Pricier Gas Bills May Hit SoCal Next Year Under Proposed Rate Hike

LOS ANGELES — Southern California may see even more price hikes on their gas bills next year under a proposal filed by the Southern California Gas Company (SoCalGas) seeking a 13.2 percent increase in 2024.

The nation's largest natural gas utility, serving nearly 22 million customers, filed the application last summer, a few months before Californians endured an unprecedented surge in prices this winter. Many saw their bills triple in January, before getting some relief in February. Heading into March, SoCalGas said market prices for natural gas were down 83 percent from their January highs and estimated average bills would be closer to $100 instead of $300.

Officials estimate the increase would push the average monthly residential gas bill up by $8.62. But the prospect of any built-in price bump next January has billpayers across the region on edge.

Home and business owners told KCAL this week they were perplexed that the utility would move forward with a double-digit increase after what happened this winter. Some residents said they had to make adjustments to operations or even cut back on groceries to make it through. Many turned down their thermostats and shivered through February's cold snap.

The application still needs approval from the California Public Utilities Commission, and the price hike would impact virtually everyone in the region. According to SoCalGas, more than 90 percent of Southern California households rely on natural gas for heating and hot water, and 60 percent of the Golden State's total electricity is generated from natural gas.

Boosting rates, the utility argues, will allow it to keep service stable.

"Our rate request will allow us to modernize and upgrade our infrastructure so that we can maintain and enhance long-term reliability and safety for our customers; support the growth of more diverse renewable energy options, and retain and reward the most talented energy professionals, so they can continue delivering the safe, clean, and reliable energy and superior customer service our customers deserve," SoCalGas wrote on its website. "In submitting a rate request, we hold ourselves accountable to our customers first and foremost."