The 2015 Aliso Canyon gas leak has cost Southern California Gas Co. and its parent company $1.07 billion — and those costs may rise “significantly,” according to the company’s first-quarter earnings report.
Sempra Energy said this week that the estimated cost of the leak, which was discovered in October 2015, inched up 1.5 percent from the company’s $1.05 billion estimate at the end of last quarter.
The gas company said the costs may rise significantly due to pending lawsuits, penalties and other costs.
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So far, the gas company has recovered $1.043 billion from insurance. Nearly half of the amount was for temporary relocation of scores of residents who were forced to flee the area during the four-month blowout.
That cost may rise as 394 lawsuits, including 48,500 plaintiffs, are still pending in Los Angeles Superior Court against the utility.
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The gas leak that started in October of 2015 and was not stopped until February of the following year was massive enough to release 100,000 metric tons of methane into the air above several San Fernando Valley communities. Thousands of people fled their homes before the leak was capped four months later.
During that period, many neighbors complained of health problems, including bloody noses and headaches.
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