CPUC Approves Accelerated Climate Credit for SoCalGas Residential Customers
SoCalGas residential customers will receive a one-time California Climate Credit of $50.77 in February or March, depending on their billing cycle
LOS ANGELES, Feb. 2, 2023 /PRNewswire/ -- The California Public Utilities Commission (CPUC) today approved the acceleration of the California Climate Credit for Southern California Gas Company (SoCalGas) customers in response to the unprecedented natural gas prices impacting the Western United States. SoCalGas' residential customers will receive a credit of $50.77 in their February or March bill.
The California Climate Credit is a state program designed to reduce greenhouse gas emissions. Some of the funds raised through the program are distributed annually in April to SoCalGas customers in the form of bill credits. Due to high natural gas bills in January, the CPUC voted to accelerate this annual credit to February or March, depending on customers' individual billing cycles.
"We support the CPUC's swift action to accelerate the Climate Credit for SoCalGas customers, who are in need of relief from the market forces that have led to these unusually high bills," said SoCalGas Senior Vice President and Chief Customer Officer Gillian Wright. "We know our customers have been feeling the effects of high gas prices acutely and this action, combined with lower market prices in February, will provide some relief. Still, we urge customers to continue to conserve and take advantage of financial assistance or payment programs that can help with high bills."
After unprecedented highs due to West Coast market conditions, market prices for natural gas have dropped significantly for February when compared to prices seen in January. While prices in the western region have decreased from the prices seen in January, they remain higher than last year.
The core procurement rate changes each month and reflects the price SoCalGas pays for natural gas for residential and business customers. SoCalGas does not set the price for natural gas. Instead, natural gas prices are determined by national and regional markets. SoCalGas buys natural gas in those markets on behalf of residential and small business customers, and the cost of buying that gas is billed to those customers with no markup, meaning SoCalGas does not profit from higher gas commodity prices.
Why Have Prices Been So High?
According to the US Energy Information Administration (EIA), a number of factors have contributed to higher natural gas commodity prices that customers are currently seeing.
Widespread, below-normal temperatures on much of the West Coast, including Washington and Oregon;
According to the EIA, the U.S. set a natural gas consumption daily record on Dec. 23, 2022, further exacerbating supply and demand woes last month.
Help is Available
SoCalGas' free Ways to Save tool may also help customers find ways to save on natural gas bills, with a personalized savings plan that offers a household energy analysis, customized energy-efficiency recommendations, bill comparisons and energy usage comparisons. Ways to Save can be found at socalgas.com/WaysToSave. Customers can also sign up for weekly Bill Tracker Alerts to monitor natural gas consumption, take steps to reduce usage, and avoid bill surprises.
Eligible customers may sign up for a Level Pay Plan (LPP), for example, which averages their annual natural gas use and costs over 12 months. There are also financial assistance programs for eligible customers who are experiencing hardships.
In January, SoCalGas tripled its contribution to the Gas Assistance Fund, increasing it to $1 million. This program helps income-qualified customers pay their natural gas bills with a one-time $100 grant.
Customers can visit socalgas.com/ManageHigherBills for more information on the factors that lead to higher bills and ways we can help.
For more information, please visit https://www.socalgas.com/highbills.
Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment.
SoCalGas' mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego.
SOURCE Southern California Gas Company
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