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                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 8-K

                               CURRENT REPORT

                   PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934



Date of report (Date of earliest event reported)        July 16, 1997
                                                ----------------------------

                               Pacific Enterprises
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)


                                   California
                  ---------------------------------------------
                  (State or other jurisdiction of incorporation


                1-40                             94-0743670
       ----------------------         ------------------------------------
       Commission File Number         (I.R.S. Employer Identification No.)


             555 West Fifth Street, Los Angeles, California 90013-1011
             ---------------------------------------------------------
                     (Address of principal executive offices)
                                  (Zip Code)


                               (213) 895-5000
             ----------------------------------------------------
             (Registrant's telephone number, including area code)


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ITEM 5.  OTHER EVENTS

                              CPUC PBR Decision


                           ***********************

On  July 16, 1997, the California Public Utilities Commission (CPUC)  issued
its  final  decision on Southern California Gas Company's (SoCalGas  or  the
Company) application for performance based regulation (PBR).

SoCalGas filed its PBR application with the CPUC in 1995.  PBR replaces  the
general  rate  case  and certain other regulatory proceedings.   Under  PBR,
regulators  allow  future  income potential  to  be  tied  to  achieving  or
exceeding  specific  performance  and  productivity  measures,  rather  than
relying  solely  on expanding utility rate base in a market  where  SoCalGas
already  has  a highly developed infrastructure.  Key elements  of  the  PBR
include a reduction in base rates, an indexing mechanism that limits  future
rate  increases to the inflation rate less a productivity factor,  and  rate
refunds  to  customers  if  service quality  deteriorates.   The  change  in
regulatory  oversight will change the way earnings are affected  by  various
factors.   For  example,  earnings will become more reliant  on  operational
efficiencies and less on investment in plant.

Under  ratemaking  procedures in effect prior to the PBR decision,  SoCalGas
typically filed a general rate case with the CPUC every three years.   In  a
general  rate case, the CPUC established a base margin, which is the  amount
of  revenue  to be collected from customers to recover authorized  operating
expenses  (other than the cost of gas), depreciation, taxes  and  return  on
rate base.  Separate proceedings were held annually to review SoCalGas' cost
of  capital including return on common equity, interest costs and changes in
capital structure. Under PBR, the annual cost of capital proceedings will be
replaced by an automatic adjustment mechanism if changes in certain  indices
exceed  established  tolerances.   The  mechanism  is  triggered  if  actual
interest  rates change by more than 150 basis points and are  forecasted  to
continue  to vary by at least 150 basis points for the next year.   If  this
occurs,  there would be an automatic adjustment of rates for the  change  in
the cost of capital according to a pre-established formula.

Furthermore,  under the prior ratemaking procedures the CPUC allowed  annual
adjustments  to  rates for years between general rate cases to  reflect  the
changes in rate base and the effects of inflation.  This attrition allowance
mechanism  is  eliminated  by  PBR.  Biennial  cost  allocation  proceedings
(BCAP), which will continue under PBR, adjusts rates to reflect variances in
the  cost of gas and core customer demand from estimates previously adopted.
The Commission's PBR decision indicates that it will address issues such  as
throughput  forecast, cost allocation, rate design and other  matters  which
may  arise  from SoCalGas' PBR experience in the 1998 BCAP.   The  Gas  Cost
Incentive  Mechanism  (GCIM)  is  a  process  for  comparing  SoCalGas'  gas
purchases  to a benchmark level, which is the average price of  30-day  firm
spot  supplies  delivered to the SoCalGas market area.  The GCIM  proceeding
will not change under PBR.


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The Commission's PBR decision establishes the following rules for SoCalGas:

  -  A net rate reduction of $160 million for an initial base margin of $1.3
  billion (a rate reduction now of $191 million, offset by an estimated  $31
  million  rate increase to reflect inflation and customer growth on January
  1,  1998).   The  CPUC refers to a rate reduction of $229 million  in  its
  decision.   However,  this  amount  does  not  include  approximately  $38
  million of other social program costs authorized in this proceeding,  that
  were previously part of base margin.

  -  If earnings exceed the authorized rate of return on ratebase, a portion
  will  be returned to customers.  Earnings between 25 and 300 basis  points
  above  our  authorized  rate of return on ratebase  will  be  shared  with
  customers  in  eight blocks of 25 to 50 basis points each with  the  first
  block  returning  75% to customers and declining to 0% as  earned  returns
  approach  300  basis  points  above  authorized  amounts.   However,   the
  decision  rejects sharing of any amount by which actual earnings may  fall
  below the authorized rate of return.  In 1997, SoCalGas was authorized  to
  earn  a  9.49%  return  on  ratebase which  the  decision  adopts  as  the
  authorized rate for PBR.

  -  Index  revenue  or margin per customer by inflation less  an  estimated
  productivity  factor of 2.1% in the first year, increasing 0.1%  per  year
  up  to 2.5% in the fifth year.  This factor includes 1% to approximate the
  projected  impact of declining ratebase.  This methodology, combined  with
  the  retention  of  the  Core Fixed Cost Balancing  account,  removes  the
  risk/reward  potential for shareholders arising from higher or  lower  gas
  throughput    per    customer    to   core    (residential    and    small
  commercial/industrial) customers.

  -  Maintain the current residential customer charge of $5 per month.   The
  CPUC  decision  defers  action on residential  rate  design  to  a  future
  Commission  proceeding,  but does allow for some pricing  flexibility  for
  residential  and  small  commercial customers with  any  shortfalls  being
  borne by shareholders; and

  -  Continue  to  offer  some types of products and services  it  currently
  offers  (e.g.  contract  meter reading), but defers  issue  of  other  new
  product and service offerings to a future Commission proceeding.

SoCalGas  has the option of implementing the base margin reduction  in  late
July,  and  all other elements on January 1, 1998, or to implement  all  PBR
elements  including the reduction to base margin retroactive to  January  1,
1997.   SoCalGas'  plan is to implement the base margin reduction  effective
late  July,  and implement all other PBR elements on January 1,  1998.   The
CPUC  intends for its PBR decision to be in effect for five years.  The CPUC
decision  also  provides the possibility that changes to the  PBR  mechanism
could  be  adopted  in  a  decision to be  issued  in  SoCalGas'  1998  BCAP
application, which decision is anticipated to become effective on August  1,
1999.



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It  is the intent of management to control operating expenses and investment
within the amounts authorized to be collected in rates in this PBR decision.
SoCalGas  intends to make the efficiency improvements, changes in operations
and  cost  reductions  necessary to achieve  this  objective  and  earn  its
authorized  rate  of  return.   However, in view  of  the  earnings  sharing
mechanism and other elements of PBR authorized by the CPUC, it will be  more
difficult  for  SoCalGas  to achieve the level of returns  it  has  recently
experienced.






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.

PACIFIC ENTERPRISES
- ---------------------
    (Registrant)



- -----------------------------
Ralph Todaro
Vice President and Controller
(Chief Accounting Officer and
duly authorized signatory)
Date:  July 16, 1997