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


How is My Natural Gas Bill Calculated?

Our rates are regulated by the California Public Utilities Commission, or CPUC, based on three components:

  1. Procurement Costs – The cost of the natural gas itself
  2. Transportation Costs – The cost of natural gas delivery
  3. Public Purpose Surcharge – The cost to fund natural gas-related programs

Overall, about 92% of your bill goes toward products and services provided to you essentially at cost, with the remaining eight percent going toward a return on SoCalGas’ investment in the gas system.

More information about how these charges are reflected on your bill can be found here .

How are Rates Calculated?

The costs associated with delivering natural gas are ultimately approved by the CPUC, with input from SoCalGas and public advocates. This process is repeated every three to four years.

What Rate Changes are Planned?

In 2016, SoCalGas Customers can expect key rate changes, and it's important to note that these key rate changes are not related to the Aliso Canyon natural gas leak.
These rate changes allow for investment and improvement in the natural gas infrastructure to deliver the fuel to heat your food, dry your clothes, heat your water – and to power the electric generation plants in Southern California.
  • January 2016
    • An adjustment was made in costs to deliver gas to your home or business. This adjustment impacted the baseline and non-baseline transportation rates by 8 percent and 12 percent respectively. (The baseline is the amount of natural gas billed at the lowest residential rate. The baseline allowance is based on the number of days in the billing cycle. So, longer cycles have a higher baseline allowance.)
  • August 2016
    • An increase in costs to fund major investments and improvements to SoCalGas’ system through the three year General Rate Case (GRC) application process. 
    • A small decrease due to the Transmission Integrity Management Program cost adjustment.
  • September 2016
    • Pipeline Safety Enhancement Program (PSEP) and TCAP Phase I implementation in September, 2016: A small increase to address the allocation of updated storage-related costs to customer classes costs for storage operations
  • 2017
    • A California-wide mandated credit and charges to offset greenhouse gases (GHG) for all natural gas consumers.  (This is for the AB32 cap and trade legislation from 2006, with the charges occurring monthly, but the credit occurring annually).

How Will These Rate Changes Affect My Bill?

Ultimately, in 2016 residential customers, with an average usage of 37 therms per month, may see an overall average increase of about 3% or $1.27 per month.
Low income customers, with an average usage of 30 therms per month may see an overall average increase of about 2% or $0.82 per month. 
Small-to-medium business customers, with usage of 300 therms per month, may see an overall average increase of about 3% or $8.32 per month. 
Large commercial/industrial customers, with usage of 6,250 therms per month may see an overall increase of about 2% or $72 per month. 

Gas Price Outlook

Effective October 1, 2016, the procurement component of the core sales rate will increase 0.177 ¢/therm to 35.497 ¢/therm. This increase resulted from an overall 0.177 ¢/therm increase in overall cost of gas (combination of commodity price and account adjustments). Compared to a year ago, the procurement rate is about 10.5% higher (32.136 ¢/therm) than what it was effective October 2015.
Combined with the transportation rate, core residential and C&I sales customers will see about a 0.2% rate increase from last month.