Diego

Sempra Energy’s San Diego Gas and Electric Co. (SDG&E) and the California Independent System Operator (CAISO) jointly released a positive outlook for summer energy supplies even with the continued outage of the 2,200 MW San Onofre Nuclear Generating Station (Songs). Earlier in the spring there were concerns about strained natural gas supplies and other energy infrastructure due to the absence of Songs’ baseload power in Southern California (see Daily GPI, May 7). Besides bringing back in service two mothballed natural gas-fired generation units along the Southern California coast at Huntington Beach, SDG&E’s high-voltage Sunrise Powerlink transmission line is expected to be in service soon, as well as a 230kV transmission loop in southern Orange County, Barre-Del Amo and Barre-Ellis No. 2 lines. SDG&E and CAISO still characterized this summer as “challenging” from a power supply perspective, noting that if the region experiences a prolonged heat wave, calls for conservation will be inevitable. More than 283 MW of new generation capacity came online the second half of 2011, and CAISO expects another 923 MW to be added this year by July 1, but most of its if renewable-based wind and solar projects that are intermittent and require backup from gas-fired and hydroelectric sources.

San Diego-based Sempra Energy filled out its liquefied natural gas (LNG) dance card last week, announcing late Wednesday that is has inked a third and final commercial development agreement with a subsidiary of GDF Suez SA to develop the final liquefaction train at its proposed Cameron LNG export terminal in Hackberry, LA.

San Diego-based Sempra Energy filled out its liquefied natural gas (LNG) dance card, announcing late Wednesday that is has inked a third and final commercial development agreement with a subsidiary of GDF Suez SA to develop the final liquefaction train at Sempra’s proposed export facility at its Cameron LNG terminal in Hackberry, LA. With this third partner, Sempra officials said they are more than ready for the dance.

California regulators provided an option to smart meters — both gas and electric — for San Diego Gas and Electric Co. (SDG&E) and Southern California Edison Co. (SCE) customers last Thursday, mirroring action take earlier in the year by Pacific Gas and Electric Co. (PG&E) (see Daily GPI, Feb. 2). SCE customers who don’t want an advanced digital meter can keep their current meter or one that was at their location prior to the installation of a wireless smart meter. Similarly, SDG&E customers who do not want a smart gas or electric meter can choose to have the analog meters. SCE said it supported the decision by state regulators and will “respond quickly to customers choosing to opt out.” Separately, one of the state’s two large public sector utilities, the Sacramento Municipal Utility District, said it has nearly completed the installation of 600,000 smart meters and an automated electric metering infrastructure.

Sempra Energy CEO Debra Reed on Thursday told financial analysts at a meeting her company hosted in San Diego that shale gas and renewables will be at the center of Sempra’s focus in the next few years.

Given continuing historic low U.S. natural gas prices, San Diego-based Sempra Energy said Tuesday it has amended its 20-year contract for liquefied natural gas (LNG) shipments from the Tangguh project in Indonesia to allow BP Indonesia more flexibility to divert LNG shipments to other, higher-paying global markets, particularly those on the Pacific Rim.

San Diego, CA-based Royale Energy Inc., a publicly held exploration and production (E&P) independent with about 15 MMcf/d of gas production, mostly in Northern California, was the biggest bidder for Alaska North Slope shale oil plays offered last month in a state lease sale.

San Diego-based energy holding company Sempra Energy said all of its business units met or exceeded their financial objectives this year. As a result, Sempra said it expects to meet or exceed the higher end of its previously announced 2011 earnings-per-share guidance of $4-4.30. The guidance excluded a second quarter $1.14/share gain from South American utility acquisitions. On a generally accepted accounting principles basis Sempra’s previously announced guidance was $5.14-5.44/share, which the company also expects to meet or exceed. Sempra’s 4Q2011 and full-year 2011 results are scheduled to be announced Feb. 28.

In a 9 p.m. PST update Wednesday, affiliates Southern California Gas and San Diego Gas & Electric said projected receipts into their Southern System for Thursday’s gas day were expected to be sufficient to meet minimum requirements and therefore a Curtailment Watch was canceled.