Photo: FREDERIC J. BROWN/AFP/Getty Images
Southern California Gas Company (SoCalGas) could surprise everyone and everyone by announcing a rate drop this week of natural gas for its customers.
The increase in this fuel worried thousands of residents about having to pay high bills in January, even despite using less natural gas, precisely in the middle of the winter season with its low temperatures.
Just before the end of the year, SoCalGas had anticipated that January bills could show an increase of up to 128% compared to December 2022, but there are customers who received bills with an increase of up to five times in the amount due or even elderly.
Related: SoCalGas customers will see higher bills, up as much as 128% from December 2022
As stated Monday by the president of SoCalGas, Maryam Brown, the increase in bills was due to an unusual supply and demand event.
This month, the price SoCalGas paid for natural gas increased to $3.45 per therm.which is four times higher than in the same period last year and up to 11 times higher compared to 2018.
Therm is a unit used in natural gas supply to calculate bills. Because the supplied fuel has a calorific value, therm is used instead of cubic feet, since gas is energy based.
Nationally, gas prices, such as those for the Henry Hub pipeline, registered a drop to levels not seen since June 2021.
“The problem is that the infrastructure in the West has been restricted, we have had limitations,” explained the president of SoCalGas.
“A limitation of being able to bring natural gas to the west of the country because the pipelines are already full and there was less storage in the northern areas of the statewhich affected prices in this region, but we do think it was sharp for a period of time, and we’re seeing those costs come down,” Brown added.
The SoCalGas official said that, along with grants from the gas assistance fund for eligible applicants, customers can expect to see their annual spring Cap-and-Trade credit early this year.
This Monday, SoCalGas unveiled the first in-home renewable hydrogen microgrid. In the presentation, California Lieutenant Governor Eleni Kounalakis stated that we are at the mercy of the fossil fuel industry until we turn to other resources.
Congratulations @socalgas and everyone who worked on [H2]IE. This first-in-the-nation clean energy powered home and microgrid uses clean energy like green hydrogen, solar, and battery storage – showing us a future that is clean, reliable, and carbon free. pic.twitter.com/2o5eLdC3r5
— Eleni Kounalakis (@EleniForCA) January 31, 2023
“Taking control of our energy future by investing in renewable energy is the best thing we can do for every working family in the state of California,” said Kounalakis.
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