Have you noticed an increase in your SoCalGas bills? Typically, the winter months see a higher demand in gas usage and therefore a relative increase, however, the cost of gas has now increased significantly beyond seasonal variations. The procurement rate has doubled from last year – it is now about $0.84 per therm, up from about $0.40 per therm in January 2021. As a note, SoCalGas doesn’t produce the gas, they purchase and distribute – so this ‘commodity’ cost is basically passed through to the customer based on the market cost of gas. The company does try to mitigate cost increases by storing gas and then drawing on this supply when the prices goes up seasonally. There has also been a few other smaller increases on top of the procurement cost to maintain gas infrastructure and comply with new environmental regulations.
SoCalGas has provided the following resources for those who are interested in learning more:
If residents or businesses would like to speak to a SoCalGas representative, the customer service number is 1-800-427-2200.
1/26/22
City Hall Scoop 