Topline:
California will keep the Aliso Canyon natural gas storage facility open, likely at least into the next decade. Officials say the facility is still needed to meet electricity and gas demand, but that their plan is to ultimately close down the gas storage facility.
The backstory: In 2015, more than 8,000 families in the neighborhood of Porter Ranch were forced to evacuate their homes due to a methane leak from a well in the underground Aliso Canyon storage site. The leak from the SoCalGas-owned facility became the largest in U.S. history and led to billions of dollars in settlements.
What's next: The California Public Utilities Commission considered closing the storage site by 2027, but now it is unlikely to close until the late 2030s.
California will keep the Aliso Canyon natural gas storage facility in the Santa Susana mountains open, likely at least into the next decade, despite pressure from the local community to shut it down.
The California Public Utilities Commission voted 4-0 with one abstention on Thursday, saying the gas storage facility is still needed to meet electricity and gas demand, but that their plan is to ultimately phase it out.
The backstory
In 2015, thousands of families in Porter Ranch, Granada Hills, Chatsworth and other San Fernando Valley communities were forced to evacuate their homes due to a methane leak from a well in the underground Aliso Canyon storage site. The leak from the SoCalGas-owned facility became one of the largest in U.S. history and led to billions of dollars in settlements.
Many nearby residents experienced headaches, nosebleeds and nausea as a result of the leak and have been calling on the state to shut down the facility since.
The California Public Utilities Commission considered closing the storage site by 2027, but now it is unlikely to close until the late 2030s.
Why it matters
Methane heats up the planet far faster than carbon dioxide. It also often escapes with chemicals that are dangerous to health, such as benzene. The South Coast Air Quality Management District found higher levels of benzene and odorants in Porter Ranch after the leak. Officials said it didn't exceed health guidelines, but residents have questioned that.
Why keep it open?
State officials said that while overall natural gas demand is going down, the facility is still needed to meet the demand. Residents and scientists have pushed back on that narrative, saying the facility was closed for two years after the leak without supply issues.
The Public Utilities Commission’s plan proposes to possibly close the facility once the peak demand forecast for two years decreases to 4,121 million metric cubic feet per day.
According to the commission, the current peak demand is 4,618 million metric cubic feet per day. They expect that demand to drop to 4,197 million by 2030.
A coalition of business organizations sent a letter to the commission, saying keeping the facility online was needed to prevent gas price hikes, given that Aliso Canyon provides up to 60% of Southern California’s daily natural gas needs, especially during the winter when demand spikes.
What’s next
The first assessment for analyzing how to phase out the facility without a huge impact to energy reliability or rates is expected in June.
