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:  July 15, 1998
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                   SAN DIEGO GAS & ELECTRIC COMPANY
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       (Exact name of registrant as specified in its charter)


CALIFORNIA                      1-3779                     95-1184800
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(State of incorporation      (Commission             (I.R.S. Employer
or organization)             File Number)          Identification No.


101 ASH STREET, SAN DIEGO, CALIFORNIA                           92101
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(Address of principal executive offices)                   (Zip Code)


                                                       (619) 696-2000
Registrant's telephone number, including area code-------------------


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   (Former name or former address, if changed since last report.)




                         FORM 8-K

Item 5. Other Events.

As described in the 1997 Annual Reports on Form 10-K of Enova 
Corporation and San Diego Gas & Electric Company, the March 31, 
1998 Quarterly Reports on Form 10-Q of Enova Corporation and San 
Diego Gas & Electric Company, the June 30, 1998 Current Report on 
Form 8-K of Sempra Energy, and/or the July 7, 1998 Current Report 
on Form 8-K of SDG&E Funding LLC:



     In December 1997, the California Supreme Court dismissed a 
     petition submitted by a coalition of consumer groups to 
     overturn the CPUC's Rate-Reduction Bond financing orders. 

     A related coalition of consumer groups has also put 
     together a California ballot initiative (the Voter 
     Initiative) that, among other things, could result in an 
     additional 10-percent rate reduction, require that this 
     rate reduction be achieved through the elimination or 
     reduction of payments associated with recovery by the 
     California investor-owned utilities (IOUs) of investments 
     in certain generation-related assets and purchased-power 
     contracts in conjunction with the transition to a 
     competitive market (CTC charges), and prohibit the 
     collection of the charge on customer bills that is 
     intended to finance the 10-percent rate reduction that 
     became effective January 1, 1998.

     In June 1998, the coalition of consumer groups received 
     verification that the Voter Initiative received the needed 
     signatures to qualify for the November 1998 California 
     ballot. 

     In May 1998, a statewide coalition of California's 
     investor-owned electric utilities and business groups 
     known as "Californians for Affordable and Reliable 
     Electric Services" (CARES) filed a lawsuit with the Third 
     District Court of Appeal to block the Voter Initiative 
     (Californians for Affordable and Reliable Electric 
     Services v. Bill Jones, et al., No. 3 Civ. C029528). The 
     CARES petition challenges the Voter Initiative as illegal 
     and unconstitutional on its face, and seeks to remove the 
     Voter Initiative from the November 1998 ballot. On July 2, 
     the Third District Court of Appeal issued a one-sentence 
     order refusing to grant review of the CARES petition at 
     the present time.  Such ruling did not represent a ruling 
     on the merits of the arguments presented; rather, the 
     ruling was a decision by the court not to consider the 
     merits of the CARES petition prior to the November 
     balloting.

     On July 6, CARES filed a petition in the California 
     Supreme Court seeking to overturn the Third District Court 
     of Appeal's denial.  No assurance can be given as to 
     whether the Voter Initiative will be excluded from the 
     November 1998 ballot.



The Voter Initiative seeks to amend or repeal Assembly Bill 1890, 
Chapter 854, California Statutes of 1996 (the Statute) in various 
respects, including requiring utilities to provide a 10-percent 
reduction in electricity rates charged to residential and small 
commercial customers in addition to the 10-percent rate reduction 
that became effective on January 1, 1998.  Among other things, the 
Voter Initiative would prohibit a utility from collecting the 
separate nonbypassable charges payable by residential and small 
commercial customers (FTA Charges) for the payment of Rate 
Reduction Bonds.  If this prohibition against collecting these 
charges were found to be unenforceable by a court of competent 
jurisdiction, the Voter Initiative would require the utility to 
offset any such FTA Charge by crediting back to the customer the 
amount of such charge.  

According to the Voter Initiative, the rate reductions would be 
achieved through cutting payments to the IOUs for their nuclear and 
other uneconomic generation and purchased-power costs. Costs for 
nuclear generation plants and related assets and obligations would 
not be paid for by electric utility customers, except to the extent 
that such costs are recovered by the sale of electricity at 
competitive market prices as reflected in independent Power 
Exchange revenues or in contracts with the Independent System 
Operator. Reasonable nuclear decommissioning costs (as referenced 
in Section 379 of the Public Utilities Code) would not be affected. 
Costs for non-nuclear generation plants and related assets and 
obligations would not be recovered from electric utility customers 
under the cost-recovery mechanism provided for by sections 367 
through 376 of the Public Utilities Code, except to the extent that 
such costs are recovered by the sale of electricity at competitive 
market rates from independent Power Exchange revenues or from 
contracts with the Independent System Operator, unless the electric 
utility first demonstrates to the satisfaction of the Commission at 
a public hearing that failure to recover such costs would deprive 
it of the opportunity to earn a fair rate of return.

The Voter Initiative filed with the California Attorney General is 
incorporated (as Exhibit 99.1) by reference to the July 7, 1998 
Current Report on Form 8-K of SDG&E Funding LLC (Commission File 
No. 333-30761).

If the Voter Initiative is not removed from the November 1998 
ballot as requested in the CARES petition and is voted into law, 
further litigation would ensue. 

Registrant is unable to predict the outcome of this matter, but if 
the Voter Initiative were to be voted into law, and not immediately 
stayed and ultimately invalidated by the courts, it could have a 
material adverse effect on Registrant's results of operations and 
financial position. Upon voter approval of the Voter Initiative, a 
write-down of a portion of Registrant's generation-related assets 
might be required under applicable accounting principles, depending 
on Registrant's assessment of both the probability that the Voter 
Initiative would be struck down by the courts and the manner in 
which it would be interpreted and applied to Registrant. The 
meaning of many provisions of the Voter Initiative is unclear and, 
if all or part of the Voter Initiative is upheld by the courts, 
will be subject to judicial and regulatory interpretation. If the 
most onerous interpretations of the provisions are applied, and it 
is assumed that Registrant's nuclear-generation facilities have 
zero market value and that Registrant's fossil-generation assets 
have a market value equal to their carrying amounts, the potential 
write-down of Registrant's generation-related assets could amount 
to as much as approximately $400 million after taxes.

Additionally, if the Voter Initiative were passed and survived 
legal challenges, Registrant could suffer impacts on its annual 
earnings, including the possibility of being required to offset 
customer charges necessary to pay the principal and interest 
related to the financing of the rate reduction. If the same 
interpretations and assumptions are made as in the preceding 
paragraph, the annual after-tax earnings reductions could be as 
large as approximately $50 million in 1999, followed by declining 
amounts for some years thereafter.



Item 7.  Financial Statements and Exhibits.


(c) Exhibits

     99.1   Voter Initiative (No. SA 97 RF 0064), incorporated 
by reference to Exhibit 99.1 to the July 7, 1998 Current 
Report on Form 8-K of SDG&E Funding LLC (Commission File No. 
333-30761).









                           SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 
1934, the registrants have duly caused this report to be signed on 
its behalf by the undersigned thereunto duly authorized.


                               SAN DIEGO GAS & ELECTRIC COMPANY 
                                            (Registrant)


Date: July 15, 1998            By: /s/ E.A. Guiles
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                                       E.A. Guiles
                                       President