SDG&E; Posts $50.9-Million Profit for Quarter

Fueled by increased operation of its nuclear power plants and from importation of energy through its new Southwest Powerlink, San Diego Gas & Electric on Tuesday reported increased earnings and revenue for the first quarter ended March 31.

Net income rose 4.7% to $50.9 million, while revenue increased 15% to $447.3 million. Earnings per share dropped 1 cent to 82 cents because of a 4.7% increase in the number of common shares outstanding, according to Tom Page, SDG&E; chairman, president and chief executive.

Surrounded by shareholders whose stock trades for about $8 per share more than it did a year ago--it closed Tuesday at $26.25, up 25 cents--Page told more than 300 investors at SDG&E;’s annual meeting Tuesday that the utility does not plan to issue any more common stock for some time.

Page also boasted that SDG&E; was in the midst of several company records: Total assets as of March 31 reached $3 billion, book value of the utility’s common stock will top $20 a share by month’s end and all three nuclear units at San Onofre have been simultaneously operating since last week.

Continued profitability, Page said, was the cause of SDG&E;’s decision Monday to reduce its 1986 rate-increase request to $106 million from $123 million. The original request was for $163 million.