June 15, 2026

LOS ANGELES – Southern California Gas Co. (SoCalGas) today submitted its rate request for 2028-2031 to the California Public Utilities Commission (CPUC). The request reflects the estimated costs needed to safely operate and maintain the natural gas system for more than 21 million consumers.

With a disciplined focus on affordability, the request is the lowest percentage increase in more than a decade and is focused on essential work needed to maintain the system, meet federal and state safety requirements, and mitigate known risks – including those to public and worker safety, system reliability, and cybersecurity.

This request anticipates a combination of required safety and compliance work, ongoing operations and maintenance, and targeted investments needed to maintain the system. At its core, this request reflects the estimated baseline cost of continuing to provide safe and reliable service to customers – not expansion beyond essential service obligations.

“We recognize the financial pressures many customers are facing, and we take that responsibility seriously,” said SoCalGas President (interim) and Chief Operating Officer Rodger Schwecke. “This request takes a focused and disciplined approach – starting with efforts to control costs and improve efficiency – while continuing to invest in the safe and reliable service our customers depend on every day to cook their food, heat their homes or run their businesses.”

If approved by the CPUC, the proposed investments are estimated to increase the average residential customer’s bill by approximately $5.67 per month in 2028 compared to 2027 estimates, a 7.7% increase. This increase primarily reflects required safety, compliance, and operational costs needed to maintain system integrity and reliability.

In nearly all of the past 30 years, average annual bills for SoCalGas residential customers have been among the lowest nationwide.¹ As a share of household income, SoCalGas bills represented approximately 0.6% of the median income in 2024 – the best among peer utilities in America.²

Actions to control costs and major cost drivers

SoCalGas has taken targeted actions in recent years to improve efficiency and reduce operating costs, including workforce optimization, continuous improvement and modernization of processes, automating certain customer support functions, and implementing procurement efficiencies. These efforts have helped to manage cost pressure for customers, and led to improvements in important safety and customer service measures.

A significant portion of the costs in this request is driven by factors outside of the company’s direct control, including rising insurance costs, employee health care costs, and compliance with federal and state safety requirements.

What’s included in the request

These projected costs are primarily comprised of required safety and compliance work, ongoing system operations, and targeted investments designed to maintain safe and reliable service. The request is driven by three primary factors: 

• Required safety and compliance work: Ongoing pipeline inspection, testing, and maintenance required under federal and state safety regulations
• Ongoing system operations: Day-to-day work needed to safely operate, maintain, and inspect the system
• Targeted investments to maintain system integrity and reliability: Infrastructure, technology and operational improvements designed to support safe and reliable service

Investments to maintain safe and reliable service

These proposed investments will support essential work to: 

• Maintain safe operation of the natural gas system
• Deliver reliable service to homes, businesses, and critical facilities
• Meet federal and state safety and compliance requirements
• Better protect the system from risks such as cybersecurity threats and infrastructure failures
• Improve efficiency in how the system is operated and maintained

These efforts are focused on maintaining system performance today while helping to avoid higher long-term costs associated with system failures and service disruptions.

Review process

SoCalGas files a rate request with the CPUC every four years. The application is reviewed through a public process and typically takes 18 to 24 months to reach a decision.

More information about SoCalGas's rate request is available at https://socalgas.com/grc. 

About SoCalGas

SoCalGas is the largest gas distribution utility in the United States, serving more than 21 million consumers across approximately 24,000 square miles of Central and Southern California. Our mission is: Safe, Reliable, and Affordable energy delivery today. Ready for tomorrow. SoCalGas is a recognized leader in the energy industry and has been named Corporate Member of the Year by the Los Angeles Chamber of Commerce for its volunteer leadership in the communities it serves. SoCalGas is a subsidiary of Sempra (NYSE: SRE), a leading U.S. utility growth business.  For more information, visit SoCalGas.com/newsroom or connect with SoCalGas on social media @SoCalGas. 

1 As compared to peer gas corporations.  See American Gas Association (AGA), Annual Report of Volumes, Revenues, and Sales Consumers by Company (1997-2024).  SoCalGas ranked 9th or better for 27 out of 28 years compared to a peer group of 50 largest U.S. gas corporations by number of residential consumers.

2 Peer group includes the American Gas Association’s (AGA) 50 largest U.S. gas corporations by number of residential customers. Sources: AGA, EIA form 857, BLS, Federal Reserve Bank of St. Louis. Average residential natural gas bill divided by state’s median household income.

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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this press release, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “pro forma,” “strategic,” “initiative,” "target," "outlook," “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, disallowances or denials of cost recovery, audits, investigations, inquiries, ordered studies, regulations, legislative actions, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions, including the failure to honor contracts and commitments, by the (i) California Public Utilities Commission (CPUC), U.S. Department of Energy, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S. and states, counties, cities and other jurisdictions therein where we do business; the success of business development efforts and construction projects, including risks related to, as applicable, (i) negotiating pricing and other terms in definitive contracts, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining regulatory and other approvals and (v) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on rate base or other growth; changes, due to evolving economic, political and other factors and increasing geopolitical instability as a result of wars or other conflicts in various parts of the world, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries (and uncertainty related to the implementation and enforceability thereof), and (ii) laws and regulations, including those related to tax; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by nation-state actors, of ransomware or other attacks on our systems, the energy grid or our other infrastructure, or the systems of third parties with which we conduct business; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact of efforts to increase affordability of U.S. utility customer rates on our ability to obtain cost recovery from applicable regulators, our capital expenditure and other growth plans and our ability to advance statewide policies; the impact on affordability of customer rates, cost of capital and operating margin due to (i) volatility in inflation, interest rates, commodity prices, and tariff rates and (ii) the cost of meeting the demand for lower carbon and reliable energy in California; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage and transportation capacity, including disruptions caused by failures in the pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, nor are they regulated by the CPUC.

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