New Report Shows Natural Gas Infrastructure Helps Keep Energy Costs More Affordable for California Households
LOS ANGELES, April 23, 2026 /PRNewswire/ -- As Californians continue to grapple with rising household costs, a new report from Southern California Gas Company (SoCalGas) finds that when adjusted for inflation, SoCalGas's average residential natural gas rates declined by approximately 25% between 2000 and 20231 – highlighting how natural gas infrastructure has helped keep energy bills more affordable over time. Through the availability of supply, underground storage, and system flexibility, the natural gas system has acted as a stabilizing force that helps limit price volatility and ease pressure on household energy budgets.
The Affordable Way for California examines affordability trends in household energy costs and system performance across the state. Drawing on publicly available national and state data, the report shows how the natural gas system supports the electric grid and broader energy system reliability, while also helping California households moderate the energy cost pressures they face.
"When energy systems operate predictably and flexibly, it helps California households avoid sudden cost increases and better manage their monthly bills," said Rodger Schwecke, president (interim) and chief operating officer, SoCalGas. "This report reinforces the important role natural gas infrastructure plays in keeping energy bills more affordable for Californians over time."
Key findings from The Affordable Way for California include:
- Adjusted for inflation, SoCalGas's average residential natural gas rates declined by approximately 25% between 2000 and 2023. This long-term trend highlights how a balanced energy mix that includes natural gas helps keep household energy costs in check, even as California navigates long-term climate policies and persistent wildfire risks.
- System flexibility and underground storage help limit household exposure to price volatility. During Winter Storm Fern in January 2026, storage became the primary source of natural gas supply for SoCalGas and SDG&E customers as gas deliveries into the state declined, supplying nearly 60% of system demand at the storm's peak and helping avoid an estimated $120 million in potential energy cost impacts for customers.2
- Natural gas infrastructure supports reliability and helps enable renewable integration as the energy system evolves. As renewable power generation grows, flexible natural gas resources continue to meet demand when solar and wind output is limited – supporting reliability and cost stability for households during peak periods and extreme conditions.
The full Affordable Way for California report can be viewed here.
About SoCalGas
SoCalGas is the largest gas distribution utility in the United States, serving more than 21 million consumers across approximately 24,000 square miles of Central and Southern California. Our mission is: Safe, Reliable, and Affordable energy delivery today. Ready for tomorrow. SoCalGas is a recognized leader in the energy industry and has been named Corporate Member of the Year by the Los Angeles Chamber of Commerce for its volunteer leadership in the communities it serves. SoCalGas is a subsidiary of Sempra (NYSE:SRE), a leading North American energy infrastructure company. For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas.
Message funded by shareholders.
1 Natural gas rates provided by CEC staff for SoCalGas residential rates (2023$) and electric rates based on 2024 IEPR Demand Forecast statewide rates (2023$). CEC, Baseline Demand Forecast Files: "CEDU 2024 Baseline Forecast – Total State," accessed October 1, 2025, https://efiling.energy.ca.gov/GetDocument.aspx?tn=260931. (All forecast files available at CEC, "California Energy Demand, 2024-2040," n.d., https://www.energy.ca.gov/data-reports/reports/ integrated-energy-policy-report-iepr/2024-integrated-energy-policy-report-0). Periodic wholesale spikes have occurred during this period. The most notable spike occurred during the winter of 2022-23, when natural gas prices surged due to unusually cold weather, supply shortages, and constraints on pipeline and storage capacity. On wholesale natural gas prices this century, see EIA, "Natural Gas Citygate Price in California (Dollars Per Thousand Cubic Feet), Monthly," released September 30, 2025, https://www.eia.gov/dnav/ng/hist/n3050ca3m.htm.
2 Analysis is based on daily SoCalGas storage withdrawals as reported on ENVOY and a comparison of Henry Hub and SoCal Citygate prices as reported by Natural Gas Intelligence for the time Jan. 23, 2026, through Jan. 31, 2026.
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SOURCE Southern California Gas Company