DID YOU KNOW? Bonnie Donova
Suddenly, natural gas is more expensive than electricity!
Regarding the exorbitant Southern California Gas Co. bills we received last month, it appears that the cost of natural gas now seems to be double the cost of electricity, which traditionally was the reverse. And that conveniently works with the narrative, “Look, electricity is better after all.”
A Santa Barbara resident posted on Nextdoor, that after speaking with SoCal Gas regarding his next bill, he discovered it will increase to $550! Last month he paid $356, and he will be using approximately the same number of thermal units.
His take on the outrageous increases is that the SoCalGas’ natural gas utility has been structured similarly to the Southern California Edison/Santa Barbara Clean Energy bills.
In the breakdown of the SoCal Gas bill, there now exists both delivery charges and commodity (usage) charges much like we now have with electricity.
“… The actual delivery charges have not changed much over the last year as these are the charges SoCal Gas uses to pay for the plumbing and gas infrastructure, which is essentially the maintenance of the system,” the Santa Barbara resident wrote on Nextdoor. “The huge increases in our gas bill are due to the market cost of natural gas that SCG buys from various suppliers much like CA must do for electricity, of which over 70% comes from the national grid.
“The base usage rate for a thermal unit was $1.40 in November and $1.87 in December, is now $3.44 per thermal unit, which is almost triple what it was in November, and this cost is passed directly to us as users. The over-base rates have also gone from $1.88 in Nov. to $2.29 in Dec. and was $4.80 in January.”
He continued, “… This is primarily due to the availability and demand of natural gas through the public market for that commodity just as with the cost of gasoline. This situation is driven by government energy policies relative to encouraging or discouraging the drilling and expansion of the supply, both domestically and globally.
“We are impacted by the change from the Trump energy policies to the now Biden energy policies with regard to fossil fuel-based energy, which Governor Newsom is following even more aggressively than other states. These huge, surprising increases from Nov. through Jan. are irresponsible, however. SCG has no control over these rates and again are passing the increases to the users.
“As seen, all too often, increases in taxes, the cost of permitting and of operation of utility companies, or any company, are passed on to the consumers. Hopefully somehow, soon the cost of oil and gas will normalize and be reflected in our utility costs. That, however, is going to require a change in our energy policies or the supply and demand.”
Another example of insane utility prices, posted on Nextdoor, is the dilemma of a 96-year-old who received a $900 gas bill. What will happen to that individual and other people in the same situation?
Another diligent and concerned citizen, Celeste Barber, sent letters addressing the gas hikes to our local elected officials — U.S. Rep. Salud Carbajal, Assemblymember Gregg Hart and state Sen. Monique Limón.
Ms. Barber’s letter to Gov. Gavin Newsom was sent via registered mail, for an explanation and to insist that politicians do the job for which they were elected, that they represent the good interest of their constituents.
Ms. Barber reminded us of the time when people were urged to convert their wood-burning fireplaces to gas: to prevent pollution and for the reason that natural gas is CLEAN! She did that, and the cost to convert her fireplace was several thousand dollars.
Now we are told to convert our gas fireplaces and stoves and heating systems to all-electric — and at great expense. There is no end. It is ideology rammed down our throats.
Her letter to our local officials says it best.
“Dear Elected Officials,
“By now, you are well aware of the sudden 200% to 300% SCG rate increase and its impact on residents here and throughout California. The rate hike is unprecedented and devastating. Yet we are not aware that any among you has yet issued a statement. State and local governments have two basic duties: to keep the lights on; to keep us safe. That’s it.
“Yet a utility necessary to life and livelihood — natural gas — is suddenly so high as to be prohibitively expensive for many. Not so many years ago, Natural Gas was touted as being ‘cheap, plentiful and clean.”’
“Two days ago, I posted on Nextdoor about this issue. To date, there are more than 190 comments and climbing as I write. Most neighbors are upset.
“A number of reasons were given for the gas bill hikes: Ukraine, Europe and Russia; the chill in the West, the heat in the East. And some offered suggestions: Wear layered clothes, pile on blankets; buy an electric heater.
“But all of those suggestions merely skirt the real question here. Left out are getting at the underlying reasons why, and the impetus behind the decision suddenly, to increase rates to levels rendering a plentiful natural resource beyond many folks’ ability to pay.
“People could die. Be assured, our most vulnerable will die. And why are our politicians not standing up for us, the folks who elected you to keep the proverbial lights on?
“My January bill reads that we owe $727.38. Others report similar high amounts. And many of us relate that our gas usage is actually much lower than from last year’s billing. (Mine is 100 Therms lower when compared to 2022, but nearly triple the charge.)
“New to the billing, the “Gas Commodity” charge: the cost of delivering natural gas to California. And it’s increasing! That single charge accounts for $489.22 on my bill. This is not acceptable.
“My neighbors and I would like an accounting from our elected representatives. First, issue a statement rendering your position on the rate hike: clearly, honestly and without obfuscation. Do you defend the rate hike, and if so, why?
“Second, will you introduce an independent investigation into the rate hike? What or who is behind the increase? And who is profiting? That money is going into someone’s pockets – Whose? We have read that globally the cost of natural gas has decreased; that the increases are restricted only to the western states, primarily California. How can that be when we have plentiful natural gas deposits here?
“Third, what will you do to remedy this untenable situation? Will you require a response from the California Public Utilities Commission, a governmental body supposedly mandated to serve in the public’s best interest?
“This letter is co-signed by South County residents, people who through the ballot box, entrusted you to work on our behalf, for the betterment of our communities. Do your job.
“Signed,
“Celeste Barber and numerous others.”
By the way, during the televised American Public Energy and Commerce Committee’s discussion of the U.S. energy policy on C-Span, Jan 31, 2023, a panelist insisted that there be an Economic Impact Study on the Policies for Climate Change, because the effects on the poor and middle class are worse than the impacts of climate change. Where is the equity in these economic impacts we all suffer? And while the U.S. has 225 coal energy plants, China has over 1,000 coal energy plants and is building more.
Our efforts and sacrifices will make no difference to climate change if and while other countries contribute to the possible causes. But U.S. citizens will be turned out into the cold.
Could this rate increase be due to the $6.5 billion taxed on natural gas as part of last year’s 2022 budget of $1.7 trillion? Remember this budget only carries us through October.
