SDG&E; Denies Illegal Turnover of Data

San Diego Gas & Electric, although acknowledging that a great deal of information has been given to Southern California Edison, on Thursday maintained that Edison executives have not enjoyed illegal or unethical access to sensitive information while the two companies prepare for their proposed merger.

SDG&E; has not engaged in “systematic exchange of operating records or information on a day-to-day basis,” according to a joint filing that the two utilities submitted Thursday to the state Public Utilities Commission.

The filing had been requested by Michael Shames, executive director of Utility Consumers Action Network, a San Diego-based consumer group. Shames, who was not available for comment Thursday night, previously claimed that SDG&E; was violating state regulations that prohibit the transfer of proprietary information.

Sensitive Information

The 32-page filing declares that SDG&E; and its accounting firm have not turned over any of the sensitive competitive information generated by SDG&E;’s previously abandoned merger with Tucson Electric Power. The filing also says that SDG&E; has not transferred information linked to past disputes between SDG&E; and Edison, which in recent years have competed for customers in southern Orange County.

SDG&E; employees also have been advised to “use their judgment and experience to identify information that might advantage Edison competitively” should the merger not occur, according to an accompanying statement submitted by SDG&E; Executive Vice President Jack Thomas.

The PUC filing maintained that SDG&E; has “not materially altered either its short-term or long-term planning . . . as to jeopardize its public utility responsibilities to reliably serve customers.”

SDG&E; has turned over “certain commercially sensitive information” that could give Edison a competitive edge should the merger not occur, according to the filing. However, the utilities maintained that the exchange was required “in pursuit of regulatory approvals.” They also maintained that the sensitive information would be destroyed should the merger not be completed.

SDG&E; did acknowledge that Edison executives have access to “information that is not public.”

For example, SDG&E; has turned over financial projections involving its rate base, earnings and taxes. It also has made available copies of its labor contracts, materials and supply purchases, and leases.

SDG&E; has told Edison how many employees work in its various departments, described personnel and severance plans, and made available copies of its “resource and construction plans.”

The transfer of information was necessary because, “without such information . . . there is no way to do any intelligent planning for the merged company,” according to the filing.

SDG&E; acknowledged that it might delay “certain capital expenditures” because of the proposed merger. For example, SDG&E; might not move quickly on new facilities to serve its growing customer base in Orange County. Similarly, it has slowed planning on a new computer system in San Diego and on adding capacity at one of its electricity-generating plants.