SoCal Takes Heat Over Proposed Service Fees

As was noted in the article “SoCal Gas Ponders Service Call Fee” (Aug. 31), the company is considering a number of changes to deal with increased competition and to enhance service to our customers. However, it is the changing nature of the gas industry and our need to operate competitively, not the current earnings of our parent company, Pacific Enterprises, that are driving these changes.

Beginning with deregulation in the early 1980s, significant changes have affected the marketplace. Regulatory policies enabling competitors to use the utility system, stringent environmental rules and aggressive promotions by competitors require that the company reevaluate how it can most efficiently provide service.

Most of the proposed changes would result in more efficient internal operating procedures and would not be readily apparent to customers. In evaluating any service changes, we will continue to be sensitive to the needs of low-income customers.

We are considering certain proposals that would involve fees for providing additional service options, such as allowing customers to reserve specific service call times. Other proposals call for some increase of existing fees for routine services, such as appliance repair. These changes require approval by the California Public Utilities Commission.

If these proposals were implemented--and they are only proposals at this point--the company would not charge for essential service calls such as gas leaks (or other safety-related matters) or for appliance service calls to low-income customers who qualify for rate discounts.

One result of these changes, however, would be a phased reduction in our work force over the next three years, primarily by attrition.

We had hoped that the unions would be receptive to pursuing this concept with us. Unfortunately, that has not been the case. However, we intend to keep the door open to creative, mutual solutions.

RICHARD D. FARMAN

Los Angeles

The writer is chairman of the board and chief executive of Southern California Gas Co.