Every four years, the California Public Utilities Commission (CPUC) approves new rates for SoCalGas in a General Rate Case (GRC). During the GRC proceeding, SoCalGas presents its request to the CPUC for recovery of the costs for serving its customers. These costs include those to operate and maintain our gas system and for needed investments in that system. The CPUC’s final decision in the GRC determines the amount SoCalGas can collect in customer rates.
What does this mean for customer bills?
Beginning Feb.1, 2025, in accordance with the CPUC’s final determinations, SoCalGas customers will see an increase in rates charged on their SoCalGas bills. A typical residential natural gas customer can expect to see an increase of about $7.93, or 12%, compared to their peak monthly January 2025 gas bill. A typical residential customer enrolled in the California Alternate Rates for Energy (CARE) program can expect an increase of about $4.35, or 11%, compared to their peak winter January 2025 gas bill.
How are rates for delivering natural gas calculated?
The GRC involves a detailed review of our costs for operating and maintaining our system and the need for additional investments. The CPUC oversees the proceeding, which includes numerous public regulatory tasks such as testimony from ratepayer advocates, environmental groups, and others, as well as public hearings.
In December 2024, the CPUC issued a final decision in our most recent GRC and determined both what customers will pay from 2024-2027 and how much authorized funding SoCalGas will receive to provide service to its customers. While the CPUC GRC decision occurred in December 2024, the rates SoCalGas can charge are effective retroactive to Jan. 1, 2024.
The rates authorized in the GRC do not include the cost of the natural gas customers use. The core procurement rate changes each month and reflects the price SoCalGas pays for natural gas for residential and small commercial and industrial customers. SoCalGas does not set the price for natural gas. Instead, natural gas prices are determined by national and regional markets. SoCalGas buys natural gas in those markets on behalf of residential and small business customers, and the cost of buying that gas is billed to those customers with no markup. Additional information about how commodity prices affect customer bills can be found here.
What are the drivers of the rate increase?
The CPUC’s GRC decision authorizes funding that is intended to allow SoCalGas to continue to invest in our infrastructure to maintain and enhance long-term safety and reliability for our customers.
Additional information about the GRC rate increase: CPUC Fact Sheet
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