My bill last month was $66? My January bill is $246.27! Yes, my usage doubled in the cold winter months of December/January but the cost is nearly four times as much. OUCH!
Natural gas prices have reached unprecedented levels on the West Coast. SoCalGas continues to diligently work to secure cost-effective natural gas supplies on behalf of our residential and small business customers. The price of natural gas is determined by broader regional, national, and global markets and is passed on directly to our customers without markup. SoCalGas does not earn any profits from higher natural gas prices. Source: SCGC click HERE
Some of the reasons include the following:
- Factors include the cost of natural gas, weather, an increase in your appliance usage, your billing cycle, and past-due bills.
- The cost of natural gas has risen nationwide, resulting in higher-than-average monthly natural gas prices.
- The price of natural gas is determined by regional and national markets and passed on directly to our customers.
- New gas transportation rates, approved by the CPUC, went into effect on January 1, 2023.
Not included in this list by SoCalGas is California preventing the hook-up of gas for new construction. Your new home will be “all-electric” by fiat, and at some point in the future current homeowners will have to convert from gas appliances to electric.
So why should the gas company invest in improving and reducing the costs of systems supplying natural gas to its customers?
Note: rates are regulated and approved by the California Public Utilities Commission (CPUC). Natural gas bills consist of three cost components:
- The cost of natural gas purchased by SoCalGas on behalf of its customers.
- The cost to deliver natural gas to a customer’s home or business.
- A CPUC-mandated charge to fund public purpose programs such as California Alternate Rates for Energy (CARE), the Energy Savings Assistance Program, energy efficiency, and research. (You are paying for someone’s bill)
Taxes and fees vary depending on customer location and applicable regulations.