ALJ/JSW/sid Mailed 8/25/2003

Decision 03-08-064 August 21, 2003

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 Eight (2001-2002) of Its Gas Cost Incentive Mechanism.

Application 02-06-035 (Filed June 17, 2002)

OPINION REGARDING YEAR EIGHT OF

THE GAS COST INCENTIVE MECHANISM

Summary

Today's decision addresses the Year Eight Gas Cost Incentive Mechanism (GCIM) application filed by Southern California Gas Company (SoCalGas) on June 17, 2002.

The decision finds that SoCalGas reasonably managed its gas acquisitions and operations in Year Eight within the context of the GCIM that existed at the time, and that the calculation and amount of the shareholder award is correct. Pursuant to the GCIM modifications adopted in Decision (D.) 02-06-023, SoCalGas is awarded a shareholder award of $17,388,157 for Year Eight.

Due to the ongoing activities in the Order Instituting Investigation (I. or investigation) 02-11-040, the finding of reasonable management shall not prejudge what the Commission may find or conclude in I.02-11-040, and the SoCalGas shareholder award shall be subject to refund or adjustment as may be determined by the Commission in I.02-11-040.