements within the meaning of the Private reliable and affordable service to develops, builds, operates and Securities Litigation Reform Act of 1995. Forward-looking statements are necessarily based upon assumptions with respect to the future, involve risks and uncertainties, and are not guarantees of performance. These forward-looking statements represent our estimates and assumptions only as 21.7 million consumers. invests in energy infrastructure of the filing date of our 2016 Annual Report on Form 10-K. We assume no obligation to update or revise any forward-looking statement as a result of in Mexico. new information, future events or other factors. San Diego Gas & Electric In this report, when we use words such as “believes,” “expects,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “contemplates,” “assumes,” “depends,” “should,” “could,” “would,” “will,” “confident,” “may,” “potential,” “possible,” “proposed,” “target,” “pursue,” “outlook,” Sempra LNG & Midstream “maintain,” or similar expressions, or when we discuss guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or SDG&E is an electric and natural intentions, we are making forward-looking statements. gas utility that provides safe, Sempra LNG & Midstream develops, Factors, among others, that could cause actual results and future actions to differ materially from those described in forward-looking statements include: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the California reliable and clean energy to 3.6 builds and invests in liquefied Public Utilities Commission, U.S. Department of Energy, California Division of Oil, Gas, and Geothermal Resources, Federal Energy Regulatory natural gas facilities and natural Commission, U.S. Environmental Protection Agency, Pipeline and Hazardous Materials Safety Administration, Los Angeles County Department million consumers in San Diego of Public Health, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which we and southern Orange Counties. gas pipelines and storage. operate; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners; the resolution of civil and criminal litigation and regulatory investigations; deviations from regulatory precedent or Sempra South American Utilities Sempra Renewables practice that result in a reallocation of benefits or burdens among shareholders and ratepayers; modifications of settlements; and delays in, or disallowance or denial of, regulatory agency authorizations to recover costs in rates from customers (including with respect to regulatory assets Sempra Renewables is a leading associated with the San Onofre Nuclear Generating Station facility and 2007 wildfires) or regulatory agency approval for projects required to The Sempra South American Utilities enhance safety and reliability; the availability of electric power, natural gas and liquefied natural gas, and natural gas pipeline and storage capacity, are Chilquinta Energía in Chile and U.S. developer of renewable energy. including disruptions caused by failures in the transmission grid, moratoriums on the withdrawal or injection of natural gas from or into storage facilities, and equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural Luz del Sur in Peru. Sempra South Together with its partners, the gas; and the impact on the value of our investment in natural gas storage and related assets from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for storage services; risks posed by actions of third parties who control the American Utilities invest in electric company owns, operates and has operations of our investments, and risks that our partners or counterparties will be unable or unwilling to fulfill their contractual commitments; generation and transmission to under development nearly 2,400 weather conditions, natural disasters, accidents, equipment failures, explosions, terrorist attacks and other events that disrupt our operations, damage our facilities and systems, cause the release of greenhouse gases, radioactive materials and harmful emissions, cause wildfires and provide energy service to more megawatts of renewable capacity. subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to the energy grid, storage and pipeline than 6.9 million consumers. infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers and employees; the ability to win competitively bid infrastructure projects against a number of strong and aggressive competitors; capital markets and economic conditions, including the availability of credit and the liquidity of our investments; fluctuations in inflation, interest and currency exchange rates and our ability to effectively hedge the risk of such fluctuations; changes in the tax code as a result of potential federal tax reform, such as the elimination of the deduction for interest and non-deductibility of all, or a portion of, the cost of imported materials, equipment and commodities; changes in foreign and domestic trade policies and laws, including border tariffs, revisions to favorable international trade agreements, and changes that make our exports less competitive or otherwise restrict our ability to export; expropriation of assets by foreign governments and