Official Says Sempra Is in Compliance

“Sempra Unit Pulls in Profit, and Scrutiny” [July 30] incorrectly and unfairly suggests that Sempra Energy’s affiliate companies share “insider” information with which they can “take advantage” of the energy market. Nothing could be further from the truth.

Direct comments from Michael Shames of the Utility Consumers’ Action Network, reprinted in the story, are scurrilous, irresponsible and potentially libelous.

On behalf of the management and employees of this firm--every one of whom annually takes an oath to conduct themselves to the very highest standards of legal and ethical conduct--I would like to set the record straight.

In 1996, the California Public Utilities Commission created affiliate-compliance rules to prevent utility customers from subsidizing unregulated companies and utility affiliates (unregulated companies with the same parent company as the utility) from having unfair advantage in California’s deregulated electricity market.

These rules are strictly enforced throughout Sempra Energy’s companies through a stand-alone Affiliate Compliance Department. In fact, since 1999, Southern California Gas Co. and San Diego Gas & Electric Co. have engaged independent auditors to verify that they are in compliance with these strict rules.

Each year the audits--which are filed with the PUC--have given the company a clean bill of health and documented that the Sempra Energy companies have made a “concerted effort to comply with all aspects of the affiliate rules,” according to a recent audit.

Your story blurred the lines between fact and opinion, and, in doing so, misled your readers.

William L. Reed

Chief regulatory officer

Sempra Energy

San Diego