Overview Key strengths Key risks Large, lower-risk, rate-regulated gas utility operations. Limited geographic and regulatory diversity renders the company largely dependent on the CPUC to sustain its credit quality. Generally predictable regulatory construct that includes multi-year rate case filings with subsequent attrition rate increases and formula rates. Negative forecast discretionary cash flow over the outlook period indicates a need for external funding. A large base of more than six million customers, mostly comprising residential and commercial customers, which generally provide stable cash flows. The negative outlook reflects our negative outlook on the company's parent, Sempra Energy. Overall, the agreement signals the possibility for SoCalGas to materially reduce litigation risk on legacy issues related to the Aliso Canyon leak incident, which
