TEXT-Fitch release on EnergySouth

(The following statement was released by the rating agency)

July 28 - Sempra Energy's (SRE.N: Quote, Profile, Research) announced purchase of EnergySouth, Inc. (ENSI, not rated by Fitch) has no ratings impact on SRE or its subsidiaries, according to Fitch Ratings.

Fitch expects SRE to use new parent-level debt to finance the acquisition. The transaction is expected to close by year-end 2008.

Fitch currently rates SRE as follows:

--IDR 'A';

--Rating Outlook Stable.

Adding the EnergySouth assets will not change SRE's operating risk profile.

The gas storage assets provide stable cash flows under long-term, fee-based contracts. The storage facilities are located on major pipelines that deliver to areas where gas demand is increasing, driven largely by increased electric utility usage.

Fitch expects SRE to fund in a ratings supportive manner the capital investment needed to increase the capacity of the storage assets. Cash flow from the gas LDC is considered stable and the operating risk is low. SRE's ratings are based on the stability and predictability of cash flows from its California operations, credit metrics consistent with the 'A' rating category and disciplined approach to investing and capital spending.