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FOR IMMEDIATE RELEASE CONTACT: Brooke Armour [mailto:[email protected]]

December 17, 2024 (916) 553-4093

California’s Business Community Unites to Support Keeping Aliso Canyon Open

LOS ANGELES, CA – A coalition of leading business organizations from across California has come together to urge the California Public Utilities Commission (CPUC) to maintain operations at the Aliso Canyon Natural Gas Storage Facility. In a unified letter [[link removed]] sent to the CPUC, the business community emphasized the critical need for reliable and affordable energy to support businesses, protect jobs, and prevent devastating price spikes seen in recent years.

The coalition includes organizations representing thousands of businesses and millions of employees across the state, including:

California Business RoundtableCalifornia Hispanic Chambers of CommerceCalifornia Manufacturers & Technology AssociationNational Federation of Independent Business (NFIB), California CalAsian Chamber of Commerce Los Angeles County Business Federation (BizFed)California Restaurant AssociationInland Empire Economic PartnershipBay Area Council Orange County Business Council Californians for Affordable and Reliable Energy (CARE)Southern California Leadership Council

The business leaders warn that without Aliso Canyon’s storage capacity, California risks severe energy price volatility and grid instability. During the winter of 2023, natural gas prices surged to $50 per MMBtu—ten times the national average of $5 per MMBtu—leading to electricity rate hikes of up to 300% for some businesses. The letter highlights that Aliso Canyon plays a vital role, supplying up to 60% of Southern California’s daily natural gas needs during peak demand.

“The Aliso Canyon facility provides a critical buffer that prevents devastating energy price spikes,” the letter states. “Closing this facility prematurely would risk the reliability of our energy grid and increase costs for businesses and residents alike, particularly in manufacturing and industrial sectors.”

The coalition supports Governor Gavin Newsom’s balanced approach to Aliso Canyon during California’s energy transition, which prioritizes maintaining strategic natural gas infrastructure alongside investments in renewable energy projects. This approach ensures California can meet its ambitious clean energy goals without compromising affordability or reliability.

“Our state must balance its clean energy ambitions with the realities of energy demand,” said Rob Lapsley, President of the California Business Roundtable. “Aliso Canyon is an essential part of that equation, ensuring businesses and communities have access to stable and affordable energy as we move toward a more sustainable future.”

The business community calls on the CPUC to prioritize energy security and economic stability by keeping Aliso Canyon open. Premature closure, they argue, would threaten thousands of jobs and burden California’s most vulnerable residents with higher energy costs, especially during the colder winter months.

For more information or media inquiries, please contact:

Brooke Armour

Executive Vice President

California Business Roundtable

[email protected] | (916) 553-4093

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California Business Roundtable

1301 I Street, Sacramento, CA 95814

916.553.4093

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