SoCalGas Proposed Increase

By Mary O’KEEFE

Southern California Gas Company (SoCalGas) and the California Public Utilities Commission (CPUC) are asking for the people to participate in a public forum concerning the SoCalGas’ 2024 General Rate Case application.

The public is encouraged to make comments and raise concerns with the CPUC’s Administrative Law Judge who is overseeing this rate increase request.

SoCalGas filed an application with the CPUC last May, before the dramatic increases in natural gas bills. The application also included a request to include more price increases to be implemented until 2027.

“The request is a detailed projection of what it will cost to safely, reliably, and sustainably deliver energy to the company’s nearly 22 million consumers from 2024 to 2027,” stated the SoCalGas website.  “Our rate request will allow us to modernize and upgrade our infrastructure so that we can maintain and enhance long-term reliability and safety for our customers; support the growth of more diverse renewable energy options, and retain and reward the most talented energy professionals, so they can continue delivering the safe, clean, and reliable energy and superior customer service our customers deserve.”

According to their website if the rate increase is approved, customers will see an increase of about $8.62 per month in 2024; however, individual customer bills may vary.

The hearings, also known as Public Participation Hearings are to be held virtually on March 6 beginning at 2 p.m. Access can be via phone by calling (800) 857-1917, or webcast by going to adminmonitor.com/ca/cpuc The passcode is 1767567#

Another meeting will be on March 15 at 6 p.m., calling in (800) 957-1917 and webcast go to adminmonitor.com/ca/cpuc Passcode is 1767567#

People can also write comments at any time during the proceeding at apps.cpuc.ca.gov/c/A2205015.

In a Feb. 2022 article CVW covered the previous SoCal Gas rate hike.

Customers found their bill had increased as much as 200% from 2021. Natural gas prices are heavily regulated in California with the CPUC calculating and approving rates based on (1) the cost of natural gas on the international market, (2) transportation costs and (3) public-purpose surcharges that fund natural gas related programs. And according to SoCal Gas’ Natural Gas Rates Explained page, only about 8% of billed revenue goes toward a return on SoCalGas’ investment in the gas system.

Two rate changes were approved by the CPUC in 2019 and went into effect on Jan. 1 2022 which led in part to increases in billing. The rate changes included an updated transportation rate and an updated commodity procurement rate designed to support infrastructure upgrades and energy diversification. These increases led to a 110% increase in the base procurement rate for natural gas compared to 2021.

SoCalGas also faced lawsuits and fines including a $10 million fine handed down in 2022 by the CPUC for improperly using ratepayer money to lobby public officials and fight against standards designed to make homes and businesses more energy efficient. Days before that fine was issued, SoCalGas agreed to a $1.5 million settlement that alleged It failed to warn customers about possible exposure to toxic chemicals. In 2021, the company agreed to a $1.8 billion settlement over the 2016 Aliso Canyon facility blowout.

For people struggling to pay their utility bills, SoCalGas and the state of California also offer a number of assistance programs. More information on assistance programs can be found at: https://www.socalgas.com/save-money-and-energy.

SoCalGas offers several energy-saving tips on its website at https://www.socalgas.com/save-money-and-energy/energy-saving-tips-tools.

Justin HAGER contributed to this article