SoCal Gas' corporate rating is derived from parent Sempra Energy's consolidated credit profile, although a stronger stand-alone credit profile and regulatory insulation do support rating separation from the parent. The strong business and financial profiles of SoCal Gas and SDG&E; Fairly supportive regulatory environment in California; Management's philosophy toward nonregulated businesses, which emphasizes contractual cash flows and eschews commodity exposure; A fully contracted generation business; Expected improvement resulting from the proposed joint venture with RBS to absorb Sempra Commodities; and Well-structured liquefied natural gas (LNG) contracts without material wholesale gas market exposure. Aggressive growth plans as a natural gas infrastructure company; Uncertainty in California with regard to retail choice, resource adequacy, and renewables, including greenhouse gas restrictions; and Infrastructure investments
