Regulators voted Thursday to keep operating the Aliso Canyon natural gas storage facility for nearly a decade, over opposition from local activists and residents who wanted an immediate closure of the largest methane leak in American history.
The California Public Utilities Commission voted 4 to 0, with one abstention, in favor of the plan that began Nov. 13. improving the process of reducing storage space as the demand for natural gas decreases – as expected in the coming years.
The vote took place in San Francisco, where dozens of people protested outside. About 80 people spoke to the commission in person or in person during a 2½-hour public comment period.
“This is not the same as the commission saying we don't care about the concerns of local residents,” said CPUC Commissioner John Reynolds. “It means, rather, that we have a responsibility … we hold our primary responsibility to ensure a safe, reliable and affordable utility service.”
But that was little comfort to those who have pushed for years to close the storage facility owned by Southern California Gas Co in Porter Ranch, which leaked for a long time in late 2015.
“You hear the sadness out there saying, 'We've waited nine years for this,'” said Sen. Henry Stern (D-Calabasas).
The disaster spewed 109,000 tons of methane and other chemicals into the air, forcing more than 8,000 families to leave their homes. Most of those families complained of illness including headache, bleeding and nausea.
The proposal approved by the commission calls for moving forward with closing Aliso Canyon when Southern California's demand for natural gas has declined to the point where much of the demand can be supplied off-site.
“Aliso Canyon must be closed forever, but without hurting working families with rising debts,” said Gov. Gavin Newsom in a statement. “Reducing reliance on the plant is slower than I would have liked, but the Public Utilities Commission – a constitutionally independent body – has put in place a reasonable approach that protects residents near the plant and does not throw the natural gas market into chaos.”
The commission said demand for natural gas is at a low level as the state continues to bring renewable energy sources online.
The commission is proposing to initiate a review and shutdown process if the two-year peak demand figure drops to 4,121 million cubic feet per day – and biannual assessments show that doing so will not jeopardize natural gas reliability or fair prices.
“We agree with the commissioner and the governor that natural gas storage in Aliso Canyon is necessary at this time to help keep electric and gas customers' bills low and reliability in the energy system,” SoCalGas spokesman Chris Gilbride said in a statement Thursday.
The current peak demand forecast is 4,618 million cubic feet per day, and is expected to decrease to 4,197 million by 2030, according to the commission's paper.
“We can only close Aliso Canyon when demand for natural gas decreases,” said commission President Alice Busching Reynolds.
Busching Reynolds said the first two-year review will take place in June. The approved proposal also allows for “further reductions” in how much gas is stored in Aliso Canyon.
He expressed optimism regarding gas consumption projections, saying “it is possible that we will reach this target sooner than predicted.”
However, even if California meets the two-year deadline, the proposal would not start the shutdown process immediately. Instead, another study will begin about closing and withdrawing Aliso Canyon.
At a press conference two weeks ago, Stern estimated that Aliso Canyon would close by 2039 at the earliest, under the commission's plan.
Stern was in San Francisco on Thursday and urged the commissioners to postpone their decision until March 31. He said that the regulatory investigation into possible manipulation of the market during the increase in gas prices that occurred in the winter season of 2022-2023 will be completed early next year. He said he believes the report will provide more information about Aliso Canyon and help determine whether the facility should be kept online to prevent future price increases.
Matt Pakucko, president of the advocacy group Save Porter Ranch, said he doesn't understand why the commission didn't follow through on the previous proposal to close Aliso Canyon in 2022.
He told the commissioners that this decision is not just a matter of power.
“The current two-year proposal puts cost and benefit above the health and safety of Californians,” he said.
Meanwhile, natural gas consumption remains strong in California despite declining.
US Energy Information Administration he issued a report noted that 70% of California households used a gas stove in 2020, among the largest share of any state.
A review by the California Energy Commission also found that about 37% of the state's electricity production by 2023 it was from natural gas.
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