Sempra Energy
 | |
| Public | |
| Traded as |
NYSE: SRE S&P 500 Component |
| Industry | Natural gas utility |
| Founded | 1998 |
| Headquarters | San Diego, United States |
Key people |
Debra L. Reed (Chairman and CEO) Mark A. Snell (President) |
Number of employees | 17,000 |
| Website |
www |
Sempra Energy is an American natural gas utilities holding company based in San Diego, California. It divides its interests into two broad categories: Sempra Utilities, including Pacific Enterprises/Southern California Gas Company and San Diego Gas & Electric; and Sempra Global, a holding company for businesses not subject to California utilities regulation, chiefly Sempra International and Sempra US Gas & Power.[1][2]
For 2014, Sempra Energy reported $11 billion in revenue and 17,000 employees, serving more than 32 million customers worldwide. It is the largest natural gas utility in the United States in terms of coverage area and population served, and is a major force in international natural gas markets.
History
Sempra Energy was created through the 1998 merger of Los Angeles-based Pacific Enterprises, the parent company of Southern California Gas, and Enova Corporation, the parent company of San Diego Gas & Electric.
Sempra was sued over claims it manipulated natural gas supplies and electricity contracts during the 2001 California electricity crisis. In 2006 the company agreed to pay $377 million to settle gas supply claims, and in 2010 another $410 million to settle claims on electricity price gouging, but has never admitted wrongdoing.[3]
'Sempra International', a subsidiary of Sempra Energy owns nearly 80% of the Peruvian listed Luz del Sur.[4] Luz del Sur (BVL: LUSURC1). Luz del Sur is one of the largest electricity distributors Peru's holding over 30% of the electricity distribution market.
Awards and Rankings
Sempra Energy ranked No. 281 on the 2013 list of Fortune 500 companies. Sempra ranked No.16 among gas and electric utilities.
Sempra Energy was named to the 2013 list of the “100 Best Corporate Citizens” by Corporate Responsibility Magazine for excellence in seven categories including: environmental stewardship; climate change; human rights; employee relations; financial performance; philanthropy; and corporate governance. Sempra moved up to 27th place after achieving a rank of 70th in 2012.
Sempra Energy earned a spot on Ethisphere’s 2013 World’s Most Ethical Companies’ list for leadership in promoting ethical business practices and initiatives. Sempra was one of four companies recognized in its industry.
Best Places to Work for LGBT Equality 2012
Sempra Energy was named one of the best places to work by the Human Rights Campaign and one of only four companies listed in the energy and utilities category. As the largest civil rights organization, Human Rights Campaign represents a force of more than one million members and supporters nationwide working to achieve equality for lesbian, gay, bisexual and transgender Americans.
2012 Prestigious Index Selections In 2012 Sempra Energy was named to:
Dow Jones Sustainability Index
Carbon Disclosure Project Leadership Index
Number 1 on Target Rock’s High Sustainability Index
An environmental disaster in the buffer zone of the UNESCO world heritage site of Machu Picchu
Contravening the spirit of the Peruvian anti-trust (anti-monopoly) law, Luz del Sur is currently trying to enter the Peruvian electricity generation market with its proposed mega hydropower project 'Santa Teresa II'. For more information on the anti-trust aspects of this case see Luz del Sur. The mega-project 'Santa Teresa II' is located in the highly protected Vilcanota Valley (zona de amortiguamiento = buffer zone) a few kilometres from UNESCO's world heritage site 'Machu Picchu' in de department of Cuzco. This buffer zone was created to enhance the protection of the area for its biodiversity and cultural importance. The alternative route to Machu Picchu: the 'Inca Jungle Trail' runs along the Vilcanota river through the town of Santa Teresa close to the town of Aguas Calientes, which is the gateway to Machu Picchu. The 'Inca Jungle Trail' enjoys increasing popularity partly because the conventional Inca Trail is being over-run with tourists.
The 'Santa Teresa II' hydropower project proposes diverting 105 cubic meters of water from the Vilcanota river through a 14 km tunnel that will run underneath organic coffee and fruit plantations.[5] All tunnel and underground excavation works have irrefutable draining effects, which impact the ground water levels drastically and may even lead to major changes in landscapes.[6]
The Vilcanota valley is home to over 20,000 people who mainly live from agriculture and tourism. During the dry season a 22 km long stretch of the Vilcanota river will be left with less than 5 cubic meters of water. No sewerage system exists for the population and up to 25,000 tourists p.a. other than the Vilcanota river. Leaving a mere 5 cubic meters of water in the river will turn the river into a cloaca with dire consequences for the flora, fauna and people living along the river or visiting the area.
The population living along the Vilcanota river and is fully aware that if ‘Santa Teresa II’ is built their livelihood will be lost. Since September 2012 the population of the Vilcanota valley has been strongly and formally opposing 'Santa Teresa II'.[7]
Nevertheless Luz del Sur and its CEO Mile Cacic are forging ahead with this project. A fierce media campaign has been started by the company, which blatantly denies, against all geophysical evidence, that a 14 km tunnel will have a disastrous environmental impact on the buffer zone of the UNESCO world heritage site of Machu Picchu.[8]
Subsidiaries
- San Diego Gas & Electric
- Southern California Gas Company
- Sempra International - Comprising Sempra South American Utilities and Sempra Mexico.[2]
- Sempra U.S. Gas & Power - Comprising Sempra Renewables and Sempra Natural Gas.[2]
Former Subsidiaries
The following subsidiaries have been reformed into Sempra International and Sempra U.S. Gas & Power:[2]
- Sempra Generation operates or owns interest in power stations in 5 U.S. states and in Mexico, as well as property for potential solar and wind electric generation.[9]
- Sempra Pipelines & Storage - owns natural gas storage facilities in Alabama and Louisiana and interests in two natural gas companies in Argentina, in Chilquinta Energía of Chile, and in Luz del Sur of Peru. It also owns 1858 miles of distribution pipelines, 216 miles of transmission pipelines, and 2 compressor stations in Mexico.[9]
- Sempra LNG - develops, owns and operates receipt terminals for importing liquified natural gas to the U.S., including the Energía Costa Azul LNG terminal in Baja California and the Cameron LNG terminal in Hackberry, Louisiana.[9]
- Sempra Commodities - Sempra's stake in a partnership formed on April 1, 2008 to market and trade natural gas, natural gas liquids, power, petroleum and petroleum products, coal, emissions, ethanol and base metals.[9] Royal Bank of Scotland Group sold its stake in RBS Sempra Commodities LLC to Noble Americas Gas and Power, as a condition of the UK Government's 74% stake in the Group on December 1, 2010.[10]
See also
References
- ↑ Sempra Energy 2009 Form 10-K, 2010-02-26
- ↑ 2.0 2.1 2.2 2.3 "10-Q: Sempra Energy". Marketwatch. The Wall Street Journal. Retrieved 2 July 2013.
- ↑ Associated Press (2010-04-28), "Sempra Energy to Pay $410 Million Settlement", New York Times
- ↑ "Luz del Sur, Peru". Sempra International. Retrieved 2013-08-31.
- ↑ "El Diario De Economía Y Negocios De Perú". Gestion.pe. Retrieved 2013-08-31.
- ↑ "tunnels and underground excavations (engineering) : Water control - Encyclopedia Britannica". Global.britannica.com. Retrieved 2013-08-31.
- ↑ http://www.larepublica.pe/15-06-2013/pobladores-de-santa-teresa-se-oponen-a-proyecto-energetico-de-luz-del-sur
- ↑ http://www.rpp.com.pe/2013-06-20-luz-del-sur-niega-construccion-de-tunel-cerca-a-machupicchu-noticia_606058.html
- ↑ 9.0 9.1 9.2 9.3 Sempra Energy 2009 Form 10-K, Exhibit 13.1: Financial Report, 2010-02-26
- ↑ "Darling hails Lloyds and RBS move", BBC News Online, 2009-11-03