...Gas Leak Impairs Metrics: Southern California Gas Co. (SoCalGas) raised its cost estimate associated with the Aliso Canyon gas leak to $665 million in May 2016. The utility incurred $330 million of related costs in 2015, which partially raised 2015 FFO-adjusted leverage to 3.9x. Fitch Ratings believes the deterioration in credit metrics is temporary and should not impact SoCalGas' long-term credit quality, due to the company's insurance programs and headroom in its credit metrics. Aftermath Lingers: Fitch's concerns associated with the gas leak include the continuation of the relocation program under court order, the potential political backlash if summer blackout occurs as a result of a shortage of gas supply for power generation and possible refund of revenue from Aliso Canyon. The California Public Utilities Commission (CPUC) authorized $11 million for SoCalGas to educate and advertise to ratepayers on energy conservation in the Los Angeles Basin in 2016. CPUC also redirected approximately...
