January Gas Bills Will Be 'Shockingly High' In California

A perfect storm of circumstances will see California gas bills go up — way up — in January, according to utility companies.

“There’s no easy way to put this: January bills are likely to be shockingly high,” SoCalGas said in a recent news release.

The company’s gas procurement rate has risen more than 300 percent year-over-year. Customers whose peak winter gas bill was around $130 last year should expect to pay closer to $315 now, according to the utility provider.

SDG&E customers can expect far higher bills year-over-year as well, after the company’s cost per natural gas unit — or therm — spiked from $2.36 to $5.11. Households that had a January gas bill of roughly $105 in 2022 should plan for this month's bill to come in at about $225, according to the company.

In the Bay Area, PG&E projected last month that energy bills would be around 24 percent higher year-over-year in December through February, with an average residential customer seeing a roughly $67 monthly increase.

So, what’s to blame? Utility companies cite an unprecedented confluence of difficult circumstances, including the recent cold snap, pipeline constraints associated with maintenance work in Texas, low gas storage in the Pacific region, and increased transportation rates, which are reviewed yearly by a state utilities commission.

Temperatures from Nov. 1 to Dec. 18 were several degrees below normal, and PG&E customers used about 26 percent more natural gas this November than the five-year historic average, according to the company. Natural gas storage is also roughly 26 percent below the five-year average.

California’s situation is unique, energy futures strategist Robert Yawger told the Los Angeles Times, which reported that in many parts of the U.S., natural gas futures have dropped in cost amid relatively mild winter conditions.

“Natural gas prices change daily and have been much higher on the West Coast (California, Oregon and Washington) than the rest of the country in November and December,” according to PG&E.

California has also had to rely more on natural gas after cold, dry conditions in Oregon and Washington led the states to send less hydroelectric power south, the Times reported.

International forces are at play as well, Consumer Watchdog’s Jamie Court told the Times, as natural gas exports to Europe are up in the wake of Russia’s invasion of Ukraine.

What can residents do to combat rising gas bills? All three major utility companies offer level pay options that average gas costs over multiple months. Other steps customers can take include washing clothes in cold water, lowering the water heater temperature, keeping the areas around vents clear, and closing curtains and blinds at night.