SAN DIEGO, Feb. 25 /PRNewswire/ -- With the prospect of the nation facing future natural gas shortages, San Diego Gas & Electric (SDG&E) late yesterday asked the California Public Utilities Commission (CPUC) to adopt policies and rules to provide California consumers with increased access to new and diverse sources of natural gas. Among other things, SDG&E's filing is intended to maximize downward pressure on prices, maximize reliability, and meet expected future gas demand at a reasonable cost for consumers.

"For more than 100 years, SDG&E has provided safe, reliable natural gas to its customers," said Edwin A. Guiles, chairman and chief executive officer of SDG&E. "Now, as California faces uncertain and challenging times as it emerges from the grip of the energy crisis of 2000 to 2001, we are asking the CPUC to adopt new policies that will allow us to provide the resources that will help California's economy prosper now and in the future."

"California's long-term economic livelihood will require a growing supply of natural gas," Guiles said. "Southern California leads the nation in the percentage of homes, businesses and electric generation fueled by natural gas and we need new supply sources to meet these needs over the long term."

California consumers would benefit from access to new sources of natural gas supply into California, such as natural gas from the Rocky Mountains and LNG (liquefied natural gas), Guiles said, and this supply diversification should be encouraged. "A greater diversity of supply will lead to competition and help drive down natural gas prices for consumers. In addition, it is an essential element to ensuring future supply reliability."

The CPUC this week began accepting proposals and recommendations on how the natural gas market in California should be structured and what new rules and policies should be in place to ensure that California will receive reliable, long-term supplies of natural gas.