The Gas Company Announces Settlement in Principle With Office of Ratepayer Advocates, Turn, National Utility Workers Union

Final Cost-of-Service Settlement Details Expected on Dec. 19

Dec 04, 2003, 00:00 ET from Southern California Gas Company

    LOS ANGELES, Dec. 4 /PRNewswire/ -- Southern California Gas Company (The
 Gas Company) announced today it has reached a settlement-in-principle with the
 California Public Utilities Commission (CPUC) Office of Ratepayer Advocates,
 The Utility Reform Network (TURN) and the Utility Workers Union of America on
 the utility's Cost-of-Service rate case.
     "This tentative settlement is fair to our shareholders and it is
 reasonable for our customers by ensuring that we will be able to continue to
 provide exceptional service and meet their future energy needs," said Edwin A.
 Guiles, chairman and chief executive officer of The Gas Company.  "Our goal is
 to continue to provide safe, reliable energy delivered to our customers at
 their homes and businesses."
     The Cost-of-Service settlement establishes how much The Gas Company 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 natural
 gas and transporting it to California is not covered by the settlement.
    Final details of the settlement are still being addressed and must remain
 confidential until the filing is formally made with the CPUC by Dec. 19.
 While specific rate impacts will not be released until the formal submittal of
 the settlement, it will, if adopted, reduce customer delivery rates from their
 current levels.
     Under the CPUC's review process, the settlement parties will file their
 detailed agreement with the Commission by Dec. 19, 2003, followed by written
 comments and briefs with a final deadline of Feb. 19, 2004.  The Commission
 can act on the settlement anytime thereafter.
     The Gas Company is the nation's largest natural gas distribution utility,
 providing safe and reliable energy to 18.9 million consumers through
 5.3 million meters.  The company's service territory encompasses 23,000 square
 miles in most of central and Southern California.  The Gas Company strives to
 provide exceptional customer service to enhance the quality of life in the
 community.  The Gas Company is part of Sempra Energy Utilities, Sempra
 Energy's regulated California utilities.  Sempra Energy (NYSE:   SRE), based in
 San Diego, is a Fortune 500 energy services holding company.

SOURCE Southern California Gas Company