California warns of ‘shockingly high’ gas bills in January as gas prices soar

The Southern California Gas company (SoCalGas) has warned its American customers of “shockingly high” bills as new gas rates have skyrocketed.

Being the primary provider of natural gas to Los Angeles and Southern California, SoCalGas said in a statement that anyone who heats their home with natural gas is likely to see a January bill that is more than double the rate they paid a year earlier.

“There’s no easy way to put this: January bills are likely to be shockingly high,” the company said in a statement.

The customers are expected to pay about 128 percent higher bills in January, as compared with the previous month, according to the statement.

Those who typically paid around $65 a month last winter can expect to see bills closer to $160 this year. Those who paid around $130 a month could see charges jump to $315, SoCalGas reported.

The increases result from the soaring wholesale price of natural gas paid by SoCalGas and passed through to its customers. That price, set by national and regional markets, rose 2.5 times over December’s price, and is up more than 300 percent from January 2022, according to SoCalGas.

Poll: More than half of Americans say inflation causing hardship

As much as 55 percent of American adults say inflation is causing them hardship, poll shows.

The company said it will try to ensure low-income customers to pay their gas bills, blaming the national cold waves and market prices for the rising bills.

“While we don’t set these prices (they’re set by regional and national markets), nor does SoCalGas actually profit from rising prices, we want our customers to know that we understand that this may be a shock and a hardship for some,” the statement read.

The increase in natural gas prices has also given rise to electricity bills across the US. The company says it has a direct effect on electricity bills. Natural gas is the source of production of about 22 percent of the company’s electricity, so when gas prices go up, electricity prices go up too.

The cold storm that hit the North American countries has also contributed to gas prices, as increased demand for gas during extremely low temperatures has led the prices to soar.

Meanwhile, pipelines in West Texas undergoing maintenance contributed to reduced supplies from the West Coast to the Rocky Mountains, according to the US Energy Information Administration.

Southern California’s natural gas storage reached 25 percent below last year’s levels, according to the energy information agency, which led to SoCalGas paying about 227 percent more to buy natural gas this month compared to December.

Although colder winters do cause US price hikes, “[natural] gas prices don’t just double overnight because things got a little colder than last year,” said Jamie Court of Consumer Watchdog.

Court said prices are being pushed higher in part because of natural gas supply that has been shipped in the form of liquefied natural gas to Europe, which had been building stockpiles in the face of natural gas cutoffs from Russia since that country launched war on Ukraine in February.

“This is about all the LNG we are exporting to Europe,” Court said. “They’re selling our natural gas to Europe because they get a higher price.” The resultant inventory shortages lead to higher prices for US consumers, he said — and the companies can put on the squeeze because “consumers really need it.”

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk