Topline:
SoCalGas is starting a new temporary text-messaging service to let you know about increases to part of your bill during the winter.
What part are we talking about? The natural gas commodity charge, which is the cost that SoCalGas pays to purchase gas for your home. That procurement makes up a chunk of your bill, as much as 34% for December 2023 rates.
How will this help? The NotifyMe service will send you a text if the gas commodity charge has a 20% or more increase between December and March. It’s an effort to give you time to make adjustments ahead of paying your bill, spurred in part by last winter’s big spikes.
What else can I do to cut costs? There are quick fixes to reducing heat costs, like caulking your windows, and long-term fixes, like inspecting your home for air leaks. Read on to get more tips.
Last winter many of us were hit by high gas bills. So this year, SoCalGas is starting a new service to warn you if costs are going to jump.
The utility is launching a text-messaging service that will notify you when there is a 20% or more increase to the natural gas commodity charge, which makes up a portion of your bill.
What does ‘natural gas commodity charge’ mean?
In order to get natural gas, which is composed primarily of methane, into your home to work your stoves and water heaters, the utility has to purchase that gas and transport it to you.
While SoCalGas does not set that purchase price, the cost gets passed on to you through the natural gas commodity charge. There’s no markup.
That procurement makes up a chunk of your bill. The latest portion makes up 34% of December 2023 rates, according to SoCalGas, but that cost can vary throughout the year. Rates are updated monthly through advice letters, as approved by the California Public Utilities Commission (CPUC).
The charge shows up on your utility bill through cost per therm, which is how gas consumption is measured. SoCalGas says the procurement rate is about 47% lower than December 2022.
“Prices are influenced a lot by weather,” says Don Widjaja, vice president of customer solutions. “Storage is another function that we look at, and we are full.”
Current projections show that Southern California is heading toward a warmer winter with El Niño, which decreases gas consumption compared to last year. SoCalGas’ winter reliability is also considered “favorable,” according to CPUC.
How the texts work
The opt-in text service Natural Gas Price Notice is available from now through March. Widjaja says this is the first time they’ve offered text message alerts about significant price increases, spurred in part by the spikes earlier this year.
“I think a lot of people were caught off guard [with those rates]. We learned a lot from that and we don’t want that to happen again this winter season,” he said. “We thought that text messages is the right way to go because everybody has their phone.”
Widjaja says 20% was picked as a “good threshold” to get enough attention from customers to help them take action. The utility, he added, is focusing on the gas commodity price because it’s a market-driven cost that makes up a sizable portion of bills.
If prices don’t reach that threshold, then you’ll never get a text.
More than 35,000 customers have already signed up for the service, according to spokesperson Brian Haas, but that’s low compared to SoCalGas’s over 20 million customers. The utility is sending out mailers in Spanish and English to get the word out.
To sign up for the text service, go to SoCalGas’ website.
Other ways to save on your gas bill
The Natural Gas Price Notice service only lets you know about changes to a portion of your bill.
If you’re looking for more ways to be prepared, SoCalGas has weekly bill tracker alerts and assistance programs, like Level Pay Plan, to help you get through higher costs.
Ways to cut your gas bill
- Check your home for airleaks and use weatherstripping. Things like off-track windows and damaged door frames can let warm air escape your home.
- Look for leaks on your water tank, faucet and pipes. This can make you lose warm water.
- Reduce the temperature on your water heater and take shorter showers.
- Monitor your air conditioning unit and keep the heat off during warmer parts of the day. (Some central A/C units don't use gas, so this may not work for everyone.)
- Avoid using your gas stove to warm your home.
Get more energy-saving tips here.
