Higher costs of gas and colder temperatures have left PG&E customers with rising bills.
The energy company, citing tight supply and increased demand in an unusually chilly winter, warned Californians of high prices in December. It projected residential energy prices would be roughly 32% higher between November and March compared with the same period a year earlier.
Some customers have been shocked to see their bill go up as much as 385 percent. Nationwide, wholesale natural gas prices have fallen about 50 percent since the end of October. Meanwhile, the opposite trend has emerged in California, where prices have risen 63 percent.
Some relief, however, is on the way. Last week California Public Utilities Commission approved sending utility customers the annual California Climate Credit earlier than its usual April distribution schedule.
Residential customers who use natural gas supplies will get a credit of $52.78, while residential electric customers can look forward to a credit of $38.39. Customers who receive both services will receive a total credit of $91.17.
“PG&E recognizes our responsibility to serve our customers safely and reliably while keeping their energy bills as low as possible. With the price PG&E pays for natural gas rising this year, this credit is great news for PG&E customers, who are likely noticing higher than average bills,” said Vincent Davis, PG&E’s Vice President of Customer Operations and Enablement.
The credit is automatic, so customers won’t need to do anything.
More cold and dry weather is expected this week, with daytime highs forecast below normal and chilly overnight lows in PG&E’s service area.
“Like other utility companies, PG&E does not control the market prices it pays for gas and electricity nor does PG&E mark up the cost of the energy it purchases on behalf of its customers,” said PG&E in a press release.
The company says that as of Jan. 25, it projects that residential combined-use gas and electricity bills will be about 32 percent higher from November to March, compared to last winter. Bills for individual customers vary based on factors including how much energy they use. However, if gas prices fall and the weather warms, bill impacts could be less severe.
In its Monday statement, PG&E said it’s using three strategies to help moderate the impact of dynamic natural gas pricing on its customers:
- Accessing the lowest-priced gas from three gas production basins.
- Withdrawing gas from underground gas storage when demand and prices increase.
- Using financial hedging products to lock in lower prices.
The company offers the following advice to manage winter bills:
- Keep bills predictable. Level out monthly payments and offset high seasonal bills with Budget Billing, a free tool that averages your annual energy costs to help manage monthly bills.
- Flexible payment arrangements. Extend your bill due date or make a payment arrangement. Access your online account for details.
- Customers may also qualify for financial assistance programs including the Low-Income Home Energy Assistance Program (LIHEAP), a federally-funded assistance program overseen by the state that offers one-time residential utility bill payment.
