The California Public Utilities Commission, or CPUC, sets our rates based on three factors:
The remaining 8% of your payment goes for a return on SoCalGas’ investment in the gas system, with around 92 percent of your bill going toward items and services given to you virtually at cost.
Here’s where you can learn more about how these charges appear on your bill.
What is a gas commodity charge, and how does it work?
The portion of the monthly payment for service that is based on the quantity of gas provided to the Shipper at Shipper’s Delivery Points is referred to as the Commodity Charge or “Usage Charge.”
What exactly is a gas commodity?
The California Public Utilities Commission regulates and approves our rates (CPUC). Your bill’s Current Charges are made up of three parts:
- Gas Commodity – the price of natural gas purchased on behalf of customers by SoCalGas.
- Taxes and fees this includes the Public Purpose Surcharge enforced by the CPUC, as well as any state or municipal fees and taxes.
What are the costs of gas procurement?
Climate Zones, or “baseline regions,” are used to divide PG&E’s service territory. The California Public Utilities Commission (CPUC) uses the average amount of energy utilized by consumers within each baseline territory to determine how much energy is billed at Tier 1 gas and electric prices.
Customers who purchase both energy distribution and energy generating from PG&E are referred to as bundled service customers. Customers that buy electricity from a third-party Energy Service Provider and pay PG&E for transmission and distribution fees are not affected.
Legacy energy contracts signed prior to 1998 that are in excess of a California Public Utilities Commission-approved market price baseline are subject to Competition Transition Charges (CTC).
A demand fee based on the capacity rating of the pumps connected to the meter is known as a connected load charge.
Conservation Incentive Adjustment: A part of your electric bill that reflects residential pricing tiers. Customers who predominantly consume within the baseline (Tier 1) receive a credit, while any extra usage incurs a charge.
Customers on some rate plans are charged a fixed fee for service, regardless of how much energy is spent, as well as usage-based charges.
Demand Charge: A demand charge is included in many non-residential tariffs. During a monthly billing cycle, demand is defined as the maximum amount of electricity used in a single fifteen (or sometimes five) minute period. Kilowatts are used to measure demand (or kW). High demand is frequently related with the start-up of new equipment. You may be able to lessen demand and cut demand charges by spreading equipment start-ups across a longer period of time.
The lower-voltage system of electricity lines, poles, substations, and transformers directly connecting PG&E’s distribution lines to homes and businesses is known as the Distribution Charge.
DWR Power Charge: Recovers the cost of bonds issued by the California Department of Water Resources (DWR) to buy power for electric users during the state’s energy crisis. PG&E does not own DWR bond charges, which are collected on their behalf.
PG&E collects an energy commission tax depending on the amount of electricity used during a billing month to pay the California Energy Commission.
Energy Cost Recovery Amount (ECRA): These fees are mandated by law to help decrease the costs of PG&E’s bankruptcy reorganization. One of these costs is the Dedicated Rate Component (DRC) (DRC). The right to receive DRC revenues was sold to PG&E Energy Recovery Funding LLC, a special purpose corporation, and PG&E is collecting this fee on behalf of PG&E Recovery Funding LLC. PG&E is not responsible for this charge.
Franchise Fee: This levy compensates cities and counties for the right to deliver utility services on public streets. The surcharges are collected by PG&E and distributed to cities and counties. This tax (if applicable) is calculated as a percentage of your energy bill.
Procurement of Gas Core The expense of purchasing natural gas and transporting it to the utility’s local transmission system. On the first business day of each month, the pricing usually changes.
Charges for generating electricity to power your home or business.
Meter Charge: Some time-of-use electric prices include a meter charge to offset the increased equipment costs associated with delivering this type of service.
Meter Constant: A constant that converts the difference between electric meter reads to kilowatt hours (kWh).
Multiplier: A factor that converts the difference between gas meter reads to Therms. The multiplier compensates for variations in elevation, supply pressure, and natural gas heating content.
Nuclear Decommissioning Fee: A fee charged to rehabilitate nuclear plant facilities to as close to their former state as feasible after they have been decommissioned.
Funds programs that are deemed by law to benefit society, such as low-income ratepayer aid and energy efficiency.
This number specifies the order in which your electricity will be interrupted in the case of a power loss that causes the California Independent System Operator to determine that rotating outages are necessary.
When a meter is read for billing, the serial code defines when it is read. Visit Find out when your meter readings are due.
Solar Choice Program: Solar Choice is a program that allows bundled consumers to purchase solar energy to match 50 percent or 100 percent of their energy demand without having to install solar panels on their own property. Visit our Community Renewables page for additional information, and check out the current pricing here (PDF, 400 KB).
Customers on a time-of-use plan pay higher prices for energy on weekday afternoons and reduced rates at other times, rather than paying a single flat fee for energy use. Seasonal pricing varies as well, with higher summer costs and lower winter ones. This means that how much energy you consume is just as crucial as when you spend it.
Transmission: The expense of moving electricity from power plants to distribution systems via high-voltage lines and towers.
Utility Users Tax (UUT): This is a tax that we collect on behalf of a city or county government. The tax (if there is one) is calculated as a percentage of your energy costs.
Charge to pay the California Wildfire Fund on behalf of the State of California’s Department of Water Resources (DWR). This payment covered costs connected to the 2001 California energy crisis, which were also collected on behalf of the DWR, for use prior to October 1, 2020. DWR, not PG&E, is responsible for these fees.
Wildfire Hardening Charge: PG&E has been given permission to issue bonds that will allow it to recover certain costs associated with preventing and mitigating catastrophic wildfires more rapidly, while also lowering the total cost to its customers. The CPUC has established a fixed recovery charge called the Wildfire Hardening Charge that is included on your electric bill to repay those bonds. The right to collect the Wildfire Hardening Charge has been transferred to a separate business (known as the Special Purpose Entity) that issued the bonds and is not affiliated with PG&E. The Wildfire Hardening Charge is being collected on behalf of the Special Purpose Entity by PG&E.
What’s the deal with my SoCalGas bill being so high?
Bills are often at their highest throughout the year during the winter, when more natural gas is required to heat homes and run appliances, according to SoCalGas. In addition, the California Public Utilities Commission approved a rate increase that will take effect this year to assist fund infrastructure upgrades.
SoCalGas is a gas commodity charge.
The procurement component of the core sales rate will increase from 18.440/therm to 83.569/therm on January 1, 2022. This rise was due to a 16.922/therm increase in commodities prices and a 1.518/therm increase in account adjustments. The procurement rate is around 110.2 percent more (39.764/therm) than it was in January 2021, compared to a year before.
How can I save money on gas?
If your boiler is more than 12-15 years old, costs a lot of money to run, and breaks down frequently, it’s time to replace it. ‘Heating our homes accounts for over half of our annual household energy expenses,’ explains Victoria Billings, Director of Marketing at Worcester Bosch. That’s why, in order to save money on your gas bill and help the environment, you’ll need an efficient and cost-effective heating system.
‘While a new boiler can be costly (up to 1,000), it’s a wise investment because a modern one will drastically reduce your bills,’ explains Andrew Collinge. Vaillant, a heating firm, agrees, claiming a 30% reduction in rates for households who purchase one of its energy-efficient boilers.
‘All modern boilers are condensing boilers with a big heat exchanger,’ says the author. As a result, more heat is recovered and colder gases are delivered up the flue, increasing efficiency,’ explains Andrew Collinge. ‘To put it another way, new A-rated boilers (any boiler with an efficiency of over 90%) can provide 90p or more of heat for every 1 invested.’
‘In previous models, however, this is 60-80p for every 1. It’s also good for the environment to replace your old boiler. Because a more efficient boiler uses less fuel to heat your home, it reduces your carbon footprint,’ he explains.
Turn down the water temperature
You should be able to lower the temperature of the hot water that comes out of your faucets and shower heads using the controls on your boiler. You’re likely squandering gas and money if the water that comes out of it is too hot to touch, so lower it down a few degrees until you achieve the ideal temperature.
Invest in a smart thermostat
A smart thermostat allows you to control your heating system from anywhere in the world using an app on your phone or tablet. Some will store your daily routine and figure out how to make the most of it, while others will adjust their settings based on the weather. ‘Some smart thermostats can also alter the temperature of your boiler output to make sure it’s constantly functioning at optimal efficiency,’ adds Brian
Who has the most affordable natural gas?
Natural gas prices in Utah are the cheapest, at $9.12 per 1,000 cubic feet. That’s approximately 8% less than second-placed Montana. For the month, the average rate was $17.57.
Will the price of natural gas rise in 2021?
The price in April will be determined by international pricing from January to December 2021. According to AK Jana, managing director of Indraprastha Gas Ltd, every dollar increase in domestic natural gas prices will necessitate a Rs 4.5 per kilogram increase in CNG prices. This translates to a Rs 15 per kg increase in CNG prices.
Multiply this number by the price-per-kWh.
You may have a daily standing fee or a predetermined price for the first number of units utilized, followed by a lesser price for any additional units used after that.
What exactly is a procurement fee?
Fee for acquiring goods and services. Is a fee paid by the owner to the agent in exchange for finding (or sourcing) a new tenant and signing a lease with them.