桑普拉能源 (SRE) 2002 Q2 法說會逐字稿

Good day everyone and welcome to the Sempra Energy 2nd Quarter earnings results conference call.

大家好，歡迎參加 Sempra Energy 第二季財報電話會議。

This call is being recorded. Today's presentation will be available for re-broadcast at 4:00 p.m. Eastern time today, running through July 30th, at midnight. You can access the replay at 1-719-457-0820. Again, the number is 1-719-457-0820 and enter the confirmation code 145622. That is 145622 on your telephone.

此通話正在錄音。今天的演示將於下午 4:00 重播。東部時間今天，一直持續到 7 月 30 日午夜。您可以撥打 1-719-457-0820 觀看重播。同樣，號碼為 1-719-457-0820，然後輸入確認碼 145622。您的電話號碼為 145622。

At this time for opening remarks and introductions, I would like to turn the call over to the Vice President of Investor Relations, Mr. Dennis Ariola. Please go ahead, Sir.

現在，我想將電話轉給投資者關係副總裁丹尼斯·阿里奧拉 (Dennis Ariola) 先生進行開幕致辭和介紹。請繼續，先生。

Thank you.

謝謝。

Good afternoon and thanks for joining us to discuss Sempra Energy's financial results for the 2nd Quarter of 2002. A live webcast of this teleconference and slide presentation is available at our website, at www.sempra.com under investor information and then presentations and conference calls. Additionally, you should have already received a copy of today's press release and slides. If you have not, please call Sheila at Christianson and Associates, 1-800-366-9831. She will fax you a copy immediately.

下午好，感謝您與我們一起討論 Sempra Energy 2002 年第二季的財務業績。本次電話會議和幻燈片演示的現場網路直播可在我們的網站 www.sempra.com 上的投資者資訊、演示和電話會議上觀看。此外，您應該已經收到了今天的新聞稿和幻燈片的副本。如果您還沒有，請致電 Christianson and Associates 的 Sheila，電話：1-800-366-9831。她會立即傳真給您一份副本。

With us today here in San Diego are several members of our senior management team including Steve Baum, Chairman, President, and Chief Executive Officer of Sempra Energy. Neal Schmale, Executive Vice President and Chief Financial Officer of Sempra Energy. Don Felsinger, Group President of Sempra Energy Global Enterprises. Ed Guiles, Group President of Sempra Energy Utilities And Frank Ault, our Senior Vice President and Controller of Sempra Energy.

今天，我們高階管理團隊的幾位成員齊聚聖地牙哥，包括 Sempra Energy 董事長、總裁兼執行長 Steve Baum。Neal Schmale，Sempra Energy 執行副總裁兼財務長。Don Felsinger，Sempra Energy Global Enterprises 集團總裁。Ed Guiles，Sempra 能源公用事業集團總裁還有 Frank Ault，我們的 Sempra Energy 資深副總裁兼財務長。

Turning to slide 2, we have our safe harbor statement.

轉向投影片 2，我們有安全港聲明。

Before handing the call over to Steve for the update, I'd like to remind you that this call contains forward-looking statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Reform Act of 1995. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions. Future results may differ materially from those expressed in the forward-looking statements. These risks, uncertainties and assumptions are described at the bottom of today's press release, and are further discussed in the reports filed with the Securities and Exchange Commission. With that, I'd like to turn the call over to Steve who will begin with slide 3.

在將電話轉交給史蒂夫以獲取最新資訊之前，我想提醒您，本次電話會議包含非歷史事實的前瞻性陳述，並構成 1995 年《私人證券改革法案》含義內的前瞻性陳述。前瞻性陳述並不保證業績。它們涉及風險、不確定性和假設。未來的結果可能與前瞻性陳述中所表達的結果有重大差異。這些風險、不確定性和假設在今天新聞稿的底部進行了描述，並在向美國證券交易委員會提交的報告中進行了進一步討論。接下來，我想將電話轉給 Steve，他將從投影片 3 開始。

Thank you, Dennis and thank you all for joining us.

謝謝丹尼斯，也謝謝大家加入我們。

In today's call, I want to spend some time going over our solid 2nd Quarter results. I also want to be sure you understand the focus of our management team, where we are taking this company and why we believe investors will eventually properly value Sempra's businesses on a consolidated basis.

在今天的電話會議中，我想花一些時間回顧我們第二季的穩健業績。我還想確保您了解我們管理團隊的重點，我們將把這家公司帶到何處，以及為什麼我們相信投資者最終會在綜合基礎上正確評估 Sempra 的業務。

Before getting into the details of the 2nd quarter, I want to emphasize the following points. First, we are executing our strategy successfully and we are convinced it is the right one for our shareholders. We also believe that value can be destroyed if companies constantly change their focus to satisfy market whims.

在詳細介紹第二季之前，我想強調以下幾點。首先，我們正在成功執行我們的策略，我們相信這對我們的股東來說是正確的。我們也認為，如果公司不斷改變重點以滿足市場的突發奇想，價值可能會被破壞。

Second, we are maintaining our guidance and believe that Sempra Energy will achieve $2.65 per share earnings this year, and $2.90 in 2003. These are realistic targets based upon the diversity of our businesses and our results year-to-date.

其次，我們維持我們的指導方針，並相信 Sempra Energy 今年的每股盈餘將達到 2.65 美元，2003 年將達到 2.90 美元。這些是基於我們業務的多樣性和今年迄今的業績的現實目標。

Third, Sempra has a strong financial foundation and the necessary capital resources to execute our strategic plan and to take advantage of opportunities in the current marketplace. Our recent announcement to acquire a coal fire generation plant in Texas is evidence of this flexibility.

第三，Sempra 擁有強大的財務基礎和必要的資本資源來執行我們的策略計劃並利用當前市場的機會。我們最近宣布收購德州的一家燃煤發電廠就是這種彈性的證明。

Fourth, we are committed to our strong investment-grade credit ratings and you will see our solid balance sheet continue to strengthen over the next several years.

第四，我們致力於維持強大的投資等級信用評級，您將看到我們穩健的資產負債表在未來幾年繼續加強。

Lastly, we believe that our trading company is different from others in the industry. We are committed to this business and will remain a major player in the sector. Our model is a low-risk, highly liquid business with strong controls. We have the right people in compensation plans in place that motivate profits, and not just revenues and volumes to boost our size. We believe that investors will eventually recognize these differences and that Sempra Energy trading adds value to our company.

最後，我們相信我們的貿易公司與業內其他公司不同。我們致力於這項業務，並將繼續成為該行業的主要參與者。我們的模式是低風險、高流動性且具有強大控制力的業務。我們在薪酬計劃中配備了合適的人員來激勵利潤，而不僅僅是收入和銷售量來擴大我們的規模。我們相信投資者最終會認識到這些差異，而 Sempra Energy 交易將為我們公司增加價值。

Now let's turn to slide 4 in our 2nd Quarter results.

現在讓我們轉向第二季業績中的幻燈片 4。

Earlier this morning, Sempra Energy reported net income of $147 million for the 2nd Quarter of 2002 or $71 cents per diluted share compared with $137 million or $66 cents per diluted share for the 2nd Quarter of 2001. I'm pleased with our solid performance, especially given the current energy trading environment. It demonstrates that we are executing our strategy and the importance of the diversified business. Year to date, we've recorded $1.42 in earnings per share and based upon these results, we are confirming our $2.65 earnings per share target for the year.

今天早些時候，Sempra Energy 公佈2002 年第二季淨利潤為1.47 億美元，即稀釋後每股收益71 美分，而2001 年第二季淨利潤為1.37 億美元，即稀釋後每股收益66 美分。我對我們的穩健表現感到滿意，特別是考慮到當前的能源交易環境。這表明我們正在執行我們的策略以及多元化業務的重要性。今年迄今為止，我們的每股收益為 1.42 美元，根據這些結果，我們確認今年每股收益 2.65 美元的目標。

Let's now turn to the individual business segments starting with slide 5.

現在讓我們從投影片 5 開始討論各個業務部門。

Our California utilities continue to provide a solid base of earnings and cash flow for Sempra. For the 2nd Quarter of 2002, Sempra Energy utilities contributed $102 million in net income compared to $84 million for the same period last year. SoCalGas earned $51 million in this last quarter, compared to $47 million for the 2nd Quarter of 2001. The higher earnings were driven by lower interest expense.

我們的加州公用事業公司繼續為 Sempra 提供堅實的盈利和現金流基礎。2002 年第二季度，Sempra Energy 公用事業公司貢獻了 1.02 億美元的淨利潤，而去年同期為 8,400 萬美元。SoCalGas 上一季的營收為 5,100 萬美元，而 2001 年第二季為 4,700 萬美元。較高的收益是由較低的利息支出所推動的。

SDG&E had earnings of $51 million in the 2nd quarter, compared to $37 million in the same quarter of 2001. The positive variance this quarter was driven primarily a by favorable resolution of tax issues from prior periods that contributed $25 million after-tax, and which was partially offset by higher depreciation expense. Additionally, the 2nd Quarter of 2001 included $7 million in PBR awards, which are not included in 2002 results. The timing of these awards varies from quarter-to-quarter.

SDG&E 第二季的利潤為 5,100 萬美元，而 2001 年同一季度的利潤為 3,700 萬美元。本季的正差異主要是由於前期稅務問題得到有利解決，稅後貢獻了 2500 萬美元，但部分被較高的折舊費用所抵消。此外，2001 年第二季包括 700 萬美元的 PBR 獎勵，該金額未包含在 2002 年的業績中。這些獎項的頒發時間因季度而異。

I would like to spend a moment on regulatory issues. Recently, the California legislature passed AB 57 which should provide clarity on the rules surrounding electric procurement. This legislation includes up-front approval of utility procurement plans and eliminates after-the-fact reasonableness reviews, as long as the utility adheres to the approved plan.

我想花點時間談談監管問題。最近，加州立法機構通過了 AB 57，該法案應明確有關電力採購的規則。該立法包括對公用事業採購計劃的預先批准，並消除事後合理性審查，只要公用事業遵守批准的計劃即可。

The legislation, which includes a small appropriations item, will be sent to the Governor once the state budget is approved. We believe this legislation evidence that state officials are serious about dealing with California's energy problems and that these actions will further reduce regulatory uncertainty.

一旦國家預算獲得批准，該立法將提交給州長，其中包括一項小額撥款項目。我們相信這項立法證明州官員認真對待加州的能源問題，而這些行動將進一步減少監管的不確定性。

Additionally, SDG&E has filed a new cost of capital request, which,if granted, would increase the authorized ROE from 10.6% to 12.5%.

此外，SDG&E 已提交新的資本成本請求，如果獲得批准，授權 ROE 將從 10.6% 增加到 12.5%。

We are also continuing our work on the cost of service cases for both of the utilities. We will submit filings by the end of this year. The approved rates are expected to be effective at the beginning of 2004.

我們也將繼續研究兩家公用事業公司的服務案例成本。我們將在今年年底前提交文件。核准的費率預計將於 2004 年初生效。

At SDG&E, the AB 265, the under collection balance, continues to be reduced as projected and is now down to $314 million. The balance is expected to be completely repaid by 2005.

在 SDG&E，AB 265（收款餘額）繼續如預期減少，目前已降至 3.14 億美元。預計到 2005 年，餘額將全部償還。

Focusing on capital expenditures, the Sempra utilities invested $325 million in the first half of 2002, which is consistent with the plan we presented at our May analyst conference.

以資本支出為重點，Sempra 公用事業公司在 2002 年上半年投資了 3.25 億美元，這與我們在 5 月分析師會議上提出的計劃是一致的。

Now please turn to slide 6 and I will cover the results of Sempra Energy trading.

現在請翻到投影片 6，我將介紹 Sempra Energy 的交易結果。

In the 2nd Quarter, trading earned $21 million, compared to $69 million in 2001. Now, I'm pleased to report that trading earned $63 million in the first six months of the year.

第二季度，交易收入為 2,100 萬美元，而 2001 年為 6,900 萬美元。現在，我很高興地報告今年前六個月的交易收入為 6300 萬美元。

Our European and Asian businesses continue to perform well with earnings basically flat with last year. The reduced earnings for the quarter were primarily related to lower prices and lower volatility in the U.S. natural gas and power markets. We're continuing to rebuild the recently-acquired metals businesses and expect them to generate $20 to $25 million annually.

我們的歐洲和亞洲業務持續表現良好，獲利與去年基本持平。本季收益減少主要與美國天然氣和電力市場價格下跌和波動性降低有關。我們正在繼續重建最近收購的金屬業務，預計它們每年可創收 2,000 至 2,500 萬美元。

I want to spend a moment and tell you why we are different from other energy trading companies. First, we run a low-price risk business. Take a look at our $5.4 million bar for the quarter. The level of risk, as measured by bar, has remained in the $5 to $7 million range since we began this business.

我想花點時間告訴您為什麼我們與其他能源貿易公司不同。首先，我們經營低價風險業務。看看我們本季的 540 萬美元吧。自從我們開始這項業務以來，以金條衡量的風險水準一直保持在 500 至 700 萬美元的範圍內。

Second, we are focused on shorter data transactions. This provides us with pricing transparency and liquidity. As of June 30th, over 83% of our portfolio converts into cash within two years.

其次，我們關注較短的數據交易。這為我們提供了定價透明度和流動性。截至 6 月 30 日，我們超過 83% 的投資組合在兩年內轉化為現金。

Third, we have a diversified business. Both by product line, and geography. We are not overly dependent on any one product or market. We now have four major product groups in power, natural gas, crude oil, and metals. We're continuing to expand our business outside of the U.S. in Canada, Europe and Asia.

第三，我們的業務多元化。無論是按產品線還是地理位置。我們不會過度依賴任何一種產品或市場。我們現在擁有電力、天然氣、原油和金屬四大產品組。我們正在繼續將業務擴展到美國以外的加拿大、歐洲和亞洲。

Fourth, we closely managed the credit quality of our portfolio. Credit risk is as important as operational risk.

第四，嚴密管理投資組合信用品質。信用風險與操作風險同樣重要。

Fifth, our trading company has no long asset position to manage on a daily basis. Unlike most energy companies with trading operations, we report the trading results separately from our generation results and this provides transparency for our shareholders to understand our business.

第五，我們的貿易公司沒有需要日常管理的多頭資產部位。與大多數從事交易業務的能源公司不同，我們將交易結果與發電結果分開報告，這為我們的股東了解我們的業務提供了透明度。

Lastly, another reason we're different is that we have the best people in the business. Our people are experienced, focused, and compensated to run this business properly and prudently. We do not execute trades that we do not understand or can't get out of, if markets change unfavorably.

最後，我們與眾不同的另一個原因是我們擁有業界最優秀的人才。我們的員工經驗豐富、專注且報酬豐厚，能夠正確、謹慎地經營這項業務。如果市場發生不利變化，我們不會執行我們不理解或無法退出的交易。

We believe these factors differentiate our trading company from other energy marketing companies and that investors should value these differences.

我們相信這些因素使我們的貿易公司有別於其他能源行銷公司，投資人應該重視這些差異。

In May, we provided an earnings outlook for trading of $150 to $170 million for 2002. The current energy market may make it difficult for to us meet the high end of that range. Based upon the first half performance, I still believe we can earn $150 million this year. We will need to see an increase in volatility and continued improvement from our European gas, power and metals businesses in the second half of the year to hit these numbers, but given the performance of our other business units, we're confirming our guidance of $2.65 in earnings per share for 2002.

5 月份，我們對 2002 年的交易收益預期為 150 至 1.7 億美元。目前的能源市場可能使我們難以達到該範圍的高端。根據上半年的表現，我仍然相信今年我們可以賺1.5億美元。我們需要看到下半年歐洲天然氣、電力和金屬業務的波動性增加和持續改善才能達到這些數字，但考慮到我們其他業務部門的表現，我們正在確認我們的指導2002 年每股收益為 2.65 美元。

Now I'd like to turn to slide 7 and talk about our generation business.

現在我想轉向第七張投影片，談談我們的發電業務。

Sempra Energy Resources had a strong quarter as we began delivering power to the California Department of Water Resources, or CDWR, in April. We earned $34 million this quarter compared to a $9 million loss in the same quarter in 2001. Last year's quarter included our subsidized sales of power to CDWR and higher development expenses. We are on track to meet our $60 million earnings target for our generation business this year. Under our 10-year contract with the CDWR, we're currently delivering 450 megawatts of on-peak power and 150 megawatts of off-peak and are focused on helping the State of California overcome its long-term energy problems. CDWR is continuing to receive and pay for the energy and Sempra Energy resources is living up to its obligation under the contract.

Sempra Energy Resources 在四月開始向加州水資源部 (CDWR) 供電，該季度表現強勁。本季我們獲利 3,400 萬美元，而 2001 年同一季度我們虧損 900 萬美元。去年季度包括我們對 CDWR 的電力銷售補貼和更高的開發費用。我們預計今年將發電業務實現 6,000 萬美元的獲利目標。根據我們與 CDWR 簽訂的 10 年合約，我們目前提供 450 兆瓦的高峰電力和 150 兆瓦的非高峰電力，並致力於幫助加州克服其長期能源問題。CDWR 繼續接收和支付能源，Sempra Energy 資源正在履行合約規定的義務。

We realize that certain representatives from the State of California, including the Attorney General's office, have alleged otherwise. That's why on May 28th, we filed for a declaratory judgment from the state's superior court. The contract is clear on what our obligations are. There was no surprise to us when CDWR filed its cross complaint on July 2nd. We will soon respond to the cross complaint. The facts will show that Sempra, and its employees, acted honestly and ethicly during the negotiation process. We will continue to perform under the contract and defend our rights vigorously. The timetable is uncertain, but will probably take at least six months.

我們意識到，加州的某些代表，包括總檢察長辦公室，提出了相反的指控。這就是為什麼我們在 5 月 28 日向州高等法院申請了宣告性判決。合約明確規定了我們的義務。當 CDWR 於 7 月 2 日提出交叉投訴時，我們並不感到驚訝。我們將很快對交叉投訴做出回應。事實將表明，Sempra 及其員工在談判過程中表現得誠實且符合道德規範。我們將繼續按照合約履行，並積極維護自身權利。時間表尚不確定，但可能至少需要六個月。

On a parallel track, we're continuing to participate in the FERC, that is the Federal Energy Regulatory Commission, sponsored settlement discussions with the CDWR and the Public Utilities Commission and the Electric Oversight Board. The judge has ordered us not to disclose any of the details of these discussions, but we continue to believe there are ways to modify the agreements for the benefits of all parties. We encourage the CDWR and the governor's team to focus on a win-win outcome.

同時，我們將繼續參與 FERC（即聯邦能源監管委員會），與 CDWR、公用事業委員會和電力監督委員會發起和解討論。法官命令我們不要透露這些討論的任何細節，但我們仍然相信有辦法修改協議，以符合各方的利益。我們鼓勵 CDWR 和州長團隊注重雙贏。

As we reported at the May analyst conference, our generation construction is on schedule. By the end of this year, we will have invested over $1 billion in four new plants and will have completed construction of 2,135 megawatts of new power by the end of 2003. Our total investment in these new energy projects will be nearly $1.3 billion.

正如我們在五月分析師會議上報導的那樣，我們的發電建設正在按計劃進行。今年底，我們將投資超過10億美元興建四座新電廠，到2003年底將完成2,135兆瓦新發電量的興建。我們這些新能源項目的總投資將接近13億美元。

In June, we announced an agreement to acquire a 305 megawatt coal fired power plant near Bremond,Texas for $120 million. This acquisition is scheduled to close in the 3rd Quarter. We think this is an opportune addition to our generation business. It will be a positive earnings contributor this year.

6 月，我們宣布達成協議，以 1.2 億美元收購德州布雷蒙德附近的一座 305 兆瓦燃煤發電廠。此次收購預計於第三季完成。我們認為這是對我們發電業務的一個適當補充。這將為今年的獲利做出積極貢獻。

I wanted to discuss why we made this investment at this time. First, it's a low-cost plant.

我想討論一下我們為什麼在這個時候進行這項投資。首先，它是一個低成本工廠。

Second, we have a five-year off take contract with a credit worthy counterparty for 100% of the output. We expect an approximately 15% unlevered IRR from this acquisition, and the five-year contract provides sufficient cash flow to return over 50% of our investment.

其次，我們與信譽良好的交易對手簽訂了為期五年的承購合同，獲得 100% 的產量。我們預計此次收購的無槓桿 IRR 約為 15%，並且五年合約提供了足夠的現金流來回報我們超過 50% 的投資。

We will continue to evaluate other opportunities to buy assets in the market. We will not change our disciplined investment philosophy.

我們將繼續評估市場上購買資產的其他機會。我們不會改變嚴謹的投資理念。

I would now like to turn to Sempra Energy international on slide 8.

我現在想談談幻燈片 8 上的 Sempra Energy International。

International reported 2nd Quarter earnings of $9 million compared to $14 million in the same quarter of last year. Results were impacted this quarter by lower earnings in Argentina, Mexico, and Peru. Year to date, however, we are on track to meet our net income target from international of $35 million.

國際報告第二季度收益為 900 萬美元，而去年同期為 1,400 萬美元。本季業績受到阿根廷、墨西哥和秘魯收入下降的影響。然而，今年迄今為止，我們預計將實現 3,500 萬美元的國際淨利潤目標。

In the 2nd Quarter, we recorded $34 million to other comprehensive income on the balance sheet due to the Argentinian devaluation and our net investment in that country is now approximately $97 million. In early September, we will commence the arbitration process with the Argentine government, under the bilateral investment treaty. We continue to believe that our claims against the Argentinian government are strong and that we will eventually recover, at least, our original investment.

在第二季度，由於阿根廷貨幣貶值，我們在資產負債表上的其他綜合收益中記錄了 3,400 萬美元，而我們在該國的淨投資目前約為 9,700 萬美元。九月初，我們將根據雙邊投資條約與阿根廷政府啟動仲裁程序。我們仍然相信，我們對阿根廷政府的索賠是強有力的，我們最終將至少收回我們最初的投資。

Closer to home, international will begin filling the Baja-Norte pipeline in Mexico with natural gas in August, and begin operations by September. Sempra Energy's total investment in the pipeline will be approximately $130 million and we will have completed it under our original budget and faster than planned.

言歸正傳，國際石油公司將於 8 月開始向墨西哥的 Baja-Norte 管道注入天然氣，並於 9 月開始營運。Sempra Energy對該管道的總投資約為1.3億美元，我們將在最初的預算內完成它，並且比計劃更快。

On the L&G liquified natural gas front, we have a memorandum of understanding with Pacific L&G to bring liquified natural gas from Bolivia to Baja, California and Mexico. We continue to work with CMS Energy as an operational partner for the L&G terminal and Sempra Energy International is prepared to provide all the necessary equity financing for the project if CMS chooses not to participate as an equity partner.

在 L&G 液化天然氣方面，我們與 Pacific L&G 簽署了一份諒解備忘錄，將液化天然氣從玻利維亞輸送到下加利福尼亞州和墨西哥。我們將繼續與 CMS Energy 作為 L&G 終端的營運合作夥伴合作，如果 CMS 選擇不作為股權合作夥伴參與，Sempra Energy International 準備為該專案提供所有必要的股權融資。

I would like to spend a moment on slide 9.

我想花一點時間討論投影片 9。

I will talk about our success with Sempra Energy Solutions. For the quarter, Solutions generated $5 million in earnings compared to $2 million in 2001. We have continued to expand our base of commercial and industrial customers in the United States and now have approximately 1000 megawatts of power for those customers under contract.

我將談談我們在 Sempra Energy Solutions 方面的成功。該季度，Solutions 的利潤為 500 萬美元，而 2001 年為 200 萬美元。我們繼續擴大在美國的商業和工業客戶群，現在為這些合約客戶提供了約 1000 兆瓦的電力。

I believe the success we're experiencing at Solutions is related to several factors, including a focused customer service approach and a strong management team. Sempra's commitment to the business and our strong financial position. add to the sustainability of this growth and give customers comfort that we're here for the long-term.

我相信我們在 Solutions 的成功與幾個因素有關，包括專注的客戶服務方法和強大的管理團隊。Sempra 對業務的承諾以及我們強大的財務狀況。增加這種成長的可持續性，並讓客戶放心，我們將長期存在。

The other category within global enterprises contains corporate expenses related to the group and other smaller discontinued businesses, expenses related to these activities were reduced from $12 million in 2001, to $8 million this quarter.

全球企業中的另一類包括與集團和其他較小的停業業務相關的公司費用，與這些活動相關的費用從 2001 年的 1,200 萬美元減少到本季的 800 萬美元。

Apparent and other expenses are up this quarter to $16 million compared to $11 million in 2001. The increase is primarily related to higher interest expense relating to the equity units which we offered a little while ago.

本季表觀費用和其他費用增加至 1,600 萬美元，而 2001 年為 1,100 萬美元。這一增長主要與我們不久前發行的股權單位相關的利息費用增加有關。

As we've discussed before, Sempra is committed to maintaining a clean and strong balance sheet.

正如我們之前討論過的，Sempra 致力於維持乾淨、強勁的資產負債表。

I invite your attention to slide 11.

我請您注意投影片 11。

We are focused on maintaining our strong investment-grade credit ratings. These ratings are helping to differentiate Sempra in the market today when customers are looking for strong and credit worthy counterparts. That's why we decided to increase our equity units offering in April from $450 million to $600 million. We currently have over $2.6 billion in cash and available credit lines to help fund our capital programs and to take advantage of timely opportunities in the markets.

我們致力於維持強大的投資等級信用評等。當客戶正在尋找實力雄厚且信譽良好的同行時，這些評級有助於 Sempra 在當今市場中脫穎而出。這就是為什麼我們決定將 4 月的股本發行從 4.5 億美元增加到 6 億美元。我們目前擁有超過 26 億美元的現金和可用信貸額度，以幫助為我們的資本計劃提供資金並及時利用市場機會。

Unlike other companies in our sector, we are not under pressure to sell assets or raise additional equity in order to maintain our credit ratings. Our capital program remains unchanged. For the period 2002 to 2006, we will invest an average of $1.4 to $1.5 billion annually. As you can see on table "D" in our press release, we're on target for our capital expenditure plan this year.

與我們行業的其他公司不同，我們沒有面臨出售資產或籌集額外股權​​以維持信用評級的壓力。我們的資本計劃保持不變。2002年至2006年期間，我們每年平均投資1.4至15億美元。正如您在我們的新聞稿中的表格“D”中看到的，我們今年的資本支出計劃達到了目標。

In conclusion, slide 12, I would like to re-emphasize again that our strategy has not changed. We are focused on efficiently managing our two strong utilities, and in continuing to grow our global enterprises businesses. We will continue to control the things within our power and that means generating results and maintaining a strong balance sheet with investment grade credit ratings.

總之，在投影片 12 中，我想再次強調我們的策略沒有改變。我們專注於有效管理我們兩家強大的公用事業公司，並繼續發展我們的全球企業業務。我們將繼續控制我們權力範圍內的事情，這意味著產生成果並保持強勁的資產負債表和投資等級信用評級。

We can't control how the market will react on a day-to-day basis and how negative news within our sector may impact Sempr'a stock price in the short-term. Based on our results year-to-date, we are confirming our 2002 EPS guidance of $2.65 and 2003 target of $2.90.

我們無法控制市場的日常反應以及我們行業內的負面消息如何在短期內影響 Sempr'a 股價。根據我們今年迄今的業績，我們確認 2002 年每股收益指引為 2.65 美元，2003 年目標為 2.90 美元。

I believe that over time, as we continue to deliver results as we have since 1998, the market will recognize that Sempra Energy is a company that does what it says and this recognition will ultimately result in a stock price that more accurately reflects our true value.

我相信，隨著時間的推移，隨著我們繼續交付自1998 年以來的業績，市場將認識到Sempra Energy 是一家言出必行的公司，這種認可最終將導致股價更準確地反映我們的真實價值。

And now I will open up the call for questions.

現在我將開始提問。

Thank you, gentlemen. Today's question and answer session will be conducted electronically. If you would like to ask a question at this time, you may do so by pressing the star key followed by the digit 1 on your touch-tone phone. Once again, to ask a question, please press star 1 on your touch-tone phone.

謝謝你們，先生們。今天的問答環節將以電子方式進行。如果此時您想提問，可以按按鍵式電話上的星號鍵，然後按數字 1。再次，要提問，請按按鍵式電話上的星號 1。

And we will pause for just a moment to assemble our roster.

我們將暫停片刻來集合我們的名單。

And we will take our first question from Mike Heim with AG Edwards.

我們將回答 Mike Heim 和 AG Edwards 提出的第一個問題。

A couple of questions. One, you talked about no incentive booking. Am I understanding things right that there were no performance incentives booked this quarter?

有幾個問題。第一，您談到沒有獎勵預訂。我是否理解正確，本季沒有預訂績效獎勵？

Mike, no, no incentives. The PDR, you're talking about performance-based mechanisms?

麥克，不，沒有激勵。 PDR，您是在談論基於績效的機制嗎？

Yes.

是的。

We have a pipeline of those things, but the commission acts irregularly, not on a particular schedule to approve them. That was one of the differences in the quarter for SDG&E. But we have in SDG&E, approximately 20-something million in awards that we would expect to receive either later this year or next year, the timing of which is controlled by the commission.

我們有一系列這些事情，但委員會的行動不規律，沒有按照特定的時間表來批准它們。這是 SDG&E 本季的差異之一。但在 SDG&E 中，我們預計將在今年稍後或明年獲得約 20 萬多美元的獎勵，具體時間由委員會控制。

Okay. On the gain from the tax resolution, can you just give us a little background on what the issues were there, a little quick 101?

好的。關於稅收決議的收益，您能否簡單地向我們介紹一下存在的問題101？

Yeah, there were four years in question and we are pretty vigorous in our contesting with the IRS about disputed items and basically we could expect, or you could expect, to see periodic additions to income from our diligence with respect to our tax returns. But the -- maybe it would be better to have Frank Ault give you the exact details, as our controller of exactly what was contained in those settlements. Go ahead, Frank.

是的，有四年的時間，我們非常積極地與國稅局就有爭議的項目進行爭論，基本上我們可以預期，或者你可以預期，我們的納稅申報表的盡職調查會定期增加收入。但是，也許讓弗蘭克·奧爾特​​（Frank Ault）向您提供確切的細節會更好，因為我們負責這些和解中所包含的內容。繼續吧，弗蘭克。

There really are two main things. First of all, we settled the tax years 1994 through 1997, so those four years now are behind us. Also, within those four we addressed the issue of the costs related to the merger of Pacific Enterprises and the Nova Corporation and we actually covered that item into 1998, the year of the merger. So, we have resolved all of those costs and through the process, with the Internal Revenue Service, had a very favorable outcome of the treatment of those costs.

確實有兩件事。首先，我們結算了 1994 年至 1997 年的納稅年度，所以這四年已經過去了。此外，在這四項中，我們解決了與 Pacific Enterprises 和 Nova Corporation 合併相關的成本問題，我們實際上將該專案涵蓋了 1998 年，即合併年。因此，我們已經解決了所有這些成本，並且透過這個過程，與國稅局一起，在處理這些成本方面取得了非常有利的結果。

So, the original issue was what, mainly related to the merger or -- I'm still not understanding what the original issue is?

那麼，最初的問題是什麼，主要與合併有關，或者──我仍然不明白最初的問題是什麼？

There were a whole a series of issues. We take aggressive positions in our tax return filings, so some of it dealt with the issue of what we call repair allowance, that is, costs that are capitalizable, but are permitted to the expense for tax purposes. We also had the issues of the merger costs, which were around $100 million or so, as to whether they were expensible or capitalizable, either as a temporary timing difference, or even as a permanent capitalized item.

出現了一系列的問題。我們在報稅表中採取積極的態度，因此其中一些涉及我們所謂的維修津貼的問題，即可資本化的成本，但出於稅收目的允許計入費用。我們也遇到了合併成本的問題，大約為 1 億美元左右，關於它們是可支出的還是可資本化的，無論是作為暫時的時間差異，還是作為永久資本化項目。

Are there other such issues that are still in dispute?

是否還有其他此類問題仍有爭議？

Not for those particular years that we've closed out, but for every year that we file a tax return, we certainly have issues with the service. They have a very diligent team that comes in and looks very hard at the books. We take aggressive positions and we would expect that each of those years, if closed out, we'll have some difference that is different that what we had booked.

不是對於我們已經關閉的那些特定年份，而是對於我們提交納稅申報表的每一年，我們的服務肯定存在問題。他們有一支非常勤奮的團隊，他們非常認真地研究帳本。我們採取激進的立場，我們預計每年，如果結束的話，我們都會有一些與我們預訂的不同的差異。

And I take it that gain explains the drop in the tax rate?

我認為收益可以解釋稅率的下降嗎？

That's correct.

這是正確的。

Okay. One question on the trading. You guys did a great job escaping Enron-type of credit exposure, but now we're talking about issues where there's many parties potentially at risk. Can you give us any assurance that this is not a bigger issue, if the whole market really goes down that, we don't have these concerns to be worried about?

好的。一個關於交易的問題。你們在擺脫安然類型的信用風險方面做得很好，但現在我們討論的是許多各方都可能面臨風險的問題。您能否向我們保證這不是一個更大的問題，如果整個市場真的下跌，我們就不必擔心這些問題？

Let me say a little bit about our credit position at trading. You can look at the chart attached to our press release, which gives you an overall view of the amount of money in respect of various credit worthy and non credit worthy counterparts. But we very aggressively manage our credit exposure at trading. We consider it to be as important a factor as the substance of the trade itself.

讓我簡單介紹一下我們在交易方面的信用狀況。您可以查看我們新聞稿所附的圖表，該圖表可讓您全面了解各種信用和非信用對應方的金額。但我們非常積極地管理交易中的信用風險。我們認為它與貿易本身的實質一樣重要。

And so, for example, two companies that are currently counterparts, both who have recently seen significant changes in their business, Williams and Dynegy, we have been being careful to manage those credit exposures and they are currently at a very manageable level. And we monitor that very carefully. As you may know, historically, or with respect to last year, we started to manage very carefully the Enron exposure when [INAUDIBLE] departed, and, to the point we took only a $5 million reserve in the Enron case in the 4th Quarter. That wasn't a write-off that, was a reserve. So, I think you could have a fair confidence level that we are -- I mean the total -- the total credit exposure to those two entities that I mentioned, is in the $7 million range.

因此，例如，威廉斯和戴尼吉這兩家目前是同行的公司，最近都在業務上發生了重大變化，我們一直在謹慎管理這些信用風險，目前它們處於非常可控的水平。我們非常仔細地監控這一點。正如您可能知道的那樣，從歷史上看，或者就去年而言，當[聽不清楚]離開時，我們開始非常謹慎地管理安然風險敞口，並且，到目前為止，我們在第四季度的安然案件中只提領了500 萬美元的準備金。那不是沖銷，而是儲備。因此，我認為您可以有一個公平的信心水平，即我提到的這兩個實體的總信用風險敞口在 700 萬美元範圍內。

Okay. All right. Thanks, that's very helpful.

好的。好的。謝謝，這非常有幫助。

We'll take our next question from David Maccarrone with Goldman Sachs.

我們將回答高盛戴維麥卡龍 (David Maccarrone) 提出的下一個問題。

Thanks. I wanted to follow-up on SDG&E. Can you discuss, besides the PDR, the reasons for decline in the EBIT?

謝謝。我想跟進 SDG&E。除了 PDR 之外，您能否討論一下 EBIT 下降的原因？

Well, we need to go back and reconstruct a little bit, David, the previous quarter. And I think you have to go back and put back in the PDR award and gross it up. And so, by the time you do all of the adjustments, you should -- you should come out -- essentially the quarters were flat, but, Frank, I don't know if you want to add anything to that?

好吧，大衛，我們需要回顧一下上一季的情況。我認為你必須返回並重新計入 PDR 獎項並對其進行總計。因此，當你進行所有調整時，你應該 - 你應該出來 - 基本上季度是持平的，但是，弗蘭克，我不知道你是否想添加任何內容？

I think the basic thing is we did see a drop in the EBIT and it was really the result of a couple of factors. First, the two we talked about in the press release, that is the fact that we had an incentive award last year of $7 million, remember, that's after tax on EBIT, on a pre-tax basis of around $11 million.

我認為基本的事情是我們確實看到息稅前利潤下降，這實際上是幾個因素的結果。首先，我們在新聞稿中談到的兩個事實是，我們去年獲得了 700 萬美元的激勵獎勵，請記住，這是稅後息稅前利潤，稅前約為 1,100 萬美元。

We also had additional depreciation this year, which is in the $5 million or so on the pre-tax basis.

今年我們也進行了額外折舊，以稅前計算約 500 萬美元。

We also had a bit of a drop in interest expense this year, which, of course, you see in the EBIT, but when you look at what we had to do with that under the rate reduction bond, it passed through to the customer, but not as an offsetting interest item, but as an expense item. It had no effect on the bottom line, but it does effects your EBIT.

今年我們的利息支出也有所下降，當然，您可以在息稅前利潤中看到這一點，但是當您看看我們在降息債券下必須對此做什麼時，它就會傳遞給客戶，但不是作為抵銷利息項目，而是作為費用項目。它對利潤沒有影響，但會影響您的息稅前利潤。

David, I think the answer -- I mean -- probably the principal thing to think about is, the irregularity of the payment of the PDRs and the fundamental businesses at SDG&E are not really any different.

David，我認為答案——我的意思是——可能需要考慮的主要問題是，PDR 支付的不規則性和 SDG&E 的基本業務實際上並沒有什麼不同。

Thank you, I will follow-up with Dennis on that later. And it sounded like SoCalGas also has an outstanding PBR. Any sense for the timing of that, or is that also later this year, perhaps next year?

謝謝，我稍後會與丹尼斯跟進此事。聽起來 SoCalGas 也有出色的 PBR。這個時間安排有什麼意義嗎？或者是在今年晚些時候，也許是明年？

Honestly we don't know. That's the GCIM settlement aware. We have a favorable judge's ruling that would give us, I think it is, a gross before tax of $31 million. We don't know whether that will fall this year or next.

老實說我們不知道。這就是 GCIM 和解協議的意義。我們有一個有利的法官裁決，我認為這將使我們的稅前總額達到 3,100 萬美元。我們不知道今年或明年是否會下降。

Where have you assumed that in your guidance or whether in '02 or '03?

您在您的指導中或在 02 年還是 03 年中在哪裡假設了這一點？

We have not assumed it for the $2.65 nor concurrently for the $2.90, but it will show up in one of those years.

我們沒有假設它的價格為 2.65 美元，也沒有同時假設為 2.90 美元，但它會在其中一年出現。

Okay. And then, finally --

好的。然後，最後——

Frank corrects me, we put it in the $2.90. The assumption is that it won't fall until next year.

Frank 糾正我，我們把它放在 2.90 美元中。假設它要到明年才會下跌。

Okay. And I wanted to go back to the coal plant acquisition. You said that the five-year contracts get you about 50% recovery of your acquisition costs. That would seem to imply about a 10% return over the five years. I wondering, is that accurate, consistent with your return methodology?

好的。我想回到燃煤電廠的收購。您說五年合約可以讓您收回大約 50% 的採購成本。這似乎意味著五年內的回報率約為 10%。我想知道，這是否準確，是否符合您的退貨方法？

And second, what leads you to more optimistic assumptions in the outer years of that agreement? Why should we believe your, kind of, somewhat hockey stick type or acceleration in the returns approach?

其次，是什麼讓您在協議的最後幾年做出更樂觀的假設？為什麼我們應該相信你的、有點曲棍球棒類型或加速的回報方法？

I will give you a flavor and then Neal may want to add to it. The IRR calculation of 15% is based upon a longer period than the first five years. And it is based on a view that we have of gas prices. And, so, I mean -- you're correct -- clearly correct, by taking the 50% of the cash and applying it to the first 5 years, but Neal, I dont' know if you want to add to that? We have a view about gas prices that gives us a very positive view for this power plant.

我會給你一個味道，然後尼爾可能想添加。15% 的 IRR 計算是基於比前五年更長的時期。它是基於我們對天然氣價格的看法。所以，我的意思是 - 你是對的 - 顯然是正確的，將 50% 的現金應用於前 5 年，但是尼爾，我不知道你是否想補充這一點？我們對天然氣價格的看法使我們對該發電廠抱持非常正面的看法。

Yes, David, the 15% IRR is based on the terms of the contract during the contract period and then based on the forward strip for prices there after. So, it is based on publicly-available data and the contract that's in place.

是的，大衛，15% 的 IRR 是基於合約期間的合約條款，然後基於此後的遠期價格。因此，它是基於公開數據和現有合約。

So, it's based on the forward-strip for natural gas prices and power prices and coal prices? Or...

那麼，它是基於天然氣價格、電力價格和煤炭價格的遠期預測嗎？或者...

Well, it's based power prices and coal prices after that, yes.

嗯，是的，之後是電價和煤炭價格。

We have a contract for the coal. So we know that cost.

我們有煤炭合約。所以我們知道這個成本。

And your view on gas prices, I guess directionally, is that they're going to rise over time?

我想，您對天然氣價格的看法是，它們會隨著時間的推移而上漲嗎？

Yes.

是的。

Okay. Thank you.

好的。謝謝。

We'll go next to Paul Fremont with Jeffries.

接下來我們將和傑弗里斯一起去保羅·弗里蒙特。

Thank you. Going back to trading, I think what you've indicated is based on revised guidance, you're looking at a contribution at the lower end, or $150 million a year. Can you give us a sense, in terms of the overall guidance for next year, how much of a contribution should we continue to expect from the trading side of your operations?

謝謝。回到交易，我認為您所指出的是基於修訂後的指導，您正在考慮較低的貢獻，即每年 1.5 億美元。您能否告訴我們，就明年的整體指導而言，我們應該繼續期望您的業務交易方面做出多少貢獻？

I think the number that we have in the $2.90 is $170 million. I don't think -- I know it is.

我認為 2.90 美元中的數字是 1.7 億美元。我不認為——我知道是這樣。

So then the only thing you would be adding would be, I assume, is the contribution of the metal, the full contribution of the metals business.

因此，我認為您唯一要添加的是金屬的貢獻，即金屬業務的全部貢獻。

Yeah, and, you know, I think we're going through an extraordinary period right now in terms of other companies in the space, and the industry in general, and I believe those conditions will improve next year.

是的，你知道，我認為對於該領域的其他公司以及整個行業來說，我們現在正在經歷一個非常時期，我相信明年這些情況將會改善。

Okay. So --

好的。所以 -

We're going to pick up market share, in part, too.

我們也將部分提高市場佔有率。

So, you would expect some recovery, then, either in the volatility side or in the volume side of the business, in the United States?

那麼，您預計美國會出現一些復甦，無論是在波動性方面還是在業務量方面？

Yes. And certainly I think, in the volume of our business, both in the United States and in our global operations, and I expect us to pick up market share, we will see the full-year results for the metal [INAUDIBLE], which we've estimated to be 20 to $25 million.

是的。當然，我認為，就我們在美國和全球業務的業務量而言，我希望我們能夠提高市場份額，我們將看到金屬的全年業績[聽不清楚]，我們估計為 2,000 至 2,500 萬美元。

Thank you.

謝謝。

As I think I mentioned in my remarks, Paul, that, you know, we're still beginning to rebuild that, we're doing some of the rebuild work with customers. Enron didn't pay its bills in that business, even though the business itself was healthy, Enron was slow to no pay with a lot of customers. Their confidence level is now returning, U.S. but that's been a ramp-up.

正如我在演講中提到的，保羅，我們仍在開始重建，我們正在與客戶一起進行一些重建工作。安然公司沒有支付該業務的帳單，儘管業務本身很健康，但安然公司在許多客戶中進展緩慢，甚至沒有支付費用。他們的信心水平現在正在恢復，但這是一個上升的過程。

Thank you very much.

非常感謝。

We'll go next to Carl Kirst with Merrill Lynch.

接下來我們將討論美林證券的卡爾‧科斯特。

Good afternoon, everybody. Actually just keying off of Paul's question there, the $20 to $25 million in the metals, I guess one of my questions was, how is the integration going? Currently have there been any snags beyond the fact of the reconfidence in, you know, the customers? When are we going to be able to get to, oh, you know, I guess if we're looking at $20 million for the year, $5 million a quarter, roughly there abouts. Should we expect that in the 3rd quarter or the 4th quarter? I mean, when do we get to a point where we can kind of say, yes, this is performing or, you know, not performing in line with expectations? That's the first question.

大家下午好。實際上，只是結束保羅的問題，即價值 2000 至 2500 萬美元的金屬，我想我的問題之一是，整合進展如何？除了對客戶重新建立信心之外，目前是否還存在任何障礙？我們什麼時候才能達到，哦，你知道，我想如果我們今年的目標是 2000 萬美元，每季 500 萬美元，大約是這樣。我們應該預計第三季還是第四季？我的意思是，我們什麼時候可以說，是的，這是表現，或者，你知道，表現不符合預期？這是第一個問題。

Carl, in answer to the first part of your question. Things are preceding according to our plan. We are going through a stage of getting customers' confidence back. That's working as we expected it to work. And I think you would see us, you know, getting back -- we changed the business model back to what the old MG company was doing and that's taken a little time.

卡爾，回答你問題的第一部分。事情正在按照我們的計劃進行。我們正在經歷一個恢復客戶信心的階段。這正如我們所期望的那樣工作。我想你會看到我們，你知道，回來了——我們將商業模式改變回原來的 MG 公司正在做的事情，這需要一些時間。

You know, we're in the process of moving the offices in London and there are a few things that are just start-up issues for us. But I would expect towards the end of the year, as you surmise, and next year, that you would see those steady results. That's a business, it is much more, sort of, stable in its results than overall trading, which depends much more on volatility in markets.

你知道，我們正在搬遷倫敦的辦公室，有一些事情對我們來說只是啟動問題。但我預計，正如您所猜測的那樣，到今年年底以及明年，您將看到這些穩定的結果。這是一門生意，它的結果比整體交易更穩定，而整體交易更取決於市場的波動性。

Okay. Thank you.

好的。謝謝。

And just secondarily, there's been such a rapid change in participants, trading participants here, just in the last three weeks. Has there been anything to note on your guys' side within the last three weeks as far as how your businesses are performing, you know, I know it's pretty early to be looking at the 3rd Quarter here, but is, you know, $20 million something that you are, kind of, starting off with as far as target of expectations in the 3rd Quarter?

其次，在過去三週內，參與者、交易參與者發生瞭如此迅速的變化。過去三週內你們的業務表現有什麼值得注意的嗎？我知道現在關注第三季度還為時過早，但是，你知道，2000 萬美元您從第三季度的預期目標開始是什麼？

Well, you know, I said, maybe in our analyst conference or in our last conference call, that I thought 30 was sort of a more, kind of a low average and this quarter was below that. And I still hold that view, you know, the immediate [INAUDIBLE] of the market right now are not really harming our trading company because we're picking up customer business, because we're credit worthy and we're performing. And so I would expect, in order make our 150 number that, we would have to see an improvement over this quarter. That's what we expect.

嗯，你知道，我說過，也許在我們的分析師會議或上次電話會議上，我認為 30 是一個較低的平均水平，而本季低於該水平。我仍然持有這種觀點，你知道，目前市場的直接[聽不清楚]並沒有真正損害我們的貿易公司，因為我們正在接手客戶業務，因為我們信譽良好並且我們正在執行。因此，我預計，為了使我們的數字達到 150，我們必須看到本季有所改善。這就是我們所期望的。

Okay, And I guess the question then is, has there been something in July to give you, I know it's very, you know, early on here; is there something in July that you've seen to buttrice that or is it just too early?

好吧，我想接下來的問題是，七月有什麼東西可以給你嗎？我知道這非常，你知道，很早；七月有什麼事情你看過可以阻止這一點，還是現在還太早？

I think it's really too early. You know, it's three weeks of a month is -- I'm not -- it's nothing bad!

我覺得實在太早了。你知道，一個月三週──我不是──這沒什麼壞事！

Fair enough. That was really the question. Thank you.

很公平。這確實是個問題。謝謝。

We'll go next to Paul Debbas with Value Line.

接下來我們將與 Value Line 一起前往 Paul Debbas。

Hi. In any of your lines of business other than trading, is there anything that's made the outlook better than you expected a month ago when you gave guidance, either for this year or for '03?

你好。在交易以外的任何業務領域中，是否有任何因素使今年或 03 年的前景比您一個月前給出指導時的預期更好？

Well, there is a bright spot, actually in the dark, frankly in Argentina. We're beginning to see some progress there with the government and several things have happened.

嗯，坦白說，在阿根廷，確實有一個亮點，實際上是在黑暗中。我們開始看到政府在這方面取得了一些進展，並且發生了一些事情。

One is that we got a good ruling with respect toward the gas supply there and in effect we were -- the gas suppliers got the haircut, we didn't. They were ordered to sell to us at our tariff rate. And number two, the government has made some payments and we expect more payments for the subsidies for the southern part of the country, being winter time now.

一是我們對那裡的天然氣供應做出了很好的裁決，實際上我們——天然氣供應商得到了折扣，而我們沒有。他們被命令按照我們的關稅稅率出售給我們。第二，政府已經支付了一些款項，我們預計該國南部地區的補貼將得到更多支付，現在正值冬季。

And so, we're seeing an operational pickup in Argentina that is pleasing and I think gives us some confidence that the business itself is beginning to stabilize there. Obviously it is dependent, in a continuing outcome, on getting back to a stable economy.

因此，我們看到阿根廷的業務有所回升，這是令人高興的，我認為這讓我們對那裡的業務本身開始穩定產生了一些信心。顯然，它的持續結果取決於經濟恢復穩定。

Another bright spot is Solutions, which is performing ahead of our expectations and it's picking up quite a lot of customer business and particularly in commodity sales, which wasn't what I think we would have necessarily predicted. And so that's been a bright spot. The $5 million quarterly earnings which eclipse the $2 million in the previous quarters is very good and we're feeling good about having stuck with that business where others got out of it.

另一個亮點是解決方案，它的表現超出了我們的預期，並且獲得了相當多的客戶業務，特別是在商品銷售方面，這不是我認為我們必然預測的。所以這是一個亮點。500 萬美元的季度收益超過了前幾季度的 200 萬美元，這是非常好的，我們對繼續堅持其他人退出的業務感到高興。

So, could you do better than $35 million in international this year?

那麼，今年你能在國際賽上做得比 3500 萬美元更好嗎？

I'm not predicting that, no.

我並不是預測這一點，不。

Okay. And as far as --

好的。就——

I'm not!

我不是！

Now, regarding that tax benefit in the 2nd Quarter. Was any of that factored into the 360 estimate for the utility this year?

現在，關於第二季的稅收優惠。今年公用事業公司 360 的預估中是否考慮了這些因素？

My understanding is that we anticipate a certain -- I don't know whether we had an exact number, but we anticipated a favorable outcome in that tax case.

我的理解是，我們預計會有一個確定的數字——我不知道我們是否有確切的數字，但我們預計該稅務案件會取得有利的結果。

And are you expecting any more favorable outcomes for the current cases that you have with the IRS, in either the 265 or the 290?

對於目前向 IRS 處理的案件，無論是 265 還是 290，您是否期望獲得更有利的結果？

No. I would expect to get some favorable outcomes, but they're not in the plan.

不。我希望能得到一些有利的結果，但它們不在計劃之內。

Okay. Thank you.

好的。謝謝。

Next we go Michael Goldenburg with Luminous Management.

接下來我們將介紹 Lumin Management 的 Michael Goldenburg。

Hi. Congratulations, guys, on the good quarter.

你好。恭喜夥計們，這個季度表現不錯。

Thank you.

謝謝。

My question is, out of $21 million in trading, how much of it was market-to-market and/or origination?

我的問題是，在 2100 萬美元的交易中，有多少是市場對市場和/或起源的？

You mean, what was, another way to say it, Michael, how much was customer business and how much was propriety trading? Is that what you're saying?

你的意思是，換句話說，邁克爾，客戶業務有多少，自營交易有多少？你是這麼說的嗎？

Maybe so, more so maybe day-to-day trading versus more longer term origination, base trading.

也許是這樣，更可能是日常交易與更長期的基礎交易。

Well, we run, about 2/3 of our business at any one time is customer-based business which tends to be more than day trading. So the principal weight of tradings business is in longer, you know, not just day trading. It is in customer origination business. I'm not aware of any significant change to that pattern.

嗯，我們的業務在任何時候都有大約 2/3 是基於客戶的業務，而且往往超過日內交易。因此，交易業務的主要重點在於長期交易，而不僅僅是日內交易。它屬於客戶起源業務。我不知道這種模式有任何重大變化。

So, out of $21 million, about 14 was from origination?

那麼，在 2100 萬美元中，大約 14 美元來自原創？

I don't know how you can be precise about it. I don't know how to be precise about it, other than to tell you, generally speaking, there hasn't been a change in our trading patterns.

我不知道你如何能準確地表達出來。我不知道如何準確地說，只是告訴你，總的來說，我們的交易模式沒有改變。

Uh-huh. And also, if possible, could you disclose anything more about the Texas plant, maybe the name of the counterparty and/or maybe some other details about the contract?

嗯。另外，如果可能的話，您能否透露有關德克薩斯工廠的更多信息，可能是交易對手的名稱和/或有關合同的其他一些細節？

We'll make a complete announcement when we close the deal, which we expect to be in the 3rd Quarter. We've signed some confidentiality arrangements on counterparts and so on.

當我們完成交易時，我們將發布完整的公告，我們預計將在第三季完成。我們簽署了一些對口單位的保密安排等等。

Thank you very much.

非常感謝。

Next we go to Winfred Fruehoff [phonetic] with National Bank Financial.

接下來我們請聽聽國家銀行金融公司的溫弗雷德‧弗魯霍夫（Winfred Fruehoff）。

Good morning. I have a couple of questions, if I may.

早安.如果可以的話，我有幾個問題。

The first one relates to San Diego Gas and Electric. I don't want to beat a dead horse, but I'm trying to ascertain recurring and out of period and out of period earnings. It seems to me, that if we are backing out the tax credits, which relate to prior periods and build in the depreciation which, you said, was $5 million before tax, we were actually significantly down earnings-wise for SDG&E, correct, in the 2nd Quarter?

第一個涉及聖地牙哥天然氣和電力公司。我不想死馬當活馬醫，但我正在努力確定經常性收益、期外收益和期外收益。在我看來，如果我們取消與前期相關的稅收抵免，併計入您所說的稅前 500 萬美元的折舊，那麼我們實際上會大幅降低 SDG&E 的收益，正確的，第二季度？

Let me give this back to Frank. You have to walk back through the question of the PBRs and how you gross that up, and what we would have expected, I mean, we have PBRs [INAUDIBLE] for SDG&E that just didn't happen to fall in this quarter.

讓我把這個還給弗蘭克。你必須回顧一下 PBR 的問題，以及如何匯總它，以及我們的預期，我的意思是，我們有 SDG&E 的 PBR [聽不清]，但本季度卻沒有下降。

I appreciate that.

我很感激。

So if what you're searching for is a trend line here, you have to be careful. We have some $21 million of expected awards in the pipeline at SDG&E that haven't fallen yet. Frank?

因此，如果您要尋找的是趨勢線，那麼您必須小心。SDG&E 正在準備約 2,100 萬美元的預期獎勵，但尚未發放。坦率？

In a very simple fashion, basically, the earnings are up at SDG&E from 37 million to 51 million, or 14 million increase. Basically 25 of that came from the settlement of the four-year tax audit.

基本上，SDG&E 的收入從 3,700 萬增加到 5,100 萬，即增加了 1,400 萬。其中25%基本上來自四年稅務審計的結算。

Right.

正確的。

Offset by the fact we are adding to our capital investments, our rate base that will obviously generate earnings in the future, and we have the timing difference of the $7 million. So, if you look at those two items and adjust it between them, we're talking $10 million out of the $11 million difference. So, in essence, really, if you ignored the depreciation item as building of rate base for the future, rates would be flat at the utility, at SDG&E.

我們增加了資本投資，我們的利率基礎顯然會在未來產生收益，這一事實抵消了這一事實，而且我們有 700 萬美元的時間差異。因此，如果您查看這兩項並在它們之間進行調整，我們會發現 1,100 萬美元的差異中有 1,000 萬美元。因此，從本質上講，如果您忽略折舊項目作為未來費率基礎的構建，那麼公用事業公司、SDG&E 的費率將持平。

Okay. Thanks for that. I wasn't really comparing the 2nd Quarter year-over-year, I was just looking at the 2nd Quarter this year and all I'm really suggesting is, that if we are subtracting $25 million of prior period to tax benefits from $51 million and we also take the $5 million pretax depreciation into consideration, we are really significantly below, sort of, $40 million odd of earnings in the 2nd Quarter for San Diego Gas and Electric, right?

好的。感謝那。我並沒有真正比較第二季度的同比情況，我只是關註今年第二季度，我真正建議的是，如果我們從 5100 萬美元中減去前期的 2500 萬美元稅收優惠而且我們還考慮到500 萬美元的稅前折舊，我們確實大大低於聖地牙哥天然氣和電力公司第二季4000 萬美元的獲利，對吧？

I think you have to take into consideration, there is seasonality in SDG&E's business. The summer months, 3rd Quarter in particular, on the electric side, are the strongest months, while the 1st and 4th quarters are strongest on the gas side. If you look at SDG&E's recorded earnings last year, it would have expectations that we'll be in the same general ballpark this year. I don't think you can take the 2nd Quarter, make these adjustments and then annualize it and think that's where they're going come out.

我認為你必須考慮到，SDG&E 的業務存在季節性。夏季，尤其是第三季度，電力方面是最強勁的月份，而天然氣方面則第一季和第四季最為強勁。如果你看一下 SDG&E 去年的獲利記錄，你會發現今年我們的獲利情況大致相同。我認為你不能以第二季為基礎，進行這些調整，然後將其年度化，並認為這就是他們的結果。

All right. The other question I have is, when I compare for trading the EBIT with the net income year-over-year, last year the net income amounted to about 59% of EBIT. This year to about 49% of EBIT. I'm just wondering what caused that 10 percentage point differential?

好的。我的另一個問題是，當我將息稅前利潤與淨利潤進行同比比較時，去年淨利潤約為息稅前利潤的59%。今年EBIT約49%。我只是想知道是什麼導致了這10個百分點的差異？

Let me think about that for a minute. I haven't done that comparison. There is a slight erosion in cash flow between those periods but, Neal, maybe you want to --

讓我想一想。我沒有做過這樣的比較。這些時期之間的現金流量略有下降，但是尼爾，也許你想——

Well, the differences can only be in the two things that are excluded. They can be in taxes and they can be in interest.

好吧，差異只能存在於被排除的兩件事上。它們可以是稅收，也可以是利息。

And so in the case of the trading business, you have to remember that this has a lot of different jurisdictions that it operates in with different tax rates, some lower, some higher and similarly, the amount of money that's used in the business will vary from time to time. And I just would say that the numbers you're talking about are within the normal sort of variations you would see with that kind of a ratio,l given the diverse number of tax jurisdictions that we're in.

因此，就貿易業務而言，您必須記住，它有很多不同的司法管轄區，其經營的稅率不同，有些較低，有些較高，類似地，業務中使用的金額也會有所不同時。我只是想說，考慮到我們所在的稅務管轄區數量眾多，您所談論的數字在這種比率下您會看到的正常變化範圍內。

Okay. Appreciate that. I had actually thought this might have, also, something to do with the mix of your trading businesses between trading and marketing on the one hand, and origination on the other.

好的。感謝。我實際上認為這也可能與你們的貿易業務的混合有關，一方面是貿易和行銷，另一方面是起源。

It shouldn't -- I don't think so. I think this is pure -- this is purely a question of what the "I" and the "T" are.

不應該——我不這麼認為。我認為這很純粹——這純粹是「我」和「T」是什麼的問題。

Okay. I have one more, if I may.

好的。如果可以的話，我還有一份。

That has to do with...the LNG plant, back in May at the end of the conference, I believe that somebody mentioned the year 2006, as perhaps the start-up for the LNG venture. Is that still your expectation, or has there been a bit of a slippage, do you think?

這與…液化天然氣工廠有關，早在五月會議結束時，我相信有人提到過 2006 年，也許是液化天然氣合資企業的初創期。您認為這仍然是您的期望嗎？還是有點偏差？

No, that's still the expectation. The variables here are not so much the question of -- of getting the plant up and running. I think the variables are around the supply questions and we don't that' is going to impact the the start-up date. So, you know, it's not lost on anybody that there's a question in Bolivia about the timing of the pipeline and its route. So, you know, we -- but we believe that that is not a critical path issue.

不，這仍然是期望。這裡的變數並不是讓工廠啟動並運作的問題。我認為變數與供應問題有關，我們認為這不會影響啟動日期。所以，你知道，任何人都清楚玻利維亞對管道的時間和路線有疑問。所以，你知道，我們——但我們相信這不是一個關鍵路徑問題。

Okay.

好的。

So that because there are other alternatives available to us. So, no, the answer is that we expect it to be on in 2006.

因為我們還有其他選擇。所以，不，答案是我們預計它會在 2006 年推出。

Uh-huh. And -- and earlier somebody had mentioned value at risk. Do you also use daily earnings at risk as a metric?

嗯。而且——早些時候有人提到過風險價值。您是否也使用每日風險收入作為指標？

No.

不。

No. Okay. Thanks.

不。好的。謝謝。

I don't know what that is, we don't use it.

我不知道那是什麼，我們不使用它。

Okay. Thanks very much.

好的。非常感謝。

We'll go next to John Edwards, Deutsche Banc.

我們將前往德意志銀行的約翰‧愛德華茲 (John Edwards)。

Yes, good afternoon.

是的，下午好。

Just a quick question on the plants that you're -- the 2100 megawatts of new generation that you're bringing on in the region. Now those are unregulated assets, I assume?

簡單問一個關於你們正在建造的電廠的問題——你們在該地區建設的新一代 2100 兆瓦電廠。我想現在這些都是不受監管的資產？

Yes.

是的。

And are they going to be under contract?

他們會簽訂合約嗎？

Unregulated in the sense that they're not regulated by a state utility commission.

不受監管是指它們不受州公用事業委員會的監管。

Right.

正確的。

What's the second half of your question?

你問題的後半部是什麼？

What's the nature of the power contract that you anticipate for those?

您預計這些電力合約的性質是什麼？

Well, those are all being built to the CDWR contract. I mean, we have a contract for 1900 megawatts of power with the State of California, with the Department of Water Resources. We're building approximately 2300 megawatts of capability, most of that, as you can see then, over 80%, is contracted to the State of California. Now -- and that's forward for a 10-year period.

嗯，這些都是根據 CDWR 合約構建的。我的意思是，我們與加州水資源部簽訂了一份 1900 兆瓦電力的合約。我們正在建立約 2300 兆瓦的發電能力，其中大部分（如您所見，超過 80%）都與加州簽訂了合約。現在——這已經是未來十年的事了。

You will note that the coal fired plant in Texas that we just bought,and we put on a 100$ output five-year PPA on that one and it is our policy not to buy or build power production resources without PPAs associated with them. So that we have a predictable -- with a good credit worthy counterpart, so we have a predictable cash flow with respect to those assets.

您會注意到，我們剛剛購買了德克薩斯州的燃煤發電廠，我們為其製定了100 美元產出的五年期購電協議，並且我們的政策是，在沒有與之相關的購電協議的情況下，不購買或建造電力生產資源。這樣我們就有了一個可預測的——具有良好信譽的對手方，因此我們對這些資產有可預測的現金流。

Okay. Thank you.

好的。謝謝。

We'll go next to Peggy Jones with ABN Amro.

接下來我們將前往佩吉瓊斯 (Peggy Jones) 的荷蘭銀行 (ABN Amro)。

Hi. Two questions. The first one has been answered.

你好。兩個問題。第一個已經回答了。

The second one, can you gave us a time frame on these negotiations in California? With regard to your contract?

第二個問題，你能給我們一個在加州進行談判的時間表嗎？關於你的合約？

Well, let me go over that situation a bit. Penny, we have two -- there are two litigations with respect to the contract.

好吧，讓我稍微回顧一下這種情況。佩妮，我們有兩起——有兩起與合約有關的訴訟。

That is the CDWR contract, that's between the CDWR and Sempra Energy Resources. One is a state court litigation in which we brought an action for declaratory relief as to the meaning of the contract. The state had put some dispute about whether we were obligated to build a simple cycle power plant in Bakersfield, in California, ahead of schedule of completing the dual cycle plant and the state counterclaimed that we had induced them to enter into the contract fraudulently by promising to build power plants that we weren't building. So that issue is before court and we would expect some discovery to start in that fairly soon, and I will tell you that we will win that case if it goes to the end.

這是CDWR 合同，是CDWR 和Sempra Energy Resources 之間的合約。其中一個是州法院訴訟，我們在其中提起了關於合約含義的聲明性救濟的訴訟。州政府對我們是否有義務提前完成雙循環發電廠在加利福尼亞州貝克斯菲爾德建造一座簡單循環發電廠提出了一些爭議，州政府反稱我們通過承諾欺騙性地誘導他們簽訂了合同。建造我們沒有建造的發電廠。因此，這個問題已提交法庭審理，我們預計很快就會開始一些發現，我會告訴你，如果案件最終結束，我們將贏得該案。

There are currently directly no settlement discussions with respect to that litigation. However, there are settlement discussions among representatives of the Governor, the Public Utility Commission, the Electricity Oversight Board, and the CDWR in the second piece of litigation, which was a claim made by the PUC and the Electricity Oversight Board that the contract was unjust and unreasonable and that claim was made by the Federal Energy Regulatory Commission.

目前還沒有直接就該訴訟進行和解討論。然而，在第二起訴訟中，州長、公用事業委員會、電力監督委員會和 CDWR 的代表正在進行和解討論，其中 PUC 和電力監督委員會聲稱該合約不公正這是不合理的，這一說法是由聯邦能源管理委員會提出的。

The commission is currently hearing that case and the judge has required the parties to enter into settlement discussions. Those are ongoing and they are ongoing in a fairly focused and detailed way. But we cannot, because we've been issued a gag order, can't tell you what the actual positions of the parties are.

該委員會目前正在審理該案，法官已要求雙方進行和解討論。這些工作正在進行中，而且正在以相當集中和詳細的方式進行。但我們不能，因為我們已經收到了禁言令，所以無法告訴你各方的實際立場是什麼。

Now, what do I think is going to happen? I predict that if we don't settle this case, we will win it. I will just give you that we will outright win it. On the other hand, there are reasons why, and you can see them in terms of all of the speculation and uncertainty around this contract, that we would like to come to a settlement of it and we have suggested ways that the contract could be amended which would be mutually-beneficial. It is my hope that we will reach a conclusion in that regard.

現在，我認為會發生什麼事？我預測，如果我們不解決這個案子，我們就會贏。我只想告訴你，我們將徹底獲勝。另一方面，我們希望達成和解是有原因的，並且您可以從圍繞本合約的所有猜測和不確定性中看到它們，並且我們已經建議了修改合約的方法這將是互惠互利的。我希望我們能在這方面得出結論。

Is there anything in the process that gives a timeline for this?

在此過程中是否有任何內容給出了時間表？

If the settlements don't work out, the judge is going to get fed up and hold hearings. He's doing that in some cases. We ought to know in a relatively short order, I don't know, one or two months, we ought to know whether the current discussions are going to bear fruit.

如果和解不成功，法官就會厭倦並舉行聽證會。在某些情況下他會這樣做。我們應該知道在相對較短的時間內，我不知道，一兩個月，我們應該知道當前的討論是否會取得成果。

There are further meetings in Washington, D.C. that have been ordered by the judge on the 5th and 6th of August. I am hopeful, and if not, it will go to hearings, but that wouldn't likely occur until sometime in 2003.

法官已下令於 8 月 5 日至 6 日在華盛頓特區舉行進一步會議。我對此抱有希望，如果沒有，它將進入聽證會，但這要到 2003 年的某個時候才可能發生。

Okay. And a last thing, what's the pace of spending on the plants while the negotiations go on?

好的。最後一件事是，在談判進行期間，工廠支出的進度如何？

It is unabated, and we will have spent about a billion dollars by the end of this year, and in total, we will have spent about $1.3 billion to bring on line the plants that we have planned to build, which are among other sources, the sources of supply for the contract.

它有增無減，到今年年底，我們將花費約 10 億美元，總共花費約 13 億美元來使我們計劃建造的工廠上線，這些工廠包括其他來源，合約的供應來源。

Thank you very much.

非常感謝。

We'll go next to Theresa Hoe with Banc of America Securities

接下來我們將與美國銀行證券公司的特蕾莎·霍 (Theresa Hoe) 一起討論

Hello, most of my questions have been answered. I just wanted to ask sort of a general question. What are you seeing out there in the market? Particularly if you could talk about the assets. Have you seen levels where asset prices are becoming attractive? And second, if you could talk about the forward curve, have you seen any kind of uptick there with respect to, you know, the change in the price cap in the western region to $250 million?

您好，我的大部分問題已經得到解答。我只是想問一個一般性問題。您在市場上看到了什麼？特別是如果你可以談論資產的話。您是否看到資產價格變得有吸引力？其次，如果你能談談遠期曲線，你知道西部地區的價格上限升至 2.5 億美元嗎？

Let me -- Theresa, let me answer the first part of that.

讓我——特蕾莎，讓我回答第一部分。

We are studying a whole lot of opportunities that are coming -- that have come up, or are coming up. I don't think it's lost on anyone that the distress of some of the players in our other market participants in our space are going to cause assets to be sold and, you know, we're in a situation where things are -- are very rapidly evolving and that distress is very rapidly evolving.

我們正在研究大量即將出現的機會——已經出現或即將出現的機會。我認為任何人都不會忽視我們領域其他市場參與者中的一些參與者的困境將導致資產被出售，而且你知道，我們所處的情況是——變化非常迅速，而這種痛苦也在迅速變化。

So, I think that the answer to your question is either we're seeing above, or will soon see above, in respect to some of the companies that are going to be forced to dispose of assets.

因此，我認為你的問題的答案是，對於一些將被迫處置資產的公司，我們要么在上面看到，要么很快就會在上面看到。

Now, TMP is an example of the opportunities we've taken to get assets. That was really occasioned more by changes in Texas regulation than in distress. That plant had to be disposed of, but I would expect we are hard at a number of opportunities and I want to emphasize that it is our good fortune to have taken the appropriate steps to maintain a conservative capital structure and a strong balance sheet and the cash, so that we can go ahead and avail ourselves of these opportunities without having to issue stock in this distressed market. On the second part of the question, do we see any change in the forward strip as a result of the first action to impose a region wide $250 price cap. No.

現在，TMP 是我們獲取資產的機會的一個例子。造成這種情況的原因更多是德州監管的變化，而不是困境。工廠必須被處置，但我預計我們很難抓住很多機會，我想強調的是，我們很幸運採取了適當的措施來維持保守的資本結構和強勁的資產負債表以及現金，這樣我們就可以繼續利用這些機會，而不必在這個低迷的市場上發行股票。關於問題的第二部分，我們是否認為由於首次採取行動在全地區實行 250 美元的價格上限，未來的地帶會發生任何變化。不。

Okay. And actually, I do have one question that's unrelated. With regards to the $2.90 for '03, does that assume in some contribution from Argentina, because you mentioned that there is a bright spot in Argentina?

好的。事實上，我確實有一個不相關的問題。關於 03 年的 2.90 美元，這是否假設阿根廷有一些貢獻，因為您提到阿根廷有一個亮點？

Yes it does.

是的，它確實。

It does?

是嗎？

The utility continues to be operational and what we're seeing is an improving condition in the operations of that utility. I mean, the problem is really the one that's created by the overall economic change and the devaluation of the peso, but we fully expect to recover from that, based upon our arbitration claim and other factors. So, yes is the answer. I don't know if we've quantityified it. I think it is $20 million.

該公用事業公司繼續運營，我們看到該公用事業公司的營運狀況有所改善。我的意思是，問題實際上是由整體經濟變化和比索貶值造成的，但根據我們的仲裁索賠和其他因素，我們完全希望從中恢復。所以，答案是肯定的。我不知道我們是否已經量化了它。我認為是2000萬美元。

Thank you. And then one last thing, if you could talk about the timing because I know that you had an option or a put option to exit Argentina, but now that you -- it looks more promising for some sort of a settlement there. Could you talk in terms of, you know, when you expect some sort of resolution there?

謝謝。最後一件事，如果你能談談時間安排，因為我知道你有退出阿根廷的選擇權或看跌期權，但現在你——在那裡達成某種解決方案看起來更有希望。你能談談，你知道，當你期待某種解決方案時嗎？

The option expires, our opportunity excised the option unless renegotiated, would expire at the end of this year, so you will know whether we exercise that option or not by the end of the 4th Quarter. We would expect to have a lot firmer understanding of the arbitration position later this year, too. This is not -- I don't believe -- going to be an issue that would remain sort of obscure,might still be a question in the 1st quarter of next year. I think we will know a lot more relatively soon.

該期權到期了，我們有機會取消該期權，除非重新談判，否則該期權將在今年年底到期，因此您將在第四季度末知道我們是否行使該期權。我們預計今年稍後也會對仲裁立場有更堅定的了解。我不相信這將是一個仍然模糊的問題，可能仍然是明年第一季的一個問題。我想我們很快就會知道更多。

The history has been that the Argentine government has settled all of these -- the previous arbitration claims, and because of the rather draconian effect of having a judgment in arbitration against it under the treaties, we would expect to come to a negotiated conclusion with the government and the government is now showing signs of interest on a variety of fronts to stabilize the energy sector.

歷史是，阿根廷政府已經解決了所有這些問題——之前的仲裁索賠，由於根據條約對其進行仲裁判決會產生相當嚴厲的影響，我們希望與阿根廷政府達成一項談判結論。政府和政府現在在各方面都表現出了穩定能源產業的興趣。

Thank you very much.

非常感謝。

Next we go to Brian Chen with Salomon Smith Barney.

接下來我們請見所羅門美邦 (Salomon Smith Barney) 的布萊恩陳 (Brian Chen)。

Hi, I have a quick question for you. With regards to your contracted sparks spreads, I've noticed you've put out information on the CDWR contracts. Can you give us any flavor in terms are what are the contracted sparks spreads that you're looking at in your non-American Southwest plants and I don't know if you contracted out that far ahead.

你好，我有一個簡單的問題想問你。關於你們的合約火花差價，我注意到你們已經發布了關於 CDWR 合約的資訊。您能給我們介紹一下您在非美國西南工廠中看到的合約火花傳播情況嗎，我不知道您是否提前合約了那麼久。

Well, the -- let me see if I can answer this. The only non-Southwest plant that's current, is the Twin Oaks plant, the TMP plant, that's the one in Texas. All the others are under construction in the western region with a view towards supplying under the CDWR contract and to the western market.

好吧，讓我看看我能否回答這個問題。目前唯一的非西南工廠是位於德州的 Twin Oaks 工廠，即 TMP 工廠。其他所有項目均在西部地區建設，以期根據 CDWR 合約向西部市場供貨。

We have some sights in Louisiana and on the Louisiana/Texas border that have been approved and we are currently, you know, looking at whether or not we continue -- whether we're going to construct and on what schedule with respect to those plants.

我們在路易斯安那州和路易斯安那州/德克薩斯州邊境有一些項目已經獲得批准，我們目前正在考慮是否繼續建造這些工廠以及這些工廠的建設時間表。

As I said, we're not going to build plants that don't have a PPA associated with them. So, the PPA would largely then determine the near-year spark spreads. So, that's a work in progress and I just, you know, obviously couldn't give you an answer to it.

正如我所說，我們不會建造沒有相關購電協議的工廠。因此，購電協議將在很大程度上決定近一年的火花價差。所以，這是一項正在進行的工作，我只是，你知道，顯然無法給你答案。

Right. Right.

正確的。正確的。

I couldn't identify a number because we don't have a PPA.

我無法辨識號碼，因為我們沒有 PPA。

Great. Thank you.

偉大的。謝謝。

We'll go next to Steven Corn with Lowe's Corporation.

接下來我們將與勞氏公司 (Lowe's Corporation) 聯繫史蒂文·科恩 (Steven Corn)。

Just had a question with some of the financial stress that some of your counterparties are under right now. How do you -- can you just quantify the liquidity in the trading market and what happens if some of these counterparties actually do go under, and how you see the trading business on a go-forward business into '03 and '04?

剛剛有一個關於您的一些交易對手目前面臨的財務壓力的問題。你如何－你能量化交易市場的流動性嗎？如果其中一些交易對手確實破產了會發生什麼，以及你如何看待03年和04年的交易業務？

It's going to be very qualitative, Steven. In the near term, were counterparties such as Dynegy and Williams to exit that business, there would be less transparency and greater difficulty, if you will, in doing hedging transactions. But that would be a relatively short-term phenomenon.

史蒂文，這將是非常定性的。短期內，如果 Dynegy 和 Williams 等交易對手退出該業務，那麼進行對沖交易的透明度就會降低，難度也會增加。但這將是一個相對短期的現象。

In the longer term, we would expect to pick up their customers and have wider margins. And so it's both a good and bad thing. I don't wish ill on anyone. I think it's better to have a number of robust players in the market. We're all better off and customers are better off. On the other hand, it's not altogether bad to lose some of your competition.

從長遠來看，我們預計會吸引他們的客戶並獲得更大的利潤。所以這既是好事也是壞事。我不希望對任何人有惡意。我認為市場上最好有一些實力雄厚的參與者。我們所有人都過得更好，客戶也過得更好。另一方面，失去一些競爭對手並不完全是壞事。

Thanks.

謝謝。

And we will take our last question from Elizabeth Noble with Vanguard.

我們將回答 Vanguard 的 Elizabeth Noble 提出的最後一個問題。

Hi. I know that California will have to allocate out its contract obligations at the end of the year. I wondered if you could comment on sort of the range of -- range in increased rates that you might need to see when those contracts are allocated?

你好。我知道加州將不得不在年底分配其合約義務。我想知道您是否可以評論一下在分配這些合約時可能需要看到的利率上漲的範圍？

Well, let me say that the process by which that allocation will occur, and the quantities involved are still very much in a matter of litigation. I'm going to ask at the public utility commission, I mean not externally, and there is a piece of legislation that I referred to, AB 57 in my comments, but Ed Guiles, who is responsible for our utilities, is probably in the best position to answer your question. So Ed, go ahead

好吧，讓我說一下，分配的過程以及涉及的數量在很大程度上仍處於訴訟階段。我要向公用事業委員會詢問，我的意思不是在外部，我在評論中提到了一項立法，AB 57，但負責我們公用事業的埃德·吉爾斯（Ed Guiles）可能在回答你的問題的最佳位置。所以艾德，繼續吧

Hi, Elizabeth, yes, we have hearings going on right now at the public utilities commission. That's not only to deal with the allocation of the CDWR contracts, but just getting the IOUs back into the procurement business. It's really focused on 2003 now.

你好，伊莉莎白，是的，我們公共事業委員會正在舉行聽證會。這不僅是為了處理CDWR合約的分配，而且只是讓欠條重新回到採購業務中。現在的焦點確實是2003年。

There are discussions going on on how the contracts might be allocated and what the cost implications might be from a rate standpoint. We're optimistic, at least in the short-term, that we can do that within the existing rate structure that's been devised.

目前正在討論如何分配合約以及從費率角度來看可能產生的成本影響。我們樂觀地認為，至少在短期內，我們可以在現有的利率結構內做到這一點。

I think, you know, AB 57 gives us some hope that the rules by which we would get back in the procurement business would be reasonable, from the standpoint of looking after the fact,and the risk that we are involved in. So, it is a an issue that is ongoing, as I say. Hearings are taking place presently. The commission is on track to get this issue reviewed and the standards set in place, the rules in particular, by the end of 2002 so that we can get back into the business. I would really emphasize that for SDG&E, as I mentioned at our May analyst conference, you know, we would be in the market to buy something on the order of between 0 and 10% for 2003. So, it is not a big number.

我認為，AB 57 給了我們一些希望，從考慮事實和我們所涉及的風險的角度來看，我們重返採購業務的規則是合理的。因此，正如我所說，這是一個持續存在的問題。目前正在舉行聽證會。該委員會預計在 2002 年底之前審查此問題並制定標準，特別是規則，以便我們能夠重新開展業務。我要真正強調的是，對於 SDG&E，正如我在 5 月分析師會議上提到的那樣，您知道，我們將在市場上購買 2003 年 0 到 10% 之間的產品。所以，這並不是一個大數字。

But the contracts that California has entered in to, I was under the impression that they were at a cost distinctly above what you are now currently paying? I just didn't know the range.

但是加州簽訂的合同，我的印像是它們的成本明顯高於您現在支付的價格？我只是不知道範圍。

The rates that are currently in place, recall, we have a servicing agreement where we collect revenue from customers and pay the state, and those rates that are currently in place, at least for 2003, look to be able to cover at least from our forecast projective.

目前實行的費率，回想一下，我們有一項服務協議，我們從客戶那裡收取收入並向國家支付費用，而目前實行的費率，至少在 2003 年，看起來至少能夠覆蓋我們的服務。預測投影。

Okay. So 2003 is your short-term --

好的。所以 2003 年是你的短期——

Yes.

是的。

And you haven't really calculated that for 2004 or...

你還沒有真正計算過 2004 年的情況，或者...

We've done some forecast on what our demand requirements are out in the future, but we're really focused on 2003 at this point.

我們已經對未來的需求做出了一些預測，但目前我們真正關注的是 2003 年。

Okay.

好的。

Allocation of the CDWR contracts to each of the utilities, and then what's leftover to buy. And so, the rate impact of that will come into focus with those two coming together by the end of the year. We don't expect an increase in rates on the commodity side by 2003.

將 CDWR 合約分配給每個公用事業公司，然後購買剩餘的內容。因此，隨著這兩者在今年年底匯聚在一起，其對利率的影響將成為人們關注的焦點。我們預計到 2003 年商品方面的利率不會上升。

Elizabeth it would be a mistake to forecast that either the state would be a shortfall in its revenue, with respect to its contract obligations, or that the utilities would have a shortfall in revenue, were those obligations assigned to those utilities.

伊莉莎白：如果預測國家會因其合約義務而出現收入短缺，或者公用事業公司會因分配給這些公用事業公司的義務而出現收入短缺，那將是錯誤的。

The contemplation of the state is to have the utilities manage the contracts, but it is, I'm certain that the rates that would be charged would reflect those costs. So, whether it is at the state level or the utility level, I wouldn't look to any negative arbitrage there.

國家的考慮是讓公用事業公司管理合同，但我確信收取的費率將反映這些成本。因此，無論是在州層級還是公用事業層面，我都不會尋求任何負面套利。

Okay. Thank you.

好的。謝謝。

Again, I would like to remind everyone that you may listen to a rebroadcast of this conference at 4:00 p.m. Eastern time today, through July 30th at midnight, by dialing 719-457-0820 and enter confirmation code 145622 on your telephone.

再次提醒大家，下午4：00可以收聽本次會議的重播。東部時間今天至 7 月 30 日午夜，請撥打 719-457-0820 並在電話上輸入確認碼 145622。

I would now like to hand the conference back over to Mr. Ariola for any additional comments.

我現在想將會議交還給阿里奧拉先生，徵求任何補充意見。

Thank you very much for joining us this afternoon. If you have follow-up questions, you can call myself or Bonnie Stecher here at Investor Relations. We look forward speaking to you again next quarter. Thanks.

非常感謝您今天下午加入我們。如果您有後續問題，您可以致電我本人或投資者關係部門的 Bonnie Stecher。我們期待下個季度再次與您交談。謝謝。

This does concludes today's conference call. We thank you for your participation, you may disconnect at this time.

今天的電話會議到此結束。我們感謝您的參與，此時您可以斷開連線。