California units clear path to shut Aliso Canyon fuel storage facility

(Reuters) – California’s utilities regulator on Thursday set a transparent path towards doubtlessly closing SoCalGas’s Aliso Canyon fuel storage facility, prioritizing vitality reliability and affordability because the state shifts to cleaner vitality.

The California Public Utilities Fee (CPUC) has set a pure fuel peak demand goal of 4,121 million cubic toes per day, marking the brink at which Southern California can meet demand with out Aliso Canyon, it mentioned in an announcement.

Aliso Canyon, which serves greater than 11 million prospects and offers gasoline to 17 pure gas-fired energy vegetation, will probably be reviewed for everlasting closure when the “forecasted peak day demand for 2 years out decreases to the goal stage,” the CPUC mentioned.

Pure fuel demand in Southern California is at the moment on a downward trajectory because of the state’s insurance policies and local weather targets, the regulator mentioned.

The CPUC added that this consists of the procurement of historic quantities of renewable electrical energy, which reduces dependency on pure gas-fired energy vegetation.

“Aliso Canyon should be closed for good, however with out harming working households with skyrocketing utility payments,” Governor Gavin Newsom mentioned in an announcement.

U.S. pure fuel futures jumped about 6% to a 23-month excessive on Thursday resulting from decrease output in current days, a rise within the quantity of fuel flowing to liquefied pure fuel (LNG) export vegetation to an 11-month excessive, and early forecasts for colder climate in January. [NGA/]