After enduring emotional and often scathing public comment, state regulators on Thursday ordered utilities to immediately distribute funds to lower natural gas bills that have become unaffordable for many Californians this winter.
The Climate Credits, which are typically issued in April, will reduce home heating bills by $43 to $56 for most Californians based on their natural gas provider.
San Diego Gas and Electric customers who have both gas and electric bills will see approximately $104 in bill credits applied to their February and March bills, earlier than in previous years, the utility said in a news release.
SDG&E residential gas customers will see a $30.40 credit on their February bill and electricity customers will get a $60.70 credit on their March bills.
Another $60.70 credit will be added to electric bills in the second half of the year, SDG&E said, totaling $164.80 in Climate Credit relief for 2023.
Customers should see the credit reflected on their next bill, but the exact date may vary due to different bill cycles for customers, the San Diego-based utility added.
“Over the past few weeks, SDG&E and CPUC staff met several times to explore the feasibility of moving up the climate credit to provide our customers with bill relief,” said SDG&E Vice President of Customer Services Dana Golan. “In anticipation of today’s vote, our billing group has been working hard to put procedures into place to accelerate the climate credit as quickly as possible.”
“It’s 48 degrees in my home because of the $600 bill I received on (my) limited budget,” one senior citizen, who was forced to shut off her home heat, told member of the California Public Utilities Commission during their virtual meeting Thursday. “It’s outrageous and my neighbors are suffering in the same way.”
“The corruption level in California has reached an all-time high,” said another woman, blasting both commissioners and utility companies.
“It’s 61 degrees in my house right now. I’m wearing three layers and a beanie,” another commenter told the panel. “But I have a good feeling that y’all get to be warm in your homes.”
A combination 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.
SoCalGas, the largest distributor of natural gas in California and nationwide, says it does not set the price for natural gas and does not profit when prices spike. It issued a warning to customers in late December 2022 as temperatures dropped and gas supplies cratered.
2023 Natural Gas California Climate Credits (typically issued in April)
| 2018‡ | 2019 | 2020 | 2021 | 2022 | 2023 | |
| PG&E | $30 | $25 | $27 | $25 | $48 | $52.78 |
| SDG&E | * | $34 | $21 | $18 | $43 | $43.40 |
| Southwest Gas | $22 | $25 | $27 | $28 | $49 | $56.35 |
| SoCalGas | * | $50 | $26 | $22 | $44 | $50.77 |
Funding for the Climate Credits are generated by 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 Resources Board.