Adaptability to Rapid Change Will Determine Ultimate Survivors in Energy Business, Says Sempra Energy Chairman.

WILLIAMSBURG, Va.--(BUSINESS WIRE)--Dec. 2, 1999--

To succeed in the future, energy services companies must greet the acceleration of industry consolidation, technological innovations and global opportunities with creativity, optimism and an ability to embrace the rapid pace of change, Richard D. Farman, chairman and chief executive officer of Sempra Energy, today told an audience of energy industry leaders in his keynote address here at The Energy Daily's 27th Annual Conference and Awards Banquet.

"Tomorrow's energy company will have an appreciation for the lightning-quick pace of change in the marketplace and will maintain a sense of humility, recognizing that any success is likely to be fleeting," said Farman, who was honored with The Energy Daily's Individual Leadership Award. "No matter what we've done collectively in this industry and no matter how much we've accomplished individually as industry participants, it's still not enough."

Farman said companies must cater to a more demanding customer -- one with rising expectations, based on the multitude of new choices becoming available in the competitive energy marketplace.

"We need to develop more 'visionary products' and strategic partnerships with companies outside our industry," Farman said. "Savvy energy companies should expect to be involved with Internet-delivered services, intelligent-home devices and a variety of other high-tech efforts to make life easier and more efficient for customers."

The 21-year veteran of the energy business said the companies who succeed in the future will not necessarily be those with the best long-range plans. The companies that anticipate a fast-breaking trend and react with lightning speed will realize future success, he said.

Quoting hockey Hall of Famer Wayne Gretzky, Farman said: "'It's not about where the puck is, it's about where the puck is going.' Even as that puck ricochets around wildly, we must stay alert and ready to anticipate change."

Farman's keynote address set the tone for a series of discussions hosted by The Energy Daily, a leading industry publication. At the end of each year, the publication holds a conference and recognizes the most outstanding industry leaders. The conference also regularly includes discussions of critical issues facing energy companies as they meet the challenges of a new and evolving competitive power marketplace.

Farman has served as chairman and chief executive officer of Sempra Energy since it was formed in June 1998 from the merger of Pacific Enterprises, the parent company of Southern California Gas Company (SoCalGas), and Enova Corporation, the parent company of San Diego Gas & Electric.

Prior to the start-up of Sempra Energy, Farman was president and chief executive officer of Pacific Enterprises. Earlier, he served four years as chairman and chief executive officer of SoCalGas.

Sempra Energy (NYSE:SRE), based in San Diego, is a Fortune 500 energy services holding company with 12,000 employees and revenues of $5.5 billion. Through its eight principal subsidiaries -- Southern California Gas Co., San Diego Gas & Electric, Sempra Energy Solutions, Sempra Energy Trading, Sempra Energy International, Sempra Energy Resources, Sempra Energy Utility Ventures and Sempra Energy Financial -- Sempra Energy serves more than 8.5 million customers in the United States, Europe, Canada, Mexico and South America.