CCC   PPPPP   U    U    CCC       N    N  EEEEE  W  W  W   SSS
 C   C  P    p  U    U   C   C      NN   N  E      W  W  W  S   S
C       P    P  U    U  C           N N  N  E      W  W  W  S
C       PPPPP   U    U  C           N N  N  EEE    W W W W   SSS
C       P       U    U  C           N  N N  E      WW   WW      S
 C   C  P       U    U   C   C      N   NN  E      W     W  S   S
  CCC   P        UUUU     CCC       N    N  EEEEE  W     W   SSS


CONTACT: Kyle DeVine            December 18, 1995   CPUC - 564
         213-897-4225                             (A.94-10-023)
                 CPUC GRANTS SDG&E PBR REWARDS

     The California Public Utilities Commission (CPUC) today
granted the first Performance Based Ratemaking (PBR) rewards
for San Diego Gas and Electric Company (SDG&E) amounting to
$3,793,559 for Gas Procurement, and $3,685,800 for Electric
Generation and Dispatch.
     Rewards will go to shareholders.  They were granted
because SDG&E was successful in beating the benchmarks set by
the Commission for the SDG&E Gas Procurement, and Electric
Generation and Dispatch accounting mechanisms for the period
August 1, 1993, through July 31, 1994.
     Rewards are for the first year of SDG&E's PBR Gas
Procurement, and Generation and Dispatch mechanisms approved in
June 1993 on a two-year trial basis.  The Commission approved
the trial to examine how effectively PBR would replace costly
and complex utility regulation and provide utilities with
incentives to improve performance.  PBR is being used with
SDG&E to replace traditional cost-of-service regulation of
SDG&E gas procurement, and electric generation and dispatch
expenses.

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