SAN DIEGO and LOS ANGELES, July 22, 2004 (PRIMEZONE) -- Sempra Energy's California utilities, San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (The Gas Company), announced today they have reached a settlement-in-principle with the California Public Utilities Commission (CPUC) Office of Ratepayer Advocates, The Aglet Consumer Alliance, The Utility Reform Network (TURN), Natural Resources Defense Council and a coalition of other customer and consumer groups on the final phase of the utility's two-phase ratemaking case.
The final phase of the Cost-of-Service proceeding covers post-test-year ratemaking and performance incentives. The settlement filed yesterday only resolves the post-test-year ratemaking issues for the 2005-2007 period.
The cost of purchasing electricity and natural gas and transporting it to California is not covered by the settlement, only operational costs for distributing energy in the utilities' two service territories.
In December 2003, both utilities reached settlements on the first phase of the proceeding with the state Office of Ratepayer Advocates, and consumer, customer and employee groups that will establish each company's authorized revenue requirements for 2004. The settlement agreements for both phases, if approved, would result in stable utility rates in 2004.
"This tentative settlement is fair and reasonable to Sempra Energy shareholders and customers and ensures that the utilities will be able to continue to provide exceptional service and meet their customers' future energy needs," said Steven Davis, senior vice president and chief financial officer for both SDG&E and The Gas Company.
Under the CPUC's review process, the settlement parties filed their detailed agreement with the CPUC on July 21. Written comments and briefs on the settlements can be filed until Aug. 6, 2004. The CPUC can act on the settlement anytime thereafter.
To view and learn more about the settlement regulatory filing visit Sempra Energy's Web site at www.sempra.com.
SDG&E is a regulated public utility that provides service to 3 million consumers through 1.3 million electric meters and more than 800,000 natural gas meters in San Diego and southern Orange counties. The Gas Company is the nation's largest natural gas distribution utility, providing service to 19.2 million consumers through 5.4 million meters. SDG&E and The Gas Company are regulated subsidiaries of Sempra Energy (NYSE: SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company.