Countywide

San Diego Gas & Electric officials Wednesday said the utility would reduce its 1986 rate hike request by $5.6 million if its plan to form a holding company is approved by state regulators. The utility’s $105.9-million request would be trimmed to $100.3 million if the state Public Utilities Commission OKs SDG&E;’s proposal, which would allow the company to diversify into non-regulated ventures.

The rate reduction would occur because of various accounting changes, according to Lee Haney, SDG&E; vice president and treasurer. Specifically, a holding company structure would mean that SDG&E;’s non-utility subsidiaries and their assets would be recorded separately from the regulated subsidiary, which would reduce the utility’s cost of capital, said Haney.