SoCalGas adds 1 million dollars to gas assistance fund

SoCalGas Triples Contribution to Gas Assistance Fund to Help Customers Impacted by Historically High Natural Gas Prices

Southern California Gas Co. (SoCalGas) today announced a $1 million contribution to the Gas Assistance Fund, a program that helps income-qualified customers pay their natural gas bills beginning Jan. 17. Customers will be facing bills that could be double or higher compared to last year’s winter bills.

The high bills are a result of historically high natural gas prices in the western United States. SoCalGas doesn’t set the price for natural gas. Instead, natural gas prices are determined by national and regional markets. SoCalGas 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 SoCalGas does not profit from gas commodity prices going up.

According to the US Energy Information Administration (EIA), a number of factors are contributing to higher natural gas commodity prices: 

• Widespread, below-normal temperatures on much of the West Coast, including Washington and Oregon;
• High natural gas demand for heating by customers in areas with below normal temperatures;
• Reduced natural gas supplies to the West Coast from Canada and the Rocky Mountains;
• Reduced interstate pipeline capacity to the West Coast because of pipeline maintenance activities in West Texas; and
• Low natural gas storage levels on the West Coast.

A detailed report about these market conditions can be found here:
https://www.eia.gov/naturalgas/weekly/

To Read the full release click here