BAKERSFIELD, Calif. (KERO) — With the severe winter conditions across the state and the nation, homeowners will likely see an increase in their natural gas bills this month. Energy providers Pacific Gas & Electricand SoCalGas have insights into what exactly is contributing to the higher prices at this time of year, and what energy consumers can do to keep their costs as low as possible.
Extreme flooding and colder temperatures are just some of the things Californians have been dealing with for the past few weeks, and with that winter weather comes not just more consumption of gas for heating homes and businesses, but also a jump in natural gas prices.
Gas companies PG&E and SoCalGas say the spike in natural gas prices comes down to the situation of supply and demand, and according to the U.S. Energy Information Administration, natural gas supply has not kept pace with the increased demand.
Net natural gas-flows from Canada to the western region of the U.S. were down by 4 percent in the first 3 weeks of December, 2022 compared to the last 2 weeks of November. Natural gas deliveries from the Rocky Mountains to the Pacific Northwest were 9 percent lower over the same period.
Overall, natural gas consumption increased by almost 30 percent in U.S. residential and commercial areas, and that's a rise Smith says he doesn't foresee going back down until February.
"We've certainly seen it over the course of the last couple of months. On the national scale more recently, the natural gas prices have dropped a little bit, but we haven't seen that reflect in California yet. The market here in California is still pretty high," said PG&E spokesperson Jeff Smith. "Given these increases in market prices, we just want to make sure that our customers are aware that their natural gas bills are going to be higher than they were last winter, and the increases are expected to be the highest during the peak winter months, which are from December to February. We're still in the middle of that right now."
Smith says that every degree you can lower your thermostat makes a difference. You can save around 2 percent on your heating bill over a month for every degree you turn the heat down so long as that turndown lasts for at least several hours during the day or night.
Business owners can save money on their energy bills by turning off equipment when it's not in use, and by ensuring that the timer settings on their heating systems match when their buildings are in use.
"I understand that it is cold out there, and we certainly don't want people to do anything that makes them unsafe. We recognize that it is our responsibility to serve our customers reliably and try to keep bills as low as possible. We are working to stabilize that for the long term, but right now in the short term because of these market prices, customers are seeing that increase," said Smith.
Some may see much more of a spike than others. SoCalGas is indicating that if a residential customer's peak winter bill was around $65 dollars this time last year, they can expect to see this winter's bills jump to around $160 dollars. Bills that were around $130 in January of 2022 will be closer to $315 this January.
To help their customers cushion the shock, SoCalGas recommends the same steps as PG&E, also adding that using cold water for laundry, turning down the temperature on the water heater, and limiting the use of non-essential appliances that use natural gas such as spas, pool heaters, and gas-burning fireplaces.
Customers of either PG&E or SoCalGas should check with their provider to see if they qualify for any of the customer assistance programs both companies offer to help people stay current on their energy bills, whether someone just needs a few more weeks to pay this month or long-term cost relief, both PG&E and SoCalGas are glad to help customers with their bills.
For some of the grant-funded programs, such as LIHEAP (Low Income Home Energy Assistance Program, a federal initiative) and state energy assistance programs available through energy providers, customers may be asked to provide proof of enrollment in other state and federal benefits programs, such as CalFresh (food stamps), Social Security, or SSI.
For other programs offered directly by the companies, such as extra payment time, past-due bill reconciliation (arrearage management), and other types of payment arrangements, customers can visit the website of their energy provider, either Pacific Gas & Electric or SoCalGas, for more information and to apply.
