CES/Way Wins Department of Defense Contracts to Increase Energy Efficiency at Air Force Bases.

LOS ANGELES and HOUSTON--(BUSINESS WIRE)--May 18, 1998--As part of a Department of Defense program to increase energy efficiency at military facilities, CES/Way International Monday announced that it has been selected by Vandenberg Air Force Base in California and Goodfellow Air Force Base in Texas to implement energy conservation measures that could result in close to 20 percent savings on their base utility bills.

CES/Way, a subsidiary of Sempra Energy Solutions in Los Angeles, is one of 11 energy services companies that were pre-qualified last year under the DOD program to implement energy conservation projects at facilities in 46 states, Washington, D.C. and Puerto Rico. With a total of up to $1.1 billion in potential contracts, CES/Way and the other energy companies can receive project awards of up to $150 million each through the program.

The combined total of the contracts at Vandenberg and Goodfellow is estimated at $25 million. According to company officials, CES/Way will install such efficiency measures as energy efficient lighting, hot water boilers, air conditioning chillers, variable speed pump and motor drives, variable air volume boxes for handling conditioned air, high efficiency motors, renewable energy systems like solar and wind, motion sensors, computerized energy management control systems and building envelope improvements.

Through a specialized financial instrument, called a "performance contract," the work at Vandenberg and Goodfellow will be paid for entirely from the resulting energy and maintenance savings, explained Erbin Keith, CES/Way's executive vice president. "The military and taxpayers will benefit from better functioning energy facilities, reduced maintenance problems and lower energy bills," Keith said.

The Vandenberg and Goodfellow contract awards follow an earlier award to CES/Way of seven Veteran's Administration hospitals in Florida and Puerto Rico under the 46-state DOD program. The company also has performance contracting projects at Sheppard Air Force Base and the Department of Energy's Savannah River facilities, which are operated by Westinghouse. CES/Way is expecting a total of approximately $80 million in capital investment to implement these performance contracts.

CES/Way has been a leader in developing federal performance contracts and has worked closely with the DOE and DOD to develop financing mechanisms, contracting guidelines and other procedures designed to help reach President Clinton's target of a 30 percent reduction in federal energy use by 2005.

Houston-based CES/Way is now a wholly owned subsidiary of Sempra Energy Solutions, formerly known as Energy Pacific, one of the nation's leading energy services companies. Sempra Energy Solutions is a joint venture of Pacific Enterprises and Enova Corp., which are in the final stages of a merger that will create a new energy services and utility holding company called Sempra Energy, to have headquarters in San Diego.

Sempra Energy Solutions provides a broad suite of energy-related products and services in California and throughout the nation.

CONTACT: Sempra Energy Solutions, Los Angeles

Mike Mizrahi, 213/244-3030

or

CES/Way International, Houston

Lynn Talbot, 713/361-7625