Gas Hookup Fee Will Jump Fivefold to $25

Beginning in the new year, residential customers will have to pay $25--up from $5--to be connected for service by Southern California Gas Co., the state Public Utilities Commission announced.

The fivefold increase came amid PUC approval Friday of gas company rates that go into effect Jan. 1. Overall, the new rates reflect a decrease of $11 million in allowed revenue in 1994 from residential customers--lowering the average monthly bill 78 cents, to $32.49.

The utility had asked for a hookup increase to $35, arguing that the current charge doesn’t reflect the cost of turning on the gas.

“This will allow the individuals using the service to pay the true price,” said Gas Co. spokesman Ron Owens, “instead of having our entire customer base subsidize those who use the hookup service.”

Also Friday, the PUC approved a freeze on electricity rates for Pacific Gas & Electric Co., the Northern California utility, and called for an audit of $500 million that PG&E; spent from 1990 to 1992 on energy conservation and efficiency programs.

The commission said it became suspicious after learning that PG&E; spent more than $700,000 “for corporate image enhancement” on tote bags and tickets for PG&E; managers and “selected customers” to Giants baseball and Warriors basketball games.

Finally, the commission launched a review of its cellular telephone regulations in expectation of new mobile phone companies entering the market with existing cellular companies. In the interim, the PUC wants to use a system that sets different rules for cellular and the new providers.

The PUC said that in the end, it hopes to use only market competition to regulate the industry.