...Aliso Canyon Aftermath Lingers: Southern California Gas Co.'s (SoCalGas) request to resume injection at the Aliso Canyon storage facility remains pending as it awaits approvals from the California Department of Conservation's Division of Oil, Gas, and Geothermal Resources (DOGGR) and the California Public Utility Commission (CPUC). Other uncertainties include the potential customer refund, the pending results of the root cause analysis, and costs to defend civil and criminal law suits and fines that may not recovered from insurance proceeds. Cost of Capital Extension Beneficial: Fitch Ratings favorably views SoCalGas' recent agreement with two major intervenors on its cost of capital with a two-year extension. The agreement allows a return on equity of 10.05% (reduced from 10.1%) for 2018 and 2019, well above the industry average of mid-9%. Along with the approval of the general rate case (GRC) in June 2016, this settlement greatly enhances SoCalGas' earnings certainty. General Rate Case:...
