Lower-risk natural gas distribution operations; Credit-enhancing cost-recovery mechanisms; Single-state utility, which limits regulatory and operating diversity; and Mostly residential and commercial customers help mitigate impact of economic cycles. Core financial measures support the financial risk profile; Steady cash flow from the gas distribution business; and Discretionary cash flow is negative after capital expenditures and dividends. The stable outlook on Wisconsin Gas LLC (WG) is based on S&P Global Ratings' expectation that management will continue to focus on core utility operations and reach constructive regulatory outcomes to avoid any meaningful increase in business risk. The outlook also reflects our base-case scenario of adjusted funds from operations (FFO) to debt averaging around 21%, which is in line with the current financial risk
