California natural gas bills continue to soar; state might issue credits early

Some early relief could be on the way for Californians who are struggling to afford exorbitantly high natural gas bills this winter.

The California Public Utilities Commission is considering distributing California Climate Credits before April, when natural gas credits are typically issued, CPUC President Alice Reynolds recently said.

Those payments come from a state program that requires power plants, natural gas companies and other large industries that emit greenhouse gases to buy carbon permits through the Air Resource Board.

Natural gas credits appear automatically on your utility bills in April and electricity credits are issued in April and October. The amounts you receive vary based on your utility provider.

2023 Electric California Climate Credit Schedule (CPUC)

Residential Natural Gas California Climate Credit. Typically issued in April

A perfect storm of factors has caused natural gas bills to soar to two or three (or more) times what they were in January 2022. Among them, below normal temperatures in the western U.S. which has led to higher demand, lower natural gas imports from Canada, pipeline issues in West Texas and low storage levels in the Pacific region, according to the U.S. Energy Information Administration.

This week, the Los Angeles County Board of Supervisors asked the state of California to investigate the cause of the spike and develop a plan to avoid future ones.

“Exorbitant natural gas price spikes are upending our constituents’ abilities to pay for the essential utility service that keeps them warm during these cold winter months,” Supervisor Kathryn Barger said in a statement. “We need to examine what is driving this unexpected price increase and also develop relief strategies that will reach the many people who will struggle to pay gas bills that tripled overnight. We can’t wait for this issue to fix itself.”

“The surge in natural gas prices have had sweeping effects in the County, and low-income households are disproportionately impacted by the shocking and unforeseen price increases,” Supervisor Holly J. Mitchell stated.

The nonprofit Consumer Watchdog has also called for an investigation.

SoCalGas recently announced a $1 million contribution to the Gas Assistance Fund, which will be allocated on a first-come, first-served basis, the utility said. The program offers one-time grants of up to $100 for qualifying customers. To qualify, you must meet several requirements:

• The natural gas bill must be in the name of the applicant requesting assistance.
• The bill address must be the applicant’s primary residence.
• The applicant must not apply for more than the maximum GAF allowance for the current program year.
• The applicant must meet the income guidelines listed below: