Helping Our Customers Reduce Energy Costs as Natural Gas Prices Rise

Press release from PG&E Bay Area:

Feb. 16, 2023

Letter to the Editor
Helping Our Customers Reduce Energy Costs as Natural Gas Prices Rise This Winter

West Coast natural gas prices have been rising this winter, and PG&E wants our customers to know their energy bills are likely to rise as a result.

PG&E does not control the market prices we pay for natural gas, and we don’t mark up the cost of the energy we buy to serve our customers.

In late January, California average daily prices were five times higher than the U.S. benchmark and those in New York and Chicago.

Price increases are due largely to higher demand and tighter supplies, as customers use more natural gas for heating during cooler than normal temperatures, and as power plants use more natural gas to meet electricity demand.

PG&E customers have used more gas than the five-year average, with November usage 20% higher, December 10%, and January 10% higher.

As a result, residential gas and electricity bills could be 32% higher on average from November 2022 to March 2023 compared to the same time last winter, with most of the increase for energy supply costs.

PG&E works to limit price impacts by accessing the lowest-priced gas from three gas production basins, withdrawing gas from underground storage, and using financial hedging products to lock in lower prices.

We’re also working with regulators, policymakers and lawmakers to provide bill relief—including supporting the California Public Utilities Commission’s decision to distribute the annual April Climate Credit as soon as possible – a $91.17 credit for PG&E customers receiving gas and electricity. We also support the Governor’s call for a federal investigation into high gas market prices.

For energy tips and resources, visit www.pge.com/winter.
Aaron Johnson, PG&E Bay Area Regional Vice President

This press release was produced by PG&E Bay Area. The views expressed here are the author's own.