Gas Price Hike for Next Year?
The Southern California Gas Company (SoCalGas) has recently submitted an application requesting an increase of 13.2% in gas bills for the upcoming year. The proposed increase would result in an average monthly residential gas bill hike of $8.62. However, the application is still awaiting approval from the California Public Utilities Commission, and if approved, the price hike would impact virtually everyone in the region.
Natural gas is a primary source of heating and hot water for over 90% of households in Southern California, and 60% of the state's electricity is generated from natural gas. SoCalGas argues that increasing rates is necessary to maintain stable service.
As per the Los Angeles Times, the price for "core procurement," which includes residential and small commercial customers, is established at the beginning of each month. The cost has surged from $1.05 per therm (a unit of natural gas) in December to $3.45 per therm on Jan. 1. As a result, a household that paid $65 for gas in January of the previous year would likely face a bill of about $160 this January, according to the utility. Similarly, a $130 bill would increase to around $315.
In conclusion, SoCalGas's proposed gas bill increase would impact a vast majority of Southern California's households and businesses. If approved, it would lead to a significant increase in monthly bills for consumers and further impact the cost of living in the region.