<PAGE>PAGE 1
                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 10-Q

       [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended            June 30, 1997
                              --------------------------------------------

Commission file number             1-1402
                      ----------------------------------------------------

                         SOUTHERN CALIFORNIA GAS COMPANY
              ------------------------------------------------------
              (Exact name of registrant as specified in its charter)

                  California                           95-1240705
---------------------------------------------      -------------------
(State or other jurisdiction of incorporation       (I.R.S. Employer
               or organization)                    Identification No.)

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

                               (213) 244-1200
             ----------------------------------------------------
             (Registrant's telephone number, including area code)

Indicate  by  check  mark whether the registrant (1) has filed   all  reports
required  to be filed by Section 13 or 15 (d) of the Securities Exchange  Act
of  1934 during the preceding 12 months (or for such shorter period that  the
registrant  was required to file such reports), and (2) has been  subject  to
such filing requirements for the past 90 days.

Yes  X    No
    ---

The  number  of  shares of common stock outstanding on August  12,  1997  was
91,300,000.

                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.
<PAGE>PAGE 2
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                 CONDENSED STATEMENT OF CONSOLIDATED INCOME
                           (Millions of Dollars)
                               (Unaudited)

                                    Three Months Ended     Six Months Ended
                                           June 30             June 30
                                   -------------------    ------------------
                                     1997      1996        1997        1996
                                    -----     -----       ------      ------

Operating Revenues                   $575      $497       $1,313      $1,117
                                     ----      ----       ------      ------
Operating Expenses:
  Cost of gas distributed             167       144          517         394
  Operation and maintenance           181       191          352         347
  Depreciation                         62        63          125         123
  Income taxes                         52        26           97          71
  Other taxes and franchise
   payments                            22        19           49          49
                                     ----      ----       ------      ------
     Total                            484       443        1,140         984
                                     ----      ----       ------      ------
Net Operating Revenue                  91        54          173         133
                                     ----      ----       ------      ------
Other Income and (Deductions)           0        (1)           0           0
                                     ----      ----       ------      ------
Interest Charges and (Credits):
  Interest on long-term debt           20        20           41          40
  Other interest                       (1)        2            1           5
  Allowance for borrowed funds
   used during construction             0        (1)          (1)         (1)
                                     ----      ----       ------      ------
     Total                             19        21           41          44
                                     ----      ----       ------      ------
Net Income                             72        32          132          89
Dividends on Preferred Stock            2         2            4           5
                                     ----      ----       ------      ------
Net Income Applicable to
 Common Stock                        $ 70      $ 30         $128        $ 84
                                     ====      ====         ====        ====

See Notes to Condensed Consolidated Financial Statements.
<PAGE>PAGE 3

              SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                   CONDENSED CONSOLIDATED BALANCE SHEET
                                   ASSETS
                           (Millions of Dollars)
                                (Unaudited)

                                                June 30       December 31
                                                  1997           1996
                                               --------       -----------

Utility Plant                                   $5,968           $5,963
  Less accumulated depreciation                  2,852            2,796
                                                ------           ------
      Utility plant - net                        3,116            3,167
                                                ------           ------

Current Assets:
  Cash and cash equivalents                          0               14
  Accounts and notes receivable (less
    allowance for doubtful receivables of
    $19 in 1997 and $16 in 1996)                   265              413
  Regulatory accounts receivable                   261              296
  Deferred income taxes                             27               22
  Gas in storage                                    17               28
  Materials and supplies                            13               13
  Prepaid expenses                                  10               14
  Income Taxes Receivable                            0               11
                                                ------           ------
        Total current assets                       593              811
                                                ------           ------
Regulatory Assets                                  306              376
                                                ------           ------
        Total                                   $4,015           $4,354
                                                ======           ======









See Notes to Condensed Consolidated Financial Statements.








<PAGE>PAGE 4

               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEET
                        CAPITALIZATION AND LIABILITIES
                           (Millions of Dollars)
                               (Unaudited)

                                                 June 30        December 31
                                                   1997            1996
                                                --------        -----------
Capitalization:
  Common equity:
      Common stock                               $  835            $  835
      Retained earnings                             506               555
                                                 ------           -------
        Total common equity                       1,341             1,390
  Preferred stock                                    97                97
  Long-term debt                                    902             1,090
                                                 ------           -------
         Total capitalization                     2,340             2,577
                                                 ------           -------

Current Liabilities:
  Short-term debt                                   116               262
  Accounts payable                                  352               474
  Accounts payable-affiliates                        30                44
  Accrued taxes and franchise payments               16                28
  Accrued Income taxes payable                        3                 0
  Long-term debt due within one year                294               147
  Accrued interest                                   24                41
  Other accrued liabilities                         123                63
                                                 ------           -------
        Total current liabilities                   958             1,059
                                                 ------           -------

Deferred Credits:
  Customer advances for construction                 39                42
  Deferred income taxes                             418               405
  Deferred investment tax credits                    62                64
  Other deferred credits                            198               207
                                                 ------           -------
        Total deferred credits                      717               718
                                                 ------           -------
        Total                                    $4,015            $4,354
                                                 ======           =======

See Notes to Condensed Consolidated Financial Statements.







<PAGE>PAGE 5
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
               CONDENSED STATEMENT OF CONSOLIDATED CASH FLOWS
                           (Millions of Dollars)
                               (Unaudited)

                                                    Six Months Ended
                                                         June 30
                                               --------------------------
                                                  1997              1996
                                                 ------            -----
Cash Flows From Operating Activities:
  Net income                                      $132             $ 89
  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Depreciation                                  125              123
     Deferred income taxes                          12                7
     Other                                          (8)             (18)
  Net change in other working capital
    components                                     143              301
                                                  ----             ----
      Net cash provided by operating
       activities                                  404              502
                                                  ----             ----
Cash Flows from Investing Activities:
  Expenditures for utility plant                   (78)             (85)
  Decrease in other assets                          28                0
                                                  ----             ----
      Net cash used in investing activities        (50)             (85)
                                                  ----             ----

Cash Flows from Financing Activities:
  Redemption of preferred stock                                    (100)
  Decrease in long-term debt                      (188)            (107)
  Decrease in short-term debt                        1              (98)
  Dividends paid                                  (181)            (125)
                                                  ----             ----
     Net cash used in financing
      activities                                  (368)            (430)
                                                  ----             ----

Decrease in Cash and Cash Equivalents              (14)             (13)
Cash and Cash Equivalents, January 1                14               13
                                                  ----             ----
Cash and Cash Equivalents, June 30                $  0              $ 0
                                                  ====             ====
Supplemental Disclosure of Cash Flow Information:
  Cash paid (received) during the period:
      Interest (net of amount capitalized)        $ 44              $57
                                                  ====             ====
      Income Taxes                                $ 93             $124
                                                  ====             ====
See Notes to Condensed Consolidated Financial Statements.
<PAGE>PAGE 6

                                      
               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARY
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.   MERGER AGREEMENT WITH ENOVA CORPORATION

On  October 14, 1996, Pacific Enterprises (PE) and Enova Corporation (Enova),
the  parent  company  of  San  Diego Gas &  Electric  (SDG&E),  announced  an
agreement,  which  both  Boards of Directors unanimously  approved,  for  the
combination of the two companies, tax-free, in a strategic merger  of  equals
to  be accounted for as a pooling of interests.  The combination was approved
by  the  shareholders of both companies but remains subject  to  approval  by
regulatory  and  governmental  agencies.   To  accommodate  obtaining   these
approvals, on August 6, 1997, PE and Enova extended until September  1,  1998
the  date  after which either company may unilaterally terminate the business
combination if not previously completed.

As   a  result  of  the  combination,  the  Company  and  Enova  will  become
subsidiaries  of  a  new holding company and their common  shareholders  will
become  common shareholders of the new holding company.  The Company's common
shareholders  will receive 1.5038 shares of the new holding company's  common
stock  for  each  of  their  shares  of PE common  stock,  and  Enova  common
shareholders will receive one share of the new holding company's common stock
for  each  of  their shares of Enova common stock.  Preferred  stock  of  the
Company,  Southern California Gas Company (SoCalGas or the Gas Company),  and
SDG&E will remain outstanding.

The  merger  is  subject to approval by certain governmental  and  regulatory
agencies  including  the  California Public Utility  Commission  (CPUC),  the
Federal  Energy  Regulatory Commission (FERC), the  Securities  and  Exchange
Commission, and the Department of Justice.

In  June  1997,  the CPUC revised its procedural schedule  for  the  proposed
business  combination after delaying until July 1997, its final  decision  on
the  Performance Based Regulation (PBR) proceeding for SoCalGas.  Under  this
timeline, a CPUC Administrative Law Judge should issue a proposed decision on
the  combination  in  late January 1998, with a CPUC decision  scheduled  for
March 1998.

On  June  25,  1997,  the FERC conditionally approved the  proposed  business
combination subject to the filing of appropriate standards of conduct and the
adoption  by  the CPUC of satisfactory rules primarily relating to  affiliate
transactions.

On August 7, 1997, PE and Enova announced an agreement to acquire AIG Trading
Corporation,  a  natural  gas  and power marketing  firm.   Headquartered  in
Greenwich,  Conn.,  AIG Trading Corporation is a subsidiary  of  AIG  Trading
Group Inc.  Its business primarily focuses on wholesale trading and marketing
of   natural  gas,  power  and  oil.   Total  cost  of  the  acquisition   is
approximately $225 million consisting of an acquisition price of $190 million
and commitments of up to $35 million for certain long-term incentive

<PAGE>PAGE 7


compensation and retention arrangements.


2. SUMMARY OF ACCOUNTING POLICIES

The  accompanying  condensed  consolidated  financial  statements  have  been
prepared in accordance with the interim period reporting requirements of Form
10-Q.  Reference is made to the Company's Annual Report on Form 10-K for  the
year ended December 31, 1996 for additional information.

Results  of operations for interim periods are not necessarily indicative  of
results  for  the  entire  year.  In order to match revenues  and  costs  for
interim  reporting purposes, SoCalGas defers revenue related to  costs  which
are expected to be incurred later in the year.  In the opinion of management,
the accompanying statements reflect all adjustments which are necessary for a
fair presentation. These adjustments are of a normal recurring nature.

Certain changes in account classification have been made in the prior years'
consolidated financial statements to conform to the 1997 financial  statement
presentation.

Income  tax  expense recognized in a period is the amount  of  tax  currently
payable  plus  or minus the change in the aggregate deferred tax  assets  and
liabilities.   Deferred  taxes  are recorded  to  recognize  the  future  tax
consequences of events that have been recognized in the financial  statements
or tax returns.

Amounts  authorized  to  be  recovered in rates are  recorded  as  regulatory
assets.   Estimated  liabilities for environmental remediation  are  recorded
when  the  amounts  are  probable  and  estimable.  Possible  recoveries   of
environmental  remediation liabilities from third parties  are  not  deducted
from the liability shown on the balance sheet.

The  accompanying  condensed  consolidated  financial  statements  have  been
prepared in accordance with the interim period reporting requirements of Form
10-Q.  Reference is made to the Company's Annual Report on Form 10-K for  the
year ended December 31, 1996 for additional information.

Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF  FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The  following  discussion should be read in conjunction with  the  Condensed
Consolidated Financial Statements contained in this Quarterly Report on  Form
10-Q and Management's Discussion and Analysis contained in the Company's 1996
Annual  Report  to  Shareholders and incorporated into the  Company's  Annual
Report on Form 10-K for the year ended December 31, 1996.





<PAGE>PAGE 8


INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

The following discussion includes forward-looking statements with respect  to
matters   inherently  involving  various  risks  and  uncertainties.    These
statements are identified by the words "estimates", "expects", "anticipates",
"plans",  "believes"  and  similar expressions.   The  analyses  employed  to
develop  these  statements  are necessarily based  upon  various  assumptions
involving  judgments  with  respect to the future  including,  among  others,
national, regional and local economic, competitive conditions, regulatory and
business  trends and decisions, technological developments, inflation  rates,
weather  conditions, and other uncertainties, all of which are  difficult  to
predict  and many of which are beyond the control of the Southern  California
Gas  Company  (Company).   Accordingly,  while  the  Company  believes  these
assumptions  to  be  reasonable, there can be no  assurance  that  they  will
approximate actual experience or that the expectations derived from them will
be realized.


SUMMARY

The Company reported net income of $70 million and $128 million for the three
months  and  six months ended June 30, 1997 compared to $30 million  and  $84
million  reported for the same periods in 1996.  The increase in earnings  is
primarily  due  to  savings  resulting from lower operating  and  maintenance
expenses  than the amounts authorized in rates and an increase in the  common
equity  component of the Company's capital structure to 48% from 47.4%.   The
increase is also due to a reduction of earnings during the second quarter  of
1996  due to a one-time non-cash $26.6 million charge, after-tax, related  to
the Comprehensive Settlement of excess gas costs and other regulatory matters
which did not affect consolidated Pacific Enterprises results.

On  July  16,  1997  the  CPUC  issued its final decision  on  the  Company's
application for Performance Based Regulation (PBR) (See "REGULATORY  ACTIVITY
INFLUENCING FUTURE PERFORMANCE".)


RESULTS OF OPERATIONS

Net  income  for the second quarter of 1997 was $70 million compared  to  $30
million for the same period in 1996. Net income for the six months ended June
30,  1997  was  $128 million compared to $84 million for the same  period  in
1996.   The  increase  is  partially  due to  savings  resulting  from  lower
operating  and  maintenance  expenses  than  the  amounts  authorized  to  be
collected in utility rates, and an increase in the common equity component of
the  Company's capital structure to 48.0% from 47.4%.  The change is also due
to lower earnings during the second quarter of 1996 resulting from a one-time
non-cash  $26.6  million  charge, after-tax,  related  to  the  Comprehensive
Settlement  of  excess gas costs and other regulatory matters which  did  not
affect  consolidated Pacific Enterprises results.  This was partially  offset
by an $8.0 million, after- tax, representing a one-time favorable settlement

<PAGE>PAGE 9


of environmental insurance claims.  Earnings for the first quarter 1996, also
benefited from a one-time $5.6 million, after-tax, favorable settlement  from
gas  producers  for  damages incurred to the Company and  customer  equipment
resulting from impure gas supplies.

The  table  below compares the Company's throughput and revenues by  customer
class for the three months ended June 30, 1997 and 1996.

($ in Millions,      Gas Sales         Trans. & Exchg.          Total
vol. in billion
cubic feet)    Throughput  Revenue  Throughput  Revenue  Throughput  Revenue
1997:
Residential         44       $301         0       $  0        44        $301
Comm'l/Ind'l.       19        105        73         60        92         165
Utility Elec.        0          0        35         17        35          17
Wholesale            0          0        31         17        31          17
Exchange             0          0         2          1         2           1
               -------------------------------------------------------------
Total in Rates      63       $406       141        $95       204        $501
Balancing Accts.
  & Other                                                                 74
                                                                        ----
Total Operating Rev.                                                    $575*
                                                                        ====
1996:
Residential         42       $304         0        $ 0        42        $304
Comm'l/Ind'l.       19        102        74         46        93         148
Utility Elec.        0          0        26         17        26          17
Wholesale            0          0        27         18        27          18
Exchange             0          0         1          0         1           0
               -------------------------------------------------------------
Total in Rates      61       $406       128        $81       189        $487

Balancing Accts.
  & Other                                                                 10
                                                                      ------
Total Operating Rev.                                                    $497
                                                                        ====

* Includes intersegment transactions

The  Company's operating revenue for the three and six months ended June  30,
1997,  increased $78 million and $196 million, respectively when compared  to
the same periods in 1996.  The increase in operating revenue is primarily due
to higher gas costs reflected in rates.  Increased gas costs account for $123
million  of  the operating revenue increase.  Additionally, the  increase  in
operating  revenues for both periods is partially due to  a  non-cash  charge
recorded in the second quarter of 1996 of $47.7 million ($26.6 million after-
tax).   The  $47.7 million charge related to the Comprehensive Settlement  of
excess gas costs and other regulatory matters.  This charge resulted from

<PAGE>PAGE 10


estimates  that  throughput to noncore customers would  decline  from  levels
projected  at  the  time  of  the  Comprehensive  Settlement.   The  increase
partially offsets $14.3 million ($8.0 million after-tax), representing a one-
time  favorable  settlement  from the resolution of  environmental  insurance
claims  received during the second quarter of 1996. Operating  revenues  also
increased  due  to  an  increase in the authorized equity  component  of  the
Company's capital structure in which the Company earns a return.

Cost  of  gas  distributed was $167 million and $144 million  for  the  three
months  ended June 30, 1997 and 1996 respectively.  The increase is primarily
due  to  an increase in the average cost of gas purchased to $2 per  thousand
cubic feet (MCF) for the second quarter of 1997 compared to $1.34 per MCF for
the  second  quarter  of  1996. The increase  in  the  average  cost  of  gas
distributed was mediated by the utilization of lower priced inventories.  For
the  six months ended June 30, 1997 and 1996, the cost of gas distributed was
$517 million and $394 million respectively. The increase is primarily due  to
an  increase in the average cost of gas purchased to $2.44 per thousand cubic
feet  (MCF) for the six months ended June 30, 1997 compared to $1.46 per  MCF
for  the same period in 1996. Under the current regulatory framework, changes
in  revenue resulting from changes in volumes in the core market and cost  of
gas do not affect net income.

Operating and maintenance expenses for the three months and six months  ended
June  30, 1997, decreased $10 million and increased $5 million, respectively,
compared  to  the  same periods in 1996.  The decrease for  the  first  three
months  ended June 30, 1997, represents the Company's continuing  efforts  to
reduce  costs.   The  increase for the six months ended  June  30,  1997,  is
primarily  due  to benefits received in the first quarter  of  1996  of  $9.5
million,  pre-tax, ($5.6 million after-tax), representing one-time  favorable
settlements which reduced operating and maintenance expenses.

OTHER CPUC REGULATORY ACTIVITY

Under  the  Gas Cost Incentive Mechanism (GCIM), the Company can recover  all
gas  purchase  costs to the extent that they do not exceed a  tolerance  band
extending 4 percent above an index benchmark level.  If the Company's cost of
gas  exceeds the tolerance band, the excess costs are shared equally  between
customers  and  shareholders.   All savings  from  gas  purchased  below  the
benchmark are shared equally between customers and shareholders.

The Company's purchased gas costs were below the specified GCIM benchmark for
the  annual  period ended March 1996 and, in June 1997, the CPUC  approved  a
$3.2  million  reward for shareholders under the procurement portion  of  the
incentive  mechanism  which was recognized as income in the  second  quarter.
The  Company initially requested a reward based on purchased gas cost savings
of  $12.4  million.   The  Company  and the CPUC  subsequently  agreed  on  a
purchased  gas  cost savings of $6.2 million resulting in  the  $3.2  million
reward.   In  June  1997,  the Company also filed  a  motion  with  the  CPUC
requesting  a  reward of $10.8 million resulting from reduced  purchased  gas
costs of $21.2 million for the 12-month period ended March 31, 1997.

<PAGE> Page 11


The  CPUC  has  approved the use of gas futures for managing risk  associated
with  the  GCIM.  The Company enters into gas futures contracts in  the  open
market on a limited basis to mitigate risk and better manage gas costs.


REGULATORY ACTIVITY INFLUENCING FUTURE PERFORMANCE

Future  regulatory restructuring, increased competitiveness in  the  industry
and  the  electric  industry restructuring will affect the  Company's  future
performance.   On  July 16, 1997, the CPUC issued its final decision  on  the
Company's PBR application.

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 the  Company
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.   These  changes  in
regulation 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, the Company
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 the Company's  cost
of  capital including return on common equity, interest costs and changes  in
capital structure.

Under  PBR,  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
increase  or  decrease 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  which  applies  a
percentage of the change to various capital components.

Furthermore,  under  the prior ratemaking procedures the  CPUC  also  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, adjust 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

<PAGE> Page 12


other  matters which may arise from the Company's PBR experience in the  1998
BCAP  which  is anticipated to become effective on August 1, 1999.  The  GCIM
proceeding will not change under PBR.


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

  -  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.
  (A  net  rate reduction of $160 million for an initial base margin of  $1.3
  billion).   The  CPUC  refers to a rate reduction of $229  million  in  its
  decision;  however,  that  amount includes recovery  of  approximately  $38
  million  of  other  social program costs authorized in another  proceeding,
  that were previously part of base margin.

  -  A sharing with customers of earnings that exceed the authorized rate  of
  return  on  ratebase.  Earnings between 25 and 300 basis points  above  the
  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%  of  the  excess  to customers and declining to 0%  as  earned  returns
  approach  300 basis points above authorized amounts.  There is  no  sharing
  of  any amount by which actual earnings may fall below the authorized  rate
  of  return.  In 1997, the Company was authorized to earn a 9.49% return  on
  ratebase which the decision adopts as the authorized rate for PBR.

  -  An  indexing  of  revenue or margin per customer by  inflation  less  an
  estimated  productivity factor of 2.1% that increased by 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,  rejects  the
  Company's  proposed  risk/reward potential for  shareholders  arising  from
  higher or lower gas throughput per customer to core (residential and  small
  commercial/industrial) customers.

  -  A retention  of 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

  -  A  continuation of the Company's authority to offer the  same  types  of
  products  and  services  that  it currently  offers  (e.g.  contract  meter
  reading).  However, the decision defers the issue of other new product  and
  service offerings to a future Commission proceeding.

The  Company  has implemented the base margin reduction effective  August  1,
1997, and will implement all other PBR elements on January 1, 1998.  The CPUC
intends for its PBR decision to be in effect for five years, but provides the
possibility that changes to the PBR mechanism could be adopted in a decision

<PAGE> Page 13


to  be issued in the Company's 1998 BCAP application which is anticipated  to
become effective on August 1, 1999.

It is the intent of management to control operating expenses and investment
within  the amounts authorized to be collected in rates in the PBR  decision.
The  Company  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.

For 1997, the Company is authorized to earn a rate of return on common equity
of  11.6  percent  and a 9.49 percent return on rate base, compared  to  11.6
percent and 9.42 percent, respectively, in 1996.  The CPUC also authorized  a
60  basis  point increase in the Company's authorized common equity ratio  to
48.0  percent in 1997 compared to 47.4 percent in 1996.  The 60  basis  point
increase  in the common equity component could potentially add $2 million  to
earnings in 1997.

In  the  second quarter of 1997, the CPUC issued a decision on the  Company's
1996  BCAP  filing.   The  CPUC  decision  extends  the  recovery  period  of
approximately  $20  million in noncore costs, resulting  in  a  noncore  rate
decrease  and  leaves in place the existing residential rate structure.   The
decision  did  not  adopt the Company's proposal to increase  flexibility  in
offering discounts to utility electric generating customers to retain load or
prevent  by-pass.  The Company implemented the new rates and core residential
monthly gas pricing on June 1, 1997.

As  part of its continuing evaluation of the impact of electric restructuring
on  operations, the Company under SFAS 121 "Accounting for the Impairment  of
Long Lived Assets and Long Lived Assets to be Disposed of" evaluated its long
lived assets for impairment.  Although Management believes that the volume of
gas  transported may be adversely impacted by the electric restructuring,  it
is not anticipated that it would result in an impairment of assets as defined
in  SFAS  121  because  the  expected future cash flows  from  the  Company's
investment  in  its  gas transportation infrastructure is  greater  than  its
carrying amount.

Management believes that under the new PBR regulatory framework, the  Company
continues  to  meet  the  criteria of the Statement of  Financial  Accounting
Standards  No.  71,  "Accounting  for  the  Effects  of  Certain   Types   of
Regulations."

LIQUIDITY

The  decrease in cash provided from operating activities to $404  million  in
the  six months ended June 30, 1997 from $502 million in the same period 1996
is primarily due to lower amounts received from undercollected regulatory


<PAGE> Page 14


balancing accounts in 1997 compared to 1996.

Capital expenditures were $78 million for the six months ended June 30  1997.
This  represents a decrease of $7 million compared to the same  period  1996.
The decrease is primarily due to the completion of a New Customer Information
System  which  increased the Company's responsiveness to customer  needs  and
reduced  operating  costs.   Capital  expenditures  for  utility   plant  are
expected  to  be  $196  million in 1997 and will  be  financed  primarily  by
internally-generated funds.

In  the  six months ended June 30, 1997, $368 million was used for  financing
activities.   This was primarily the result of repayment of debt and  payment
of dividends.


PART II.  OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(b)  There was no Form 8-K filed during the quarter ended June 30, 1997.




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.


SOUTHERN CALIFORNIA GAS COMPANY
-------------------------------
        (Registrant)

/s/ Ralph Todaro
-------------------------------
Ralph Todaro
Vice President and Controller
(Chief Accounting Officer and
duly authorized signatory)
Date:  August 14, 1997