Understanding your gas bill
Many people believe that Southern California Gas Company (SoCalGas) produces natural gas, but we don't. For our residential and smaller business customers, we buy natural gas from producers and marketers at the best possible prices on the open market.
Four components contribute to your natural gas bill: 1
- Cost of Natural Gas (39 cents of your dollar) is based on market supply and demand. They're not marked up by SoCalGas, and are included in with the delivery costs on your monthly bill and shown as the "Gas Charge."
- Cost of Delivery (45 cents of your dollar) covers the costs of transporting natural gas through our pipeline system. It is approved by the California Public Utilities Commission and is not impacted by the price of natural gas.
- Public Purpose Surcharge (8 cents of your dollar) provides funds to assist low-income customers in conserving energy and paying their bill. This is in addition to any Users Taxes charged by your local city or county.
- Profit (8 cents of your dollar) is the company's after-tax, net income.
1Based on 2009 data.
May Gas Price Outlook
Effective May 1, 2013, the procurement component of the core sales rate will increase 2.044 ¢/therm to 45.006 ¢/therm. This increase resulted from a 1.000 ¢/therm increase in commodity prices and a 1.044 ¢/therm increase in account adjustments. Compared to a year ago, the procurement rate is about 84.5% higher (24.397 ¢/therm) than what it was effective May 2012.
Combined with the transportation rate, core residential and C&I sales customers will see about a 2.8% rate increase from last month.
Here are some steps you can take to help manage your energy use:
Helping customers in need
We understand that many of our customers are faced with tough financial decisions and are struggling to make ends meet. Take advantage of available opportunities for relief:
- Bill assistance programs including discounts, no-cost energy-saving home improvements and more
- Rebates and energy efficiency programs to help you save energy and money
- Payment arrangement opportunities for those having trouble paying bills on time