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CONTACT: Kyle DeVine                 June 6, 1996   CPUC - 522
         213-897-4225                             (A.95-10-035)

               CPUC APPROVES SDG&E REVENUE DECREASE

    The California Public Utilities Commission (CPUC) today
authorized a $21.9 million or 1.4 percent revenue reduction for
San Diego Gas & Electric (SDG&E) and a $35 million refund.
    SDG&E's revenue requirement is reduced because energy costs,
such as natural gas used to generate electricity, have decreased.
Residential customers will see a reduction in the non-baseline
energy use rate, from the current $0.12644 per kWh to $0.12039 per
kWh.  Residential customers who use the systemwide average of 400
kWh a month will see a reduction of $0.94 a month, from the
current $44.24 to $43.30.
    The refund will be credited to bills beginning in early June
and continuing through early July.  The average residential refund
will be approximately $14.00.
    Also approved were various components used to calculate energy
prices paid to companies, called "qualifying facilities," which
sell electricity to SDG&E.  They are: IER - 9,465 Btu/kWh, O&M
Adder - 1.0 mill/kWh, IHR - 10,600 Btu/kWh, shortage cost value -
$70.34/kWyr., and ERI - 1.0.

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