Proposed Decision Lands in CPUC's Natural Gas Price Spike Investigation

Commissioner Karen Douglas issued a proposed decision in I.23-03-008 finding that the winter 2022–2023 natural gas price spike resulted from a convergence of adverse market conditions, not misconduct by regulated utilities or storage providers.

The PD concludes that sustained cold and high precipitation significantly increased gas demand, while interstate pipeline outages and maintenance (particularly on the El Paso system) restricted supply into California at critical moments. These constraints were compounded by reduced inflows from Western Canada, the Rockies, and the Permian Basin, low regional storage inventories, and bid-week pricing that captured peak spot prices during Winter Storm Elliott.