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

Southern California Gas Company (NYSE:SRE) said its four regional underground storage fields helped SoCalGas and SDG&E customers avoid over $120 million in natural gas costs during Winter Storm Fern (Jan 23–31, 2026).

Rhea-AI Summary

Southern California Gas Company (NYSE:SRE) said its four regional underground storage fields helped SoCalGas and SDG&E customers avoid over $120 million in natural gas costs during Winter Storm Fern (Jan 23–31, 2026). The system withdrew more than 8 Bcf, supplied nearly 60% of peak demand, and Aliso Canyon provided about 30% at the peak.

SoCalGas substituted locally stored gas bought months earlier at about $3/decatherm versus market prices near $30/decatherm, reducing customer exposure to volatile spot markets.

Positive

• $120M avoided in customer natural gas costs during Winter Storm Fern
• Withdrew more than 8 Bcf of stored gas (Jan 23–31, 2026)
• Storage supplied nearly 60% of system demand at storm peak
• Aliso Canyon supplied about 30% of system deliveries at peak

Negative

• Southern California imports more than 90% of its natural gas, creating external supply dependence

Argus Apr 2 session

-2.46% close to close Open Argus

Details

News Market Reaction – SOCGP

On Apr 2, the first trading day after this news, SOCGP closed 2.46% below the previous close.

Data tracked by StockTitan Argus for the Apr 2 session.

Market Context

This announcement highlights how natural gas storage strategy helped customers avoid over $120 milli...

Analysis

This announcement highlights how natural gas storage strategy helped customers avoid over $120 million in potential energy costs during Winter Storm Fern by using gas bought at $3 instead of $30 per decatherm. It underscores the role of storage in meeting demand, with more than 8 Bcf withdrawn and nearly 60% of peak demand served from storage. Investors may monitor future reliability, cost, and regulatory developments around storage operations.

Key Figures

Avoided energy costs: over $120 million Market gas price: $30 per decatherm Stored gas price: $3 per decatherm +5 more

Avoided energy costs

over $120 million

Estimated customer savings during Winter Storm Fern

Market gas price

$30 per decatherm

Natural gas price during Winter Storm Fern in marketplace

Stored gas price

$3 per decatherm

Locally stored gas cost used during Winter Storm Fern

Gas withdrawn

more than 8 Bcf

Gas withdrawn from storage Jan 23–31, 2026

Homes powered

about 350,000 homes

Annual energy equivalent of withdrawn gas

Storage share of demand

nearly 60 percent

Portion of system demand met by storage at storm peak

Aliso Canyon contribution

about 30 percent

Share of gas delivered to SoCalGas and SDG&E system at peak

Imports share

more than 90 percent

Portion of Southern California natural gas that is imported

Historical Context

5 past events · Latest: Feb 09

5 events

1. Feb 09

   Customer outreach

   24h Move

   -0.1%

   World Ag Expo presence sharing safety, bill-assistance, and reliability resources.

2. Feb 04

   Regulatory petition

   24h Move

   +0.2%

   Petition to CPUC to update hydrogen blending demonstration requirements.

3. Feb 03

   Dividend declaration

   24h Move

   -0.4%

   Regular preferred and Series A dividends of $0.375 per share declared.

4. Jan 21

   Litigation response

   24h Move

   +0.5%

   Response to being named in Southern California Edison’s Eaton fire cross-claims.

5. Nov 18

   Dividend declaration

   24h Move

   +1.0%

   Regular preferred dividends of $0.375 per share announced for January 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

decatherm

1 terms

decatherm technical

"During Winter Storm Fern, instead of purchasing $30 natural gas (per decatherm)..."

A decatherm is a unit of heat energy commonly used to measure natural gas; one decatherm equals ten therms, or one million British thermal units (MMBtu). For investors, it’s a standard way to express the amount and price of gas—like counting gallons when buying fuel—so production, sales or contract changes measured in decatherms directly affect revenue, operating costs and commodity exposure for energy businesses.

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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. 

Message Funded by Shareholders.

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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/regional-natural-gas-storage-helped-southern-californians-avoid-over-120-million-in-energy-costs-during-winter-storm-fern-302731986.html

SOURCE Southern California Gas Company; San Diego Gas & Electric

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did SRE say storage saved customers during Winter Storm Fern (Jan 2026)?

SoCalGas estimated customers avoided over $120 million in natural gas costs. According to the company, that figure reflects differences between stored gas priced near $3/decatherm and marketplace prices near $30/decatherm during the storm.

How much gas did SoCalGas withdraw from storage during Jan 23–31, 2026 for SRE customers?

SoCalGas withdrew more than 8 billion cubic feet (Bcf) from storage during Jan 23–31, 2026. According to the company, that volume supplied about 60% of system demand at the storm's peak and equals energy for roughly 350,000 homes for a year.

What role did Aliso Canyon play for SRE and SDG&E during Winter Storm Fern?

Aliso Canyon provided roughly 30% of all gas delivered to the SoCalGas and SDG&E system at peak. According to the company, that contribution helped reduce reliance on high-priced spot-market purchases during the storm.

Why did stored gas cut costs instead of buying on the spot market during the storm?

Stored gas had been purchased months earlier at substantially lower prices (~$3/decatherm). According to the company, withdrawing that lower-cost supply avoided purchases near $30/decatherm in the marketplace during the storm.

How much of SoCalGas system demand did storage cover at the peak of Winter Storm Fern?

Storage supplied nearly 60% of system demand at the storm's peak. According to the company, as inbound supplies fell, stored reserves became the main source for customers and electric generators during the disruption.

Does the announcement identify any supply vulnerabilities for SRE customers after Winter Storm Fern?

The company noted Southern California imports over 90% of its natural gas, highlighting external supply dependence. According to the company, this makes local storage a key component of regional reliability and affordability.