This report does not constitute a rating action. 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 California Public Utilities Commission (CPUC) to sustain its credit quality. Generally predictable regulatory construct that includes multiyear 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 6.2 million customers, mostly comprising residential and commercial customers, which generally provide stable cash flows. Energy transition risk. In December 2024, the CPUC approved a final decision in SoCalGas? 2024 general rate case (2024 GRC). The GRC decision authorizes a
