Governor Wants Investigation Into Natural Gas Price Spike

Governor Gavin Newsom is 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.

The rising bills have slammed the state, including Pasadena residents. Some local residents have seen their gas bill rise well over $500.

Last month, Mayor Victor Gordo met with the Southern California Gas Company to discuss the impact of price increases on local residents late last month after sending a letter to the utility.

Gordo said in a recent statement that his office has heard from many local residents.

“Together with staff, I met with Southern California Gas Co. in an effort to understand the causes of the increase and look for ways to address the financial hardship many of our residents are now facing with their gas bills,’ Gordo said. “So. Cal. Gas Co. has a Gas Assistance Fund to assist income-qualified customers as well as their Level Pay Plan and other payment management plans available.

“We are working to establish assistance opportunities at our community centers to help our city residents, especially those most vulnerable, take advantage of the programs offered by the Gas Company.”

The West Coast has experienced higher demand for natural gas due to colder than normal temperatures. To make matters worse, supplies from Canada and the Rocky Mountains have significantly reduced due to pipeline maintenance in West Texas.

In his letter to the Federal Energy Regulatory Commission (FERC), Newsom requested 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.”

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.

Last week, 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 So. California Gas Co., and several other companies.

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.

“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,” Newsom said. “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.”