ALJ/JJJ/sid *** Mailed 9/8/2000

Decision 00-09-034 September 7, 2000

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation into the operations and practices of the Southern California Gas Company, concerning the accuracy of information supplied to the Commission in connection with its Montebello Gas Storage Facility.

Investigation 99-04-022 (Filed April 22, 1999)

OPINION ON PROPOSED SETTLEMENT

1. Summary

The draft decision conditionally approved the settlement of this proceeding reached between Southern California Gas Company (SoCalGas) and the Commission's Consumer Services Division (CSD), provided that the settling parties agreed to the following two changes. First, the $3,495,000 voluntary monetary contribution SoCalGas was to make for the benefit of certain organizations should instead be made as a payment to the General Fund of the State of California. Second, SoCalGas should expand the scope of its ethics course to address a utility's ethical obligations in exercising the power of eminent domain.

In their comments to the draft decision, the settling parties indicated that each change is acceptable to them.

The draft decision also directed the settling parties to state in their comments to the draft decision whether tax deductibility was one of the bases for the parties' agreement to the amount of the monetary contribution. The draft decision stated that if so, and if the settling parties believed that as a result of the changes we impose, the monies would not now be tax deductible, they may recommend a monetary adjustment to the settlement. The Commission can then determine in its final decision whether the entire settlement, including the adjusted amount, is reasonable and in the public interest.

The settling parties do not recommend a monetary adjustment to the settlement. Therefore, the Commission adopts the settlement as more fully set forth in this decision.