Natural Gas Prices Way Down In Calabasas

CALABASAS, CA — Residents in Calabasas saw their utility bills drastically increase at the beginning of the year, but luckily those prices will be significantly lower in March according to Southern California Gas Co.

For the second month in a row, the market prices of natural gas have dropped and March rates are 83 percent lower than the rates that caused Calabasas residents to look at their January bills in shock.

“We’re pleased that we’re seeing what appears to be a trend to natural gas prices that are more in line with last year,” said SoCalGas Senior Vice President and Chief Customer Officer Gillian Wright. “Still, with the unusually cold and wet weather, we encourage customers to continue to conserve energy and take advantage of our cost-savings programs, which include recently improved direct financial relief for eligible customers.”

An unprecedented cold snap in the region caused market prices to more than double, which resulted in residents owing so much more than they usually pay. Thankfully, SoCalGas estimated that average residential bills will drop from $300 to about $100 this month.

The shocking increase was due to a variety of factors, according to SoCalGas, including:

• Temperatures being lower than normal on much of the West Coast
• Higher natural gas demand for heating due to below-normal temperatures
• Reduced natural gas supplies coming to California from Canada
• Low natural gas storage levels in California
• Reduced capacity on the interstate pipeline due to maintenance activities in West Texas

On Feb. 27, SoCalGas announced they would be putting $10 million toward additional relief for low-income families, seniors and small restaurant owners who were hit hard by the drastic price increases.

Specifically, the company put $5 million toward the Gas Assistance Fund, which provides one-time grants to help pay their gas bills. The contribution was the largest given to the fund since its creation 40 years ago.

An additional $4 million went to relaunching the company’s “Fueling Our Communities” program, which is a collaboration with food banks and nonprofits to provide free meals and groceries to Californians facing food insecurity. Another $1 million will go to the Restaurants Care Resilience Fund to help small businesses with improvements, upgrades, employee retention and to manage debt and rising costs.

"This winter's unprecedented natural gas prices, on top of already high inflation, have been a real hardship for many Southern Californians, especially our most vulnerable, our seniors, and people facing difficult circumstances," said SoCalGas CEO, Scott Drury.

For more information and to apply for the Gas Assistance Fund, visit SoCalGas’s webpage.