LOS ANGELES, April 1, 2026 /PRNewswire/ -- Over the last several years, Southern California Gas Company (SoCalGas) has been working closely with state leaders, policymakers and regulators to enhance natural gas storage capability which is important for energy system resiliency and affordability. Today the company announced a new analysis estimating its four underground natural gas storage fields helped SoCalGas and San Diego Gas & Electric (SDG&E) customers avoid over $120 million in potential energy costs during January's Winter Storm Fern.¹ The analysis focuses only on natural gas price impacts and does not include other related savings such as lower electricity costs.

While the massive storm drove natural gas price increases across much of the country, SoCalGas was able to reduce customer exposure across the SoCalGas system, including SDG&E customers, to volatile market conditions by withdrawing lower-cost natural gas reserves purchased months earlier and stored locally for periods of high demand or market disruption. As a result, Southern Californians avoided significant increases in natural gas costs during the storm, helping keep bills lower despite widespread supply constraints and higher bills nationwide. During Winter Storm Fern, instead of purchasing $30 natural gas (per decatherm) from the marketplace, the SoCalGas system supplied natural gas to both SoCalGas and SDG&E customers that was stored locally when prices were $3 (per decatherm).²

"Southern California is better prepared for weather events and other regional energy disruptions because of targeted investments in natural gas storage and transmission infrastructure," said Rodger Schwecke, chief operating officer, SoCalGas. "Following extensive technical review and clear safeguards, state regulators and energy agencies made careful determinations to increase local natural storage reserves – decisions which proved especially important when market conditions became volatile."

"Events like Winter Storm Fern show why preparation matters," said Kevin Geraghty, chief operating officer, SDG&E. "The ability to draw on natural gas that had been stored in advance helped reduce cost volatility for our customers and supported reliable energy delivery during a period of significant market disruption."

During Winter Storm Fern, from Jan. 23, 2026, to Jan. 31, 2026, SoCalGas withdrew more than 8 billion cubic feet (Bcf) of natural gas from its storage fields to meet customer regional demand, roughly equivalent to the energy needed to power about 350,000 California homes for a year. As gas supplies entering the state declined, storage became the main source of natural gas for customers, supplying nearly 60 percent of system demand at the storm's peak. Aliso Canyon, one of four SoCalGas storage facilities in Southern California, provided about 30 percent of all gas delivered to the SoCalGas and SDG&E system at the peak. Even with this increased use, storage levels remained strong and ready to support customers for the remainder of winter. Southern California imports more than 90 percent of its natural gas, making local storage a key component of regional energy reliability and affordability. Natural gas storage allows SoCalGas to meet rapid changes in demand, support electric generators during peak conditions, and help stabilize prices by reducing reliance on same day market purchases during emergencies.

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). For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas.

About SDG&E

SDG&E is an innovative energy-delivery company that provides clean, safe and reliable energy to better the lives of the people it serves in San Diego and southern Orange counties. The company is committed to creating a sustainable future by increasing energy delivered from low- or zero-carbon sources; accelerating the adoption of electric vehicles; and investing in innovative technologies to ensure the reliable operation of the region's infrastructure for generations to come. SDG&E is a recognized leader in its industry and community, as demonstrated by being named Corporate Partner of the Year at the San Diego Business Journal's Nonprofit & Corporate Citizenship Awards and receiving PA Consulting's ReliabilityOne® Award for Outstanding Reliability Performance for 20 consecutive years. SDG&E is a subsidiary of Sempra (NYSE: SRE). For more information, visit SDGEtoday.com or connect with SDG&E on social media @SDGE.

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¹Analysis 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. SoCalGas ENVOY is a web-based dashboard that helps businesses manage natural gas supplies, trade pipeline capacity, and enhance gas service selections.

²SoCalGas system injections reported on Envoy, and represented purchase price of Henry Hub from April 1, 2025, to Oct. 31, 2025, as reported by EIA's Natural Gas Weekly, and represented potential purchase price of Henry Hub from Jan. 23, 2026, to Jan. 31, 2026, as reported by EIA's Weekly Natural Gas Storage Report.

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SOURCE Southern California Gas Company; San Diego Gas & Electric

Regional Natural Gas Storage Helped Southern Californians Avoid Over $120 Million In Energy Costs During Winter Storm Fern