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SAN DIEGO COUNTY DIGEST

San Diego

December 10, 1987

San Diego Gas & Electric's natural gas rates will increase by $28 million a year because of a state Public Utilities Commission ruling released Wednesday, the utility said.

A "typical" SDG&E gas bill will increase by $2.24, or 3.6%, a month, beginning in May, according to an SDG&E spokesman.

Most of the revenue generated by the increased rate will be passed along to Southern California Gas Co., which supplies gas that SDG&E sells to its residential, commercial and industrial customers. Some of the rate increase will be passed along to natural gas producers.

In a related rate change, the PUC on Wednesday granted Southern California Gas a $200-million natural gas rate reduction. That reduction will be funded in part by the SDG&E rate increase, according to SDG&E.

The PUC on Wednesday ruled that its previously approved rates forced Southern California Gas customers to pay an unfair share of Southern California Gas' operating costs. Wednesday's decision "reallocated those costs in part to SDG&E," according to Joe Kloberdanz, SDG&E's supervisor of regulatory affairs.

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