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       March 31, 1999
                              -------------------------------------

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   
    -----       -----

Common stock outstanding:       Wholly owned by Pacific Enterprises

ITEM 1.  FINANCIAL STATEMENTS.

              SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
               STATEMENTS OF CONSOLIDATED INCOME (Unaudited)
                           (Dollars in millions)
                               
                                                         Three Months Ended
                                                              March 31,
                                                           ----------------
                                                            1999      1998
                                                           ------    ------


Operating Revenues                                          $607      $664
                                                            -----     -----
Expenses:
  Cost of natural gas distributed                            256       301
  Operation and maintenance                                  152       162
  Depreciation                                                64        63
  Income taxes                                                40        39
  Other taxes and franchise
   payments                                                   25        29
                                                            -----     -----
     Total                                                   537       594
                                                            -----     -----
Operating Income                                              70        70
                                                            -----     -----
Other Income and (Deductions):
  Regulatory interest                                         (3)        1
  Allowance for equity funds used during construction          1         1 
  Income taxes on non-operating income                         1        (1)
  Other - net                                                 (1)       (1)
                                                            -----     -----
     Total                                                    (2)       --
                                                            -----     -----
Interest Charges:
  Long-term debt                                              19        20
  Other                                                        2         2
                                                            -----     -----
     Total                                                    21        22
                                                            -----     -----
Net Income                                                    47        48
Preferred Dividend Requirements                               --         1
                                                            -----     -----
Earnings Applicable to Common Shares                        $ 47      $ 47
                                                            =====     =====
See notes to Consolidated Financial Statements.





              SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                            (Dollars in millions)

                                                      Balance at
                                               --------------------------
                                               March 31,     December 31,
1999 1998
                                              (Unaudited)
                                               ---------      -----------
ASSETS:
Utility plant - at original cost                  $6,092           $6,063
  Less accumulated depreciation                   (3,173)          (3,111)
                                                  ------           ------
      Utility plant - net                          2,919            2,952
                                                  ------           ------

Current Assets:
  Cash and cash equivalents                          312               11
  Accounts receivable - trade                        380              453
  Due from affiliates                                 36               --
  Deferred income taxes                              194              157
  Natural gas in storage                               4               49
  Materials and supplies                              13               14
  Prepaid expenses                                    23               14
                                                  ------           ------
        Total current assets                         962              698
                                                  ------           ------
Regulatory assets                                    183              184
                                                  ------           ------
        Total                                     $4,064           $3,834
                                                  ======           ======


See notes to Consolidated Financial Statements.




               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                            (Dollars in millions)

                                                        Balance at
                                              -----------------------------
                                               March 31,        December 31,
                                                 1999               1998
                                              (Unaudited)                  
                                              ------------      -----------
CAPITALIZATION AND LIABILITIES                
Capitalization:
  Common stock                                   $  835           $   835
  Retained earnings                                 472               525
                                                 ------            ------
    Total common equity                           1,307             1,360
  Preferred stock                                    22                22
  Long-term debt                                    967               967
                                                 ------            ------
         Total capitalization                     2,296             2,349
                                                 ------            ------

Current Liabilities:
  Accounts payable - trade                          118               153 
  Accounts payable - affiliates                      --               111
  Accounts payable - other                          222               221 
  Regulatory balancing accounts
    overcollected - net                             392               129  
  Other taxes payable                                45                31
  Accrued income taxes                               23                30
  Interest accrued                                   48                46
  Dividends payable                                 100                --
  Long-term debt due within one year                 75                75
  Other                                              91                75
                                                 ------            ------
        Total current liabilities                 1,114               871 
                                                 ------            ------

  Customer advances for construction                 30                31
  Deferred income taxes - net                       361               323
  Deferred investment tax credits                    57                58
  Deferred credits and other liabilities            206               202
                                                 ------            ------
        Total deferred credits                      654               614
                                                 ------            ------
Commitments and contingent liabilities (Note 3)

        Total                                    $4,064            $3,834
                                                 ======            ======


See notes to Consolidated Financial Statements.






               SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
          CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited)
                           (Dollars in millions)

                                                       Three Months Ended
                                                           March 31,
                                                       ------------------
                                                       1999         1998
                                                      -----        -----
Cash Flows from Operating Activities:
  Net income                                           $ 47         $ 48
  Adjustments to reconcile net income to
   Net cash provided by operating activities:
     Depreciation                                        64           63
     Deferred income taxes                               37            7
     Other - net                                        (16)          (7)
     Net change in other working capital components     204          421
                                                       ----         ----
      Net cash provided by operating
       activities                                       336          532
                                                       ----         ----
Cash Flows from Investing Activities:
  Capital expenditures                                  (32)         (22)
  Other - net                                            (3)         (13)
                                                       ----         ----
      Net cash used in investing activities             (35)         (35)
                                                       ----         ----

Cash Flows from Financing Activities:
  Redemption of preferred stock                          --          (75)
  Issuance of long-term debt                             --           75
  Payment on long-term debt                              --         (149) 
  Decrease in short-term debt                            --         (271)
  Dividends paid                                         --          (56)
                                                       ----         ----
     Net cash used in financing
      activities                                         --         (476)
                                                       ----         ----

Increase in Cash and Cash Equivalents                   301           21
Cash and Cash Equivalents, January 1                     11           --
                                                       ----         ----
Cash and Cash Equivalents, March 31                    $312         $ 21
                                                       ====         ====
Supplemental Disclosure of Cash Flow Information:
  Interest payments (net of amount capitalized)        $ 19         $ 24
                                                       ====         ====
  Income tax payments                                  $ 53         $ 33
                                                       ====         ====
See notes to Consolidated Financial Statements.









NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.  GENERAL

This Quarterly Report on Form 10-Q is that of Southern California Gas 
Company (SoCalGas or the Company), the principal subsidiary of 
Pacific Enterprises (PE). PE is a subsidiary of Sempra Energy, a 
California-based Fortune 500 energy services company. The financial 
statements herein are the Consolidated Financial Statements of 
SoCalGas and its subsidiaries.

The accompanying Consolidated Financial Statements have been prepared 
in accordance with the interim-period-reporting requirements of Form 
10-Q. Results of operations for interim periods are not necessarily 
indicative of results for the entire year. In the opinion of 
management, the accompanying statements reflect all adjustments 
necessary for a fair presentation. These adjustments are of a normal 
recurring nature. 

The Company's significant accounting policies, as well as those of 
its subsidiaries, are described in the notes to Consolidated 
Financial Statements in the Company's 1998 Annual Report. The same 
accounting policies are followed for interim reporting purposes.

This Quarterly Report should be read in conjunction with the 
Company's 1998 Annual Report, which includes the Consolidated 
Financial Statements and notes thereto, and the annual "Management's 
Discussion & Analysis of Financial Condition and Results of 
Operations."

In conformity with generally accepted accounting principles, 
SoCalGas' accounting policies reflect the financial effects of rate 
regulation authorized by the California Public Utilities Commission 
(CPUC). SoCalGas applies the provisions of Statement of Financial 
Accounting Standards No. 71, "Accounting for the Effects of Certain 
Types of Regulation" (SFAS No. 71).  This statement requires cost-
based rate-regulated entities that meet certain criteria to reflect 
the authorized recovery of costs due to regulatory decisions in their 
financial statements. SoCalGas continues to meet the criteria of SFAS 
No. 71 in accounting for its regulated operations.

2.  BUSINESS COMBINATIONS

PE/Enova 

On June 26, 1998 (pursuant to an October 1996 agreement) Enova and PE 
completed a business combination in which the two companies became 
subsidiaries of a new company named Sempra Energy. As a result of the 
combination, (i) each outstanding share of common stock of Enova was 
converted into one share of common stock of Sempra Energy, (ii) each 
outstanding share of common stock of PE was converted into 1.5038 
shares of common stock of Sempra Energy and (iii) the preferred stock 
and/or preference stock of SDG&E, PE and SoCalGas remain outstanding. 
Additional information on the business combination is discussed in 
the Company's 1998 Annual Report.

Expenses incurred in connection with the business combination were 
$0.3 million, after tax, and $0.5 million, after tax, for the three-
month periods ended March 31, 1999 and 1998, respectively.  These 
costs consisted primarily of employee-related costs, and investment 
banking, legal, regulatory and consulting fees.

KN Energy

On February 22, 1999, Sempra Energy and KN Energy, Inc. (KN Energy) 
announced that their respective boards of directors had approved 
Sempra Energy's acquisition of KN Energy, subject to approval by the 
shareholders of both companies and by various federal and state 
regulatory agencies. If the transaction is approved, holders of KN 
Energy common stock will receive 1.115 shares of Sempra Energy common 
stock or $25 in cash, or some combination thereof, for each share of 
KN Energy common stock. In the aggregate, the cash portion of the 
transaction will constitute not more than 30 percent of the total 
consideration. The transaction will be treated as a purchase for 
accounting purposes. On March 30, 1999, Sempra Energy was notified 
that the U.S. Federal Trade Commission had granted the Company's 
request for early clearance under the Hart-Scott-Rodino Antitrust 
Improvements Act of 1976, as amended, with respect to the proposed 
merger.

3.  MATERIAL CONTINGENCIES

NATURAL GAS INDUSTRY RESTRUCTURING

The natural gas industry experienced an initial phase of 
restructuring during the 1980s by deregulating natural gas sales to 
noncore customers. On January 21, 1998, the CPUC released a staff 
report initiating a project to assess the current market and 
regulatory framework for California's natural gas industry. The 
general goals of the plan are to consider reforms to the current 
regulatory framework emphasizing market-oriented policies benefiting 
California's natural gas consumers. 

In August 1998, California enacted a law prohibiting the CPUC from 
enacting any natural gas industry restructuring decision for core 
customers prior to January 1, 2000; the CPUC continues to study the 
issue. During the implementation moratorium, the CPUC will hold 
hearings throughout the state and intends to give the legislature a 
draft ruling before adopting a final market-structure policy.  SDG&E 
and SoCalGas will actively participate in this effort.

4.  COMPREHENSIVE INCOME

In conformity with generally accepted accounting principles, the 
Company has adopted Statement of Financial Accounting Standards No. 
130, "Reporting Comprehensive Income." Comprehensive income for the 
three-month periods ended March 31, 1999 and 1998 was equal to net 
income.

5. SEGMENT INFORMATION

The Company has two separately managed reportable segments: natural 
gas distribution and natural gas transmission/storage. The accounting 
policies of the segments are the same as those described in the notes 
to Consolidated Financial Statements in the Company's 1998 Annual 
Report, and segment performance is evaluated by management based on 
reported operating income. Intersegment transactions are generally 
recorded the same as sales or transactions with third parties. 
Interest expense and income tax expense are not allocated to the 
reportable segments. Interest revenue is included in other income on 
the Statements of Consolidated Income herein. It is not allocated to 
the reportable segments. There were no significant changes in segment 
assets for the three months ended March 31, 1999. 
 
--------------------------------------------------------------
                                      Three months ended 
                                           March 31, 
                                  ----------------------------
(Dollars in millions)                1999           1998
--------------------------------------------------------------
Revenues:
  Distribution                  $     517     $      555
  Transmission and storage            102            112
  Other                               (12)            (3)                  
                                 -----------------------
    Total                       $     607     $      664
                                 -----------------------
Segment Income:
  Distribution                  $     109     $       91
  Transmission and storage             12             20
  All other                           (11)            (2)
                                 -----------------------
    Total segment income              110            109
                                                         
Interest expense                      (21)           (22)
Income tax expense                    (39)           (40)
Nonoperating income (expense)          (3)             1
                                 -----------------------
  Net income                    $      47     $       48 
                                 -----------------------



ITEM 2.

             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS


The following discussion should be read in conjunction with the 
financial statements contained in this Form 10-Q and Management's 
Discussion and Analysis of Financial Condition and Results of 
Operations contained in the Company's 1998 Annual Report.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking 
statements within the meaning of the Private Securities Litigation 
Reform Act of 1995. The words "estimates," "believes," "expects," 
"anticipates," "plans" and "intends," variations of such words, and 
similar expressions are intended to identify forward-looking 
statements that involve risks and uncertainties which could cause 
actual results to differ materially from those anticipated.

These statements are necessarily based upon various assumptions 
involving judgments with respect to the future including, among 
others, local, regional, national and international economic, 
competitive, political and regulatory conditions and developments; 
technological developments; capital market conditions; inflation 
rates; interest rates; energy markets; weather conditions; business, 
regulatory or legal decisions; the pace of deregulation of retail 
natural gas and electricity industries; the timing and success of 
business development efforts; and other uncertainties, all of which 
are difficult to predict and many of which are beyond the control of 
the Company. Accordingly, while the Company believes that the 
assumptions are reasonable, there can be no assurance that they will 
approximate actual experience, or that the expectations will be 
realized. Readers are urged to review and consider carefully the 
risks, uncertainties and other factors which affect the Company's 
business described in this quarterly report and other reports filed 
by the Company from time to time with the Securities and Exchange 
Commission. Readers are cautioned not to put undue reliance on any 
forward-looking statements. For those statements, the Company claims 
the protection of the safe harbor for forward-looking statements 
contained in the Private Securities Litigation Reform Act of 1995.

BUSINESS COMBINATIONS

See Note 2 of the notes to Consolidated Financial Statements 
regarding the PE/Enova business combination and the KN Energy 
proposed merger. 

CAPITAL RESOURCES AND LIQUIDITY 

The Company's utility operations continue to be a major source of 
liquidity. In addition, working capital requirements are met through 
the issuance of short-term and long-term debt. These capital 
resources are expected to remain available. Cash requirements 
primarily include utility capital expenditures and repayments and 
retirements of long-term debt. Major changes in cash flows not 
described elsewhere are described below. Cash and cash equivalents at 
March 31, 1999 are available for investment in utility plant, the 
retirement of debt, and other corporate purposes.

CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows from operations decreased primarily due to payments on 
behalf of affiliated companies and a decrease in collections on 
regulatory balancing accounts compared to 1998. Overcollected 
balancing accounts payable increased in 1999 and undercollected 
balancing accounts receivable decreased in 1998 due to actual natural 
gas costs' being lower than amounts collected in rates for both 
periods.

CASH FLOWS FROM INVESTING ACTIVITIES 

Capital expenditures for property, plant and equipment are estimated 
to be $170 million for the full year 1999 and will be financed 
primarily by internally generated funds. These expenditures will 
largely represent investment in rate base. Construction, investment 
and financing programs are continuously reviewed and revised in 
response to changes in competition, customer growth, inflation, 
customer rates, the cost of capital, and environmental and regulatory 
requirements. 

CASH FLOWS FROM FINANCING ACTIVITIES 

On February 2, 1998, the Company redeemed all outstanding shares of 
7-3/4% Series Preferred Stock for a total cost of $76 million, 
including unpaid dividends.


RESULTS OF OPERATIONS

The table below summarizes the components of natural gas volumes and 
revenues by customer class for the three months ended March 31, 1999 and 
1998. 


<TABLE>
Gas Sales, Transportation & Exchange
(Dollars in millions, volumes in billion cubic feet)
<CAPTION>

                                Gas Sales     Transportation & Exchange      Total
                           --------------------------------------------------------------
                           Throughput  Revenue  Throughput  Revenue   Throughput  Revenue
                           --------------------------------------------------------------
<S>                          <C>       <C>         <C>      <C>          <C>      <C>
1999:
 Residential                     100   $  619           1     $  1          101   $  620
 Commercial and industrial        25      144          77       62          102      206
 Utility electric generation*                          16        7           16        7
 Wholesale                                             45       16           45       16
                           --------------------------------------------------------------
                                 125   $  763         139     $ 86          264      849
 Balancing accounts and other                                                       (242)
                                                                                 --------
   Total                                                                          $  607
-----------------------------------------------------------------------------------------

1998:
 Residential                      96   $  710           1     $  4           97   $  714
 Commercial and industrial        24      153          81       66          105      219
 Utility electric generation*                          23       11           23       11
 Wholesale                                             43       13           43       13
                           --------------------------------------------------------------
                                 120   $  863         148     $ 94          268      957
 Balancing accounts and other                                                       (293)
                                                                                 --------
   Total                                                                          $  664
-----------------------------------------------------------------------------------------
* The portion representing SDG&E's sales for electric generation includes 
margin only.
</TABLE>


Natural gas revenues decreased 9 percent for the three-month period 
ended March 31, 1999, compared to the same period in 1998. The 
decrease was primarily due to a decrease in the average cost of 
natural gas and lower utility electric generating sales, partially 
offset by a slight increase in sales to residential customers due to 
customer growth and colder weather in 1999.  

Cost of natural gas distributed decreased 15 percent for the three-
month period ended March 31, 1999 compared to the same period in 
1998. The decrease was primarily due to a decrease in the average 
cost of natural gas purchased and lower utility electric generating 
sales. Under the current regulatory framework, changes in revenue 
resulting from core market changes in volumes and the cost of natural 
gas do not affect net income.

Operating expenses decreased 6 percent for the three-month period 
ended March 31, 1999 compared to the same period in 1998 due to a 
continuing emphasis on reducing operating costs to remain competitive 
in the marketplace. 

YEAR 2000 ISSUES

Most companies are affected by the inability of many automated 
systems and applications to process the year 2000 and beyond. The 
Year 2000 issues are the result of computer programs and other 
automated processes using two digits to identify a year, rather than 
four digits. Any of the Company's computer programs that include 
date-sensitive software may recognize a date using "00" as 
representing the year 1900, instead of the year 2000, or "01" as 
1901, etc., which could lead to system malfunctions. The Year 2000 
issue impacts both Information Technology ("IT") systems and also 
non-IT systems, including systems incorporating embedded processors. 
To address this problem, in 1996, both Pacific Enterprises and Enova 
Corporation established company-wide Year 2000 programs. These 
programs have now been consolidated into Sempra Energy's overall Year 
2000 readiness effort. Sempra Energy has established a central Year 
2000 Program Office, which reports to the Company's Chief Information 
Technology Officer and reports periodically to the audit committee of 
the Board of Directors.

The Company's State of Readiness

Sempra Energy has identified all IT and non-IT systems (including 
embedded systems) that might not be Year 2000 ready and categorizing 
them in the following areas: IT applications, computer hardware and 
software infrastructure, telecommunications, embedded systems, and 
third parties. The Company evaluated its exposure in all of these 
areas. These systems and applications are being tracked and measured 
through four key phases: inventory, assessment, remediation/testing, 
and Year 2000 readiness. The Company has prioritized so that, when 
possible, critical systems are being assessed and modified/replaced 
first. Critical systems are those applications and systems, including 
embedded processor technology, which, if not appropriately 
remediated, may have a significant impact on energy delivery, revenue 
collection or the safety of personnel, customers or facilities. The 
Company's Year 2000 testing effort includes functional testing of 
Year 2000 dates and validating that changes have not altered existing 
functionality. The Company uses an independent, internal review 
process to verify that the appropriate testing has occurred.

The Company's Year 2000 project is currently on schedule and the 
company estimates that all critical systems will be Year 2000 Ready 
by June 30, 1999. The Company defines "Year 2000 Ready" as suitable 
for continued use into the year 2000 with no significant operational 
problems. 

Sempra Energy's current schedule for Year 2000 testing, readiness and 
development of contingency plans is subject to change depending upon 
the remediation and testing phases of the Company's compliance effort 
and upon developments that may arise as the Company continues to 
assess its computer-based systems and operations. In addition, this 
schedule is dependent upon the efforts of third parties, such as 
suppliers (including energy producers) and customers. Accordingly, 
delays by third parties may cause the Company's schedule to change.


The Costs to Address the Company's Year 2000 Issues

Sempra Energy's budget for the Year 2000 program is $48 million, of 
which $40 million has been spent. As the Company continues to assess 
its systems and as the remediation and testing efforts progress, cost 
estimates may change. The Company's Year 2000 readiness effort is 
being funded entirely by operating cash flows.

The Risks of the Company's Year 2000 Issues

Based upon its current assessment and testing of the Year 2000 issue, 
the Company believes the reasonably likely worst case Year 2000 
scenarios to have the following impacts upon Sempra Energy and its 
operations. With respect to the Company's ability to provide energy 
to its domestic utility customers, the Company believes that the 
reasonably likely worst case scenario is for small, localized 
interruptions of utility service which are restored in a time frame 
that is within normal service levels. With respect to services that 
are essential to Sempra Energy's operations, such as customer 
service, business operations, supplies and emergency response 
capabilities, the scenario is for minor disruptions of essential 
services with rapid recovery and all essential information and 
processes ultimately recovered.

To assist in preparing for and mitigating these possible scenarios, 
Sempra Energy is a member of several industry-wide efforts 
established to deal with Year 2000 problems affecting embedded 
systems and equipment used by the nation's natural gas and electric 
power companies. Under these efforts, participating utilities are 
working together to assess specific vendors' system problems and to 
test plans. These assessments will be shared by the industry as a 
whole to facilitate Year 2000 problem solving.

A portion of this risk is due to the various Year 2000 Ready 
schedules of critical third party suppliers and customers. The 
Company continues to contact its critical suppliers and customers to 
survey their Year 2000 remediation programs. While risks related to 
the lack of Year 2000 readiness by third parties could materially and 
adversely affect the Company's business, results of operations and 
financial condition, the Company expects its Year 2000 readiness 
efforts to reduce significantly the Company's level of uncertainty 
about the impact of third party Year 2000 issues on both its IT 
systems and its non-IT systems. 

The Company's Contingency Plans

Sempra Energy's contingency plans for Year-2000-related interruptions 
are being incorporated in the Company's existing overall emergency 
preparedness plans. To the extent appropriate, such plans will 
include emergency backup and recovery procedures, remediation of 
existing systems parallel with installation of new systems, replacing 
electronic applications with manual processes, identification of 
alternate suppliers and increasing inventory levels. These 
contingency plans are well underway and the Company plans to be 
completed by June 30, 1999. Due to the speculative and uncertain 
nature of contingency planning, there can be no assurances that such 
plans actually will be sufficient to reduce the risk of material 
impacts on the Company's operations due to Year 2000 issues.


FACTORS INFLUENCING FUTURE PERFORMANCE

Because of the ratemaking and regulatory process, electric and 
natural gas industry restructuring, and the changing energy 
marketplace, there are several factors that will influence the 
Company's future financial performance. These factors are discussed 
below.

KN Energy Acquisition

See discussion of the KN Energy acquisition in Note 2 of the notes to 
Consolidated Financial Statements. 

Industry Restructuring 
 
See discussion of industry restructuring in Note 3 of the notes to 
Consolidated Financial Statements.

Performance-Based Regulation (PBR)

To promote efficient operations and improved productivity and to move 
away from reasonableness reviews and disallowances, the CPUC has been 
directing utilities to use PBR. PBR has replaced the general rate 
case and certain other regulatory proceedings for both SoCalGas and 
SDG&E. Under PBR, regulators require future income potential to be 
tied to achieving or exceeding specific performance and productivity 
goals, as well as cost reductions, rather than relying solely on 
expanding utility rate base in a market where a utility already has a 
highly developed infrastructure. 

SoCalGas' PBR is in effect through December 31, 2002; however, the 
CPUC decision allows for the possibility that changes to the PBR 
mechanism could be adopted in a decision to be issued in SoCalGas' 
1999 Biennial Cost Allocation Proceeding (BCAP) application which is 
anticipated to become effective at year-end 1999. 

Cost of Capital

Under PBR, annual Cost of Capital proceedings were replaced by an 
automatic adjustment mechanism if changes in certain indices exceed 
established tolerances. For 1999, SoCalGas is authorized to earn a 
rate of return on common equity (ROE) of 11.6 percent and a 9.49 
percent return on rate base (ROR), unchanged from 1998. 

Annual Earnings Assessment Proceeding
 
An application was filed in May 1999 to recover shareholder rewards 
for the Demand Side Management (DSM) programs and incentives earned 
for its energy-efficiency and low-income programs totaling $5 
million. The revenue requirement increase is proposed to become 
effective on January 1, 2000. The DSM rewards and low-income program 
incentives will be collected and recorded in earnings over ten years. 
The energy-efficiency program incentives are recovered in one year. 
Rewards and incentives for these programs are subject to CPUC 
approval. 

The CPUC has extended interim utility administration of energy-
efficiency and low-income programs through December 31, 2001. 


PART II - OTHER INFORMATION 

ITEM 1.   LEGAL PROCEEDINGS 
 
Except for the matters referred to in the Company's 1998 Annual 
Report or referred to elsewhere in this Quarterly Report on Form 10-Q 
for the three months ended March 31, 1999, neither the Company nor 
any of its affiliates is a party to, nor is its property the subject 
of, any material pending legal proceedings other than routine 
litigation incidental to its businesses.

ITEM 4.  SUBMISSION OF MATTERS TO VOTE

At the annual meeting on May 11, 1999, the Company's shareholders 
elected 15 directors to hold office until the next annual meeting and 
until their successors have been elected and qualified. The name of 
each nominee and the number of shares voted for or withheld were as 
follows:

Nominees                    Votes For           Votes Withheld
-------------------------------------------------------------------
Hyla H. Bertea             91,350,677                 --
Ann L. Burr                91,350,677                 --
Herbert L. Carter          91,350,677                 --
Richard A. Collato         91,350,677                 --
Daniel W. Derbes           91,350,677                 --
Wilford D. Godbold, Jr.    91,350,677                 --
Robert H. Goldsmith        91,350,677                 --
William D. Jones           91,350,677                 --
Ignacio E. Lozano, Jr.     91,350,677                 --
Warren I. Mitchell         91,350,677                 --
Ralph R. Ocampo            91,350,677                 --
William G. Ouchi           91,350,677                 --
Richard J. Stegemeier      91,350,677                 --
Thomas C. Stickel          91,350,677                 --
Diana L. Walker            91,350,677                 --


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K 
 
(a)   Exhibits  

      Exhibit 10 - Material Contracts - Compensation

      10.1  Form of Sempra Energy Severance Pay Agreement

      Exhibit 27 - Financial Data Schedules 
 
      27.1  Financial Data Schedule for the three months ended 
      March 31, 1999. 

(b)   Reports on Form 8-K 

      None.








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)





                                    By:  /s/  Warren Mitchell
Date: May 14, 1999                      ---------------------------
                                             Warren Mitchell
                                          Chairman and President
             











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