San Diego Gas & Electric offered cost-saving tips to consumers as wholesale natural gas prices continue to soar nationwide due to cold weather, and is likely to increase even higher into January 2023.
The residential natural gas rate increased by 19% between November and December because the commodity for gas went up significantly, according to San Diego Gas & Electric.
“Based on the latest market dynamics, current forecasts indicate that prices could go even higher into January when the weather in our region is typically the coldest, and gas usage is generally the highest, potentially putting more upward pressure on customers’ bills,” SDG&E wrote in a statement.
San Diego Gas & Electric cited a recent article published by National Gas Intelligence which describes a “perfect storm” – frigid temperatures across the West, low storage inventories, and other factors impacting supply and demand– wholesale natural gas prices are at “historically high” levels.
According to the utility, the cost the utility pays to buy natural gas in the wholesale market on behalf of its customers is a direct passthrough, with no profit margin—meaning that if SDG&E pays $1 for natural gas in the commodity market, that's what SDG&E customers pay.''
“SDG&E remains committed to working with our customers as prices for a variety of goods and services, including natural gas, continue to surge across the nation,” said SDG&E Vice President of Customer Services Dana Golan. “It’s important that we help customers prepare as much as possible for colder weather and higher winter energy bills and that we provide access to financial assistance.”
SDG&E provided the following energy savings tips to help customers reduce costs:
- Block the chill: Caulk and weather-strip around drafty doors and windows. Use a door sweep, door sock, or towel at the bottom of doors with a gap.
- Keep Your Furnace Clean: Check furnace filters once a month and replace them regularly. A dirty air filter can increase your energy costs and cause problems with your equipment.
- Wash Clothes with Cold Water: Using warm water instead of hot water can cut a load’s energy use in half; using cold water will save even more. Plus, cold water helps your clothes last longer
- Lower Water Heater Thermostat: Lowering the thermostat on your water heater to 120°F, if possible. This will save energy and avoid scalding.
Information about assistance programs, ranging from bill discounts, bill payment plans, and debt relief, can be found at sdge.com/assistance.
