New Study Reveals How Natural Gas Infrastructure Keeps Energy Costs Low in California

As energy costs continue to rise, residents of California are increasingly feeling the financial strain on their household budgets. However, a recent report from Southern California Gas Company (SoCalGas) sheds light on how natural gas infrastructure has played a crucial role in keeping energy bills manageable for many households across the state.

The report, titled "The Affordable Way for California," indicates that when adjusted for inflation, SoCalGas's average residential natural gas rates have declined by nearly 25% between the years 2000 and 2023. This significant decrease underscores the importance of a balanced energy mix that includes natural gas, particularly as California navigates various climate policies and persistently faces wildfire risks.

In California, where the cost of living often seems to escalate, the stability provided by the natural gas system offers much-needed relief to consumers. The study highlights that the system’s flexibility and the availability of underground storage have served as effective tools in mitigating price volatility, which can otherwise lead to sudden spikes in energy costs.

During a recent event, Winter Storm Fern in January 2026, the underground storage facilities became essential as they ensured a consistent supply of natural gas to SoCalGas and SDG&E customers. At the storm's height, storage provided nearly 60% of the demand, preventing an estimated $120 million in potential energy cost impacts for customers. This example illustrates how the infrastructure can adapt during emergencies and provide crucial support to consumers in times of need.

Rodger Schwecke, interim president and chief operating officer of SoCalGas, emphasized the significance of predictable and flexible energy systems in helping households manage their monthly expenses better. He stated, "This report reinforces the important role natural gas infrastructure plays in keeping energy bills more affordable for Californians over time."

Furthermore, the report points out that the natural gas infrastructure is not only vital for maintaining affordability but is also essential in supporting an evolving energy landscape. As California strives to increase its renewable energy generation, natural gas resources remain important for meeting energy demands, particularly when solar and wind energy outputs fluctuate.

For instance, during peak energy consumption periods, flexible natural gas resources can complement renewables, ensuring that households have a reliable power source without incurring exorbitant costs.

The overall findings from the report indicate that the long-term integration of natural gas in the energy infrastructure allows California households to better navigate the financial pressures of energy costs, all while facilitating the state's move towards sustainable energy practices. This balancing act is crucial as the state looks to bolster its reliability while transitioning to greener energy sources.

The complete findings of "The Affordable Way for California" report are available for review, shedding light on the substantial role that natural gas continues to play not just as an energy source, but as a stabilizing factor in the state's economy. In an era where sustainability and affordability often appear at odds, the insights from this report provide a clearer understanding of how responsible energy management can benefit both the environment and the wallets of California families.

About SoCalGas

SoCalGas stands as the largest gas distribution utility within the United States, serving over 21 million customers spread across approximately 24,000 square miles in Central and Southern California. The company is dedicated to providing safe, reliable, and affordable energy while preparing for future challenges. With recognition from the Los Angeles Chamber of Commerce as Corporate Member of the Year, SoCalGas continues to demonstrate strong leadership within the energy sector as it navigates the complexities of modern energy demands while remaining committed to its communities.