GAS CO. CAN BE SUED, COURT RULES : DECISION ALLOWS ANTITRUST SUIT AGAINST UTILITY.

Byline: Gregory J. Wilcox Daily News Staff Writer

Southern California Gas Co. can be sued for $100 million in U.S. District Court over claims it violated antitrust laws while competing for business in the fledgling natural gas vehicle industry, a federal appeals panel has ruled.

Paramount-based California CNG Inc. sued Southern California Gas in January 1995, charging the utility had used its size and deep pockets to keep competitors from building fueling stations for natural gas vehicles.

In April 1995, a federal court judge in Los Angeles ruled that as a utility the Gas Co. was exempt from federal antitrust laws.

But the Ninth Circuit Court of Appeals overturned that and said California CNG can proceed with its suit.

``We disagree with the opinion of the federal court,'' said Gas Co. spokeswoman Denise King. No trial date has been set.

The Gas Co., the nation's largest natural gas utility, has built 85 liquefied natural gas refueling stations around the state since 1993. That year, the utility also submitted its plans for participation in the natural gas vehicle business to the California Public Utilities Commission.

There are 5,000 LNG-powered vehicles currently operating in Southern California.

Last year, the PUC ruled that certain aspects of that business could be subsidized by ratepayers, but that marketing could not. The Gas Co. subsequently stopped building fueling stations.

California CNG President Glen MacLeod's suit contends it could not compete because the Gas Co. was giving away fueling equipment or selling it well below market prices.

``Under those conditions no one could compete,'' he said.

California CNG has built just one natural gas refueling station in Glendale at San Fernando Road and Fairmont Avenue.