Californians are being hit with big increases in their utility bills this winter as natural gas prices spike dramatically, and it’s exceptionally bad timing.
Inflation had already strained household finances. Utility rates had been rising in recent years, but now gas bills are expected to more than double this month, compared with a year ago. Wholesale natural gas prices have tripled since early December and are being passed on directly to customers. Southern California Gas Co. warned its 5.9 million customers to expect “shockingly high” bills, estimating that if they paid $130 a month last winter, the same level of usage could cost $315 this year.
This natural gas price shock should serve as a reminder of the inherent instability of fossil fuels, similar to the surge in gasoline prices last year after Russia’s invasion of Ukraine. It’s the latest illustration of why there are more than just environmental reasons to quickly phase out natural gas, a fossil fuel that pollutes the air and is heating up the planet. It’s not just better for our future to use electric heating and cooking appliances fueled by increasing amounts of renewable energy, but for our pocketbooks, too.
With the potential for high prices to continue through the winter, SoCalGas is suggesting customers conserve by lowering their thermostats 3 to 5 degrees, turning down the temperature of their water heaters and washing their clothes in cold water, among other steps.
You can’t blame utilities for offering tips, but residents are in this position of vulnerability and dependence because our infrastructure is built to promote fossil fuel use. The state has a much higher percentage of homes with gas appliances than other parts of the country, so Californians are particularly vulnerable when prices shoot up.
So much for the notion of “clean, safe and reliable” energy that the gas company and other fossil fuel companies have touted as they’ve sought to block climate action and fight efforts to electrify homes and businesses. The spike in natural gas prices is also largely responsible for increasing electricity bills for millions of Southern Californian Edison customers by an average of $11.80 in January, because the utility still relies on gas-fired power plants.
Conservation could certainly help in the short term, and there are customer assistance programs to cut your bill or spread out the costs over the year. But the long-term solution is to get off fossil fuels and divorce ourselves from their volatility.
Authorities say the price spikes are being caused by a confluence of factors, including below-normal temperatures across the West that increased natural gas consumption when there wasn’t enough gas flowing or in storage to meet demand. That’s in part due to repairs on the main pipeline that connects West Texas to Southern California.
Gas company officials say that the unusually high prices are largely out of their control and that they are not profiting from the spikes. But they mostly dismiss concerns that this episode suggests the gas delivery system cannot be counted on to deliver affordable energy for customers to heat their homes when they need it most.
Consumer advocates are calling for an investigation into the price spikes to ensure there is no profiteering or market manipulation. Meanwhile, state Public Utilities Commission officials are considering early distribution of the California Climate Credit to offer relief to millions of residents that normally see it on their bills in April.
If the health hazards of gas stoves or the disastrous 2015 blowout at the Aliso Canyon storage facility weren’t reason enough, maybe the pain of these higher bills will provide policymakers with motivation to accelerate the transition to electric buildings powered by renewable energy and battery storage.
There is financial assistance on the way thanks to the Inflation Reduction Act signed by President Biden last year, which includes an array of credits, rebates and other incentives to help people replace their gas-fueled appliances with cleaner, more efficient, electric-powered heat pumps and induction stoves and take other steps to decarbonize their homes and businesses.
The sooner we can move beyond the unhealthful and outdated and unreliable ways of the past the better.
It’s bad enough that so many of us have to depend on a polluting, planet-warming fossil fuel to cook our food, heat our water and keep our homes warm. We shouldn’t also have to live in fear of soaring prices because there is no other option. Let’s hope this condition won’t last much longer.
