Utility Automation & Engineering T&D - California utilities, consumer groups file rate case settlement

SAN DIEGO, Dec. 22, 2003 -- San Diego Gas & Electric (SDG&E) announced it has joined with the California Public Utilities Commission (CPUC) Office of Ratepayer Advocates, the commission's consumer watchdog branch; the Greenlining Institute; Coral Energy; and the Coalition of California Utility Employees (representing local I.B.E.W. 465 union workers) in filing details of a proposed settlement of the utility's Cost-of-Service rate case.

The proposed settlement also includes Southern California Gas Company (The Gas Company). SDG&E and The Gas Company are both part of Sempra Energy Utilities.

The Cost-of-Service settlement establishes how much SDG&E would be allowed to charge in customer rates during 2004 to cover most of its costs, including operating and maintenance expenses. The cost of purchasing electricity and natural gas and transporting it to California is not covered by the settlement.

"This tentative settlement ensures that we will be able to continue to provide safe and reliable energy and exceptional service to our customers and generate a fair return to our shareholders on their investments," said Edwin A. Guiles, chairman and chief executive officer of SDG&E.

If adopted, the settlement will produce 2004 system average electric rates that are lower than rates in effect today and will slightly increase gas delivery rates. The settlement filing calls for a $19.6 million reduction in electric rate revenues, which would produce a one-tenth of a percent average rate decrease to residential electricity service, and a $1.8 million increase in natural gas rate revenues, which would produce a 1 percent average rate increase for residential gas service to SDG&E customers. The settlement filing can be found on SDG&E's Web site, www.sdge.com.

Under the CPUC's review process, the settlement parties filed their detailed agreement with the Commission today, to be followed by written comments and briefs with a final deadline of Feb. 19, 2004. The commission can act on the settlement anytime thereafter.

SDG&E is a regulated public utility that provides safe and reliable energy service to three million consumers through 1.3 million electric meters and 789,000 natural gas meters in San Diego and southern Orange counties.

The Gas Company is the nation's largest natural gas distribution utility, providing safe and reliable energy to 19 million consumers through 5.4 million meters. The company's service territory encompasses 23,000 square miles in most of central and Southern California.

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