SACRAMENTO, Calif. — PG&E says the prices they're paying for natural gas have been on the rise, and as the region dips in to chillier temperatures, they're advising customers that heating bills are likely to rise as well.
"What we're paying is what our customers are paying," said PG&E spokesperson Tamar Sarkissian.
The utility said prices have been driven by higher demand and tighter supplies on the West Coast.
According to PG&E, energy bills could be about 18% higher during the winter, specifically November through March compared to last winter.
Bill prices could vary, but on average, residential customers who get their energy supply and delivery from PG&E could see an increase of $47 per month between November and March. PG&E says 3/4's of that cost is from gas and electricity supply costs.
On the gas side of the equation, that's an increase of about $29 a month for customers using an average of 53 therms. For electricity, it's $18 for customers using 450-kilowatt hours.
“It has been colder than normal since the start of November with the coldest anomalies in the northern and eastern part of the state. Coastal areas have been about 2 degrees colder than normal, and interior areas 3-4 degrees colder than normal,” said PG&E meteorologist Ted Schlaepfer, in a news release.
Bills could be even higher though, as much as 21% higher during the coldest months between December and February, according to PG&E. For those months, the average bill increase is about $59 per month.
Sanjay Varshney, professor of Finance at Sacramento State University, echoes what PG&E said about natural gas prices, globally they're on the rise. With supplies under enormous pressure due to the war in Ukraine, much of the world is dependent on Russia for natural gas.
"We were already making these predictions several months ago that our heating bills will be higher by about 25% to 50%," said Varshney.
As far prices go, Varshney said people only need to look at falling gas prices as an example.
"There is relief, there is light at the end of the tunnel. And similarly for heating bills, when it comes to natural gas, we will likely probably see the same thing happen as we get past the next few weeks," said Varshney.
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