Natural Gas Prices Way Down In Long Beach

LONG BEACH, CA — Residents in Long Beach saw their utility bills drastically increase at the beginning of the year, but luckily those prices will be significantly lower in March according to Long Beach Utilities.

For the second month in a row, the market prices of natural gas have dropped and March rates are 81 percent lower than the rates that caused Long Beach residents to look at their January bills in shock.

Month-to-month natural gas wholesale market prices went down from about $3.81 in January to about $1.28 in February and finally to about $0.71 in

“The March Cost of Gas is welcome news for our customers,” Long Beach Utilities General Manager Chris Garner said. “As we come out of this crisis, we are committed to helping our customers recover while working to ensure greater price stability going forward.”

An unprecedented cold snap in the region caused market prices to more than double, which resulted in residents owing so much more than they usually pay. Thankfully, SoCalGas estimated that average residential bills will drop from $300 to about $100 this month.

The shocking increase was due to a variety of factors, according to SoCalGas, including:

• Temperatures being lower than normal on much of the West Coast
• Higher natural gas demand for heating due to below-normal temperatures
• Reduced natural gas supplies coming to California from Canada
• Low natural gas storage levels in California
• Reduced capacity on the interstate pipeline due to maintenance activities in West Texas

In the past two weeks, Long Beach Utilities officials said that they have distributed more than $6 million in Californa Climate Credits to all customers and another $1 million in one-time assistance to more than 6,500 customers in need.

Luckily due to these contributions, all residential customers should see a $45 credit on their upcoming bill the utility department said. Those approved for the Low Income Gas Discount Program, Senior/Disability Discount Program or the Residential Gas Assistance Credit will also see credits for $200, $150 and $100 respectively.

“Nearly everyone in our community has seen impacts from high natural gas costs, even those who might not normally struggle to pay their bills. It’s important that we do all we can to help as many people as possible,” said Gloria Cordero, Board of Utilities Commissioners president.

For more information and to apply for a one-time bill credit, visit Long Beach Water's webpage.