Storage Helps Capture 5-Year Low Natural Gas Prices, Supporting More Stable Energy Costs for SoCalGas and SDG&E Customers

LOS ANGELES, June 30, 2026 /PRNewswire/ -- Southern California Gas Co. (SoCalGas), a subsidiary of Sempra (NYSE: SRE), today announced that the cost the company pays for natural gas on behalf of residential and small business customers across the SoCalGas and San Diego Gas & Electric (SDG&E) service areas reached a five-year low for the March through May period in 2026, averaging 22.8 cents per therm¹.

The billed price of natural gas declined steadily over the spring, dropping from 35.7 cents per therm in March to 16.9 cents in April and 15.9 cents in May¹ – a 55% decline from March to May. These market trends, along with how natural gas is purchased and managed over time, contribute to the cost passed through to customers.

"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," said SoCalGas President (Interim) and Chief Operating Officer Rodger Schwecke.

System flexibility – including storage and access to multiple supply basins – helps manage costs by enabling lower-cost gas purchases and reducing exposure to higher-priced supply during periods of increased demand.

The spring cost decline also aligns with broader market trends. According to the U.S. Energy Information Administration, natural gas spot prices in California reached record lows in the first five months of 2026, driven in part by higher-than-average storage levels in the Pacific region and other market factors.

Natural gas is one of the lowest monthly household energy costs for Californians. It accounts for more than 60% of average household energy use, yet represents less than 30% of the total home energy bill. As outlined in SoCalGas's recently published Affordable Way for California report, the company's inflation‑adjusted residential natural gas rates declined by approximately 25% between 2000 and 2023.

The cost SoCalGas pays for natural gas on behalf of SoCalGas and SDG&E customers is passed through without markup, meaning lower market prices directly benefit customer bills. Other components of the bill, such as transportation, support the infrastructure needed to safely store and deliver natural gas to millions of homes and businesses across Southern California.

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 U.S. utility growth business.  For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas. 

Message funded by shareholders.

¹ Southern California Gas Company, Tariff G‑CP Core Procurement Rates for the Indicated Period ($/MMBtu), June 3, 2026.

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SOURCE Southern California Gas Company