...Stable Financial Performance: Mountaineer Gas Company (MGC) reported relatively stable financial results in 2014, with the margin benefit of colder-than-average weather conditions in the first quarter of 2014 partly offset by increased O&M and taxes. Those factors resulted in EBITDAR that was essentially flat relative to 2013. Overall, MGC's financial results were in line with Fitch Ratings' expectations. Elevated Capex: MGC projects annual capex spending to range between $19 million and $21 million from 2015 through 2019, higher than historical norms. MGC, similar to the rest of the natural gas distribution industry, is incurring higher spending for pipe integrity and safety inspections as well as replacement of aged bare steel pipe. Currently, MGC does not have riders that allow for timely recovery of such investments, and those must be addressed through general rate cases (GRCs) instead. Pending GRC: Fitch expects MGC to receive a balanced decision in its pending GRC that is relatively...
