California to Retire Three Natural Gas Plants by 2027
State grid reliability contracts for the facilities will expire at the end of December 2026.
Updated on Oct. 27, 2026 in Utilities
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California will end grid reliability contracts for the Alamitos, Huntington Beach, and Ormond Beach natural gas plants on December 31, 2026. This move aligns with state efforts to transition energy reliance toward battery storage and cleaner sources.
Why it matters
State officials maintain that expanding solar capacity and battery storage reduces the necessity for fossil fuel-based backup plants. The shift also responds to environmental advocacy aimed at stopping the use of billions of gallons of cooling water at these sites.
The state is phasing out three natural gas plants and targets the procurement of 6 gigawatts of new electricity capacity between 2029 and 2032. However, an energy commission report identifies potential grid shortfalls that could emerge by 2036.
The players
Alamitos Generating Station
This facility is a major power plant located in Long Beach that is slated to stop operating under its current reliability contract.
Huntington Beach Generating Station
This power plant is located in Huntington Beach and is one of the three sites losing its state grid reliability contract.
Ormond Beach plant
Situated in Oxnard, this power plant may eventually be converted into a battery storage facility following the expiration of its contract.
The details
The Alamitos, Huntington Beach, and Ormond Beach facilities were utilized for backup capabilities as recently as the 2026 heat waves in September and October. While these plants are retiring, the state maintains a procurement mandate for new zero-emitting electricity production to be operational by 2028.
Timeline
Operators were directed to maintain backup capabilities twice in 2024.
A heat wave strained the Southern California grid in September 2026.
A heat wave strained the Southern California grid in October 2026.
Contracts for the three natural gas plants expire on December 31, 2026.
The state will procure 6 gigawatts of new electricity from 2029 to 2032.
Market Landscape
This transition marks a significant shift in California's utility sector as it moves away from legacy fossil fuel infrastructure. It aligns with the state's zero-emitting electricity procurement mandate to replace traditional thermal generation with battery-backed renewable energy.
Consumers may see changes in energy reliability as the state shifts from traditional backup generation to battery-based storage solutions. Long-term electricity costs may be affected by the massive procurement of new energy sources required to prevent potential grid shortfalls by 2036.
The takeaway
The closure of these plants reflects an aggressive move toward a decarbonized power grid by the end of the decade. Residents should prepare for a transition period where the state will rely increasingly on new battery technology to maintain peak-demand stability.
Further reading
Learn more about local grid changes in the Utilities section.
Source note: This article includes information reported by New York Post.
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