- Governor Newsom sends letter to federal agency requesting investigation into natural gas price spike
- California accelerating bill credits of $90-$120 starting next month to support with high gas and electric bills
SACRAMENTO – As millions of California families experience soaring gas utility bills, Governor Gavin Newsom took action today urging the federal government to investigate the recent price spike affecting the Western U.S. and highlighted the state’s action to provide relief to Californians.
In a letter to the federal agency responsible for regulating wholesale natural gas, the Federal Energy Regulatory Commission (FERC), the Governor requested that the agency “immediately focus its investigatory resources on assessing whether market manipulation, anticompetitive behavior, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.”
Additionally, millions of Californians will soon see relief from high utility bills – with credits of $90 to $120 showing up on gas and electric bills as soon as next month.
On Thursday, the California Public Utilities Commission (CPUC) voted to accelerate the California Climate Credit to help California families with high gas bills. The $90-$120 credit will be applied to residential utility customer bills starting in March for customers of PG&E, Southern California Edison, San Diego Gas & Electric, and Southern California Gas Company. Customers of Bear Valley, Liberty, PacifiCorp, and Southwest Gas will also receive an accelerated credit of varying amounts.
Tomorrow, the CPUC and the California Energy Commission will host an en banc hearing to examine the causes and impacts of the recent spike in natural gas prices.
“Millions of California families are opening their utility bills to sticker shock – and we’re taking action now to provide relief to help with those high gas bills,” said Governor Newsom. “We know this provides only temporary relief from soaring bills. That’s why I’m asking the federal government to use its full authority to investigate the spike in natural gas prices and take any necessary enforcement actions. We’re going to get to the bottom of this because Californians deserve to know what’s behind these exorbitant bills.”
Check your climate credit amount here.
Californians do not need to do anything to get the credit. Every spring and fall, millions of Californians receive credits on their electric and natural gas bills identified as the California Climate Credit. The California Climate Credit comes from the State’s cap-and-trade program managed by the California Air Resources Board. The credit on utility bills represents the consumer’s share of the payments from the State’s program.
The CPUC and California Energy Commission will hold an en banc hearing on February 7 to bring together market experts to examine the possible drivers behind the natural gas price spikes and explore potential state actions that can be taken. The hearing includes participation of the California Independent System Operator and market experts from across the country to discuss possible drivers and explore any state measure to protect California customers. More information is available here.
CNN reported on January 6 that Natural gas prices have fallen to a 21-month low. Reuters reported this on January 31. On February 6, Yahoo Finance reported Natural Gas prices are at a 25-month low.
Meanwhile, PG&E announced on February 4 Residential customers will automatically receive the California Climate Credit earlier than usual this year. This credit will help offset higher than normal natural gas and electricity bills, which have been increasing due to higher demand and tighter natural gas supplies, especially on the West Coast.
For natural gas residential customers, the credit will be $52.78, and for electric residential customers, the credit will be $38.39. Customers who receive both services will receive a total credit of $91.17.
I’ve been watching politicians climb on the “get the evil energy companies” bandwagon ever since the 1970s – be it oil, natural gas or electricity. Its strictly political theatrics to be seen as “doing something.” Nothing ever comes of it because price spikes occur due to international market forces – not conspiracies.
It will all come back to the idiot in the white house, his policies have caused energy to go up in price. Newsome ‘s policies are just as bad.
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