A judge backed a PUC deal with the gas company.

An administrative law judge for the state Public Utilities Commission recommended that the panel approve a recent agreement under which Southern California Gas would drop a request for a $126-million rate increase for 1988. Judge Albert C. Porter said the agreement between the gas company and the PUC’s public staff division would save customers at least $18 million next year. In exchange for the gas utility dropping the rate request, the public staff division, which purports to speak for customers, agreed to an abbreviated review of the utility’s operations and financial rates of return for 1988 and 1989.