Kevin,

As a follow up to our recent discussions concerning the SoCalGas RLS or
peaking rate, I am forwarding to you the proposed decision of ALJ Brown.  My
understanding is that at yesterday's Commission meeting the Commission made
a decision to approve a change to the current peaking rate tariff.  I should
have their decision within a couple working days.  I am forwarding their
draft decision.

The expected PD rate design for the new peaking rate would include SFV rate
design principals, demand charges determined over highest recorded usage
over a 12 month period, and inclusion of public purpose program charges.  At
this point we'll call it a modified cost of service approach.

If you have any questions, please call.


Mark Baldwin