SoCalGas: Natural gas prices to drop, in February

LOS ANGELES (CNS) — There’s good news for residents who were hit with shockingly high natural gas bills.

Southern California Gas Co. says the natural gas commodity price will drop by 68% next month compared to January’s record-high prices, translating to dramatically reduced bills.

SoCalGas projects that if a customer received a $300 bill, in January, that same usage would result in a bill of about $135, in February. However, prices in the western region are still higher than last year, when the average residential bill, for February, was $99, according to the company.

“While we’re relieved that prices have dropped significantly since last month, they remain higher than usual for this time of year,” Gillian Wright, SoCalGas senior vice president and chief customer officer, said in a statement.

“We know that many of our customers are feeling the impacts of high prices, and we hear their concerns. More than ever, we urge customers to take advantage of conservation tips, programs, and financial assistance that may be available for eligible applicants to provide some relief.”

According to the utility, the drop in consumer gas prices is primarily due to a corresponding drop in the wholesale price SoCalGas will pay for gas, in February, compared to January.

February’s core procurement rate will be about $1.11 per therm, compared to $3.45 per therm, in January. However, February’s procurement rate is still more than 80% higher than it was a year ago, the company said.

The core procurement rate reflects the price SoCalGas pays for natural gas for residential and business customers. That rate changes, each month, based on national and regional markets. According to SoCalGas, the utility bills customers for the gas with no markup and does not profit from the movement of gas commodity prices.

Long Beach Mayor Rex Richardson announced, this week, that the City Council will hold an emergency meeting, Wednesday, to “establish a financial assistance fund for seniors and families struggling to make ends meet.”

SoCalGas recommends the following tips to reduce energy usage:

• Lowering the thermostat by three to five degrees — if health permits — which can save up to 10% on heating costs.

• Installing proper caulking and weather-stripping to save roughly 10 to 15% on heating and cooling bills.

• Washing clothes in cold water to save up to 10% on water heating costs.

• Considering turning down the temperature on water heaters.

• Limiting use of non-essential natural gas appliances such as spas and fireplaces.