STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

March 30, 2001

TO: PARTIES OF RECORD IN APPLICATION 00-06-023

This is the draft decision of Administrative Law Judge (ALJ) Walker. It will be on the Commission's agenda at the next regular meeting 30 days after the above date. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19, attached, of the Commission's "Rules of Practice and Procedure." Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:avs

Attachments

ALJ/GEW/avs DRAFT CA-4

5/3/2001

Decision DRAFT DECISION OF ALJ WALKER (Mailed 3/30/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southern California Gas Company Regarding Year Six (1999-2000) Under Its Experimental Gas Cost Incentive Mechanism and Related Gas Supply Matters. (U 904 G)

Application 00-06-023 (Filed June 15, 2000)

INTERIM OPINION

1. Summary

We award Southern California Gas Company (SoCalGas) $9,759,744.14 in shareholder incentives for savings accrued under its Gas Cost Incentive Mechanism (GCIM) during "Year Six," the 12-month period ending March 31, 2000. This proceeding has been bifurcated. This interim decision, concluding Phase I, deals with Year Six issues. We now commence Phase II, dealing with whether the GCIM should be extended into Year Seven and Year Eight with or without modification.