SoCalGas expects to announce significant drop in natural gas rates this week

DOWNEY, Calif. (KABC) — SoCalGas prospects might get some reduction when paying their natural gas payments as early as subsequent month.

The hike in natural gas rates has had many purchasers questioning once they’ll catch a break.

Throughout January, Eyewitness News introduced you the voices of individuals shocked to see their gas payments soar, generally no matter them utilizing much less of the useful resource. On Monday, SoCalGas President Maryam Brown stated this was all due to an uncommon supply-and-demand occasion.

“We’ve been very involved for our prospects,” Brown stated.

The value the corporate paid for natural gas was up this month to $3.45 per therm – which is 4 instances greater than the identical time final yr and 11 instances greater than that of 2018.

Meanwhile, nationwide costs, like these from the Henry Hub pipeline, have been dipping to ranges not seen since June 2021.

“The subject is that the infrastructure in the West has been constrained, that we have had limitation,” Brown defined. “A limitation of having the ability to convey natural gas into the West as a result of the pipelines are already full and there was much less storage in the northern elements of the state and that affected costs right here, however we do assume that it was acute, a time period, and we’re seeing these prices come down.”

Brown stated together with grants from the gas help fund for eligible candidates, prospects can count on to see their annual springtime Cap-and-Trade program credit score earlier this yr.

A SoCalGas’ unveiling of the primary renewable hydrogen microgrid and residential on Monday, California’s Lieutenant Governor Eleni Kounalakis stated we’re on the mercy of the fossil gas trade till we depend on different sources.

“Taking management of our power future by investing in renewable power is the very best factor we are able to do for each working household in the state of California,” she stated.

A SoCalGas spokesperson informed Eyewitness News the corporate expects to make an announcement this week a couple of significant drop in natural gas rates.