UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
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Commission file number 1-1402
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SOUTHERN CALIFORNIA GAS COMPANY
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(Exact name of registrant as specified in its charter)
California 95-1240705
- --------------------------------------------- ------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
555 West Fifth Street, Los Angeles, California 90013-1011
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(Address of principal executive offices)
(Zip Code)
(213) 244-1200
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
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Common stock outstanding: Wholly owned by Pacific Enterprises
ITEM 1. FINANCIAL STATEMENTS.
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
----------------
1999 1998
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Operating Revenues $607 $664
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Expenses:
Cost of natural gas distributed 256 301
Operation and maintenance 152 162
Depreciation 64 63
Income taxes 40 39
Other taxes and franchise
payments 25 29
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Total 537 594
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Operating Income 70 70
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Other Income and (Deductions):
Regulatory interest (3) 1
Allowance for equity funds used during construction 1 1
Income taxes on non-operating income 1 (1)
Other - net (1) (1)
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Total (2) --
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Interest Charges:
Long-term debt 19 20
Other 2 2
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Total 21 22
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Net Income 47 48
Preferred Dividend Requirements -- 1
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Earnings Applicable to Common Shares $ 47 $ 47
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See notes to Consolidated Financial Statements.
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Balance at
--------------------------
March 31, December 31,
1999 1998
(Unaudited)
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ASSETS:
Utility plant - at original cost $6,092 $6,063
Less accumulated depreciation (3,173) (3,111)
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Utility plant - net 2,919 2,952
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Current Assets:
Cash and cash equivalents 312 11
Accounts receivable - trade 380 453
Due from affiliates 36 --
Deferred income taxes 194 157
Natural gas in storage 4 49
Materials and supplies 13 14
Prepaid expenses 23 14
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Total current assets 962 698
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Regulatory assets 183 184
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Total $4,064 $3,834
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See notes to Consolidated Financial Statements.
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in millions)
Balance at
-----------------------------
March 31, December 31,
1999 1998
(Unaudited)
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CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock $ 835 $ 835
Retained earnings 472 525
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Total common equity 1,307 1,360
Preferred stock 22 22
Long-term debt 967 967
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Total capitalization 2,296 2,349
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Current Liabilities:
Accounts payable - trade 118 153
Accounts payable - affiliates -- 111
Accounts payable - other 222 221
Regulatory balancing accounts
overcollected - net 392 129
Other taxes payable 45 31
Accrued income taxes 23 30
Interest accrued 48 46
Dividends payable 100 --
Long-term debt due within one year 75 75
Other 91 75
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Total current liabilities 1,114 871
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Customer advances for construction 30 31
Deferred income taxes - net 361 323
Deferred investment tax credits 57 58
Deferred credits and other liabilities 206 202
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Total deferred credits 654 614
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Commitments and contingent liabilities (Note 3)
Total $4,064 $3,834
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See notes to Consolidated Financial Statements.
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)
(Dollars in millions)
Three Months Ended
March 31,
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1999 1998
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Cash Flows from Operating Activities:
Net income $ 47 $ 48
Adjustments to reconcile net income to
Net cash provided by operating activities:
Depreciation 64 63
Deferred income taxes 37 7
Other - net (16) (7)
Net change in other working capital components 204 421
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Net cash provided by operating
activities 336 532
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Cash Flows from Investing Activities:
Capital expenditures (32) (22)
Other - net (3) (13)
---- ----
Net cash used in investing activities (35) (35)
---- ----
Cash Flows from Financing Activities:
Redemption of preferred stock -- (75)
Issuance of long-term debt -- 75
Payment on long-term debt -- (149)
Decrease in short-term debt -- (271)
Dividends paid -- (56)
---- ----
Net cash used in financing
activities -- (476)
---- ----
Increase in Cash and Cash Equivalents 301 21
Cash and Cash Equivalents, January 1 11 --
---- ----
Cash and Cash Equivalents, March 31 $312 $ 21
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Supplemental Disclosure of Cash Flow Information:
Interest payments (net of amount capitalized) $ 19 $ 24
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Income tax payments $ 53 $ 33
==== ====
See notes to Consolidated Financial Statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
This Quarterly Report on Form 10-Q is that of Southern California Gas
Company (SoCalGas or the Company), the principal subsidiary of
Pacific Enterprises (PE). PE is a subsidiary of Sempra Energy, a
California-based Fortune 500 energy services company. The financial
statements herein are the Consolidated Financial Statements of
SoCalGas and its subsidiaries.
The accompanying Consolidated Financial Statements have been prepared
in accordance with the interim-period-reporting requirements of Form
10-Q. Results of operations for interim periods are not necessarily
indicative of results for the entire year. In the opinion of
management, the accompanying statements reflect all adjustments
necessary for a fair presentation. These adjustments are of a normal
recurring nature.
The Company's significant accounting policies, as well as those of
its subsidiaries, are described in the notes to Consolidated
Financial Statements in the Company's 1998 Annual Report. The same
accounting policies are followed for interim reporting purposes.
This Quarterly Report should be read in conjunction with the
Company's 1998 Annual Report, which includes the Consolidated
Financial Statements and notes thereto, and the annual "Management's
Discussion & Analysis of Financial Condition and Results of
Operations."
In conformity with generally accepted accounting principles,
SoCalGas' accounting policies reflect the financial effects of rate
regulation authorized by the California Public Utilities Commission
(CPUC). SoCalGas applies the provisions of Statement of Financial
Accounting Standards No. 71, "Accounting for the Effects of Certain
Types of Regulation" (SFAS No. 71). This statement requires cost-
based rate-regulated entities that meet certain criteria to reflect
the authorized recovery of costs due to regulatory decisions in their
financial statements. SoCalGas continues to meet the criteria of SFAS
No. 71 in accounting for its regulated operations.
2. BUSINESS COMBINATIONS
PE/Enova
On June 26, 1998 (pursuant to an October 1996 agreement) Enova and PE
completed a business combination in which the two companies became
subsidiaries of a new company named Sempra Energy. As a result of the
combination, (i) each outstanding share of common stock of Enova was
converted into one share of common stock of Sempra Energy, (ii) each
outstanding share of common stock of PE was converted into 1.5038
shares of common stock of Sempra Energy and (iii) the preferred stock
and/or preference stock of SDG&E, PE and SoCalGas remain outstanding.
Additional information on the business combination is discussed in
the Company's 1998 Annual Report.
Expenses incurred in connection with the business combination were
$0.3 million, after tax, and $0.5 million, after tax, for the three-
month periods ended March 31, 1999 and 1998, respectively. These
costs consisted primarily of employee-related costs, and investment
banking, legal, regulatory and consulting fees.
KN Energy
On February 22, 1999, Sempra Energy and KN Energy, Inc. (KN Energy)
announced that their respective boards of directors had approved
Sempra Energy's acquisition of KN Energy, subject to approval by the
shareholders of both companies and by various federal and state
regulatory agencies. If the transaction is approved, holders of KN
Energy common stock will receive 1.115 shares of Sempra Energy common
stock or $25 in cash, or some combination thereof, for each share of
KN Energy common stock. In the aggregate, the cash portion of the
transaction will constitute not more than 30 percent of the total
consideration. The transaction will be treated as a purchase for
accounting purposes. On March 30, 1999, Sempra Energy was notified
that the U.S. Federal Trade Commission had granted the Company's
request for early clearance under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, with respect to the proposed
merger.
3. MATERIAL CONTINGENCIES
NATURAL GAS INDUSTRY RESTRUCTURING
The natural gas industry experienced an initial phase of
restructuring during the 1980s by deregulating natural gas sales to
noncore customers. On January 21, 1998, the CPUC released a staff
report initiating a project to assess the current market and
regulatory framework for California's natural gas industry. The
general goals of the plan are to consider reforms to the current
regulatory framework emphasizing market-oriented policies benefiting
California's natural gas consumers.
In August 1998, California enacted a law prohibiting the CPUC from
enacting any natural gas industry restructuring decision for core
customers prior to January 1, 2000; the CPUC continues to study the
issue. During the implementation moratorium, the CPUC will hold
hearings throughout the state and intends to give the legislature a
draft ruling before adopting a final market-structure policy. SDG&E
and SoCalGas will actively participate in this effort.
4. COMPREHENSIVE INCOME
In conformity with generally accepted accounting principles, the
Company has adopted Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income." Comprehensive income for the
three-month periods ended March 31, 1999 and 1998 was equal to net
income.
5. SEGMENT INFORMATION
The Company has two separately managed reportable segments: natural
gas distribution and natural gas transmission/storage. The accounting
policies of the segments are the same as those described in the notes
to Consolidated Financial Statements in the Company's 1998 Annual
Report, and segment performance is evaluated by management based on
reported operating income. Intersegment transactions are generally
recorded the same as sales or transactions with third parties.
Interest expense and income tax expense are not allocated to the
reportable segments. Interest revenue is included in other income on
the Statements of Consolidated Income herein. It is not allocated to
the reportable segments. There were no significant changes in segment
assets for the three months ended March 31, 1999.
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Three months ended
March 31,
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(Dollars in millions) 1999 1998
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Revenues:
Distribution $ 517 $ 555
Transmission and storage 102 112
Other (12) (3)
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Total $ 607 $ 664
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Segment Income:
Distribution $ 109 $ 91
Transmission and storage 12 20
All other (11) (2)
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Total segment income 110 109
Interest expense (21) (22)
Income tax expense (39) (40)
Nonoperating income (expense) (3) 1
-----------------------
Net income $ 47 $ 48
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ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
financial statements contained in this Form 10-Q and Management's
Discussion and Analysis of Financial Condition and Results of
Operations contained in the Company's 1998 Annual Report.
INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "estimates," "believes," "expects,"
"anticipates," "plans" and "intends," variations of such words, and
similar expressions are intended to identify forward-looking
statements that involve risks and uncertainties which could cause
actual results to differ materially from those anticipated.
These statements are necessarily based upon various assumptions
involving judgments with respect to the future including, among
others, local, regional, national and international economic,
competitive, political and regulatory conditions and developments;
technological developments; capital market conditions; inflation
rates; interest rates; energy markets; weather conditions; business,
regulatory or legal decisions; the pace of deregulation of retail
natural gas and electricity industries; the timing and success of
business development efforts; and other uncertainties, all of which
are difficult to predict and many of which are beyond the control of
the Company. Accordingly, while the Company believes that the
assumptions are reasonable, there can be no assurance that they will
approximate actual experience, or that the expectations will be
realized. Readers are urged to review and consider carefully the
risks, uncertainties and other factors which affect the Company's
business described in this quarterly report and other reports filed
by the Company from time to time with the Securities and Exchange
Commission. Readers are cautioned not to put undue reliance on any
forward-looking statements. For those statements, the Company claims
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
BUSINESS COMBINATIONS
See Note 2 of the notes to Consolidated Financial Statements
regarding the PE/Enova business combination and the KN Energy
proposed merger.
CAPITAL RESOURCES AND LIQUIDITY
The Company's utility operations continue to be a major source of
liquidity. In addition, working capital requirements are met through
the issuance of short-term and long-term debt. These capital
resources are expected to remain available. Cash requirements
primarily include utility capital expenditures and repayments and
retirements of long-term debt. Major changes in cash flows not
described elsewhere are described below. Cash and cash equivalents at
March 31, 1999 are available for investment in utility plant, the
retirement of debt, and other corporate purposes.
CASH FLOWS FROM OPERATING ACTIVITIES
Cash flows from operations decreased primarily due to payments on
behalf of affiliated companies and a decrease in collections on
regulatory balancing accounts compared to 1998. Overcollected
balancing accounts payable increased in 1999 and undercollected
balancing accounts receivable decreased in 1998 due to actual natural
gas costs' being lower than amounts collected in rates for both
periods.
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures for property, plant and equipment are estimated
to be $170 million for the full year 1999 and will be financed
primarily by internally generated funds. These expenditures will
largely represent investment in rate base. Construction, investment
and financing programs are continuously reviewed and revised in
response to changes in competition, customer growth, inflation,
customer rates, the cost of capital, and environmental and regulatory
requirements.
CASH FLOWS FROM FINANCING ACTIVITIES
On February 2, 1998, the Company redeemed all outstanding shares of
7-3/4% Series Preferred Stock for a total cost of $76 million,
including unpaid dividends.
RESULTS OF OPERATIONS
The table below summarizes the components of natural gas volumes and
revenues by customer class for the three months ended March 31, 1999 and
1998.
Gas Sales, Transportation & Exchange
(Dollars in millions, volumes in billion cubic feet)
Gas Sales Transportation & Exchange Total
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Throughput Revenue Throughput Revenue Throughput Revenue
--------------------------------------------------------------
1999:
Residential 100 $ 619 1 $ 1 101 $ 620
Commercial and industrial 25 144 77 62 102 206
Utility electric generation* 16 7 16 7
Wholesale 45 16 45 16
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125 $ 763 139 $ 86 264 849
Balancing accounts and other (242)
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Total $ 607
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1998:
Residential 96 $ 710 1 $ 4 97 $ 714
Commercial and industrial 24 153 81 66 105 219
Utility electric generation* 23 11 23 11
Wholesale 43 13 43 13
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120 $ 863 148 $ 94 268 957
Balancing accounts and other (293)
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Total $ 664
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* The portion representing SDG&E's sales for electric generation includes
margin only.
Natural gas revenues decreased 9 percent for the three-month period
ended March 31, 1999, compared to the same period in 1998. The
decrease was primarily due to a decrease in the average cost of
natural gas and lower utility electric generating sales, partially
offset by a slight increase in sales to residential customers due to
customer growth and colder weather in 1999.
Cost of natural gas distributed decreased 15 percent for the three-
month period ended March 31, 1999 compared to the same period in
1998. The decrease was primarily due to a decrease in the average
cost of natural gas purchased and lower utility electric generating
sales. Under the current regulatory framework, changes in revenue
resulting from core market changes in volumes and the cost of natural
gas do not affect net income.
Operating expenses decreased 6 percent for the three-month period
ended March 31, 1999 compared to the same period in 1998 due to a
continuing emphasis on reducing operating costs to remain competitive
in the marketplace.
YEAR 2000 ISSUES
Most companies are affected by the inability of many automated
systems and applications to process the year 2000 and beyond. The
Year 2000 issues are the result of computer programs and other
automated processes using two digits to identify a year, rather than
four digits. Any of the Company's computer programs that include
date-sensitive software may recognize a date using "00" as
representing the year 1900, instead of the year 2000, or "01" as
1901, etc., which could lead to system malfunctions. The Year 2000
issue impacts both Information Technology ("IT") systems and also
non-IT systems, including systems incorporating embedded processors.
To address this problem, in 1996, both Pacific Enterprises and Enova
Corporation established company-wide Year 2000 programs. These
programs have now been consolidated into Sempra Energy's overall Year
2000 readiness effort. Sempra Energy has established a central Year
2000 Program Office, which reports to the Company's Chief Information
Technology Officer and reports periodically to the audit committee of
the Board of Directors.
The Company's State of Readiness
Sempra Energy has identified all IT and non-IT systems (including
embedded systems) that might not be Year 2000 ready and categorizing
them in the following areas: IT applications, computer hardware and
software infrastructure, telecommunications, embedded systems, and
third parties. The Company evaluated its exposure in all of these
areas. These systems and applications are being tracked and measured
through four key phases: inventory, assessment, remediation/testing,
and Year 2000 readiness. The Company has prioritized so that, when
possible, critical systems are being assessed and modified/replaced
first. Critical systems are those applications and systems, including
embedded processor technology, which, if not appropriately
remediated, may have a significant impact on energy delivery, revenue
collection or the safety of personnel, customers or facilities. The
Company's Year 2000 testing effort includes functional testing of
Year 2000 dates and validating that changes have not altered existing
functionality. The Company uses an independent, internal review
process to verify that the appropriate testing has occurred.
The Company's Year 2000 project is currently on schedule and the
company estimates that all critical systems will be Year 2000 Ready
by June 30, 1999. The Company defines "Year 2000 Ready" as suitable
for continued use into the year 2000 with no significant operational
problems.
Sempra Energy's current schedule for Year 2000 testing, readiness and
development of contingency plans is subject to change depending upon
the remediation and testing phases of the Company's compliance effort
and upon developments that may arise as the Company continues to
assess its computer-based systems and operations. In addition, this
schedule is dependent upon the efforts of third parties, such as
suppliers (including energy producers) and customers. Accordingly,
delays by third parties may cause the Company's schedule to change.
The Costs to Address the Company's Year 2000 Issues
Sempra Energy's budget for the Year 2000 program is $48 million, of
which $40 million has been spent. As the Company continues to assess
its systems and as the remediation and testing efforts progress, cost
estimates may change. The Company's Year 2000 readiness effort is
being funded entirely by operating cash flows.
The Risks of the Company's Year 2000 Issues
Based upon its current assessment and testing of the Year 2000 issue,
the Company believes the reasonably likely worst case Year 2000
scenarios to have the following impacts upon Sempra Energy and its
operations. With respect to the Company's ability to provide energy
to its domestic utility customers, the Company believes that the
reasonably likely worst case scenario is for small, localized
interruptions of utility service which are restored in a time frame
that is within normal service levels. With respect to services that
are essential to Sempra Energy's operations, such as customer
service, business operations, supplies and emergency response
capabilities, the scenario is for minor disruptions of essential
services with rapid recovery and all essential information and
processes ultimately recovered.
To assist in preparing for and mitigating these possible scenarios,
Sempra Energy is a member of several industry-wide efforts
established to deal with Year 2000 problems affecting embedded
systems and equipment used by the nation's natural gas and electric
power companies. Under these efforts, participating utilities are
working together to assess specific vendors' system problems and to
test plans. These assessments will be shared by the industry as a
whole to facilitate Year 2000 problem solving.
A portion of this risk is due to the various Year 2000 Ready
schedules of critical third party suppliers and customers. The
Company continues to contact its critical suppliers and customers to
survey their Year 2000 remediation programs. While risks related to
the lack of Year 2000 readiness by third parties could materially and
adversely affect the Company's business, results of operations and
financial condition, the Company expects its Year 2000 readiness
efforts to reduce significantly the Company's level of uncertainty
about the impact of third party Year 2000 issues on both its IT
systems and its non-IT systems.
The Company's Contingency Plans
Sempra Energy's contingency plans for Year-2000-related interruptions
are being incorporated in the Company's existing overall emergency
preparedness plans. To the extent appropriate, such plans will
include emergency backup and recovery procedures, remediation of
existing systems parallel with installation of new systems, replacing
electronic applications with manual processes, identification of
alternate suppliers and increasing inventory levels. These
contingency plans are well underway and the Company plans to be
completed by June 30, 1999. Due to the speculative and uncertain
nature of contingency planning, there can be no assurances that such
plans actually will be sufficient to reduce the risk of material
impacts on the Company's operations due to Year 2000 issues.
FACTORS INFLUENCING FUTURE PERFORMANCE
Because of the ratemaking and regulatory process, electric and
natural gas industry restructuring, and the changing energy
marketplace, there are several factors that will influence the
Company's future financial performance. These factors are discussed
below.
KN Energy Acquisition
See discussion of the KN Energy acquisition in Note 2 of the notes to
Consolidated Financial Statements.
Industry Restructuring
See discussion of industry restructuring in Note 3 of the notes to
Consolidated Financial Statements.
Performance-Based Regulation (PBR)
To promote efficient operations and improved productivity and to move
away from reasonableness reviews and disallowances, the CPUC has been
directing utilities to use PBR. PBR has replaced the general rate
case and certain other regulatory proceedings for both SoCalGas and
SDG&E. Under PBR, regulators require future income potential to be
tied to achieving or exceeding specific performance and productivity
goals, as well as cost reductions, rather than relying solely on
expanding utility rate base in a market where a utility already has a
highly developed infrastructure.
SoCalGas' PBR is in effect through December 31, 2002; however, the
CPUC decision allows for the possibility that changes to the PBR
mechanism could be adopted in a decision to be issued in SoCalGas'
1999 Biennial Cost Allocation Proceeding (BCAP) application which is
anticipated to become effective at year-end 1999.
Cost of Capital
Under PBR, annual Cost of Capital proceedings were replaced by an
automatic adjustment mechanism if changes in certain indices exceed
established tolerances. For 1999, SoCalGas is authorized to earn a
rate of return on common equity (ROE) of 11.6 percent and a 9.49
percent return on rate base (ROR), unchanged from 1998.
Annual Earnings Assessment Proceeding
An application was filed in May 1999 to recover shareholder rewards
for the Demand Side Management (DSM) programs and incentives earned
for its energy-efficiency and low-income programs totaling $5
million. The revenue requirement increase is proposed to become
effective on January 1, 2000. The DSM rewards and low-income program
incentives will be collected and recorded in earnings over ten years.
The energy-efficiency program incentives are recovered in one year.
Rewards and incentives for these programs are subject to CPUC
approval.
The CPUC has extended interim utility administration of energy-
efficiency and low-income programs through December 31, 2001.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Except for the matters referred to in the Company's 1998 Annual
Report or referred to elsewhere in this Quarterly Report on Form 10-Q
for the three months ended March 31, 1999, neither the Company nor
any of its affiliates is a party to, nor is its property the subject
of, any material pending legal proceedings other than routine
litigation incidental to its businesses.
ITEM 4. SUBMISSION OF MATTERS TO VOTE
At the annual meeting on May 11, 1999, the Company's shareholders
elected 15 directors to hold office until the next annual meeting and
until their successors have been elected and qualified. The name of
each nominee and the number of shares voted for or withheld were as
follows:
Nominees Votes For Votes Withheld
- -------------------------------------------------------------------
Hyla H. Bertea 91,350,677 --
Ann L. Burr 91,350,677 --
Herbert L. Carter 91,350,677 --
Richard A. Collato 91,350,677 --
Daniel W. Derbes 91,350,677 --
Wilford D. Godbold, Jr. 91,350,677 --
Robert H. Goldsmith 91,350,677 --
William D. Jones 91,350,677 --
Ignacio E. Lozano, Jr. 91,350,677 --
Warren I. Mitchell 91,350,677 --
Ralph R. Ocampo 91,350,677 --
William G. Ouchi 91,350,677 --
Richard J. Stegemeier 91,350,677 --
Thomas C. Stickel 91,350,677 --
Diana L. Walker 91,350,677 --
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 10 - Material Contracts - Compensation
10.1 Form of Sempra Energy Severance Pay Agreement
Exhibit 27 - Financial Data Schedules
27.1 Financial Data Schedule for the three months ended
March 31, 1999.
(b) Reports on Form 8-K
None.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
SOUTHERN CALIFORNIA GAS COMPANY
-------------------------------
(Registrant)
By: /s/ Warren Mitchell
Date: May 14, 1999 ---------------------------
Warren Mitchell
Chairman and President
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