The California Public Utilities Commission approved a performance-based ratemaking plan for Southern California Gas Co. that could yield substantial savings, which the company is required to share with customers.
The PUC said the proposed merger of the utility's parent, Pacific Enterprises, and Enova Corp., parent company of San Diego Gas & Electric Co., should improve efficiency and benefit ratepayers.
The approved rate plan includes an indexing mechanism and base margin that allows SoCal Gas to adjust rates annually without commission approval, subject to a series of adjustments and exclusions. The plan includes an adjustment to lower rates for expected improvements in company productivity. The program also contains many features designed to "insure that high standards of service quality and safety are maintained," the commission said.