As California continues its ambitious journey toward a clean energy future, the importance of maintaining reliable and affordable energy sources cannot be overstated. Among the key pillars of our energy infrastructure is the Aliso Canyon natural gas facility, a critical asset that ensures energy reliability during peak demand and protects Californians from crippling electricity costs. At a time when energy prices are rising and our state faces increasing challenges from climate change, facilities like Aliso Canyon play an indispensable role in bridging the gap between today’s energy needs and tomorrow’s renewable goals.
Energy prices in California have been climbing steadily over the past decade. According to data from the U.S. Energy Information Administration (EIA), the average residential electricity rate in California in 2022 was 25.77 cents per kilowatt-hour—nearly double the national average. For lower-income households, this translates into significant financial stress, forcing many to make difficult choices between essential needs like food, housing, and energy. These challenges are further exacerbated during periods of extreme weather, such as heatwaves or cold spells, when energy demand surges and the grid is stretched thin.
The Aliso Canyon facility provides a crucial buffer during such times. As one of Southern California’s largest natural gas storage sites, it ensures that the region’s power plants can operate reliably even during peak demand. This reliability is especially vital in a state that has experienced rolling blackouts in recent years due to strained energy supplies. Without facilities like Aliso Canyon, California’s power grid would be more vulnerable to disruptions, leaving millions without access to electricity when they need it most.
Safety concerns surrounding Aliso Canyon have understandably been a focus for both the community and regulators, particularly after the 2015 gas leak incident. However, significant steps have been taken to enhance the facility’s safety and rebuild trust with the surrounding community. Southern California Gas Company (SoCalGas) has implemented numerous safety upgrades, including rigorous inspection protocols, the installation of advanced monitoring systems, and enhanced well integrity standards. Regulators have also imposed stricter oversight to ensure that safety remains a top priority. As a result, Aliso Canyon is now one of the most closely monitored and secure natural gas storage facilities in the country.
Proponents of renewable energy often argue that California should transition away from fossil fuels as quickly as possible. While the goal of achieving 100% clean energy sounds good, , it is essential to understand the actual reality involved in such a transition. Renewable energy sources like solar and wind are inherently intermittent, and the state’s battery storage capabilities, while improving, are not yet sufficient to meet the demands of a fully renewable grid. Natural gas facilities like Aliso Canyon provide the reliability and flexibility needed to complement renewable energy, ensuring that Californians have access to power around the clock.
In the case of Aliso Canyon, Governor Gavin Newsom deserves credit for striking a pragmatic policy balance between advancing California’s clean energy ambitions and safeguarding the needs of its most vulnerable residents. He and his administration have taken decisive steps to promote renewable energy development while also recognizing the importance of maintaining a stable and affordable energy supply. This balanced approach includes investments in energy efficiency programs, grid modernization, and incentives for low-income households to adopt clean energy solutions like rooftop solar and energy-efficient appliances.
The importance of Aliso Canyon extends beyond immediate energy reliability. It also serves as a reminder that a successful clean energy transition requires a diverse portfolio of solutions. California has set ambitious targets for reducing greenhouse gas emissions, including achieving carbon neutrality by 2045. Meeting these targets will require not only an accelerated deployment of renewable energy but also the continued use of transitional energy sources like natural gas to maintain grid stability.
Closing Aliso Canyon prematurely would be a mistake with far-reaching consequences. It would risk exacerbating energy price volatility, increasing the likelihood of blackouts, and placing undue financial burdens on our vulnerable lower-income households. Instead, California should focus on a measured approach that gradually reduces dependence on fossil fuels while investing in the technologies and infrastructure needed to support a fully renewable grid.
As we navigate this complex energy transition, it is essential to keep the needs of all Californians at the forefront. Affordable and reliable energy is not a luxury; it is a necessity. Facilities like Aliso Canyon play a vital role in ensuring that this necessity is met, particularly for those who are most vulnerable to rising energy costs.
In the years ahead, the Aliso Canyon facility and others like it will continue to be essential components of California’s energy strategy. By maintaining a balanced and pragmatic approach, we can ensure that the clean energy transition benefits all Californians—protecting both the environment and the economic well-being of our communities. That is how we will succeed in the future.
Rob Lapsley is president of the California Business Roundtable.