Understanding My Bill

Understanding My Bill
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SoCalGas Bill Explained

We walk you through common terms and charges you might see on your monthly SoCalGas bill.

 

How is My Natural Gas Bill Calculated?

Our rates are regulated by the California Public Utilities Commission, or CPUC, based on three components.

Commodity Costs

Factors that could impact your bill include the commodity cost of natural gas (also referred to as the “core procurement gas price”), seasonal variations, an increase in your natural gas appliance usage, weather conditions, and any remaining unpaid balance from prior bills.

Public Purchase Surcharge

The commodity cost of natural gas is just one factor that makes up the total charges on a customer’s bill. Natural Gas Transportation Rates and Public Purpose Surcharges also make up charges that customers can expect to see on their bills.

Transportation Rates

New gas transportation rates, approved by the CPUC, went into effect on January 1, 2023. Residential average transportation rates increased by about 8% and small business transportation rate increased by about 5% on average.These transportation rate changes will allow us to continue upgrading our infrastructure, retain responsible, well-trained employees, and support the growth of diverse energy options.

Overall, about 92% of your bill goes toward products and services provided to you essentially at cost, with the remaining eight percent going toward a return on SoCalGas’ investment in the gas system.


More information about how these charges are reflected on your bill can be found here.

How are Rates Calculated?

Our rates are regulated by the California Public Utilities Commission, or CPUC, based on three components.

 

Propose

SoCalGas analyzes the future needs of the natural gas system and estimates the funding needed for the next three years to upgrade utility infrastructure, operate systems safely, invest in new technology and provide responsive customer service.

Review

The CPUC takes about two to three years to hold public hearings, open comment periods and formal sessions before an administrative law judge. They also need that time to analyze the input gathered. Public advocates comment on both the plans for the natural gas system and their proposed costs and raise issues they believe to be in the public’s interests. After its analysis, the CPUC determines SoCalGas’ budget for the next three years.

Implement

The CPUC decides how to divide the increased need for funding into rate increases to be paid by the different categories of natural gas customers. Commercial and industrial users usually fund a larger part of the rate increases because of their heavier demands on the system. Residential rates are split into “tiers,” and customers who use more natural gas pay a greater percentage of the funding needed to operate and maintain the natural gas system.

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How to Read a Natural Gas Meter

Find out how to read your natural gas meter.
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HomeServe Charges on My Bill

Questions about third-party charges on your natural gas bill? As a convenience to customers, we've been providing billing services to third parties selling energy-related or home safety-related products or services since the late 1990s.
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