CPUC Approves Accelerated Climate Credit for SoCalGas Residential Customers

Rhea-AI Summary

SoCalGas customers will receive a one-time California Climate Credit of $50.77 due to high natural gas prices in January. The California Public Utilities Commission (CPUC) approved this credit to be applied in February or March, depending on billing cycles. This acceleration comes as natural gas prices dropped significantly for February but remain higher than last year. SoCalGas emphasizes conservation and offers assistance programs to help customers manage costs. The company does not profit from increased gas prices, as they buy natural gas at market rates without markup, passing the costs to consumers directly.

Positive

• One-time Climate Credit of $50.77 for residential customers to help mitigate high natural gas costs.
• Lower market prices for natural gas in February compared to January, providing potential relief for customers.

Negative

• Natural gas prices still remain higher than last year, impacting customer bills.
• High natural gas prices in January resulted in a significant financial burden on 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;

• High natural gas demand for heating by customers in areas with below normal temperatures;
• Reduced natural gas supplies to the West Coast from Canada;
• Reduced interstate pipeline capacity to the West Coast because of pipeline maintenance activities in West Texas; and
• Low natural gas storage levels in the Pacific Region.

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

• Conservation is one way to help lower bills. SoCalGas recommends the following tips to reduce energy usage:
• Lowering your thermostat three to five degrees – if health permits – can save up to 10 percent on heating costs.
• Installing proper caulking and weather-stripping can save roughly 10 to 15 percent on heating and cooling bills.
• Washing clothes in cold water to save up to 10 percent on water heating costs.
• Considering turning down the temperature on your water heater, keeping in mind that most hot water heaters require a temperature of 120 degrees or higher.
• Limiting use of non-essential natural gas appliances such as spas and fireplaces.

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.

About SoCalGas 

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. 

For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. 

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SOURCE Southern California Gas Company

FAQ

What is the California Climate Credit for SoCalGas customers?

SoCalGas customers will receive a one-time Climate Credit of $50.77 approved by the CPUC to offset high natural gas prices.

When will SoCalGas customers receive their Climate Credit?

Customers will receive the Climate Credit in February or March, depending on their billing cycle.

How has the natural gas price trend affected SoCalGas customers?

Natural gas prices dropped significantly for February but remain higher than last year, impacting overall customer bills.

What assistance programs does SoCalGas offer?

SoCalGas offers various assistance programs, including conservation tips and financial aid for eligible customers facing high bills.

What caused the high natural gas prices in January?

Factors include increased demand due to below-normal temperatures and reduced natural gas supplies from Canada.