San Diego Gas and Electric announced the average price of natural gas is expected to see a significant decline in February compared to January 2023, plunging from $3.45 per therm to $1.11 per therm.
The price of natural gas throughout the United States hit historic highs due to the “unprecedented market conditions in the western United States, according to the utility. San Diego Gas and Electric credit the extreme volatility in gas prices to the high demand for natural gas due to cold weather coupled with the partial closure of a major third-party pipeline that provides gas to the West and limited gas storage in California.
“Lower gas prices are certainly welcome news, but we recognize many of our customers still need support to deal with higher gas bills, and we’ve developed solutions to ease the financial strain,” said SDG&E Vice President of Customer Services Dana Golan. “We are here to help and encourage customers to take advantage of our assistance programs, bill discounts, and energy efficiency programs that can help provide additional bill savings.”
According to the utility, the typical residential customer’s gas bill (commodity plus delivery charges and other mandated fees and taxes) is expected to decrease to about $110 in February, from about $225 in January. The company said it does not set the commodity for natural gas. Rather, the price is determined by natural and regional markets.
SDG&E said it buys natural gas in those markets on behalf of residential and small business customers, and the cost of buying that gas is billed to those customers with no markup, meaning SDG&E does not profit from the movement of gas commodity prices.
SDG&E began alerting customers about rising gas prices and anticipated rate changes in October so they could be better prepared.
Ratepayers were encouraged by the utility to use a variety of assistance programs, including bill discounts, debt relief, payment plans, and energy efficiency programs, which are available to customers who are struggling. The Neighbor-to-Neighbor program, funded entirely by SDG&E shareholder dollars (not ratepayer dollars), provides eligible customers with up to $300 to offset their outstanding bills.
The federally funded Low-Income Home Energy Assistance Program (LIHEAP) offers financial help ranging from a few hundred dollars to a few thousand dollars, depending on household income, size, and past due balances.
To learn more about these assistance programs, visit sdge.com/assistance
