Understanding your gas bill
Many people believe that Southern California Gas Company (SoCalGas) produces natural gas, but we don't. For our residential and smaller business customers, we buy natural gas from producers and marketers at the best possible prices on the open market.
Four components contribute to your natural gas bill: 1
- Cost of Natural Gas (39 cents of your dollar) is based on market supply and demand. They're not marked up by SoCalGas, and are included in with the delivery costs on your monthly bill and shown as the "Gas Charge."
- Cost of Delivery (45 cents of your dollar) covers the costs of transporting natural gas through our pipeline system. It is approved by the California Public Utilities Commission and is not impacted by the price of natural gas.
- Public Purpose Surcharge (8 cents of your dollar) provides funds to assist low-income customers in conserving energy and paying their bill. This is in addition to any Users Taxes charged by your local city or county.
- Profit (8 cents of your dollar) is the company's after-tax, net income.
1Based on 2009 data.
Gas Price Outlook
Effective August 1, 2014, the procurement component of the core sales rate will decrease 8.137 ¢/therm to 46.504 ¢/therm. This decrease resulted from a 7.600 ¢/therm decrease in commodity prices and a 0.537 ¢/therm decrease in account adjustments. Compared to a year ago, the procurement rate is about 8.7% higher (42.800 ¢/therm) than what it was effective August 2013.
Combined with the transportation rate, core residential and C&I sales customers will see about an 9.0% rate decrease from last month.
Helping customers in need
We understand that many of our customers are faced with tough financial decisions and are struggling to make ends meet. Take advantage of available opportunities for relief: