June 18, 1996



To: Rate & Product Unbundling Working Group


Re:  Working Group Support of SDG&Es Motion for Suspension of its Requirement
     to File a 1999 General Rate Case


On June 11, 1996, San Diego Gas & Electric Company filed a Motion with the
Commission for Suspension of its requirement to file a 1999 General Rate Case
(the Motion).  SDG&E seeks support for the Motion from the Rate & Product
Unbundling Working Group.

In summary, the Motion argues that given the Commission's stated preference
for Performance Based Ratemaking, preparing to file a GRC would be a waste of
SDG&E's and the Commission's limited resources -- resources that are rightly
focused on electric restructuring.  The Motion explains that without such
relief, SDG&E must begin the substantial work necessary to prepare a Notice of
Intent by year-end 1996.

At the last working group meeting (May 29, 1996), a majority of the members
supported the Motion in concept.  SDG&E will ask the group for its formal
support at the June 26th meeting.

Please call Rich Swanson at (619) 696-4069 with your questions or comments.
Thank you.


San Diego Gas & Electric Company







cc: TS20368 --VMSDGE1  Croyle, David      TS76110 --VMSDGE1  Schneider, Michael
    TS88640 --VMSDGE1  Vaccaro, Joe A.    TS81582 --VMSDGE1  **Thompson, Vicki

Rich Swanson
X4069