ALJ/CFT/avs Mailed 9/19/2003

Decision 03-09-070 September 18, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation into the Gas Market Activities of Southern California Gas Company, San Diego Gas and Electric, Southwest Gas, Pacific Gas and Electric, and Southern California Edison and their impact on the Gas Price Spikes experienced at the California Border from March 2000 through May 2001.	Investigation 02-11-040 (Filed November 21, 2002)
Order Instituting Investigation whether San Diego Gas & Electric Company, Southern California Gas Company and their holding company, Sempra Energy, respondents, have complied with relevant statutes and Commission decisions, pertaining to respondents' holding company systems and affiliate activities.	Investigation 03-02-033 (Filed February 27, 2003)

INTERIM OPINION MODIFYING OII IN RESPONSE
TO PETITION FOR MODIFICATION

I. Summary

We grant in some respects the petition for modification filed by San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCal Gas) on March 12, 2003. We modify the Order Instituting Investigation (OII) initiating Investigation (I.) 03-02-033 to provide for an independent audit as the first step in this investigation. We will not schedule further action in I.03-02-033 until the audit is completed. In addition, we deconsolidate this proceeding from I.02-11-040.