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, 2000
                              -------------------------------------

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

PART I  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.

<TABLE>
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions
<CAPTION>
                                                         Three Months Ended
                                                              June 30,
                                                           ----------------
                                                            2000      1999
                                                           ------    ------
<S>                                                        <C>       <C>

Operating Revenues                                          $630      $624
                                                            -----     -----
Expenses
  Cost of natural gas distributed                            264       241
  Operation and maintenance                                  167       193
  Depreciation                                                67        65
  Income taxes                                                43        40
  Other taxes and franchise payments                          22        20
                                                            -----     -----
     Total                                                   563       559
                                                            -----     -----
Operating Income                                              67        65
                                                            -----     -----
Other Income and (Deductions)
  Interest income                                              7         5
  Regulatory interest                                         (5)       (4)
  Allowance for equity funds used during construction          1        --
  Taxes on non-operating income                               (2)       --
  Other - net                                                 --        (1)
                                                            -----     -----
     Total                                                     1        --
                                                            -----     -----
Income Before Interest Charges                                68        65
                                                            -----     -----
Interest Charges
  Long-term debt                                              18        18
  Other                                                        2         1
  Allowance for borrowed funds used during construction       --        (1)
                                                            -----     -----
     Total                                                    20        18
                                                            -----     -----
Net income                                                    48        47
Preferred Dividend Requirements                                1         1
                                                            -----     -----
Earnings Applicable to Common Shares                        $ 47      $ 46
                                                            =====    ======
See notes to Consolidated Financial Statements.

</TABLE>

<TABLE>
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
Dollars in millions
<CAPTION>
                                                           Six Months Ended
                                                               June 30,
                                                           ----------------
                                                            2000      1999
                                                           ------    ------
<S>                                                       <C>       <C>

Operating Revenues                                        $1,328    $1,231
                                                           ------    ------
Expenses
  Cost of natural gas distributed                            610       497
  Operating and maintenance                                  317       345
  Depreciation                                               131       129
  Income taxes                                                87        81
  Other taxes and franchise payments                          50        45
                                                           ------    ------
     Total                                                 1,195     1,097
                                                           ------    ------
Operating Income                                             133       134
                                                           ------    ------

Other Income and (Deductions)
  Interest income                                             11         7
  Regulatory interest                                         (5)       (8)
  Allowance for equity funds used during construction          1         1
  Taxes on non-operating income                               (4)        1
  Other - net                                                 --        (2)
                                                           ------    ------
     Total                                                     3        (1)
                                                           ------    ------
Income Before Interest Charges                               136       133
                                                           ------    ------

Interest Charges
  Long-term debt                                              35        37
  Other                                                        4         3
  Allowance for borrowed funds used during construction       (1)       (1)
                                                           ------    ------
     Total                                                    38        39
                                                           ------    ------
Net Income                                                    98        94
Preferred Dividend Requirements                                1         1
                                                           ------    ------
Earnings Applicable to Common Shares                        $ 97      $ 93
                                                           ======    ======

See notes to Consolidated Financial Statements.

</TABLE>


<TABLE>


SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dollars in millions
<CAPTION>
                                                      Balance at
                                               --------------------------
                                               June 30,       December 31,
                                                 2000            1999
                                               ---------      -----------
<S>                                             <C>             <C>
ASSETS
Utility plant - at original cost                  $6,235           $6,160
Accumulated depreciation                          (3,458)          (3,339)
                                                  ------           ------
      Utility plant - net                          2,777            2,821
                                                  ------           ------

Current Assets
  Cash and cash equivalents                          142               11
  Accounts receivable (less allowance for
    doubtful receivables of $18 at June 30, 2000
    and $16 at December 31, 1999)                    263              294
  Due from affiliates                                317               73
  Income taxes receivable                              4               --
  Deferred income taxes                               25               25
  Inventories                                         20               78
  Other                                                3                5
                                                  ------           ------
        Total current assets                         774              486
                                                  ------           ------
Regulatory assets                                     24               91
Investments and other assets                         136               54
                                                  ------           ------
        Total                                     $3,711           $3,452
                                                  ======           ======


See notes to Consolidated Financial Statements.
</TABLE>


<TABLE>
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Dollars in millions
<CAPTION>
                                                        Balance at
                                              -----------------------------
                                               June 30,        December 31,
                                                 2000               1999
                                              ------------      -----------
<S>                                             <C>               <C>
CAPITALIZATION AND LIABILITIES
Capitalization
  Common stock                                   $  835           $   835
  Retained earnings                                 444               447
  Accumulated other comprehensive income             30                 6
                                                 ------            ------
    Total common equity                           1,309             1,288

  Preferred stock                                    22                22
  Long-term debt                                    940               939
                                                 ------            ------
     Total capitalization                         2,271             2,249
                                                 ------            ------

Current Liabilities
  Accounts payable                                  220               209
  Regulatory balancing accounts - net               322               154
  Accrued income taxes                               --                 4
  Interest accrued                                   27                29
  Current portion of long-term debt                  30                30
  Other                                             222               205
                                                 ------            ------
     Total current liabilities                      821               631
                                                 ------            ------
Deferred credits and other liabilities
  Customer advances for construction                 26                27
  Deferred income taxes - net                       358               319
  Deferred investment tax credits                    54                56
  Deferred credits and other liabilities            181               170
                                                 ------            ------
     Total deferred credits and other liabilities   619               572
                                                 ------            ------
Commitments and contingent liabilities (Note 2)

        Total                                    $3,711            $3,452
                                                 ======            ======
See notes to Consolidated Financial Statements.
</TABLE>

<TABLE>
SOUTHERN CALIFORNIA GAS COMPANY AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
Dollars in millions
<CAPTION>
                                                        Six Months Ended
                                                            June 30,
                                                       ------------------
                                                       2000         1999
                                                       -----        -----
<S>                                                  <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                           $ 98         $ 94
  Adjustments to reconcile net income to
   net cash provided by operating activities
     Depreciation                                       131          129
     Deferred income taxes and investment tax credits    26            6
     Other                                               25           (1)
     Net change in other working capital components      38          125
                                                       ----         ----
      Net cash provided by operating activities         318          353
                                                       ----         ----
CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                                  (86)         (66)
  Other - net                                            --           (4)
                                                       ----         ----
      Net cash used in investing activities             (86)         (70)
                                                       ----         ----
CASH FLOWS FROM FINANCING ACTIVITIES
  Dividends paid                                       (101)        (100)
                                                       ----         ----
     Net cash used in financing activities             (101)        (100)
                                                       ----         ----

Increase in Cash and Cash Equivalents                   131          183
Cash and Cash Equivalents, January 1                     11           11
                                                       ----         ----
Cash and Cash Equivalents, June 30                     $142         $194
                                                       ====         ====
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Interest payments, net of amount capitalized         $ 40         $ 37
                                                       ====         ====
  Income tax payments, net of refunds                  $ 72         $119
                                                       ====         ====
See notes to Consolidated Financial Statements.

</TABLE>











 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  GENERAL

This Quarterly Report on Form 10-Q is that of the Southern California
Gas Company (SoCalGas or the Company), the sole subsidiary of Pacific
Enterprises (PE). PE's common stock is wholly owned by Sempra Energy,
a California-based Fortune 500 energy services company. The financial
statements herein are the Consolidated Financial Statements of
SoCalGas and its subsidiaries, whose operations are not material to
the consolidated financial statements.

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 only of a
normal recurring nature. Certain changes in classification have been
made to prior presentations to conform to the current financial
statement presentation.

The Company's significant accounting policies are described in the
notes to Consolidated Financial Statements in the Company's 1999
Annual Report. The same accounting policies are followed for interim
reporting purposes.

Information in this Quarterly Report is unaudited and should be read
in conjunction with the Company's 1999 Annual Report.

As described in the notes to Consolidated Financial Statements in the
Company's 1999 Annual Report, SoCalGas accounts for the economic
effects of regulation on utility operations in accordance with
Statement of Financial Accounting Standards No. 71," Accounting for
the Effects of Certain Types of Regulation" (SFAS No. 71).



2. 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 July 1999, after hearings, the CPUC issued a decision stating
which gas regulatory changes it found most promising, encouraging
parties to submit settlements addressing those changes, and providing
for further hearings if necessary.

In October 1999, the State of California enacted a law (AB 1421)
which requires that natural gas utilities provide "bundled basic gas
service" (including transmission, storage, distribution, purchasing,
revenue-cycle services and after-meter services) to all core
customers, unless the customer chooses to purchase natural gas from a
non-utility provider. The law prohibits the CPUC from unbundling most
distribution-related natural gas services (including meter reading)
and after-meter services (including leak investigation, inspecting
customer piping and appliances, pilot relighting and carbon monoxide
investigation) for core customers. The objective is to preserve both
customer safety and customer choice.

Between late 1999 and April 2000, several conflicting settlements
were filed by various groups of parties that address the changes the
CPUC found promising in July 1999. Hearings were held in May and June
of 2000, and a CPUC decision is expected by year-end 2000. The
principal issues in dispute include : whether firm, tradable rights
to capacity on SoCalGas' major gas transmission lines should be
created, with SoCalGas at risk for market demand for the recovery of
the cost of these facilities; the extent to which SoCalGas' storage
services should be further unbundled and SoCalGas be put at greater
risk for recovery of storage costs; the manner in which interstate
pipeline capacity held by SoCalGas to serve core markets should be
allocated to core customers who purchase gas from energy service
providers other than SoCalGas; and  the recovery of the utilities'
costs to implement whatever regulatory changes are adopted.
Additional proposals include improving the access of energy service
providers to sell gas supply to core customers of SoCalGas and SDG&E.

Consistent with Sempra Energy's corporate policies favoring the
unbundling of commodity and nonessential services,  SoCalGas and its
affiliate, San Diego Gas & Electric Company,  are supporting changes
that they believe will provide greater customer choice in utility
services and greater access to gas supply service from energy service
providers in the core market.  However, a coalition of gas-fired
electric generators and consumer groups has also proposed the CPUC
require SoCalGas to absorb 25 percent of the above-market cost of
some capacity SoCalGas has contracted for on interstate pipelines.
SoCalGas is actively opposing this proposal, contending that
regulatory changes developed after the capacity was committed should
not be considered in evaluating the propriety of the commitment.

Certain parties contend that the restructuring process is an
appropriate venue for addressing whether SoCalGas should refund
retroactively to September 1999 the cost in rates of ownership and
operation of one SoCalGas storage field. SoCalGas is also actively
opposing this proposal and the propriety of this venue for its
resolution.

3.  COMPREHENSIVE INCOME

Comprehensive income for the three-month periods ended June 30, 2000
and 1999 was  $36 million and $47 million,  respectively.
Comprehensive income for the six-month periods ended June 30, 2000
and 1999 was  $121 million and $94 million,  respectively. For the
2000 periods, the following is a reconciliation of net income to
comprehensive income.

                                 Three months          Six months
                                    ended                 ended
(Dollars in millions)            June 30, 2000        June 30, 2000
--------------------------------------------------------------------

Net income                            $   48               $   98

Change in unrealized gain on
   marketable securities                 (12)                  21

Minimum pension liability adjustments     --                    2
                                    --------------------------------
   Comprehensive income               $   36               $  121
--------------------------------------------------------------------



For the 1999 periods, comprehensive income was equal to earnings
applicable to common shares. As was the case for the three-month and
six-month periods ended June 30, 2000, it is likely that
comprehensive income in future periods will differ significantly from
net income and will be more volatile than net income as long as the
available-for-sale securities are held.

4.  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 1999 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, interest revenue and income tax expense are not
allocated to the reportable segments. In addition, during 2000, the
Company simplified its allocation of certain revenues and expenses
between the business segments. As a result, certain amounts reported
for 2000 are not comparable to prior periods or to other companies'
similar business segments. Interest revenue is included in other
income on the Statements of Consolidated Income herein. There were no
significant changes in segment assets during the six-month period
ended June 30, 2000.


---------------------------------------------------------------------
                             Three-month periods    Six-month periods
                                ended June 30,        ended June 30,
                             ----------------------------------------
(Dollars in millions)          2000       1999        2000    1999
---------------------------------------------------------------------

Revenues:
  Distribution               $  474     $  490     $ 1,081  $1,007
  Transmission and storage      138        130         266     232
  Other                          18          4         (19)     (8)
                             ----------------------------------------
    Total                    $  630     $  624     $ 1,328  $1,231
                             ----------------------------------------
Segment Income:
  Distribution               $   54     $   84     $   164  $  193
  Transmission and storage       38         17          73      29
  Other                          18          4         (17)     (7)
                             ----------------------------------------
    Total segment income        110        105         220     215

Interest expense                (20)       (18)        (38)    (39)
Income tax expense              (45)       (40)        (91)    (80)
Nonoperating income (expense)     3         --           7      (2)
                             ----------------------------------------
  Net income                 $   48     $   47     $    98  $   94
                             ----------------------------------------


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 1999 Annual Report.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains statements that are not
historical fact and constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. The
words "estimates,"" believes," " expects,"" anticipates,"" plans,"
"intends," "may" and "should" or similar expressions, or discussions
of strategy or of plans are intended to identify forward-looking
statements that involve risks, uncertainties and assumptions. Future
results may differ materially from those expressed in the forward-
looking statements.

These statements are necessarily based upon various assumptions
involving judgments with respect to the future and other risks,
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, including the timing
and extent of changes in commodity prices; weather conditions;
business, regulatory or legal decisions; the pace of deregulation of
retail natural gas and electricity delivery; 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. Readers are cautioned not to rely unduly on
any forward-looking statements and 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.

See also "Factors Influencing Future Performance" below.

CAPITAL RESOURCES AND LIQUIDITY

The Company's California utility operations continue to be the major
source of liquidity. In addition, working capital requirements are
met through the issuance of short-term and long-term debt. Cash and
cash equivalents at June 30, 2000 are available for investment in
utility plant, the retirement of debt and other corporate purposes.
Major changes in cash flows not described elsewhere are described
below.

CASH FLOWS FROM OPERATING ACTIVITIES

For the six-month period ended June 30, 2000, the decrease in cash
flows from operations is primarily due to the increase in affiliate
receivables, offset by the increase in balancing accounts.


CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures for property, plant and equipment  are estimated
to be $200  million for the full year 2000 and will be financed
primarily by internally generated funds. 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

For the six-month period ended June 30, 2000, cash flows from
financing activities were relatively unchanged from the corresponding
period in 1999.

RESULTS OF OPERATIONS

SoCalGas' net income increased 2 percent and 4 percent for the three-
month and six-month periods ended June 30, 2000, respectively,
compared to the same periods in 1999, primarily due to reduced
operating and maintenance expenses.

The table below summarizes natural gas volumes and revenues  by
customer class for the six-month periods ended June 30, 2000 and
1999.

<TABLE>
Southern California Gas Company
Gas Sales, Transportation and Exchange
For the six-month periods ended June 30
(Volumes in billion cubic feet, dollars in millions)
<CAPTION>

                                Gas Sales     Transportation & Exchange      Total
                           --------------------------------------------------------------
                              Volumes    Revenue    Volumes  Revenue    Volumes   Revenue
                           --------------------------------------------------------------
<S>                          <C>       <C>         <C>      <C>          <C>      <C>
2000:
 Residential                      136     $1,016         2    $  8         138     $1,024
 Commercial and industrial         44        282       160     124         204        406
 Utility electric generation       --         --        99      38          99         38
 Wholesale                         --         --        74      26          74         26
                           --------------------------------------------------------------
                                  180     $1,298       335    $196         515      1,494
 Balancing accounts and other                                                        (166)
                                                                                 --------
   Total                                                                           $1,328
------------------------------------------------------------------------------------------

1999:
 Residential                      162     $1,017         1    $  4         163     $1,021
 Commercial and industrial         46        241       152     122         198        363
 Utility electric generation       --         --        49      20          49         20
 Wholesale                         --         --        80      28          80         28
                           --------------------------------------------------------------
                                  208     $1,258       282    $174         490      1,432
 Balancing accounts and other                                                        (201)
                                                                                 --------
   Total                                                                           $1,231
------------------------------------------------------------------------------------------
</TABLE>



Natural gas revenues increased 8 percent for the six-month period
ended June 30, 2000, compared to the corresponding period in 1999.
The increase is primarily due to higher natural gas prices.

Cost of natural gas distributed increased 23 percent for the six-
month period ended June 30, 2000 compared to the corresponding period
in 1999. The increase is primarily due to higher natural gas prices.
Under the current regulatory framework, changes in core-market
natural gas prices do not affect net income since, as explained more
fully in the 1999 Annual Report, current or future customer rates
normally recover the actual cost of natural gas.

FACTORS INFLUENCING FUTURE PERFORMANCE
Performance of the Company in the near future will depend primarily
on the ratemaking and regulatory process, electric and natural gas
industry restructuring, and the changing energy marketplace. These
factors are discussed in this section.

Industry Restructuring

See discussion of industry restructuring in Note 2 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 the California
utilities. 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 plant in a market where a utility already
has a highly developed infrastructure.  The  utility's PBR mechanism
is scheduled to be updated at December 31, 2002, to reflect, among
other things, changes in costs and volumes.

Key elements of the mechanisms include an initial reduction in base
rates, an indexing mechanism that limits future rate increases to the
inflation rate less a productivity factor, a sharing mechanism with
customers if earnings exceed the authorized rate of return on rate
base, and rate refunds to customers if service quality deteriorates .
Specifically, the key elements of the mechanisms include the
following:

-- Earnings up to 25 basis points in excess of the authorized rate of
return on rate base are retained 100 percent by shareholders.
Earnings that exceed the authorized rate of return on rate base by
greater than 25 basis points are shared between customers and
shareholders on a sliding scale that begins with 75 percent of the
additional earnings being given back to customers and declining to 0
percent as earned returns approach 300 basis points above authorized
amounts. There is no sharing if actual earnings fall below the
authorized rate of return. In 1999,  SoCalGas was authorized to earn
9.49 percent on rate base. For 2000, the authorized return is again 9.49
percent.

-- Base rates are indexed based on inflation less an estimated
productivity factor.

--  The  mechanism authorizes penalties of up to $4 million annually,
or more in certain, limited situations, related to performance
involving employee safety, customer satisfaction, and call-center
responsiveness.

-- A  mechanism allows for pricing flexibility for residential and
small-commercial customers, with any shortfalls in revenue being
borne by shareholders and with any increase in revenue shared between
shareholders and customers.

-- Annual cost of capital proceedings are replaced by an automatic
adjustment mechanism. If changes in certain indices exceed
established tolerances, there would be an automatic adjustment of
rates for the change in the cost of capital according to a formula
which applies a percentage of the change to various capital
components.

Cost of Capital

For 2000, 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), the same as in 1999, unless interest-rate changes are large
enough to trigger an automatic adjustment as discussed in the
Company's 1999 Annual Report.

Biennial Cost Allocation Proceeding (BCAP)

The BCAP determines how a utility's natural gas transportation costs
are allocated among various customer classes (residential,
commercial, industrial, etc.). In October 1998, the California
utilities filed 1999 BCAP applications requesting that new rates
become effective August 1, 1999, and remain in effect through
December 31, 2002. On April 20, 2000, the CPUC issued a decision
adopting overall decreases in natural gas revenues of  $210 million
for SoCalGas for transportation rates effective June 1, 2000. Since
the decrease reflects anticipated changes in corresponding costs, it
has no effect on net income.

Key elements of the 1999 BCAP decision for SoCalGas include (1) the
first update to customer throughput forecasts since the Global
Settlement (the 1994 comprehensive settlement of natural gas
regulatory issues, described in the Company's 1999 Annual Report on
Form 10-K), (2) a return to the pre-Global Settlement 75%/25%
(ratepayer/shareholder) balancing treatment for noncore revenues
excluding certain transactions, and (3) 50%/50% balancing treatment
of unbundled noncore storage. The shareholder portion of noncore
transportation and storage revenues is excluded from the PBR sharing
mechanism.

Gas Cost Incentive Mechanism (GCIM)

This mechanism for evaluating SoCalGas' natural gas purchases
substantially replaced the previous process of reasonableness
reviews. GCIM compares SoCalGas' cost of natural gas with a benchmark
level, which is the average price of 30-day firm spot supplies in the
basins in which SoCalGas purchases natural gas. The mechanism permits
full recovery of all costs within a tolerance band above the
benchmark price and refunds all savings within a tolerance band below
the benchmark price. The costs or savings outside the tolerance band
are shared equally between customers and shareholders.

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

In June 1999, SoCalGas filed its annual GCIM application with the
CPUC, requesting an award of $8 million for the annual period ended
March 31, 1999. On June 8, 2000 the CPUC approved the $8 million
award and deferred decision regarding extending the GCIM beyond March
31, 2000 until an evaluation is performed by the Commission staff.
The evaluation report is expected in January 2001.

In June 2000, SoCalGas filed its annual GCIM application with the
CPUC, requesting an award of $10 million for the annual period ended
March 31, 2000. A CPUC decision is expected during the first quarter
of 2001.

NEW ACCOUNTING STANDARDS

In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards (SFAS) No. 133
"Accounting for Derivative Instruments and Hedging Activities." As
amended, SFAS 133, which is effective for the company on January
1, 2001, requires that an entity recognize all derivatives as
either assets or liabilities in the statement of financial
position, measure those instruments at fair value and recognize
changes in the fair value of derivatives in earnings in the period
of change unless the derivative qualifies as an effective hedge
that offsets certain exposures. The effect of this standard on the
company's Consolidated Financial Statements has not yet been
determined.

In December 1999, the Securities Exchange Commission (SEC) staff
issued Staff Accounting Bulletin (SAB) 101 " Revenue Recognition.
SABs are not rules issued by the SEC. Rather, they represent
interpretations and practices followed by the SEC's staff in
administering the disclosure requirements of the federal
securities laws. SAB 101 provides guidance on the recognition,
presentation and disclosure of revenue in financial statements; it
does not change the existing rules on revenue recognition. SAB 101
sets forth the basic criteria that must be met before revenue
should be recorded. Implementation of SAB 101 is required by the
fourth quarter of 2000 and will have no effect on the company's
Consolidated Financial Statements.

ITEM 3.    MARKET RISK

There have been no significant changes in the risk issues affecting
the Company subsequent to those discussed in the Annual Report on
Form 10-K for 1999.

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

Neither the Company nor its subsidiaries are party to, nor is their
property the subject of, any material pending legal proceedings other
than routine litigation incidental to their businesses.

ITEM 5.  OTHER INFORMATION

In August 2000 the Company announced the succession of E.A. Guiles to
the position of group president of Sempra Energy's Regulated Business
Units which was left vacant by the retirement of Warren Mitchell.
Guiles has also been named chairman of SDG&E and of SoCalGas and
continues as president of SoCalGas' Energy Distribution Services.




ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits


      Exhibit 27 - Financial Data Schedules

      27.1  Financial Data Schedule for the six-month period ended
      June 30, 2000.

(b)  Reports on Form 8-K

There were no reports on Form 8-K filed after March 31, 2000.




                                    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/  E.A. Guiles
Date: August 11, 2000               ---------------------------
                                             E.A. Guiles
                                             President