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): December 2, 2004
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Name of Registrant, State of IRS Employer
Commission Incorporation, Address and Identification
File Number Telephone Number Number
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1-40 Pacific Enterprises 94-0743670
(A California Corporation)
101 Ash Street
San Diego, California 92101
(619) 696-2000
1-1402 Southern California Gas Company 95-1240705
(A California Corporation)
555 West Fifth Street
Los Angeles, California 90013
(213) 244-1200
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(Former name or former address, if changed since last report.)
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FORM 8-K
Item 8.01 Other Events
Cost of Service Decisions
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On December 2, 2004, the California Public Utilities Commission (CPUC)
issued a decision in Southern California Gas Company's cost of service
proceeding. The decision approves a previously reported settlement
recommended by SoCalGas, the CPUC's Office of Ratepayer Advocates and
all other major parties to the proceeding. It reduces SoCalGas' annual
rate revenues, effective retroactively to January 1, 2004, by
approximately $33 million from the rates in effect during 2003. The
reduced rates will remain in effect through 2007 subject to annual
attrition allowances.
The CPUC also issued a decision providing that any 2005 attrition
allowance relating to the new rates will be retroactive to January 1,
2005. Attrition allowances adjust rates to reflect inflation, system
growth and operating efficiencies. Attrition allowances and performance-
based incentive mechanisms, among other items, will be addressed by the
CPUC in the company's Phase II proceeding, expected to be decided in the
first quarter of 2005.
Also as previously reported, during 2004 SoCalGas has generally recorded
revenue and resulting net income in a manner consistent with the reduced
rates contemplated by the settlement, except for the recovery of pension
costs provided by the CPUC's decision that, when recorded, will have a
favorable non-recurring effect on net income.
The period for applications for rehearing of the CPUC's decisions will
expire thirty days after the decisions are mailed.
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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
Date: December 2, 2004 By: /s/ F. H. Ault
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Name: F. H. Ault
Sr. Vice President and Controller
Southern California Gas Company
Date: December 2, 2004 By: /s/ S.D. Davis
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S.D. Davis
Sr. Vice President-External Relations
and Chief Financial Officer