Learn about the factors that determine the price you pay for natural gas.

A common misconception is that we produce natural gas ourselves. In reality, for our residential and smaller business customers, we buy natural gas from producers and marketers at the best possible prices on the open market.

While understanding natural gas prices may seem confusing at first, the factors that go into determining the price you pay are pretty straightforward.

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 bills. 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 July 1, 2016, the procurement component of the core sales rate will increase 8.580 ¢/therm to 34.536 ¢/therm. This increase resulted from a 7.800 ¢/therm increase in commodity prices and a 0.780 ¢/therm increase in account adjustments. Compared to a year ago, the procurement rate is about 5.2% higher (32.833 ¢/therm) than what it was effective July 2015.
Combined with the transportation rate, core residential and C&I sales customers will see about a 11.9% rate increase from last month.