Summary
Sempra Energy (SRE), through its subsidiary San Diego Gas & Electric (SDG&E), announced a significant development regarding the San Onofre Nuclear Generating Station (SONGS). On November 20, 2014, the California Public Utilities Commission (CPUC) issued a final decision approving the Amended and Restated Settlement Agreement concerning the SONGS Outage and the Steam Generator Replacement Project. This agreement represents a complete resolution of related CPUC proceedings. While the agreement resolves past issues, SDG&E anticipates submitting an Advice Letter to adjust rates effective January 1, 2015. Importantly, the company states that it does not expect this settlement to have any material adverse impact on its business, cash flows, results of operations, financial condition, or future prospects. Investors should note that further details are available in Sempra Energy's and SDG&E's previously filed financial reports.
Key Highlights
- 1CPUC approved the Amended and Restated Settlement Agreement for the San Onofre Nuclear Generating Station (SONGS).
- 2The settlement provides a complete and final resolution to the SONGS Order Instituting Investigation (OII) and related CPUC proceedings.
- 3SDG&E expects to file an Advice Letter to adjust rates effective January 1, 2015, based on the CPUC's decision.
- 4Sempra Energy (and SDG&E) does not anticipate any material adverse impact on its business, cash flows, operations, financial condition, or prospects from this settlement.
- 5The filing references detailed information regarding the settlement in prior Form 10-Q (ended Sept 30, 2014) and Form 10-K (ended Dec 31, 2013) filings.