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

Sempra (NYSE:SRE) subsidiary SoCalGas reports a five-year low in natural gas commodity costs for residential and small business customers across SoCalGas and SDG&E from March–May 2026.

Rhea-AI Summary

Sempra (NYSE:SRE) subsidiary SoCalGas reports a five-year low in natural gas commodity costs for residential and small business customers across SoCalGas and SDG&E from March–May 2026.

Average gas cost was 22.8 cents per therm, falling from 35.7 in March to 15.9 in May, aided by storage, system flexibility and broader market price declines.

Argus Jun 30 session

-1.28% close to close Open Argus

Details

News Market Reaction – SRE

In the Jun 30 session, SRE declined 1.28%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights five‑year‑low gas costs and a 55% spring price drop for customers, rein...

Analysis

This announcement highlights five‑year‑low gas costs and a 55% spring price drop for customers, reinforcing affordability messaging consistent with prior positive SoCalGas updates. Investors may watch whether these market conditions persist and how they affect future customer bills.

Key Figures

Average gas cost: 22.8 cents per therm March billed price: 35.7 cents per therm April billed price: 16.9 cents per therm +5 more

Average gas cost

22.8 cents per therm

March–May 2026 average cost paid for customers

March billed price

35.7 cents per therm

Customer billed natural gas price in March 2026

April billed price

16.9 cents per therm

Customer billed natural gas price in April 2026

May billed price

15.9 cents per therm

Customer billed natural gas price in May 2026

Price decline

55%

Decline in billed price from March to May 2026

Household energy use share

more than 60%

Share of average California household energy use from natural gas

Bill contribution

less than 30%

Share of total home energy bill from natural gas

Rate trend

25% decline

Inflation-adjusted residential gas rates, 2000–2023

Historical Context

5 past events · Latest: Jun 24

5 events

1. Jun 24

   Recognition ranking

   24h Move

   +0.8%

   Inclusion on WSJ 'Best Companies for the Future' list highlighting long-term readiness.

2. Jun 22

   Community initiative

   24h Move

   +1.0%

   SoCalGas employees’ large volunteer effort supporting nonprofits across Southern California.

3. Jun 11

   Efficiency savings

   24h Move

   +0.6%

   Report of 2025 customer bill savings and energy-use reductions from efficiency programs.

4. Jun 10

   Growth projects

   24h Move

   +0.2%

   Announcement of Texas transmission growth tied to ERCOT-endorsed projects and capital plan.

5. Jun 09

   Pipeline in-service

   24h Move

   +1.9%

   Port Arthur Pipeline Louisiana Connector placed in service ahead of schedule and under budget.

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

Key Terms

therm, spot prices, inflation‑adjusted

3 terms

therm technical

"averaging 22.8 cents per therm1.The billed price of natural gas"

A therm is a standard unit for measuring heat energy commonly used in the natural gas and utilities industry; one therm equals 100,000 British thermal units (BTU), roughly the energy needed to heat a typical home for a few days. Investors watch therm-based measures because gas contracts, utility bills, storage volumes and commodity prices are often quoted or settled by therms, so changes in therm demand or price affect company revenues, costs and profit margins much like tracking gallons for oil.

spot prices financial

"According to the U.S. Energy Information Administration, natural gas spot prices in California"

The spot price is the current market price at which a commodity, currency, or security can be bought or sold for immediate delivery, like the sticker price you would pay for an item at a store right now. Investors watch spot prices because they reflect real-time supply and demand, serve as the reference for contracts and inventory values, and affect profit margins and short-term trading decisions — similar to knowing today's retail price before deciding to buy or hedge.

inflation‑adjusted financial

"As outlined in SoCalGas's recently published Affordable Way for California report, the company's inflation‑adjusted residential"

A figure that has been modified to remove the effect of inflation so it shows true purchasing power over time; like using the same ruler to compare prices or earnings from different years. For investors it matters because it reveals the real gain or loss on an investment and helps compare returns, dividends or costs across time without being misled by rising overall prices, allowing better decisions about value and purchasing power preservation.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/storage-helps-capture-5-year-low-natural-gas-prices-supporting-more-stable-energy-costs-for-socalgas-and-sdge-customers-302813973.html

SOURCE Southern California Gas Company

FAQ

How low did natural gas prices fall for SoCalGas and SDG&E customers in spring 2026 (SRE)?

Natural gas commodity costs averaged about 22.8 cents per therm from March to May 2026. According to SoCalGas, billed prices dropped from 35.7 cents in March to 16.9 in April and 15.9 cents in May, reaching a five-year low.

What percentage decline occurred in SoCalGas natural gas prices from March to May 2026?

SoCalGas reports about a 55% decline in billed natural gas prices from March to May 2026. According to SoCalGas, customer prices fell from 35.7 cents per therm in March to 15.9 cents per therm in May across its and SDG&E’s service areas.

How does gas storage help stabilize SoCalGas and SDG&E customer energy costs for SRE?

Storage and system flexibility help SoCalGas manage costs by enabling more lower-cost gas purchases. According to SoCalGas, access to multiple supply basins and higher storage levels reduce exposure to higher-priced gas during demand spikes, supporting more stable customer bills over time.

How do current SoCalGas natural gas prices compare with broader California market trends?

SoCalGas’ spring 2026 price declines align with broader California market weakness in natural gas. According to SoCalGas, the U.S. Energy Information Administration reports California spot prices reached record lows, partly due to higher-than-average Pacific region storage and other market factors.

What share of California household energy use and bills comes from natural gas with SoCalGas?

Natural gas represents more than 60% of average California household energy use but under 30% of total home energy bills. According to SoCalGas, this highlights natural gas as one of the lowest monthly household energy costs for its customers.

Does SoCalGas mark up the natural gas commodity cost on customer bills?

SoCalGas states the natural gas commodity cost is passed through without markup to SoCalGas and SDG&E customers. According to SoCalGas, lower market prices therefore directly reduce bills, while separate transportation charges support infrastructure to store and deliver gas safely.

How have SoCalGas inflation-adjusted residential natural gas rates changed since 2000?

Inflation-adjusted residential natural gas rates have declined by about 25% between 2000 and 2023. According to SoCalGas, this long-term decrease, detailed in its Affordable Way for California report, supports the view that natural gas remains an affordable household energy source.