Summary
This 8-K filing from Sempra Energy (SRE) reports a significant operational update for its utility subsidiaries, San Diego Gas & Electric Company (SDG&E) and Southern California Gas Company (SoCalGas). The California Public Utilities Commission (CPUC) has granted a one-year extension for these companies to file their cost of capital applications, moving the deadline from April 20, 2015, to April 20, 2016. This extension, granted in response to a joint request by the "Joint Investor-Owned Utilities" (including SDG&E and SoCalGas), also extends the current Cost of Capital Adjustment Mechanism (CCM) until the new April 2016 filing date. For investors, this means that the current cost of capital framework will remain in place for an additional year, providing a degree of regulatory stability for the determination of these crucial financial components. The filing also includes standard forward-looking statement disclaimers, outlining various risks and uncertainties that could affect Sempra's future operations and financial performance.
Key Highlights
- 1SDG&E and SoCalGas granted a one-year extension by CPUC for their cost of capital applications.
- 2New deadline for cost of capital applications is April 20, 2016, extended from April 20, 2015.
- 3The current Cost of Capital Adjustment Mechanism (CCM) will remain in effect until April 2016.
- 4The extension was a result of a joint request filed by major investor-owned utilities in California.
- 5This provides a period of regulatory stability regarding the cost of capital for the two subsidiaries.