New report shows natural gas infrastructure helps keep energy costs more affordable for California households
As Californians continue to grapple with rising household costs, a new report from SoCalGas finds that when adjusted for inflation, SoCalGas’s average residential natural gas rates declined by approximately 25% between 2000 and 2023, 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 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.
- 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.
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