Southern California Gas Company announced that the cost it pays for natural gas on behalf of residential and small business customers across its own and San Diego Gas & Electric service areas reached a five-year low for the March through May 2026 period, averaging 22.8 cents per therm. The billed price declined from 35.7 cents per therm in March to 16.9 cents in April and 15.9 cents in May, a 55% drop over the three months. The company attributed the lower costs to system flexibility including storage and access to multiple supply basins, which enable lower-cost purchases and reduce exposure to price spikes during high demand. The trend aligns with record-low California natural gas spot prices in early 2026, driven partly by higher-than-average storage levels in the Pacific region. SoCalGas passes through the natural gas cost without markup, so lower market prices directly benefit customer bills.
Sempra EnergySoCalGas, a Sempra subsidiary, reports a 55% drop in natural gas costs for spring 2026, directly benefiting its customers and potentially improving its competitive position.