SDG&E; Net Hits a Record $213 Million

Bolstered by the sale of its holdings in Energy Factors, San Diego Gas & Electric on Monday reported a 5.2% increase in net income, to a record $213.2 million for the year ended Dec. 31. Despite a record number of new customer hookups in 1986, revenue slid 6.1% to $1.6 billion because of lower electric rates.

SDG&E; in January sold its remaining interest in Energy Factors for $24.6 million, ending its association with the energy co-generation business that it created in 1970 and spun off in 1983.

The utility reported a $14-million profit on the sale.

Fourth-quarter profits were reduced because of a state Public Utilities Commission decision that could force shareholders to pay $12 million in construction costs at San Onofre Nuclear Generating Station. The utility has appealed the PUC ruling.

SDG&E;’s independent auditor said it will issue a qualified opinion on SDG&E;’s 1986 financial statements because of the disallowance. The auditor earlier issued a qualified opinion after the PUC indicated that SDG&E; might be penalized because of high energy costs for electricity imported over the company’s Southwest Powerlink line.

In the fourth quarter, SDG&E; reported that net income fell 13.5% to $51 million and that revenue fell 10.4% to $407 million.

As part of a planned cost-cutting, operating expenses for the year fell 7% to $1.3 billion.

SDG&E; set a record for new hookups in 1986, adding 46,884 customers. The old record was set in 1985, when 40,313 customers were added. SDG&E; now has 940,752 customers and is growing at a 5.25% annual rate, according to a company spokesman.