On December 10, the California Public Utilities Commission (CPUC) delayed its decision on whether to set a timeline for closing the Aliso Canyon Natural Gas Storage Field. The decision, originally scheduled for December 19, 2024, was extended until March 31, 2025, as CPUC officials want to “ensure the Commission has ample time to thoughtfully deliberate on the proposed decision and address any unexpected issues in that process…”
Aliso Canyon has been targeted for closure since an October 2015 leak at the facility released more than 100,000 tons of methane and other substances, including benzene, over 111 days. The largest leak in U.S. history sickened residents in San Fernando Valley’s Porter Ranch and forced them to evacuate their homes.
Governor Jerry Brown directed the CPUC to close the facility by 2027. In 2016, Brown signed into law S.B. 380, which required the CPUC to “determine the feasibility of minimizing or eliminating use of the Aliso Canyon natural gas storage facility located in the County of Los Angeles while still maintaining energy and electric reliability for the region . . . .” The CPUC began its investigation in 2017.
Aliso Canyon has since emerged as a battleground in California’s policy to reduce the use of fossil fuels, as the facility is needed to maintain the reliability of the electric grid and the stability of electricity rates. In a controversial decision in September 2023, the CPUC voted 5-0 to expand the storage limit at Aliso Canyon from 41.16 billion cubic feet to 68.6 billion cubic feet. CPUC approved the proposal to “enhance energy resiliency and protect ratepayers in Southern California from potential volatile wholesale natural gas prices this upcoming winter season.”
In November 2024, the CPUC issued a proposed decision under which the facility would be closed when the two-year peak demand forecast decreased to 4,121 MMcfd and the biennial assessment showed that the facility could be closed “without jeopardizing reliability or just and reasonable rates.”
Southern California Gas Company operates Aliso Canyon, which provides natural gas as fuel for homes, businesses, power plants, and oil refineries. The site, formerly known as the Aliso Canyon Oil Field, is a depleted oil field in the Santa Susana Mountains in Los Angeles County. The field was discovered in 1938, and the Southern California Gas Company converted a depleted oil and gas producing formation into a natural gas storage reservoir in 1973.