CPUC Rejects SoCalGas Rate Increase for Angeles Link Hydrogen Pipeline Project

The California Public Utilities Commission (CPUC) rejected Southern California Gas Company's application to recover $266 million in costs from ratepayers for the Angeles Link Project, a proposed hydrogen pipeline extending into the Los Angeles Basin.

The CPUC determined that SoCalGas failed to identify specific benefits to its ratepayers and that approving costs during the planning phase would be premature. The decision means SoCalGas must either abandon the project or fund it through shareholder investment rather than customer rates.

The project costs have escalated significantly. SoCalGas's estimate for the first phase of planning increased from $92 million to $266 million between 2022 and 2024. Environmental groups, including the Sierra Club and California Environmental Justice Alliance, opposed the proposal, arguing that charging gas customers for hydrogen infrastructure development was inequitable, particularly as those customers would not directly benefit from the project.

Critics also highlighted efficiency concerns, noting that renewable energy required for green hydrogen production could be deployed more effectively for direct fossil fuel replacement in end-use applications.

The CPUC's decision complicates related hydrogen initiatives, including a proposal to convert the Scattergood power plant to hydrogen combustion, which received initial approval from the Los Angeles Department of Water and Power in 2025.

Originally reported by CleanTechnica. Read the full article →