Bolstered by the sale of its holdings in Energy Factors, San Diego Gas & Electric on Monday reported a 5.2% increase in net income, to a record $213.2 million for the year ended Dec. 31. Despite a record number of new customer hookups in 1986, revenue slid 6.1% to $1.6 billion because of lower electric rates.
SDG&E in January sold its remaining interest in Energy Factors for $24.6 million, ending its association with the energy co-generation business that it created in 1970 and spun off in 1983.
The utility reported a $14-million profit on the sale.
Fourth-quarter profits were reduced because of a state Public Utilities Commission decision that could force shareholders to pay $12 million in construction costs at San Onofre Nuclear Generating Station. The utility has appealed the PUC ruling.
SDG&E's independent auditor said it will issue a qualified opinion on SDG&E's 1986 financial statements because of the disallowance. The auditor earlier issued a qualified opinion after the PUC indicated that SDG&E might be penalized because of high energy costs for electricity imported over the company's Southwest Powerlink line.