SDG&E's corporate rating is derived from parent Sempra Energy's consolidated credit profile, though it benefits from sufficient regulatory insulation to achieve modest rating separation. The strong business and financial profiles of SoCal Gas and SDG&E An improved regulatory environment in California, exemplified by the California Public Utilities Commission's (CPUC) recent administrative extension of Assembly Bill 57's power cost trigger mechanism for 10 years A fully contracted nonregulated generation business, with particularly strong cash flows associated with the California Department of Water Resources (CDWR) contracts through 2011 A short duration book at Sempra Commodities (SC), with more than 90% to 95% of assets converting to cash within two years Well-structured liquefied natural gas (LNG) contracts without significant wholesale gas market exposure
