Costs related to Aliso Canyon leak reach an estimated $665 million
Southern California Gas Co. announced Wednesday that costs related to the leak at the Aliso Canyon natural gas storage facility have reached an estimated $665 million.
The utility noted in an earnings report that it has already booked $660 million in costs from insurance.
The utility told the Securities and Exchange Commission that it had “at least four types of insurance policies that it believes will cover many of the current and expected claims, losses and litigation ... associated with the natural gas leak at Aliso Canyon.â€
Those policies, the utility said, have a combined limit available “in excess of $1 billion.â€
The leak forced thousands of people from their homes in the Porter Ranch community near the Aliso Canyon facility. Many have filed lawsuits against the utility in connection with the leak.
Southern California Gas plugged the leak Feb. 18 after the storage facility seeped gas for four months.
Legal experts and lawyers for those living near the natural gas storage facility argue that $1 billion in insurance might not come close to what the utility will need.
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