#United States #Los Angeles #Sempra #Natural Gas Prices #Southern California Gas

Southern California Gas Company (SoCalGas) Announces Record Low Natural Gas Prices

In a recent announcement, Southern California Gas Company (SoCalGas), a subsidiary of Sempra (NYSE: SRE), celebrated a remarkable achievement in the energy market. The price paid for natural gas on behalf of customers within the SoCalGas and San Diego Gas & Electric (SDG&E) service areas has reached a five-year low. For the months of March through May 2026, the average price was recorded at an astonishingly low 22.8 cents per therm, showcasing a significant reduction from previous months.

A Decline in Costs

The gradual decline in natural gas prices has been notable throughout the spring of 2026. The billed price for natural gas experienced a steady drop, moving from 35.7 cents per therm in March down to 16.9 cents in April and further to 15.9 cents in May. This decrease represents a striking 55% reduction from March to May, making natural gas one of the most affordable energy sources available in California today.

SoCalGas's President (Interim) and Chief Operating Officer, Rodger Schwecke, remarked on the positive implications of this price drop: "At a time when many households are focused on managing their energy bills, this is a clear example of how natural gas remains a very affordable source of energy."

The ability to leverage system flexibility, including effective storage and access to various supply basins, allows SoCalGas to manage costs effectively. This strategy enables the company to purchase lower-cost gas while minimizing exposure to the higher prices that may arise during times of increased demand.

Market Trends Reflecting Lower Prices

The price reductions observed align with broader market trends. Reports from the U.S. Energy Information Administration highlighted that natural gas spot prices in California hit record lows during the first five months of 2026. This decline can be attributed to various factors, including better-than-average storage levels in the Pacific region, enhancing overall supply availability.

For California households, natural gas ranks among the lowest monthly energy costs, representing more than 60% of typical household energy use. Importantly, it accounts for less than 30% of the overall energy bill. A recent report by SoCalGas, titled Affordable Way for California, emphasized that inflation-adjusted residential natural gas rates have decreased by approximately 25% from 2000 to 2023.

Direct Benefit to Customers

One of the standout features of the pricing model used by SoCalGas is that the cost incurred for natural gas is passed through directly to customers without markup. This means that when market prices decrease, customers enjoy the benefits with lower bills. Components of the bills, which include transportation and infrastructure development, ensure the reliable delivery of natural gas to millions of households and businesses throughout Southern California.

About SoCalGas

SoCalGas holds the title of the largest gas distribution utility in the United States, providing services to over 21 million residents across approximately 24,000 square miles in Central and Southern California. With a mission focused on safe, reliable, and affordable energy delivery, SoCalGas is dedicated to meeting both current and future energy needs. Recognized for its contributions to community leadership, it has been awarded Corporate Member of the Year by the Los Angeles Chamber of Commerce. For more information and updates, visit SoCalGas.com/newsroom or connect on social media @SoCalGas.

In summary, the impressive reductions in natural gas prices exemplify a successful strategy by SoCalGas in managing energy costs efficiently while ensuring sustainable and affordable energy delivery for all its customers.