Third-quarter earnings come in mixed at Southland's major utility companies.

Southern California Edison's and Southern California Gas Co.'s parent companies last week reported mixed third-quarter earnings due to return-on-equity decreases recommended by the state Public Utilities Commission for 1994.

The dips are not likely to be a long-term trend, however. Both utilities,

An administrative law judge who makes non-binding recommendations to the PUC on such requests suggested smaller hikes than the utilities have sought: 0.7 percent for SCE and 0.6 percent for Southern California Gas. Both had authorized returns on equity of 11 percent for 1994, compared to 11.8 percent for SCE and 11.9 percent for Southern California Gas for 1993. The commission is scheduled to make a final vote on the matter Nov. 21.

"Historically, the commission has never granted less than what the law judge has recommended and, in some cases, they have granted more," said Tom Sanger, corporate secretary for Pacific Enterprises, Southern California Gas's parent company. Both are based in Los Angeles.

Topping the cap

So far this year, both utilities have exceeded the 11 percent cap; SCE's is at 12.3 percent and Southern California Gas' return on equity for the year has been 11.6 percent.

There are no penalties for exceeding the PUC cap, but it is often taken into consideration when the following year's guidelines are formulated, said Eric S. Helm, SCECorp's director of investor relations. Both SCE and its parent are based in Rosemead.

"We can and often do to fail to earn our authorized return and, if we fall short, we don't get paid back (the difference)," Helm said. "Typically, the commission is good enough in its job, that the years we do exceed our authorization are the exception rather than the rule."

Third-quarter revenue for SCE was up 12 percent at $2.53 billion, compared to $2.26 billion a year before. Net income was $227 million, or 51 cents a share, down 3 percent from the year-earlier $233 million, or 52 cents a share.

Net income rises

The utility is parent SCECorp's cash cow. SCECorp, which includes subsidiaries Mission Energy, Mission Land and Mission First Financial, posted net income of $273 million on revenue of $2.67 billion for the quarter, compared to net income of $211 million on revenue of $2.42 billion a year ago.

Southern California Gas posted net income of $43 million for the third quarter, down 10 percent from $48 million a year ago. Revenue was $568 million, down 9 percent from $625 million.

Like Edison and SCECorp, Southern California Gas comprises the bulk of Pacific Enterprises' profitability. Net income for Pacific Enterprises was $42 million for the quarter, or 47 cents a share, on revenue of $591 million. That compares to net income of $54 million, or 59 cents a share -- including a one-time $8 million consolidated tax benefit -- on revenue of $649 million a year ago.