SoCal Gas' 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; Fairly supportive regulatory environment in California; Management's philosophy towards non-regulated businesses, which emphasizes contractual cash flows and eschews commodity exposure; A fully contracted generation business at Sempra Generation, with no growth plans; A short duration book at Sempra Commodities with geographic and product diversity; and Well-structured liquefied natural gas (LNG) contracts at Sempra LNG without significant wholesale gas market exposure Aggressive growth plans as a natural gas infrastructure company and expansion of energy trading into other commodities and countries; Uncertainty in California with regard
