<PAGE>PAGE 1

                                UNITED STATES
                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 20549

                                  FORM 10-Q/A

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


For the quarterly period ended            September 30, 1996
                              --------------------------------------------

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 November  1,  1996  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
                           (Thousands of Dollars)

                                    Three Months Ended    Nine Months Ended
                                       September 30          September 30
                                    -------------------   -----------------
                                      1996      1995        1996      1995
                                     ------    ------      ------    ------
                                                   (Unaudited)
Operating Revenues                 $575,441  $505,292  $1,692,381 $1,689,541
                                   --------  --------  ---------- ----------
Operating Expenses:
  Cost of gas distributed           200,500   162,249     594,150    576,094
  Operation and maintenance         175,097   151,388     522,445    525,726
  Depreciation                       63,529    59,089     186,627    177,415
  Income taxes                       41,075    39,088     111,898    119,052
  Other taxes and franchise
   payments                          21,969    21,979      70,957     72,603
                                   --------  --------  ---------- ----------
     Total                          502,170   433,793   1,486,077  1,470,890
                                   --------  --------  ---------- ----------
Net Operating Revenue                73,271    71,499     206,304    218,651
                                   --------  --------  ---------- ----------
Other Income and (Deductions):
  Interest income                       270     2,059       1,076      6,879
  Regulatory  interest                  998       534       1,726      2,116
  Allowance for equity funds use
   during construction                1,192     1,203       3,914      2,342
  Income taxes on non-operating
  income                               (712)     (797)       (824)    (1,090)
  Other - net                          (610)   (1,228)     (4,791)    (4,271)
                                    --------  --------   --------- ---------
     Total                            1,138     1,771       1,101      5,976
                                    --------  --------   --------- ---------
Interest Charges and (Credits):
  Interest on long-term debt         19,265    21,759      59,507     66,210
  Other interest                      2,661     1,560       7,916      5,050
  Allowance for borrowed funds
   used during construction            (634)     (699)     (2,197)    (1,357)
                                    --------  --------   --------- ---------
     Total                           21,292    22,620      65,226     69,903
                                    --------  --------   --------- ---------
Net Income                           53,117    50,650     142,179    154,724
Dividends on Preferred Stock          1,777     2,888       6,452      8,734
                                    --------  --------   --------- ---------
Net Income Applicable to
 Common Stock                      $ 51,340  $ 47,762   $ 135,727  $ 145,990
                                    ========  ========   ========= =========
See Notes to Condensed Consolidated Financial Statements.



<PAGE>PAGE 3

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

                                             September 30      December 31
                                                 1996             1995
                                             -----------      -----------
                                              (Unaudited)

Utility Plant                                  $5,922,937      $5,807,940
  Less accumulated depreciation                 2,762,565       2,594,713
                                               ----------      ----------
      Utility plant - net                       3,160,372       3,213,227
                                               ----------      ----------

Current Assets:
  Cash and cash equivalents                         4,498          12,611
  Accounts and notes receivable (less
    allowance for doubtful receivables of
    $17,186 in 1996 and $13,456 in 1995)          244,531         398,515
  Regulatory accounts receivable                  274,999         260,573
  Deferred income taxes                            78,970          25,953
  Gas in storage                                   19,803          54,782
  Materials and supplies                           15,152          14,504
  Prepaid expenses                                 10,617          32,593
                                               ----------      ----------
        Total current assets                      648,570         799,531
                                               ----------      ----------
Regulatory Assets                                 438,506         449,521
                                               ----------      ----------
        Total                                  $4,247,448      $4,462,279
                                               ==========      ==========









See Notes to Condensed Consolidated Financial Statements.









<PAGE>PAGE 4

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

                                              September 30        December 31
                                                  1996               1995
                                              ------------       -----------
                                               (Unaudited)

Capitalization:
  Common equity:
      Common stock                             $  834,889         $  834,889
      Retained earnings                           562,009            613,445
                                               ----------         ----------
        Total common equity                     1,396,898          1,448,334
  Preferred stock                                  96,551            196,551
  Long-term debt                                1,160,885          1,220,136
                                               ----------         ----------
         Total capitalization                   2,654,334          2,865,021
                                               ----------         ----------

Current Liabilities:
  Short-term debt                                 192,971            233,817
  Accounts payable                                378,623            418,570
  Accounts payable-affiliates                      87,943              9,734
  Accrued taxes and franchise payments             47,496             45,933
  Long-term debt due within one year               22,000             95,283
  Accrued interest                                 44,070             43,480
  Other accrued liabilities                        85,606             50,678
                                               ----------         ----------
        Total current liabilities                 858,709            897,495
                                               ----------         ----------

Deferred Credits:
  Customer advances for construction               44,193             47,029
  Deferred income taxes                           458,999            404,308
  Deferred investment tax credits                  64,743             66,983
  Other deferred credits                          166,470            181,443
                                               ----------         ----------
        Total deferred credits                    734,405            699,763
                                               ----------         ----------
        Total                                  $4,247,448         $4,462,279
                                               ==========         ==========

See Notes to Condensed Consolidated Financial Statements.





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

                                                    Nine Months Ended
                                                      September 30
                                               ---------------------------
                                                  1996              1995
                                                 ------            ------
                                                        (Unaudited)
Cash Flows From Operating Activities:
  Net income                                   $ 142,179         $ 154,724
  Adjustments to reconcile net income to
   net cash provided by operating activities:
     Depreciation                                186,627           177,415
     Deferred income taxes                         9,084            21,933
     Other                                       (27,644)            4,698
  Net change in other working capital
    components                                   283,683           272,395
                                               ---------         ---------
      Net cash provided by operating
       activities                                593,929           631,165
                                               ---------         ---------
Cash Flows from Investing Activities:
  Expenditures for utility plant                (123,936)         (142,217)
  (Increase)Decrease in other assets              (9,334)            8,552
                                               ---------         ---------
      Net cash used in investing activities     (133,270)         (133,665)
                                               ---------         ---------

Cash Flows from Financing Activities:
  Redemption of preferred stock                 (100,000)
  Decrease in long-term debt                    (132,534)         (123,631)
  Decrease in short-term debt                    (40,846)         (194,384)
  Dividends paid                                (195,392)         (175,495)
---------         --------
     Net cash used in financing
      activities                                (468,772)         (493,510)
                                               ---------         ---------

Increase(Decrease)in Cash and Cash Equivalents    (8,113)            3,990
Cash and Cash Equivalents, January 1              12,611            57,531
                                               ---------         ---------
Cash and Cash Equivalents, September 30        $   4,498         $  61,521
                                               =========         =========
Supplemental Disclosure of Cash Flow Information:
  Cash paid during the period:
      Interest (net of amount capitalized)     $  61,813         $  64,166
                                               =========         =========
      Income Taxes                             $ 127,140         $ 232,195
                                               =========         =========

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),  the  parent  of  Southern
California  Gas Company and Enova Corporation (Enova), the parent company  of
San  Diego  Gas  &  Electric, announced that their Boards  of  Directors  had
unanimously  approved  a  business combination of  the  two  companies  in  a
strategic merger of equals in a tax-free transaction to be accounted for as a
pooling  of  interests.  As a result of the combination, PE  and  Enova  will
become  subsidiaries  of a new holding company and their common  shareholders
will  become  shareholders of the new holding company.   Preferred  stock  of
Pacific Enterprises, Southern California Gas Company (Company) and San  Diego
Gas  and  Electric  will  remain  outstanding.   The  new  company  will   be
incorporated in California and will be exempt from the Public Utility Holding
Company Act as an intrastate holding company.

The  merger  is  subject  to  approval by PE's and Enova's  shareholders  and
approval  by  governmental and regulatory agencies including  the  California
Public  Utility Commission, Federal Energy Regulatory Commission,  Securities
and  Exchange Commission, and Department of Justice.  Approval of the  merger
is  expected to occur in late 1997.  In the interim, PE and Enova Corporation
intend  to  form  a  joint venture to provide integrated  energy  and  energy
related products and services.


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 Form 10-K for the year ended  December  31,
1995 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, the Company defers revenues  related  to  costs
which  it  expects to incur 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 1996 financial  statement
presentation.

Income  taxes are calculated in accordance with SFAS 109.  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


<PAGE>PAGE 7


have  been  recognized  in  the financial statements  or  tax  returns.   For
additional  information regarding income taxes, see Footnote 4  of  Notes  to
Consolidated   Financial  Statements  in  the  December  31,  1995   Southern
California Gas Company's Form 10-K filing.

Estimated  liabilities for environmental remediation are  recorded  when  the
amounts  are  probable and estimable.  Amounts authorized to be recovered  in
rates are recorded as regulatory asset.  Possible recoveries of environmental
remediation  liabilities  from  third  parties  are  not  deducted  from  the
liability  shown on the balance sheet.  For additional information  regarding
commitments  and  contingencies, see Footnote  4  of  Notes  to  Consolidated
Financial  Statements  in  the  December 31,  1995  Southern  California  Gas
Company's Form 10-K filing.


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   Form   10-Q   and
Management's  Discussion and Analysis of Financial Condition and  Results  of
Operations contained in the Company's 1995 Form 10-K.


INFORMATION REGARDING FORWARD-LOOKING COMMENTS

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   and
regulatory  conditions, technological developments, inflation rates,  weather
conditions,  business decisions, 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
that the assumptions upon which the forward-looking statements are based, are
reasonable for purposes of making these statements, there can be no assurance
that  these  assumptions  will  approximate actual  experience  or  that  the
expectations set forth in the forward-looking statements derived  from  these
assumptions will be realized.


SUMMARY

The  Company reported net income of $53 million in the third quarter of  1996
compared  to  $51  million in the third quarter of 1995.  The  Company's  net
income for the quarter is slightly above results from a year ago although its

<PAGE>PAGE 8


authorized return on equity for 1996 is 11.6 percent, down from 12 percent  a
year  ago.  Additionally, SoCalGas also is absorbing a 3 percent productivity
factor  as  part  of  a  prior regulatory settlement.   The  results  reflect
continued operating efficiency and reduced capital investment.

A  settlement  was reached by SoCalGas, major energy consumers,  other  major
energy utilities, and the Public Utilities Commission's Office of Ratepayer
Advocates  (ORA) on its 1997 cost of capital proceedings.  Return  on  Equity
will remain at 11.6 percent for 1997 and the common equity component of the
capital  structure will increase to 48.0 percent from 47.4 percent authorized
in  1996.  The increase in the common equity component could potentially  add
$2  million  to earnings for SoCalGas in 1997.  An administrative  law  judge
(ALJ)  of the California Public Utility Commission (CPUC) has ruled in  favor
of the cost of capital settlement.

The  Company  is  continuing  its  efforts  to  implement  Performance  Based
Ratemaking  (PBR) in regulatory proceedings before the CPUC.  If approved  by
the  CPUC,  PBR rates will be implemented sometime during the  last  half  of
1997.

A  contract  agreement on wages and working conditions was reached  with  the
Company's represented workers, which comprise approximately 73% of  the  full
time active workforce, in September 1996.

Finally,  Pacific  Enterprises  (Parent) and Enova  Corporation,  the  parent
company  of San Diego Gas & Electric announced that their Board of  Directors
had  unanimously approved a business combination of the two  companies  in  a
strategic merger of equals in a tax free transaction to be accounted for as a
pooling  of interests.  See additional discussion in Note 1 to the  Financial
Statements.


RESULTS OF OPERATIONS

Net   income  for  the  third  quarter  of  1996  was  $51  million  compared
to $48 million for the same period 1995.  For the nine months ended September
30,  1996, net income was $136 million compared to $146 million for the  same
period in 1995. Excluding non-recurring items (described below), results  for
the nine months were approximately  even with last year.

The Company's year-to-date earnings decreased primarily due to a one-time non-
cash charge in the second quarter of $26.6 million, after-tax, related to the
Comprehensive  Settlement of excess gas costs and other  regulatory  matters.
(See additional discussion of the non-cash charge below).

This   reduction   was   partially  offset  by  $13.6  million   after-taxes,
representing  one-time  favorable settlements.  One settlement  is  from  gas
producers  and  the other reflects the resolution of environmental  insurance
claims.


<PAGE>PAGE 9


Year-to-date results were also reduced by $6.6 million, after-tax, due to  of
lower  noncore  revenues and throughput.  In the first nine months  of  1996,
noncore  throughput fell below levels used by the CPUC in establishing  rates
as  a  result  of Utility Electric Generation (UEG) customers being  able  to
purchase  abundant, inexpensive hydro-generated electricity produced  due  to
abnormally high snow and rainfall last winter. Also having a negative  effect
on earnings was the decrease in the rate of return on common equity from 12.0
percent in 1995 to 11.6 percent in 1996.  Both of these were offset by  lower
than authorized operation and maintenance expenses.

The  table below compares SoCalGas' throughput and revenues by customer class
for the nine months ended September 30, 1996 and 1995.



($ in Millions,      Gas Sales         Trans. & Exchg.          Total
vol. in billion
cubic feet)    Throughput  Revenue  Throughput  Revenue  Throughput  Revenue
1996:
Residential        159     $1,118         2       $  6       161      $1,124
Comm'l/Ind'l.       61        351       215        173       276         524
Utility Elec.                           109         61       109          61
Wholesale                                94         48        94          48
Exchange                                  4                    4
               -------------------------------------------------------------
Total in Rates     220     $1,469       424       $288       644       1,757
Bal. & Other                                                             (65)
                                                                      ------
Total Op. Rev.                                                        $1,692
                                                                      ======
1995:
Residential        172     $1,254         2       $  5       174      $1,259
Comm'l/Ind'l.       75        443       185        146       260         589
Utility Elec.                           168         92       168          92
Wholesale            4          7        95         41        99          48
Exchange                                 10          1        10           1
               -------------------------------------------------------------
Total in Rates     251     $1,704       460       $285       711      $1,989

Bal. & Other                                                            (299)
                                                                      ------
Total Op. Rev.                                                        $1,690
                                                                      ======
Operating revenue increased $70 million and $2 million for the three and nine
months  ended  September 30, 1996 respectively.  The  increase  in  operating
revenues  for  the  quarter is primarily due to higher gas costs  and  higher
operating  and  maintenance expense in the quarter.  Since  those  costs  are
recoverable  in  rates,  they  are also recorded  as  revenues  resulting  in
increased  revenues  in  1996 (see Note 2, Notes  to  Condensed  Consolidated
Financial Statements [unaudited] for a discussion of accounting policies).

<PAGE>PAGE 10


As part of the Comprehensive Settlement which resolved future excess gas cost
issues, the CPUC ruled that rates charged to noncore customers for the five-
year  period ending August 1, 1999 would be based on actual volumes delivered
in  1991.  The Company was permitted to retain any revenue enhancements  from
throughput  exceeding  these  levels subject to  a  crediting  mechanism  for
revenues in excess of certain limits.  The Company estimated the amount of
these  future revenue enhancements and applied them to reduce the 1993 charge
for the Comprehensive Settlement.

Due  to continuing developments in the CPUC's regulatory restructuring of the
electric utility industry, the Company now anticipates that future throughput
to  noncore customers will not meet levels projected in 1993 at the  time  of
the  Comprehensive Settlement.  Consequently, it believes it will not realize
the  remaining revenue enhancements that were applied to offset the costs  of
the Comprehensive Settlement and in the second quarter charged that amount to
revenues resulting in a reduction in earnings of $26.6 million after-tax.  In
connection  with  the  1992 quasi-reorganization, the  Parent  established  a
reserve  for  excess gas costs and consequently, the charge to the  Company's
income  had  no  effect on the Parent's consolidated income.   The  Company's
assets  and  liabilities  were not adjusted in  connection  with  the  quasi-
reorganization  in  1992,  since it is a regulated entity  whose  assets  and
liabilities,  for  the most part, are recorded on the basis  of  future  rate
recovery.   While  the  company  is  not  pleased  that  the  cost   of   the
Comprehensive Settlement is greater than originally estimated, we continue to
believe  that  this  is  a  good  settlement  which  enhances  the  company's
competitive position.

Throughput, the total gas sales and transportation volumes moved through  the
Company's  system, decreased in 1996 as a result of lower demands,  primarily
by  UEG customers.  This was the result of an abundance of inexpensive hydro-
electricity.   The  availability  of  hydrogenerated  electricity  has   been
declining through the third quarter and is now closer to normal levels.

Cost  of gas distributed was $201 million and $594 million for the three  and
nine  months  ended September 30, 1996.  This represents an increase  of  $37
million  and  $18 million compared to the same periods in 1995, respectively.
The  increase  is  primarily due to an increase in the average  cost  of  gas
purchased to $1.78 per million cubic feet (MCF) for the third quarter of 1996
compared  to $1.58 per MCF for the third quarter of 1995.  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  and  nine  months  ended
September   30,  1996  increased  $24  million  and  decreased  $3   million,
respectively,  when compared to 1995.  As a result of the completion  of  the
Company's reorganization to business units on July 1, 1995, certain  expenses
were  not  incurred in the third quarter of 1995 as originally  planned,  but
were  incurred  later  in  the year.  Also, a lump sum  bonus  totaling  $5.7
million  was paid to represented employees in September 1996 as a  result  of
the union contract signing.

<PAGE>PAGE 11


Depreciation  and amortization expense increased $6 million and  $11  million
for  the  three and nine months ended September 30, 1996, respectively,  when
compared  to  1995.   The  increase is partially due to  the  completion  and
installation  of  the  Customer Information System in April  1996  which  was
capitalized at $65 million and has a ten-year life.


RECENT CPUC REGULATORY ACTIVITY

Under  the  Gas Cost Incentive Mechanism (GCIM), the Company can recover  all
costs  in  excess  of the benchmark level to the extent they  fall  within  a
tolerance  band  which  extends to 4 percent above  the  benchmark.   If  the
Company's cost of gas exceeds the tolerance level, then 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 $12.4 million below the specified GCIM
benchmark  for the period April 1995 to March 1996.  A filing has  been  made
with  the  CPUC requesting a $6.2 million reward for shareholders  under  the
procurement  portion of the incentive mechanism.  The reward amount  will  be
recognized in income when a final CPUC decision has been issued.

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

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.   The  Company has filed a "Performance Based Regulation"  (PBR)
application with the CPUC to replace the general rate case and certain  other
regulatory  proceedings.   This new approach,  if  adopted  as  filed,  would
maintain cost based rates, at inflation less a productivity factor, but would
link financial performance with changes in productivity, increased gas usage,
and  new  products  and  services.  In May  1996,  the  Company  submitted  a
supplemental PBR filing to the CPUC proposing that customer rates be  reduced
by approximately $62 million, or 4% from current levels.

In  a  report  issued  in October 1996, the ORA proposed an  additional  $162
million   rate  reduction.   It  is  expected  a  number  of  these  proposed
disallowances  will  be  overturned due  to  possible  errors  in  the  ORA's
assumptions and calculations.  Other areas of disallowances would  result  in
discontinuance of programs, which, if approved, would result in  no  negative
impact on the Company's earnings.

While  it  is  not  the Company's policy to predict the ultimate  outcome  of
regulatory proceedings, given the nature of the proposed disallowances and

<PAGE>PAGE 12


its  ability to manage its business within the constraints of the  regulatory
environment,  the Company does not believe that the proposed  rate  reduction
will  have  a materially negative impact on its earnings.  Per the procedural
schedule  adopted by the CPUC, open hearings on the application are scheduled
to  begin  in mid-November.  A final decision would then be expected  in  the
summer of 1997.

In March 1996, the Company filed its 1996 Biennial Cost Allocation Proceeding
with  the CPUC.  In its filing, the Company is seeking a total rate reduction
of $138 million.  The rate reduction reflects amounts previously collected in
rates,  but  not expended for conservation programs, research and development
programs and purchased gas costs.  A CPUC decision is expected in the  fourth
quarter.

In  August  1996,  a  settlement was reached by the  Company's  major  energy
consumers,  other  major energy utilities and the ORA on  its  1997  cost  of
capital.   The  settlement  which  avoided  potential  costly  administrative
hearings,  allows the Company an authorized return on common equity  of  11.6
percent and a 9.49 percent return on rate base.  Also allowed, was a 60 basis
point  increase  in  the Company's authorized common  equity  ratio  to  48.0
percent.  The increase in the common equity component will potentially add $2
million  to earnings in 1997.  An ALJ has issued a ruling in support  of  the
cost  of  capital settlement.  The CPUC is expected to issue its decision  in
the fourth quarter of 1996.

As  discussed  in  the 1995 Form 10-K, existing interstate pipeline  capacity
into  California exceeds current demand by over 1 billion cubic feet per day.
Cost  of  unsubscribed  capacity  may be  charged  back  to  firm  customers.
However,  the  Federal  Energy Regulatory Commission (FERC)  has  approved  a
settlement with Transwestern which calls for firm customers, including the
Company, to subsidize unsubscribed pipeline costs for a five-year period with
Transwestern assuming full responsibility after that time.  A settlement  was
also  reached  with El Paso, in which customers, including the Company,  will
pay for a portion of the unused capacity.  The  customers  may  also  receive
credits from El Paso for unused capacity sold.  The settlement is for a  ten-
year  period  and  is awaiting approval by the FERC.  The Company  expects  a
ruling will be issued in the first half of 1997.

The  Company believes that the FERC approved settlement with Transwestern and
the  proposed settlement with El Paso will not have a significant  impact  on
liquidity  or on the results of operations as a result of the requirement  to
subsidize   unsubscribed  pipeline  costs  for  a  five-year   period.    The
settlements  result  in  a  reduction in the costs  that  the  Company  could
possibly  have  to  pay  in the future as a result of  unsubscribed  pipeline
capacity.   While  the  inclusion  in rates  of  any  costs  associated  with
unsubscribed pipeline capacity may impact the Company's ability to compete in
highly  contested  markets, the Company does not believe its  inclusion  will
have a significant impact on volumes transported or sold.



<PAGE>PAGE 13


As part of its continuing evaluation of the impact of electric restructing on
operations, the Company reviewed the requirements of SFAS 121 "Accounting for
the Impairment of Long Lived Assets and Long Lived Assets to be disposed of."
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  discounted future cash flows from the Company's investment  in  its
gas transportation infrastructure is greater than its carrying amount.


OTHER ACTIVITY

Approximately  5,500 field, clerical and technical employees of  the  Company
are represented by the Utility Workers' Union of America or the International
Chemical Workers' Union.  In June, a union decertification petition was filed
with  the  National Labor Relations Board (NLRB) by members of the  Company's
unions.   The petition was withdrawn by the represented employees  supporting
the petition drive in August 1996.

In  September  1996,  the  Company's represented  employees  approved  a  new
contract on wages and working conditions which will expire on March 31, 1998.
This  agreement  provides the basis for a constructive  working  relationship
between the Company and the Unions to better address business issues.  Key
provisions  give the Company flexibility to create a multi-skilled  workforce
through  reclassification  and training, the right to  establish  management-
employee  teams  to  address proficiency and the right to  outsource  noncore
functions such as billings, all of which enhance the Company's ability to  be
more  competitive.  Full time represented employees have employment  security
for  the duration of the contract.  Additionally, these employees received  a
2.7  percent  lump  sum signing bonus in September, 1996 which  totaled  $5.7
million.

For  additional information, see the discussion under the caption "Management
Discussion  and  Analysis - Factors influencing Future  Performance"  in  the
Company's 1995 Form 10-K.


LIQUIDITY

Cash  flows from operations were $92 million and $594 million for  the  three
and  nine  months ended September 30, 1996, respectively.  This represents  a
decrease  of  $37  million  and  $10 million, respectively  from  1995.   The
decrease for the three and nine months is primarily due to higher collections
of regulatory accounts receivable in 1995 compared to 1996.

Capital expenditures were $39 and $124 million for the three and nine  months
ended  September 30, respectively.  This represents a decrease of $5  million
and  $18 million, respectively from 1995.  Capital expenditures  for  utility
plant  are expected to be $215 million in 1996 and will be financed primarily
by internally-generated funds.

<PAGE>PAGE 14


Cash  flows  from financing activities were a negative $39 million  and  $469
million for the three and nine months ended September 30, 1996, respectively.
For  the  nine  months this represents a preferred stock redemption  of  $100
million,  repayment  of  commercial paper of $107  million,  payment  of  $67
million of Swiss Franc bonds and dividends of $195 million.

The redeemed preferred stock included $50 million of the Company's Series A
Flexible Auction preferred stock and $50 million of the Company's Series C
Flexible Auction preferred stock.

On April 30, 1996 investors put back $67 million of the Company's perpetual
Swiss Franc bonds representing 90% of the total $75 million outstanding.  the
next available put date for the outstanding balance is the year 2006.  The
Company borrowed these funds from the Parent and anticipates refinancing this
amount through the issuance of medium-term notes.

The Company paid dividends of $189 million on common stock to its Parent and
$6 million on preferred stock for a total of $195 million.  This compares to
$175 million in 1995.


PART II.  OTHER INFORMATION

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

(b)   There  were  no  reports of Form 8-K filed  during  the  quarter  ended
September 30, 1996.

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)

Ralph Todaro
-------------------------------
Ralph Todaro
Vice President and Controller
(Chief Accounting Officer and
duly authorized signatory)
Date:  February 5, 1997