Hundreds of Southern California natural gas customers who are fed up with exorbitant prices this year expressed outrage at public meetings in recent weeks asking the state not to approve another rate increase.
About 452 people commented during the meetings and more than 500 submitted written comments about Southern California Gas (SoCalGas) Co.’s request to add about another 13 percent to bills next year, the California Public Utilities Commission (CPUC) estimates.
“Comments received at a public forum can help the CPUC make an informed decision,” CPUC spokesperson Terrie Prosper told The Epoch Times.
An administrative judge is expected to issue a proposed decision for consideration by the utilities commission sometime between April and July of 2024, Prosper added.
The gas company estimated an average customer who pays $62.91 a month would pay $8.28 more, bringing the total monthly bill to $71.19. The increase would bring in about $4.4 billion more revenue in 2024, the company said.
If approved, the rate changes would take effect next year, with more increases scheduled through 2027.
According to a SoCalGas statement last May, the rate increase would allow the company to modernize and upgrade infrastructure and pay for clean energy development.
“Events in California and around the world have shown us that maintain[ing] the safety, reliability, and affordability of our local energy systems remain critically important,” company President Maryam Brown said in the statement.
The company routinely submits rate increase requests every four years, but the most recent one comes just after nearly 6 million households and businesses were still reeling from this February’s shockingly high bills—300 percent more expensive for some.
The rate boost was attributed to inventory shortages strained by the Ukraine conflict, restrictions on licensing and drilling, and growing demand for electricity nationally.
“The current rates in place have become a hardship on our small family-owned business,” L. Gorman, of Anaheim, commented last month. “Therefore, we strongly oppose another rate increase. In addition, we ask that our current rates be lowered. Please help!”
“There should be no permitted increase in gas service, particularly when prices tripled in the last few months,” Alyssa Schaffer, of Valencia, wrote in a public comment posted on April 8.
According to the company, about 58 percent of the additional revenue would fund infrastructure improvements, and about 34 percent would pay for the growth and development of clean fuels to meet the Golden State’s aggressive environmental goals. The remainder would cover personnel cost increases.
The company asked the state’s Utilities Department to approve another $6.5 billion in spending before 2024. Some costs include $419 million for taxes, $952 million for administrative and support services, and $603 million for the operation and maintenance of gas pipelines, storage, and engineering.
