...Solid Financial Profile: San Diego Gas & Electric Company's (SDG&E) credit metrics are solid, with FFO fixed-charge coverage and FFO adjusted leverage for the LTM ended June 30, 2014 of 7.1x and 3.2x, respectively. Fitch Ratings projects FFO fixed-charge coverage to average 6.4x from 2014 to 2018 and FFO adjusted leverage to average 3.7x, incorporating the significant capital investment program, the expected increase in upstream dividend and the estimated impact from San Onofre Nuclear Generating Station (SONGS). SONGS Settlement: Fitch believes that the proposed settlement agreement and the subsequent modification associated with retirement of SONGS are constructive from a credit perspective. The settlement, if approved, would resolve all outstanding issues relating to the California Public Utilities Commission's (CPUC) SONGS order initiating investigation (OII) and eliminate regulatory uncertainty. The disallowance of certain cost recovery and customer refunds are manageable for SDG&E...
