Coal

Southern California Gas Co.’s customers get a charge out of self-generation incentive program


LOS ANGELES, Oct. 23, 2002 — Faith Plating and J. J. Mauget are the first two businesses in the Los Angeles area to receive money from a program that encourages the on-site generation of electricity.

Southern California Gas Co. (The Gas Company) will award up to $54 million in incentives over the next three years to its business customers through the state-wide Self-Generation Incentive Program. Launched last year by the California Public Utilities Commission (CPUC), the program pays qualifying businesses up to 50 percent of the costs of installing electricity generation systems.

Earlier this month, J. J. Mauget in Arcadia received a $135,509 incentive for installing a 30-kilowatt photovoltaic system. J. J. Mauget is the world’s leader and the pioneer in providing micro-injection products for trees, which is an environmentally safe way of protecting ornamental trees from insects, diseases and nutritional deficiencies.

Also this month, Faith Plating, the world’s largest plater of remanufactured chrome bumpers, received an incentive of several thousand dollars for installing four 30-kilowatt microturbines. Several models of microturbines now are commercially available, allowing medium-sized businesses to generate their own electricity with efficient, low-maintenance and environmentally friendly gas turbines.

“The Self-Generation Incentive Program makes the purchase and installation of eligible technologies more affordable than ever, which helps our customers become more energy-sufficient and self-reliant,” said Richard M. Morrow, vice president of customer services, major markets, for Sempra Energy Utilities — The Gas Company and San Diego Gas & Electric.

The Gas Company supports this program through marketing, customer assistance and other administration activities throughout its service territory, which covers almost all of Southern California.

The program offers the following incentives:

— $4.50 per watt (not to exceed half of the total project cost) for using photovoltaic, wind turbines and fuel cells operating on renewable fuel;

— $2.50 per watt (not to exceed 40 percent of the total project cost) for fuel cells operating on non-renewable fuels; and

— $1 per watt (not to exceed 30 percent of the total project cost) for microturbines and internal combustion engines.

Morrow estimated that The Gas Company’s participating customers will develop a total of 50 to 60 megawatts of baseload generation power — about the same capacity available during high-demand periods from a typical peaker plant.

For more information on the Self-Generation Incentive Program, customers can visit The Gas Company’s Web site at www.socalgas.com .

The Gas Company has been promoting the program through news releases, print and radio ads, e-mail notices, telemarketing and a dedicated toll-free number (1-866-DG-REBATE) staffed with technicians who provide real-time responses to customer questions.

The Gas Company is the nation’s largest natural gas distribution utility, serving 18 million consumers through 5.1 million meters. The company’s service territory encompasses 23,000 square miles in most of central and Southern California. The Gas Company is part of Sempra Energy Utilities, the umbrella for Sempra Energy’s regulated business units. Sempra Energy (NYSE: SRE) is a Fortune 500 energy services holding company based in San Diego.