California regulators voted Dec. 19 to keep the Aliso Canyon Natural Gas Storage Facility running with the goal of eventually shutting it down, saying the site of a massive gas leak in 2015 remains necessary to maintain reliability and reasonable rates.
The California Public Utilities Commission voted in favor requiring peak day demand forecasts to decrease to a target level before it can revisit the subject and investigate whether to shut down the controversial Southern California Gas-owned facility.
Regulators declined to vote on a separate proposal introduced Dec. 9 that would postpone a decision on the plan until March 31, 2025.
“This proceeding was really one of the most complex and technically challenging proceedings that has come before the commission in a while,” CPUC President Alice Reynolds said during the meeting.
The approved plan requires the CPUC to issue biennial assessments and recommendations for Aliso Canyon inventory in coordination with the California Energy Commission, Los Angeles Department of Water and Power, CAISO and the California Geologic Energy Management Division.
The commission can open proceedings to close the facility when the peak demand forecast for two years decreases to 4,121 MMcfd and the assessments show that reliability can be maintained, according to the order.
The current forecast peak demand is 4,618 MMcfd and is expected to decrease to 4,197 MMcfd by 2030, according to the CPUC. However, commissioners said the target could be reached sooner than the current forecasts project, pointing to local, regional and federal incentive programs to bring online clean energy resources and replace natural gas appliances.
The decision “puts forward a path to closure of Aliso Canyon that is achievable,” Reynolds said. “It’s realistic and protective of families and businesses who are struggling to pay energy bills. The path is not only achievable, but it could be shortened if reduction in gas demand is accelerated.”
“We share the commission’s and governor’s view that natural gas storage at Aliso Canyon is currently necessary to help keep customers’ electric and gas bills lower and for energy system reliability,” SoCalGas spokesperson Chris Gilbride said in a statement.
But critics argue the plan will keep Aliso Canyon open indefinitely and continue to put nearby residents at risk of methane leaks.
The Sierra Club on Dec. 3 contended in opening comments at the meeting that the proposal is “the latest in a string of commission failures” to close the facility in the foreseeable future. The organization added that the plan hinges on gas reductions occurring “due to unidentified climate policies” and said it minimizes the damage the leak did to communities living near the field.
After the proposal passed, Andrea Vega, senior organizer at Food & Water Watch, argued that the vote represented a broken promise by California’s leadership.
“This decision is cowardly, despicable and ultimately only kicks the can down the road,” Vega said in a statement. “Not only is this a slap in the face to the residents living near the facility, but it is a warning for all of us. We desperately need leaders who stand up to corporate greed, and Gov. [Gavin] Newsom has shown today that he isn’t that leader.”
Aliso Canyon’s fate has been controversial since a ruptured pipe poured more than 100,000 tons of natural gas into the air, leading to a blowout and sickening nearby residents. The leak was contained after four months in February 2016. The facility reopened at a reduced capacity in 2017. (See California PUC Proposes Aliso Canyon Endgame.)
