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SDG&E FILES FINAL PERFORMANCE-BASED RATE PLAN LINKING SERVICE, RELIABILITY AND CUSTOMER SAVINGS

 SAN DIEGO, July 23 /PRNewswire/ -- San Diego Gas & Electric has filed the fourth and final piece of a performance-based ratemaking proposal today with the California Public Utilities Commission (CPUC) that would give the company financial incentives to boost customer savings and attain high levels of service and employee safety.
 "This final piece of the plan links SDG&E employees, customers and shareholders with a reward mechanism directly based on company performance," said Steven D. Davis, director, regulatory affairs. "It asks regulatory agencies to financially reward shareholders for achieving goals such as having lower rates than Pacific Gas & Electric and Southern California Edison. This is something that SDG&E has been doing for five years and the company is committed to maintaining this goal."
 These service reliability, employee safety, customer service and rates goals mirror those upon which company employees are measured.
 Another important component of today's filing involves the future of the company's 1996 General Rate Case (GRC). An early 1994 approval of this base rate mechanism would affect the majority of the company's financial operations, making the GRC process unnecessary, Davis added.
 "We feel that setting performance benchmarks is an essential process which encourages outstanding performance with financial rewards," Davis added. "It also provides regulatory agencies and our customers with clear standards upon which to monitor and measure our performance."
 On June 23, the CPUC approved the first two mechanisms of SDG&E's performance-based ratemaking proposal. These mechanisms encouraged SDG&E to become more competitive in the procurement of natural gas and in the generation and dispatch of electricity. Beyond a benchmark measure, customers and shareholders would share either the reward in the form of lower rates and higher earnings or, conversely, the risk. A measure covering long-term competitive energy procurement was filed in March 1993, and a decision is expected in 1994.
 -0- 7/23/93
 /CONTACT: Art Larson of SDG&E, 619-696-4307/


CO: San Diego Gas & Electric ST: California IN: UTI SU:

LM-BP -- SD006 -- 5378 07/23/93 18:51 EDT
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Publication:PR Newswire
Date:Jul 23, 1993
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