<PAGE>

                     SECURITIES AND EXCHANGE COMMISSION 

                            WASHINGTON, D.C. 20549 

                                  FORM 10-Q 
(Mark One) 
 
[..X..]  Quarterly report pursuant to Section 13 or 15(d) of the 
         Securities Exchange Act of 1934 
                                       September 30, 1996    
For the quarterly period ended.......................................
                                 Or                                  
[.....]  Transition report pursuant to Section 13 or 15(d) of the 
         Securities Exchange Act of 1934 
 
For the transition period from ________________  to _________________

               Name of                                                
Commission     Registrant                             IRS Employer    
File           as specified        State of           Identification  
Number         in its charter      Incorporation      Number          
----------     --------------      --------------     --------------  
1-11439        ENOVA CORPORATION     California       33-0643023       
                                                                       
1-3779         SAN DIEGO GAS &                                        
               ELECTRIC COMPANY      California       95-1184800       

                                                                   
101 ASH STREET, SAN DIEGO, CALIFORNIA                           92101  
----------------------------------------                     ----------
(Address of principal executive offices)                     (Zip Code)
                                                                       

Registrants' telephone number, including area code    (619) 696-2000   
                                                    -------------------
                                  No Change                            
-----------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since 
last report
 
     Indicate by check mark whether the registrant (1) has filed all 
reports required to be filed by Sections 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...... 
 
     Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date. 

Common Stock outstanding September 30, 1996:                                

Enova Corporation                                        116,565,775
                                                         -----------
San Diego Gas & Electric Company      Wholly owned by Enova Corporation


<PAGE>

                             ENOVA CORPORATION

                                    AND

                      SAN DIEGO GAS & ELECTRIC COMPANY



                                  CONTENTS

                                            								Page No.
                                                    --------
PART I.	FINANCIAL INFORMATION

		Statements of Income. . . . . . . . . . . . . . . . 3
		Balance Sheets. . . . . . . . . . . . . . . . . . . 5
		Statements of Cash Flows. . . . . . . . . . . . . . 6
		Notes to Financial Statements . . . . . . . . . . . 7

Item 2.	Management's Discussion and Analysis of
		Financial Condition and Results of Operations . . .13


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings . . . . . . . . . . . . . .20

Item 6.	Exhibits and Reports on Form 8-K. . . . . . .21

Signature   . . . . . . . . . . . . . . . . . . . . .22

                                        2
<PAGE>

<TABLE>
STATEMENTS OF INCOME (unaudited)
In thousands except per share amounts
<CAPTION>
                                               Enova Corporation
                                                and Subsidiaries                      SDG&E
                                           -----------------------------  -------------------------------
For the three months ended September 30          1996            1995             1996           1995
                                           -----------------------------  -------------------------------
<S>                                         <C>               <C>              <C>            <C>
Operating Revenues
Electric                                         $419,809      $396,526         $419,809      $396,526
Gas                                                73,676        68,574           73,676        68,574
Diversified operations                             14,108        13,589             --            --
                                             ------------  ------------       ------------ ------------
   Total operating revenues                       507,593       478,689          493,485       465,100
                                             ------------  ------------       ------------ ------------
Operating Expenses
Electric fuel                                      42,794        31,151           42,794        31,151
Purchased power                                    85,777        91,501           85,777        91,501
Gas purchased for resale                           24,137        19,468           24,283        19,468
Maintenance                                        16,201        18,486           16,201        18,486
Depreciation and decommissioning                   84,607        68,645           79,522        65,485
Property and other taxes                           10,719        11,514           10,719        11,514
General and administrative                         59,024        54,934           54,270        54,611
Other                                              50,786        51,528           38,937        40,715
Income taxes                                       46,262        41,160           59,154        50,956
                                             ------------  ------------       ------------ ------------
   Total operating expenses                       420,307       388,387          411,657       383,887
                                             ------------  ------------       ------------ ------------
Operating Income                                   87,286        90,302           81,828        81,213
                                             ------------  ------------       ------------ ------------
Other Income and (Deductions)
Allowance for equity funds used
   during construction                              1,443         1,434            1,443         1,434
Taxes on nonoperating income                       (2,086)       (2,127)          (2,514)       (1,727)
Other - net                                         5,016          (409)           5,443         3,428
                                             ------------  ------------       ------------ ------------
   Total other income and
        (deductions)                                4,373        (1,102)           4,372         3,135
                                             ------------  ------------       ------------ ------------
Income Before Interest Charges                     91,659        89,200           86,200        84,348
                                             ------------  ------------       ------------ ------------
Interest Charges
Long-term debt                                     22,423        22,476           19,228        20,470
Short-term debt and other                           5,527         5,534            5,527         6,142
Allowance for borrowed funds
   used during construction                          (682)         (630)            (682)         (630)
Preferred dividend requirements of
   SDG&E                                            1,646         1,916             --            --
                                             ------------  ------------       ------------ ------------
   Net interest charges                            28,914        29,296           24,073        25,982
                                             ------------  ------------       ------------ ------------
Income From Continuing Operations                  62,745        59,904           62,127        58,366
Discontinued Operations, Net Of
   Income Taxes                                      --            --               --           3,454
                                             ------------  ------------       ------------ ------------

Net Income                                         62,745        59,904           62,127        61,820
Preferred Dividend Requirements                      --            --              1,646         1,916
                                             ------------  ------------       ------------ ------------
Earnings Applicable to Common Shares              $62,745       $59,904          $60,481       $59,904
                                             ============  ============       ============ ============
Average Common Shares Outstanding                 116,566       116,538
                                             ============  ============
Earnings Per Common Share from
   Continuing Operations                            $0.54         $0.51
                                             ============  ============
Earnings Per Common Share                           $0.54         $0.51
                                             ============  ============
Dividends Declared Per Common Share                 $0.39         $0.39
                                             ============  ============

See notes to consolidated financial statements.
</TABLE>
                                           3
<PAGE>

<TABLE>
STATEMENTS OF INCOME (unaudited)
In thousands except per share amounts
<CAPTION>
                                               Enova Corporation
                                                and Subsidiaries                     SDG&E
                                        -------------------------------   ----------------------------
For the nine months ended September 30        1996            1995            1996            1995
                                        -------------------------------   ----------------------------
<S>                                     <C>                <C>              <C>            <C>
Operating Revenues
Electric                                     $1,164,073      $1,130,530     $1,164,073     $1,130,530
Gas                                             239,575         229,897        239,575        229,897
Diversified operations                           40,809          41,456           --             --
                                           ------------    ------------   ------------   ------------
   Total operating revenues                   1,444,457       1,401,883      1,403,648      1,360,427
                                           ------------    ------------   ------------   ------------
Operating Expenses
Electric fuel                                    92,198          75,480         92,198         75,480
Purchased power                                 233,925         262,702        233,925        262,702
Gas purchased for resale                         93,324          82,610         93,169         82,610
Maintenance                                      47,854          55,194         47,854         55,194
Depreciation and decommissioning                248,536         208,354        234,326        194,857
Property and other taxes                         33,930          34,193         33,930         34,193
General and administrative                      156,956         140,521        148,630        138,988
Other                                           154,187         156,011        119,370        123,353
Income taxes                                    128,744         123,373        164,406        150,816
                                           ------------    ------------   ------------   ------------
   Total operating expenses                   1,189,654       1,138,438      1,167,808      1,118,193
                                           ------------    ------------   ------------   ------------
Operating Income                                254,803         263,445        235,840        242,234
                                           ------------    ------------   ------------   ------------
Other Income and (Deductions)
Allowance for equity funds used
   during construction                            4,159           4,447          4,159          4,447
Taxes on nonoperating income                     (1,001)           (950)        (2,229)        (1,750)
Other - net                                       2,394          (3,354)         2,954          2,093
                                           ------------    ------------   ------------    -----------
   Total other income and
        (deductions)                              5,552             143          4,884          4,790
                                           ------------    ------------   ------------    -----------
Income Before Interest Charges                  260,355         263,588        240,724        247,024
                                           ------------    ------------   ------------    -----------
Interest Charges
Long-term debt                                   66,856          72,122         57,438         62,592
Short-term debt and other                        14,891          14,425         14,891         15,783
Allowance for borrowed funds
   used during construction                      (2,476)         (2,013)        (2,476)        (2,013)
Preferred dividend requirements of
   SDG&E                                          4,937           5,747             --             --
                                           ------------    ------------   ------------   ------------
Net interest charges                             84,208          90,281         69,853         76,362
                                           ------------    ------------   ------------   ------------
Income From Continuing Operations               176,147         173,307        170,871        170,662
Discontinued Operations, Net Of
   Income Taxes                                    --            (6,168)          --            2,224
                                           ------------    ------------   ------------   ------------

Net Income                                      176,147         167,139        170,871        172,886
Preferred Dividend Requirements                    --              --            4,937          5,747
                                           ------------    ------------   ------------   ------------
Earnings Applicable to Common Shares           $176,147        $167,139       $165,934       $167,139
                                           ============    ============   ============   ============
Average Common Shares Outstanding               116,567         116,535
                                           ============    ============
Earnings Per Common Share from
Continuing Operations                             $1.51           $1.48
                                           ============    ============
Earnings Per Common Share                         $1.51           $1.43
                                           ============    ============
Dividends Declared Per Common Share               $1.17           $1.17
                                           ============    ============

See notes to consolidated financial statements.
</TABLE>
                                          4
<PAGE>

<TABLE>
BALANCE SHEETS
In thousands of dollars
<CAPTION>
                                                Enova Corporation
                                                 and Subsidiaries                      SDG&E
                                             -----------------------------   -----------------------------
Balance at                                    September 30,   December 31,    September 30,  December 31,
                                                  1996           1995            1996           1995
                                              (unaudited)                     (unaudited)
                                             -----------------------------   -----------------------------
<S>                                         <C>               <C>             <C>            <C>
ASSETS
Utility plant - at original cost                 $5,646,801     $5,533,554     $5,646,801     $5,533,554
Accumulated depreciation
   and decommissioning                           (2,546,613)    (2,355,213)    (2,546,613)    (2,355,213)
                                                 -----------    -----------    -----------    -----------
   Utility plant-net                              3,100,188      3,178,341      3,100,188      3,178,341
                                                 -----------    -----------    -----------    -----------
Investments and other property                      577,286        532,289        305,418        448,860
                                                 -----------    -----------    -----------    -----------
Current assets
Cash and temporary investments                      192,481         96,429        117,875         20,755
Accounts receivable                                 204,572        178,155        194,558        178,091
Due from affiliates                                    --             --           12,380           --
Notes receivable                                     35,090         34,498           --             --
Inventories                                          63,914         67,959         63,035         67,959
Other                                                31,109         41,012         21,497         29,419
                                                 -----------    -----------    -----------    -----------
   Total current assets                             527,166        418,053        409,345        296,224
                                                 -----------    -----------    -----------    -----------
Deferred taxes recoverable in rates                 276,035        298,748        276,035        298,748
                                                 -----------    -----------    -----------    -----------
Deferred charges and other assets                   279,386        321,193        222,747        250,440
                                                 -----------    -----------    -----------    -----------
   Total                                         $4,760,061     $4,748,624     $4,313,733     $4,472,613
                                                 ===========    ===========    ===========    ===========
CAPITALIZATION AND LIABILITIES
Capitalization
Common equity                                    $1,559,227     $1,520,070     $1,399,373     $1,520,070
Preferred stock of SDG&E
   Not subject to mandatory redemption               78,475         93,475         78,475         93,475
   Subject to mandatory redemption                   25,000         25,000         25,000         25,000
Long-term debt                                    1,443,344      1,350,094      1,289,507      1,217,026
                                                 -----------    -----------    -----------    -----------
   Total capitalization                           3,106,046      2,988,639      2,792,355      2,855,571
                                                 -----------    -----------    -----------    -----------
Current liabilities
Long-term debt redeemable
   within one year                                     --          115,000           --          115,000
Current portion of long-term debt                    69,921         36,316         33,615          8,835
Accounts payable                                    120,723        145,517        120,044        145,273
Dividends payable                                    47,106         47,383         47,106         47,383
Interest and taxes accrued                           27,054         22,537         30,819         23,621
Regulatory balancing accounts
   overcollected-net                                200,822        170,761        200,822        170,761
Other                                               150,335        125,438         91,152         90,119
                                                 -----------    -----------    -----------    -----------
   Total current liabilities                        615,961        662,952        523,558        600,992
                                                 -----------    -----------    -----------    -----------
Customer advances for construction                   34,677         34,698         34,677         34,698
Accumulated deferred income taxes-net               542,835        523,335        546,040        536,324
Accumulated deferred investment
   tax credits                                      100,156        104,226        100,156        104,226
Deferred credits and other liabilities              360,386        434,774        316,947        340,802
Contingencies (Note 2)                                 --             --             --             --
                                                 -----------    -----------    -----------    -----------
   Total                                         $4,760,061     $4,748,624     $4,313,733     $4,472,613
                                                 ===========    ===========    ===========    ===========

See notes to consolidated financial statements.

</TABLE>
                                         5
<PAGE>

<TABLE>
STATEMENTS OF CASH FLOWS (unaudited)
In thousands of dollars
<CAPTION>
                                                            Enova Corporation
                                                            and Subsidiaries               SDG&E
                                                         ----------------------    ----------------------
For the nine months ended September 30                     1996         1995          1996         1995
                                                         ----------------------    ----------------------
<S>                                                      <C>         <C>           <C>         <C>
Cash Flows from Operating Activities
Income from continuing operations                        $ 176,147    $ 173,307    $ 170,871    $ 170,662
Adjustments to reconcile income from continuing
  operations to net cash provided by operating activities
   Depreciation and decommissioning                        248,536      208,354      234,326      194,857
   Amortization of deferred charges and other assets         4,267       10,350        3,536       10,350
   Amortization of deferred credits
     and other liabilities                                 (28,608)     (24,561)      (2,883)        (877)
   Allowance for equity funds used during construction      (4,159)      (4,447)      (4,159)      (4,447)
   Deferred income taxes and investment tax credits        (29,308)      (6,598)     (28,603)      (6,802)
   Other-net                                                23,199       14,653        5,080       (2,835)
Changes in working capital components
   Accounts and notes receivable                           (27,009)      (3,942)     (16,467)       1,323
   Regulatory balancing accounts                            30,061       76,548       30,061       76,548
   Inventories                                               4,045        2,606        4,924        2,606
   Other current assets                                     (8,986)         830      (10,424)         944
   Interest and taxes accrued                               62,054       44,081       64,440       44,299
   Accounts payable and other current liabilities          (13,960)     (23,374)     (24,196)     (35,202)
Cash flows provided (used) by discontinued operations         --           (168)     (11,544)      21,960
                                                         ----------   ----------   ----------   ----------
Net cash provided by operating activities                  436,279      467,639      414,962      473,386
                                                         ----------   ----------   ----------   ----------
Cash Flows from Financing Activities
   Dividends paid                                         (136,388)    (135,180)    (141,594)    (140,927)
   Short-term borrowings-net                                  --        (89,325)        --        (58,325)
   Issuance of long-term debt                              169,452      124,641      167,152      123,734
   Repayment of long-term debt                            (199,816)    (102,074)    (174,743)     (76,117)
   Redemption of common stock                                 (480)         (29)        --            (29)
   Redemption of preferred stock                           (15,155)         (18)     (15,155)         (18)
                                                         ----------   ----------   ----------   ----------
Net cash used by financing activities                     (182,387)    (201,985)    (164,340)    (151,682)
                                                         ----------   ----------   ----------   ----------
Cash Flows from Investing Activities
   Utility construction expenditures                      (144,192)    (146,569)    (144,192)    (146,569)
   Contributions to decommissioning funds                  (16,527)     (16,527)     (16,527)     (16,527)
   Other-net                                                 2,879        7,008       16,932       (1,116)
   Discontinued operations                                    --          5,122       (9,715)     (44,486)
                                                         ----------   ----------   ----------   ----------
Net cash used by investing activities                     (157,840)    (150,966)    (153,502)    (208,698)
                                                         ----------   ----------   ----------   ----------
Net increase                                                96,052      114,688       97,120      113,006
Cash and temporary investments, beginning of period         96,429       25,405       20,755       11,605
                                                         ----------   ----------   ----------   ----------
Cash and temporary investments, end of period            $ 192,481    $ 140,093    $ 117,875    $ 124,611
                                                         ==========   ==========   ==========   ==========
Supplemental Disclosure of Cash Flow Information
   Income tax payments                                   $ 112,528    $  97,960    $ 146,934    $  97,960
                                                         ==========   ==========   ==========   ==========
   Interest payments, net of amounts capitalized         $  74,754    $  82,136    $  64,570    $  73,746
                                                         ==========   ==========   ==========   ==========
Supplemental Schedule of Noncash Investing
  and Financing Activities
   Real estate investments                               $  52,367    $  32,553    $    --      $    --
   Cash paid                                                  --           (250)        --           --
                                                         ----------   ----------   ----------   ----------
   Liabilities assumed                                   $  52,367    $  32,303    $    --      $    --
                                                         ==========   ==========   ==========   ==========

Net assets of affiliates transferred to parent           $    --      $     --     $ 150,069    $    --
                                                         ==========   ==========   ==========   ==========
See notes to consolidated financial statements.
</TABLE>
                                         6
<PAGE>
            ENOVA CORPORATION/SAN DIEGO GAS & ELECTRIC COMPANY
                NOTES TO FINANCIAL STATEMENTS (unaudited)


1.	GENERAL

In January 1996 Enova Corporation became the parent company of SDG&E and 
its subsidiaries. At that time SDG&E's ownership interests in its 
subsidiaries were transferred to Enova Corporation at book value. 
Additional information concerning the effects of the parent company 
structure is provided in Note 3 herein.

On October 14, 1996 Enova Corporation and Pacific Enterprises (parent 
company of Southern California Gas Company) announced that they have 
agreed to combine the two companies. As a result of the combination, 
which was unanimously approved by the Boards of Directors of both 
companies, (i) each outstanding share of common stock of Enova 
Corporation will be converted into one share of common stock of the new 
company, (ii) each outstanding share of common stock of Pacific 
Enterprises will be converted into 1.5038 shares of the new company's 
common stock and (iii) the preferred stock and preference stock of 
Pacific Enterprises, SDG&E and Southern California Gas Company will 
remain outstanding.

Consummation of the combination is conditional upon, among other things, 
the approvals of each company's shareholders, the California Public 
Utilities Commission and various other regulatory bodies. Completion of 
the combination is expected by the end of 1997. In the interim, Enova 
Corporation and Pacific Enterprises are separately proceeding with plans 
to form a joint venture to provide integrated energy and energy-related 
products and services.

This Quarterly Report on Form 10-Q is a combined filing of Enova 
Corporation and SDG&E. The financial statements presented herein 
represent the consolidated statements of Enova Corporation and its 
subsidiaries (including SDG&E), as well as the stand-alone statements of 
SDG&E. Unless otherwise indicated, the "Notes to Financial Statements" 
and "Management's Discussion and Analysis of Financial Condition and 
Results of Operations" herein pertain to Enova Corporation as a 
consolidated entity. 

The Registrants believe all adjustments necessary to present a fair 
statement of the financial position and results of operations for the 
periods covered by this report, consisting of recurring accruals, have 
been made. Certain prior-year amounts have been reclassified for 
comparability. The Registrants' significant accounting policies are 
described in the notes to consolidated financial statements in the 1995 
Annual Report to Shareholders. The same accounting policies are followed 
for interim reporting purposes.

This quarterly report should be read in conjunction with the 
Registrants' 1995 Annual Report on Form 10-K and its Quarterly Reports 
on Form 10-Q for the three months ended March 31, 1996 and the six 
months ended June 30, 1996. The consolidated financial statements and 
Management's Discussion & Analysis of Financial Condition and Results of 
Operations included in the 1995 Annual Report to Shareholders were 

                                    7
<PAGE>

incorporated by reference into the 1995 Annual Report on Form 10-K and 
filed as an exhibit thereto.

2. MATERIAL CONTINGENCIES

ELECTRIC INDUSTRY RESTRUCTURING -- CALIFORNIA

In December 1995, the CPUC issued its policy decision on the 
restructuring of California's electric utility industry to stimulate 
competition and reduce rates. On September 23, 1996 California Governor 
Wilson signed into law a bill restructuring the industry (AB 1890). The 
legislation was unanimously passed by the California Legislature in 
August 1996 and supersedes the CPUC policy decision when in conflict.

The CPUC's decision provides that, beginning in January 1998, customers 
will be able to buy their electricity through a power exchange that will 
obtain power from the lowest-bidding suppliers. The power exchange will 
serve as a wholesale power pool allowing all energy producers to 
participate competitively. An independent system operator (ISO) will 
schedule power transactions and access to the transmission system. 
Consumers may also choose to continue to purchase from their local 
utility under regulated tariffs or to enter into private contracts with 
generators, brokers or others (direct access). The local utility will 
continue to provide distribution services no matter which method the 
consumer chooses (power exchange, direct access or local utility). In 
addition, within certain limits, utilities will be allowed to recover 
their "stranded" costs incurred for certain above-market CPUC-approved 
facilities, contracts and obligations through the establishment of a 
nonbypassable competition transition charge (CTC). Performance-based 
regulation will replace cost-of-service regulation.

The California legislation adopts the CPUC's market structure and allows 
for recovery of stranded investment. However, the bill contains a few 
key differences. Recovery of stranded costs will be accelerated to 
December 31, 2001 (instead of 2005), with certain exceptions. At the 
start of the new competitive market (scheduled for January 1, 1998), 
SDG&E will receive approximately $500 million from the proceeds of rate-
reduction bonds issued by an agency of the State of California. These 
bonds will be repaid over approximately ten years by SDG&E's residential 
and small commercial customers via a separate charge on their electric 
bills and will be non-recourse to SDG&E. Receipt of the $500 million 
will enable SDG&E to effect a decrease in rate base, which will result 
in a ten percent reduction of residential and small commercial 
customers' rates beginning in January 1998. These rates, including the 
bond-repayment charge, will remain at that level until approximately 
March 31, 2002. Until the earlier of that date or transition cost 
recovery is complete, SDG&E's system average rate will be frozen at June 
10, 1996 levels, except for the impact of fuel cost changes. If fuel 
costs change significantly, SDG&E may seek CPUC authority to increase or 
decrease rates to compensate therefor, but rates cannot be increased so 
as to raise SDG&E's system average rate above 9.985 cents per kwh. For 
purposes of transition cost recovery, overcollections recorded in the 
Energy Cost Adjustment Clause and Electric Revenue Adjustment Mechanism 

                                     8
<PAGE>

balancing accounts as of December 31, 1996 will be credited to the 
recovery of transition costs on January 1, 1997. With certain 
exceptions, stranded costs not recovered by December 31, 2001 will not 
be collected from customers. Such costs, if any, would be written off as 
a charge against earnings. AB 1890 clarifies that all existing and 
future consumers must pay CTC except for a segment of self-generators 
and irrigation districts. SDG&E has very few, if any, of these types of 
customers and does not anticipate a material impact from the exemption.

The CPUC is currently attempting to meld its restructuring plan with 
that of the California legislature. California's three major investor-
owned utilities filed cost-recovery plans with the CPUC in October 1996 
in response to AB 1890. Related to this cost-recovery filing are SDG&E's 
October 1996 transition cost application and a rate and product 
unbundling application to be filed in November 1996. The scope of the 
transition costs related to the CTC includes generation-related assets 
and obligations that were being collected in rates on December 20, 1995 
and that may become uneconomic as a result of a competitive generation 
market. In its transition cost application SDG&E identifies the 
following transition costs totaling $2 billion: 

			Nuclear generation (SONGS)	       	$805 million
			Non-nuclear generation			           490
			Qualifying facilities purchases	    383
			Other power purchases			            315
			Other regulatory commitments		       25

These identified transition costs are subject to a CPUC audit, which is 
expected to commence in early November 1996. The amounts include sunk 
costs, as well as on-going costs the CPUC finds reasonable and necessary 
to maintain generation facilities through December 31, 2001. Qualifying 
facilities purchases include approximately 100 existing contracts, some 
of which extend to the year 2025, to the extent the costs are above 
market price. Other power purchases consist of two long-term contracts 
to the extent they exceed market. Both the CPUC policy decision and AB 
1890 provide that above-market costs for existing power purchase and QF 
contracts may be recovered over the term of the contracts or sooner. 
Regulatory commitments are the generation-related portion of sunk costs 
arising from regulatory assets or liabilities related to various 
deferred costs, timing differences, outstanding balancing account 
balances and other items SDG&E has accrued under cost-of-service 
regulation. Nuclear decommissioning costs are nonbypassable until fully 
recovered, but are not included as part of CTC. However, recovery of 
these costs may be accelerated to the extent possible.

In April 1996, based on Pacific Gas & Electric's motion for interim CTC 
recovery and concerns over lost revenues from large customers' choosing 
other suppliers before plans for deregulation are finalized, SDG&E filed 
a motion requesting that it also be afforded interim CTC treatment. The 
CPUC has not acted on that motion as yet, but, based on the 
clarification contained in AB 1890, SDG&E is evaluating the need to 
pursue the issue.

                                  9
<PAGE>

The rate and product unbundling application which SDG&E expects to file 
in November 1996 will be the primary proceeding for establishing the 
specific rates and charges to be in place on January 1, 1998. SDG&E will 
identify and separate individual rate components such as charges for 
energy, transmission, distribution, public-benefit programs, nuclear 
decommissioning, recovery of uneconomic costs and the rate-reduction 
bonds repayment. 

In the new competitive environment performance-based regulation will 
replace cost-of-service regulation for generation in order to encourage 
efficient utility operation and lead to a truly competitive environment 
over the passage of time. Rates for distribution services will remain 
cost-of-service based, utilizing PBR to encourage efficient operation, 
replacing the former General Rate Case-based cost-of-service regulation. 
On an experimental basis SDG&E is participating in a PBR process for gas 
procurement, electric generation and dispatch, and base rates, beginning 
in 1993 and running through 1997. SDG&E has filed plans with the CPUC to 
extend these PBR mechanisms and a proposal for a new generation PBR. The 
new generation PBR would allow SDG&E to recover its costs of production 
and the cost of having its generating units available, as well as 
mitigate any market-power issues.

As restructuring evolves, SDG&E will become more vulnerable to 
competition. However, based on recent CPUC decisions and new 
legislation, recovery of stranded costs is provided for. Based on this, 
SDG&E does not anticipate incurring a material charge against earnings 
for its generating facilities, the related regulatory assets and other 
long-term commitments. 

SDG&E accounts for the economic effects of regulation in accordance with 
Statement of Financial Accounting Standards No. 71, "Accounting for the 
Effects of Certain Types of Regulation," under which a regulated entity 
may record a regulatory asset if it is probable that, through the rate-
making process, the utility will recover that asset from customers. 
Regulatory liabilities represent future reductions in revenues for 
amounts due to customers. 

Once the restructuring transition is final, SDG&E may not continue to 
meet the criteria for applying SFAS 71 to all of its operations in the 
new regulatory framework. In a non-SFAS 71 environment, among other 
things, additions to plant would need to be recovered through market 
prices.

ELECTRIC INDUSTRY RESTRUCTURING -- FEDERAL

In April 1996 the FERC issued a final rule that will require all 
utilities to offer wholesale "open-access" transmission service on a 
nondiscriminatory basis and to share information about available 
transmission capacity. In addition, utilities will be required to 
functionally price their generation and transmission services separately 
from each other. The FERC also stated its belief that utilities should 
be allowed to recover the costs of assets and obligations made 
uneconomic by the changed regulatory environment. In July 1996 SDG&E 

                                    10
<PAGE>

filed open-access transmission tariffs that comply with the FERC's April 
1996 rule described above. These tariffs immediately became effective.

In April 1996 California's three major investor-owned utilities filed 
plans to establish the power exchange and ISO with the FERC, which has 
jurisdiction over the exchange, the ISO and interstate transmission. The 
FERC is currently holding technical conferences and reviewing the 
issues.

Several bills on electric industry restructuring have been filed 
recently at the Federal level. One bill would make states establish 
rules to let all residences, businesses and industries choose their own 
power suppliers by December 15, 2000, or force states to give way to the 
FERC to open the local market to competition after 2000. Another bill 
calls for full customer choice by January 1, 1998. This measure provides 
that if retail choice is not a reality by that date, the FERC will set 
rates until competition takes effect.

NUCLEAR INSURANCE

SDG&E and the co-owners of San Onofre Nuclear Generating Station have 
purchased primary insurance of $200 million, the maximum amount 
available, for public liability claims. An additional $8.7 billion of 
coverage is provided by secondary financial protection required by the 
Nuclear Regulatory Commission and provides for loss sharing among the 
utilities owning nuclear reactors if a costly accident occurs. SDG&E 
could be assessed retrospective premium adjustments of up to $32 million 
in the event of a nuclear incident involving any of the licensed, 
commercial reactors in the United States, if the amount of the loss 
exceeds $200 million. In the event the public liability limit stated 
above is insufficient, federal law provides for Congress to enact 
further revenue-raising measures to pay claims. These measures could 
include an additional assessment on all licensed reactor operators. 

Insurance coverage is provided for up to $2.8 billion of property damage 
and decontamination liability. Coverage is also provided for the cost of 
replacement power, which includes payments for up to 3 years, after a 
waiting period of 21 weeks. Coverage is provided through mutual 
insurance companies owned by utilities with nuclear facilities. If 
losses at any of the nuclear facilities covered by the risk-sharing 
arrangements were to exceed the accumulated funds available from these 
insurance programs, SDG&E could be assessed retrospective premium 
adjustments of up to $5.3 million.

CANADIAN GAS

SDG&E has long-term pipeline capacity commitments related to its 
contracts for Canadian natural gas supplies. These contracts are 
currently in litigation, as described in Part II, Item 1, "Legal 
Proceedings," herein. If the supply of Canadian natural gas to SDG&E is 
not resumed to a level approximating the related committed long-term 
pipeline capacity, SDG&E intends to use the excess capacity in other 
ways.
                                   11
<PAGE>

3.	DISCONTINUED OPERATIONS

As discussed in Note 1 herein, in January 1996 Enova Corporation became 
the parent of SDG&E and its unregulated subsidiaries. At that time 
SDG&E's ownership interests in its subsidiaries were transferred to 
Enova Corporation at book value. SDG&E's financial statements for 
periods prior to 1996 have been restated to reflect the results of that 
transfer and the June 1995 sale of Wahlco Environmental Systems, Inc. as 
discontinued operations in accordance with Accounting Principles Board 
Opinion No. 30 "Reporting the Effects of a Disposal of a Segment of 
Business." SDG&E's discontinued operations are summarized in the table 
below.

<TABLE>
<CAPTION>
                                      Nine Months Ended            Year Ended
                                        September 30,              December 31
                                            1995            1995      1994     1993 
-------------------------------------------------------------------------------------
<S>                                         <C>            <C>      <C>       <C>
In millions of dollars 
Revenues                                     $65            $81      $126      $119 
Loss from operations before 
  income taxes                               (20)           (24)     (105)      (19)
Loss on disposal of Wahlco
  before income taxes                        (10)           (12)        -         - 
Income tax benefits                           32             50        43        22
-------------------------------------------------------------------------------------
</TABLE>

The net assets of the subsidiaries (included in "Investments and Other 
Property" on SDG&E's Balance Sheets) at December 31, 1995 are summarized 
as follows:

---------------------------------------------------------------
In millions of dollars
Current assets                                        $ 122   
Non-current assets                                      286   
Current liabilities                                    ( 62)  
Long-term debt and other liabilities                   (214)  
---------------------------------------------------------------
Net assets                                            $ 132    
---------------------------------------------------------------

                                      12
<PAGE>
ITEM 2.

             ENOVA CORPORATION/SAN DIEGO GAS & ELECTRIC COMPANY
                  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
               FINANCIAL CONDITION AND RESULTS OF OPERATIONS


OVERVIEW:

In January 1996 Enova Corporation became the parent of SDG&E, and 
SDG&E's ownership interests in its subsidiaries were transferred to the 
parent company. Effective January 1, 1996 SDG&E's financial statements 
for periods prior to 1996 have been restated to reflect the net results 
of subsidiaries as discontinued operations. 

On October 14, 1996 Enova Corporation and Pacific Enterprises announced 
that they have entered into an agreement, unanimously approved by the 
Boards of Directors of both companies, to combine the two companies. 
Consummation of the combination is conditional upon, among other things, 
the approvals of each company's shareholders, the California Public 
Utilities Commission and various other regulatory bodies. Completion of 
the combination is expected by the end of 1997.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements 
within the definition of Section 27A of the Securities Act of 1933 and 
Section 21E of the Securities Exchange Act of 1934. When used in 
"Management's Discussion and Analysis of Financial Condition and Results 
of Operations," the words "estimates", "expects", "anticipates", "plans" 
and similar expressions are intended to identify forward-looking 
statements that involve risks and uncertainties.

Although the Registrants believe that their expectations are based on 
reasonable assumptions, they can give no assurance that those 
expectations will be realized. Important factors that could cause actual 
results to differ materially from those in the forward-looking 
statements herein include political developments affecting state and 
federal regulatory agencies, the pace of electric industry deregulation 
in California and in the United States, the existence of or ability to 
create a market for rate-reduction bonds, the ability to effect a 
coordinated and orderly implementation of both state legislation and the 
CPUC's restructuring regulations, the consummation and timing of the 
combination of Enova Corporation and Pacific Enterprises, international 
political developments, and the timing and extent of changes in interest 
rates and prices for natural gas and electricity. 

RESULTS OF OPERATIONS:

The following discussions reflect the results for the nine months and 
three months ended September 30, 1996 compared to the corresponding 
periods in 1995:

EARNINGS

Earnings per common share from continuing operations for the three 
months ended September 30, 1996 were $0.54, up $0.03 per share from the 

                                   13
<PAGE>

same period in 1995. Earnings per share from continuing operations for 
the nine months ended September 30, 1996 were $1.51, up from $1.48 per 
share for the same period in 1995. The change in the three-month 
earnings results primarily from the CPUC's approval of SDG&E's 1995 base 
rates performance-based ratemaking reward and lower operating and 
maintenance expenses. The increase in earnings for the nine months is 
due to various offsetting factors, including changes in incentive 
rewards for PBR and demand-side management programs, a higher authorized 
rate base and Enova Financial's additional investments in affordable-
housing limited partnerships.

OPERATING REVENUES

Electric revenues increased for the nine months and three months ended 
September 30, 1996 from the corresponding periods in 1995 primarily due 
to the accelerated recovery of SONGS Units 2 and 3 as further discussed 
in "Operating Activities" below.

OPERATING EXPENSES

For the nine months and three months ended September 30, 1996, electric 
fuel expense increased from the corresponding periods in 1995 primarily 
due to increased nuclear and natural-gas-fired generation, as well as 
increases in natural gas prices. During those same periods, purchased-
power expense decreased due to the availability of lower-cost nuclear 
generation in 1996 and decreases in purchased-power capacity charges. 
Gas purchased for resale increased primarily due to increases in natural 
gas prices.

REGULATORY MATTERS:

CALIFORNIA PUBLIC UTILITIES COMMISSION'S INDUSTRY RESTRUCTURING

In December 1995 the CPUC issued its policy decision on the 
restructuring of California's electric utility industry to stimulate
competition and reduce rates. In addition, in September 1996 California 
Governor Wilson signed into law a bill restructuring the industry. See 
additional discussion of industry restructuring in Note 2 of the notes 
to financial statements.

ELECTRIC RATES

In October 1996 SDG&E filed its 1997 Energy Cost Adjustment Clause 
application for the forecast period May 1997 through April 1998. 
Reflecting the mandated rate freeze contained in AB 1890, the forecast 
phase requested no rate changes and no revenue requirement impact. The 
reasonableness phase of the filing requests that the CPUC review for 
reasonableness the second- and third-year PBR generation and dispatch  
rewards of $0.8 million and $9.8 million, respectively, and a SONGS 
target capacity factor reward of $3.5 million. A CPUC decision is 
expected in mid 1997 on the forecast phase and in late 1997 on the 
reasonableness phase.
                                   14
<PAGE>

PERFORMANCE-BASED RATEMAKING

SDG&E's advice letter, filed with the CPUC for a $5.5 million Base Rates 
PBR reward for 1995, was approved by resolution in September 1996. 

In July 1996 SDG&E filed with the CPUC an application requesting a 
generation and dispatch PBR reward of $9.8 million. SDG&E has requested 
that the CPUC review the reward for reasonableness, as discussed in 
"Electric Rates" above. The filing was for the nine-month period August 
1995 through April 1996 in order to align the PBR year with the ECAC 
year.

GAS RATES

In September 1996 SDG&E filed a gas-refund plan with the CPUC. If 
approved, the $12 million refund would occur in December 1996 as a one-
time credit of $6.70 on a typical residential customer's bill. The 
refund is primarily due to the overcollected balance in the Core 
Purchased Gas Account as of June 1996 and a refund received from El Paso 
Natural Gas Company. A CPUC decision is expected in November 1996.

COST OF CAPITAL

SDG&E and the CPUC's Office of Ratepayer Advocates (ORA) have reached an 
agreement on SDG&E's 1997 Cost of Capital application, recommending no 
change to SDG&E's present authorized return on common equity of 11.60 
percent and a decrease in SDG&E's overall rate of return from 9.37 
percent to 9.35 percent. The small decrease in rate of return is due to 
a lower expected cost of long-term debt. A final CPUC decision is 
expected in late 1996. The 11.60 percent return establishes SDG&E's 
benchmark to be used in its new cost of capital mechanism effective 
January 1, 1998 (referred to as the Market Indexed Capital Adjustment 
Mechanism). As a result, SDG&E will discontinue participation in the 
annual cost of capital proceeding. The new mechanism automatically 
resets SDG&E's return based on the prior year's interest rates.

DEMAND-SIDE MANAGEMENT

An agreement has been reached with the ORA on all earnings issues for 
1994 and 1995 demand-side management programs. SDG&E has agreed to 
reduce 1994 DSM rewards from $9 million to $6 million, deferring $2 
million of the $3 million reduction to the 1997 proceeding when updated 
information will be available. In addition, SDG&E has agreed to reduce 
1995 DSM rewards from $39 million to $36 million based on current data. 
A final CPUC decision is expected by late 1996. The ORA had previously 
issued its report proposing to reduce the 1994 reward by $3 million 
(without deferral) and to reduce the 1995 reward by $26 million.

                                   15
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES:

Utility operations continue to be a major source of liquidity. In 
addition, financing needs are met primarily through the issuance of 
short-term and long-term debt, and common and preferred stock. These 
capital resources are expected to remain available. SDG&E's cash 
requirements include plant construction and other capital expenditures. 
Nonutility cash requirements include capital expenditures related to new 
products; affordable-housing and other investments; and repayments and 
retirements of long-term debt. In addition to changes described 
elsewhere, major changes in cash flows are described below. 

OPERATING ACTIVITIES

Depreciation and decommissioning expense increased during the nine 
months and three months ended September 30, 1996 compared to the 
corresponding 1995 periods due to the accelerated recovery of SONGS 
Units 2 and 3 approved by the CPUC in April 1996.

FINANCING ACTIVITIES

Enova Corporation and its subsidiaries anticipate that they will require 
only minimal amounts of short-term debt and do not expect to issue stock 
or long-term debt in 1996, other than for SDG&E refinancings. Enova 
Financial, Enova Corporation's affordable-housing subsidiary, repaid $22 
million of long-term debt in the ordinary course of business.

In May 1996 the CPUC approved SDG&E's request to issue up to $300 
million of long-term debt to refinance previously issued long-term debt. 
The decision also grants a two-year extension of a prior CPUC 
authorization to issue $138 million of additional long-term debt and 
$100 million of additional preferred stock. 

In July 1996 SDG&E issued $130 million of Pollution Control Bonds at an 
interest rate of 5.9 percent, due June 1, 2014. In August and September 
1996 the funds obtained from this issue were used to retire the 
following Pollution Control Bonds: Series CC, DD and FF (all variable 
rate), Series 1979A (7.2 percent) and Series 1977A (6.375 percent).

In August 1996 SDG&E issued $39 million of variable-rate Industrial 
Development Bonds, due July 1, 2021. In September 1996 the funds 
obtained from this issue were used to retire Series GG (7.625 percent).

At September 30, 1996 SDG&E had short-term bank lines of $50 million and 
long-term bank lines of $280 million. Commitment fees are paid on the 
unused portion of the lines. There are no requirements for compensating 
balances.

Quarterly cash dividends of $0.39 per share were declared for each 
quarter of 1996 and for each quarter during the year ended December 31, 
1995. The dividend payout ratio for the twelve months ended September 
30, 1996 and years ended December 31, 1995, 1994, 1993, 1992 and 1991 

                                 16
<PAGE>

were 78 percent, 80 percent, 130 percent, 82 percent, 81 percent and 79 
percent, respectively. The high payout ratio for the year ended December 
31, 1994 was due to the writedowns recorded during 1994. For additional 
information regarding the writedowns, refer to the 1995 Annual Report on 
Form 10-K. The payment of future dividends is at the discretion of 
Enova's directors and is dependent upon future business conditions, 
earnings and other factors. Enova's directors have set a goal to reach a 
dividend payout of 60 percent to 70 percent of earnings through earnings 
growth and new investment. Net cash flows provided by operating 
activities currently are sufficient to maintain the payment of dividends 
at the anticipated level. 

SDG&E maintains its capital structure so as to obtain long-term 
financing at the lowest possible rates.  The following table shows the 
percentages of capital represented by the various components. The 
capital structures are net of the construction funds held by a trustee 
in 1992 and 1993.   
                                                         September 30,
                           1991   1992   1993   1994   1995    1996    
         ----------------------------------------------------------- 
         Common equity      47%    47%    47%    48%    49%    49%   
         Preferred stock     5      5      4      4      4      4       
         Debt and leases    48     48     49     48     47     47   
         ----------------------------------------------------------- 
         Total             100%   100%   100%   100%   100%   100% 
         -----------------------------------------------------------


The following table lists key financial ratios for SDG&E.

                                         Twelve                     Year
                                       months ended                 ended
                                       September 30,             December 31,
                                          1996                       1995
                                   -----------------           -------------
Pretax interest coverage                 4.8 X                       4.5 X
Internal cash generation                 124 %                       115 %
Construction expenditures as 
   a percent of capitalization           7.5 %                       7.7 %


DERIVATIVES: Registrants' policy is to use derivative financial 
instruments to reduce exposure to fluctuations in interest rates, 
foreign currency exchange rates and natural gas prices. These financial 
instruments are with major investment firms and, along with cash 
equivalents and accounts receivable, expose Registrants to market and 
credit risks. These risks may at times be concentrated with certain 
counterparties, although counterparty non-performance is not 
anticipated. Registrants do not use derivatives for speculative 
purposes.

At September 30, 1996 SDG&E had one interest-rate swap agreement: a 
floating-to-fixed-rate swap maturing in 2002 associated with $45 million 
of variable-rate bonds. SDG&E's pension fund periodically uses foreign 
currency forward contracts to reduce its exposure from exchange-rate 

                               17
<PAGE>

fluctuations associated with certain investments in foreign equity 
securities. At September 30, 1996 there were no forward contracts 
outstanding.

In October 1996 the Enova Corporation and SDG&E Boards of Directors 
approved the companies' use of energy derivatives in price-risk-
management activities for both hedging and trading purposes within 
certain limitations imposed by company policies. Price-risk-management 
activities will commence, at the earliest, in late 1996, initially in 
the area of hedging price volatility of natural-gas purchases.

INVESTING ACTIVITIES

For the nine months ended September 30, 1996 cash used in SDG&E's 
investing activities included utility construction expenditures and 
payments to its nuclear decommissioning trust. Utility construction 
expenditures, excluding nuclear fuel and the allowance for equity funds 
used during construction, were $221 million in 1995 and are estimated to 
be $220 million in 1996. SDG&E continuously reviews its construction, 
investment and financing programs and revises them in response to 
changes in competition, customer growth, inflation, customer rates, the 
cost of capital, and environmental and regulatory requirements. Among 
other things, the level of SDG&E's expenditures in the next few years 
will depend heavily on the impact of industry restructuring and on the 
timing of expenditures to comply with air emission reduction and other 
environmental requirements. Payments to the nuclear decommissioning 
trust are expected to continue until SONGS is decommissioned, which is 
not expected to occur before 2013. Although Unit 1 was permanently shut 
down in 1992, it is expected to be decommissioned concurrently with 
Units 2 and 3.

Enova Corporation's level of non-utility expenditures in the next few 
years will depend primarily on the activities of its subsidiaries, some 
of which are discussed below, and the proposed combination of Enova 
Corporation and Pacific Enterprises and formation of the energy-
marketing joint venture, which are discussed in Note 1 of the notes to 
financial statements.

The Mexican Energy Regulatory Commission has awarded Enova International 
and its partners, Pacific Enterprises International and Proxima S.A. de 
C.V., the first natural gas privatization license in Mexico, allowing 
the partnership to build and operate a natural gas distribution system 
in Mexicali, Baja, California. The partnership will be granted a 30-year 
license with exclusive rights to supply natural gas to the region for 
the first 12 years. The Mexican company formed by the three partners, 
Distribuidora de Gas Natural de Mexicali, will invest up to $25 million 
during the first five years of the license period, providing service to 
major commercial and industrial users and more than 25,000 residents 
beginning in July 1997.

                                  18
<PAGE>


OTHER SIGNIFICANT BALANCE SHEET CHANGES

Besides the effects of items discussed in the preceding pages, there 
were significant changes to Enova Corporation's and SDG&E's balance 
sheets at September 30, 1996, compared to December 31, 1995. The 
increase in investments and other property for Enova Corporation was due 
to Enova Financial's affordable-housing investments. The decrease in 
investments and other property for SDG&E was due to SDG&E's transfer of 
its subsidiaries to Enova Corporation in January 1996. The increases in 
other current assets and accumulated deferred income taxes were due to 
differences in the timing of income tax payments. The decreases in 
deferred charges and other assets and in deferred credits and other 
liabilities were due primarily to a decrease in the projected pension 
benefit obligation as a result of a lower assumed actuarial discount 
rate.
                                 19
<PAGE>


                    PART II - OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS

There have been no significant subsequent developments in the Public 
Service of New Mexico, North City West and, except for McLandrich 
discussed below, SONGS personal injury litigation proceedings. 
Background information concerning these and the following proceedings is 
contained in Enova Corporation's 1995 Annual Report on Form 10-K and in 
its March 31, 1996 and June 30, 1996 Quarterly Reports on Form 10-Q. 

Canadian Natural Gas

On September 11, 1996 SDG&E filed in the Ninth Circuit Federal Court of 
Appeals an appeal of the May 1996 U.S. District Court judgment granting 
Canadian Hunter's and Summit's motion to dismiss the case.

SDG&E is unable to predict the ultimate outcome of these proceedings.

Electric and Magnetic Fields

On August 22, 1996 the California Supreme Court unanimously affirmed the 
California Court of Appeal decision to dismiss the Covalt case, ruling 
that the California Public Utilities Commission, not the courts, has 
exclusive jurisdiction over the power-line health and safety issues the 
plaintiffs raised in this matter.

SONGS Personal Injury Litigation

In September 1996 the United States Circuit Court of Appeals in the 
McLandrich case denied SDG&E's petition for review of the Federal 
District Court's pretrial ruling that plaintiffs' suit against SDG&E is 
not barred by the workers' compensation exclusivity rule. SDG&E may not 
further appeal this ruling until after a final disposition of the case 
in the trial court. At issue is whether SDG&E was an employer of the 
former SONGS worker. If so, workers' compensation would be the exclusive 
remedy for McLandrich's alleged work-related injuries and the lawsuit 
against SDG&E would have to be dismissed. Southern California Edison, 
the majority owner and operator of SONGS, was dismissed from the case 
pursuant to the workers' compensation exclusivity rule. Edison's 
dismissal is being appealed. The case will be returned to the Federal 
District Court pending disposition of the appeal of Edison's dismissal 
in late 1997 or early 1998.

SDG&E is unable to predict the ultimate outcome of this proceeding.

                                   20
<PAGE>

ITEM 6.	EXHIBITS AND REPORTS ON FORM 8-K

(a)	Exhibits

   	Exhibit 10 - Material Contracts (Compensation)

   	10.1	Employment agreement between Enova Corporation and Stephen 	
	       	L. Baum, dated September 18, 1996.

   	10.2	Employment agreement between San Diego Gas & Electric 	
		       Company and Donald E. Felsinger, dated September 18, 1996.

   	10.3	Amended 1986 Long-Term Incentive Plan, amended and restated 
		       effective April 25, 1995 and as amended through July 22, 	
		       1996.

   	10.4	Supplemental Executive Retirement Plan restated as of August 
		       26, 1996.

   	Exhibit 12 - Computation of ratios

   	12.1 Computation of Ratio of Earnings to Combined Fixed Charges
	       	and Preferred Stock Dividends as required under SDG&E's
	       	August 1993 registration of 5,000,000 shares of Preference
		       Stock (Cumulative).

   	Exhibit 27 - Financial Data Schedules

    27.1	Financial Data Schedule for the nine months ended September 
         30, 1996 for Enova Corporation.

    27.2	Financial Data Schedule for the nine months ended September 
         30,1996 for SDG&E.

(b)	Reports on Form 8-K

A Current Report on Form 8-K was filed on September 24, 1996 
announcing a bill on restructuring the electric utility industry 
signed into law by California Governor Wilson.

A Current Report on Form 8-K was filed on October 15, 1996 
announcing an agreement entered into by Enova Corporation and 
Pacific Enterprises to combine the two companies.

                                    21
<PAGE>

                               SIGNATURE

Pursuant to the requirement of the Securities Exchange Act of 1934, the 
registrant has duly caused this quarterly report to be signed on its 
behalf by the undersigned thereunto duly authorized.

                                 						ENOVA CORPORATION

                                 						SAN DIEGO GAS & ELECTRIC COMPANY
				                                             					(Registrants)



Date: November 5, 1996            	By:         F.H. Ault            
                                     ---------------------------------
	                                 						      (Signature)

                            						             F. H. AULT
                                       Vice President and Controller


                                  22