SoCalGas Captures 55% Spring Gas Price Drop to 22.8¢/Therm
SRE•SoCalGas achieved a five-year low natural gas procurement cost averaging 22.8¢ per therm for March–May 2026, down from 35.7¢ in March to 15.9¢ in May—a 55% decline. Storage capacity and multi-basin sourcing enabled lower-cost purchases.
1. Spring Natural Gas Price Decline
SoCalGas paid an average of 22.8¢ per therm for natural gas during March–May 2026, down from 35.7¢ in March, 16.9¢ in April and 15.9¢ in May, representing a 55% reduction and marking the lowest spring procurement cost in five years.
2. Role of Storage and Sourcing
Enhanced system flexibility—through robust storage capacity and access to multiple supply basins—allowed the company to secure lower-priced gas and minimize exposure to higher-cost supply during peak demand periods.
3. Impact on Customer Bills
Procurement costs are passed through to residential and small business customers without markup, so the spring price decline directly lowers bills for SoCalGas and SDG&E service area consumers.
4. Long-Term Rate Trends
Inflation-adjusted residential natural gas rates have fallen by approximately 25% between 2000 and 2023, supported by high regional storage levels and strategic procurement practices that sustain affordability.
