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Long Beach Locks In Lower Natural Gas Prices For Customers
Long Beach docks are seen under a sunset.
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Screenshot, City of Long Beach web site
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After natural gas prices soared last winter, Long Beach and Signal Hill customers should be getting a little relief this time around.
The Long Beach Board of Utilities Commissioners worked out a new contract that’s designed to stabilize prices this winter, and for the next three winters after that.
What to expect
Natural gas is now expected to cost an average of 63 cents per therm. With the typical single-family home in Long Beach using 65 therms of natural gas each January, the utility expects next January's bill to be around $108.20.
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That’s just a fraction of the average monthly bill last winter.
Earlier this year, natural gas prices soared to $3.81 per therm. That price brought the average bill for a single-family home to about $313.36, according to the utility. Some customers received bills for more than $1,000, according to Chris Garner, the general manager of Long Beach Utilities.
Garner said they felt the pain of their nearly 500,000 customers, and the new contract will protect them from future fluctuations.
“Long Beach families deserve hot food on the table and a way to heat their homes without breaking the bank,” Long Beach Mayor Rex Richardson said in a statement. “Last winter, natural gas bills were astronomical throughout California. But due to the work of our Utilities Department, Long Beach residents and businesses will be assured of much more reasonable winter gas bills this coming winter.”
How it works
Utilities can buy natural gas supplies from anywhere they want, under any terms they want. Just like the rest of California, Long Beach has to import about 90% of its supply from out of state. Garner said we get most of our gas from West Texas, Canada, and the Rocky Mountain areas.
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Long Beach, however, negotiated its new long-term contract that allows them to purchase its gas supply at market price, with a discount, through early 2026. He said the utility deal with Goldman Sachs converts the market prices into a fixed price.
“I think we’re a little more nimble in how we can buy our natural gas,” Garner said. “We can do things that are a little bit more creative than the larger utilities.”
The Long Beach Utilities Commission approved a more than $7 million relief fund for its customers in February in response to the high gas prices. It gave households an automatic $45 gas credit on their next bill. Low income families, seniors, and residents with disabilities were eligible for another $200 credit. The commission also introduced a $575,000 assistance program to help struggling customers pay their gas bills.
In August, Long Beach resumed utility shut offs and late fees.
If you need help
If you have an outstanding bill from the last three years and need help paying it off, Long Beach Utilities can help set up a payment plan or connect you with other assistance programs, according to its website. If you need help understanding the breakdown of your bill, it can help with that too.
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