San Diego Gas & Electric reported that net income fell to $49.9 million for the fourth quarter ended Dec. 31, down from $51 million during the previous fourth quarter. Fourth-quarter revenue rose by 29.7% to $530 million, up from $408 million during the previous fourth quarter.
Net income for the year ended Dec. 31 fell to $196 million, down from $213 million during the previous year. Revenue for the year rose by 16.5% to $1.9 billion, up from $1.6 billion during the previous year.
Despite revenue increases, quarterly and yearly earnings fell in part because of a regulatory decision that reduced SDG&E's earnings by 39 cents per share, according to Chairman Thomas Page. Last year, the state Public Utilities Commission ordered SDG&E shareholders to pay some of the costs associated with construction of the San Onofre Nuclear Generating Station. The PUC previously had ordered SDG&E's ratepayers to pay those disputed costs.
And, SDG&E's 1986 net income was bolstered by a one-time gain on the sale of SDG&E's remaining 20% interest in Energy Factors for $24.6 million.