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Energy company: California gas leak to cost $665M

Energy company: California gas leak to cost $665M
Posted at 12:47 PM, May 04, 2016
and last updated 2016-05-04 12:57:40-04

LOS ANGELES (AP) — An energy company says expected costs from a massive gas leak near Los Angeles have ballooned to $665 million.

Sempra Energy released the estimate in an earnings report Wednesday.

Southern California Gas Co., which is owned by Sempra, had estimated costs of $250 million to $300 million. That figure didn't include potential costs from dozens of lawsuits or regulatory fines.

The massive gas leak that spewed uncontrollably for nearly four months temporarily uprooted 8,000 households.

It was capped in late February, but thousands of families remain temporarily relocated in housing paid for by SoCalGas.

The company has said it expects insurance to cover more than $1 billion and it has accounted for $660 million in insurance receivables.