SoCalGas Annual Consolidated Rate Update Filing

SoCalGas recently filed Advice Letter 6548-G (available here), its Annual Regulatory Account Balance Update, which projects the company’s revenue requirement and natural gas transportation rates, effective January 1, 2026.

Note that this is SoCalGas’s initial consolidated update – a final, more comprehensive version will be filed in late December.

For the time being, SoCalGas projects a net $30.5 million decrease in its 2026 transportation revenue requirement relative to current levels. Major drivers include large decreases in the Core Fixed Cost Account, the Greenhouse Gas Balancing Account (GHGBA), the Residential Uncollectible Balancing Account, and the elimination of Morongo Right of Way Memorandum Account amortization.

SoCalGas anticipates that core customers will see a $161.1 million decrease, while noncore customers will see a $34.8 million increase, primarily due to a higher Noncore Fixed Cost Account undercollection.

Massive BTS Increase

Rates for backbone transportation service will likely see a major increase ($208.2 million) because SoCalGas is no longer amortizing a large prior overcollection in the Backbone Transmission Balancing Account.

For now, this increase is projected at a whopping 51.2%, although previous SoCalGas filings have suggested it will not quite reach that level. The company’s final consolidated advice-letter filing in December will provide greater clarity.