SK1/JSW/sid 1/15/2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southern California Gas Company (U 904 G) Regarding Year Nine (2002-2003) of Its Gas Cost Incentive Mechanism.

Application 03-06-021 (Filed June 16, 2003)

SCOPING MEMO AND RULING OF THE ASSIGNED COMMISSIONER

AND ADMINISTRATIVE LAW JUDGE REGARDING YEAR NINE OF

THE GAS COST INCENTIVE MECHANISM

Summary

Southern California Gas Company (SoCalGas) filed its Year Nine Gas Cost Incentive Mechanism (GCIM) application on June 16, 2003. A response to the application was filed by the Office of Ratepayer Advocates (ORA) on July 17, 2003, and a protest to the application was filed by Southern California Edison Company (SCE) on July 21, 2003. SoCalGas filed a reply to SCE's protest on July 1, 2003.

A prehearing conference was held on December 12, 2003, to discuss whether the issues raised by the parties required any evidentiary hearings, and to determine the procedural manner in which to process SoCalGas' application.

This scoping memo identifies the issues in this proceeding, and determines that no hearings are needed unless the decision in Investigation (I.) 02-11-040 decides that the GCIM should be modified or eliminated on a retroactive basis. A draft decision regarding SoCalGas' request for its Year 9 GCIM award shall be prepared for the Commission's action.