TITLE
Recommendation to receive and file a presentation from the Long Beach Utilities Department on the increase of natural gas commodity prices statewide, impacts to customers’ gas bills, communication outreach efforts to customers, the status of the natural gas commodity market statewide, and bill assistance and payment plan options made available to customers. (Citywide)
DISCUSSION
Beginning January 3, 2023, the City of Long Beach’s (City) Utilities Department (Long Beach Utilities) assumed responsibility for the oversight and operation of the City’s natural gas utility, serving Long Beach and Signal Hill ratepayers. As part of this transition, Long Beach Utilities’ management also assumed responsibility of purchasing natural gas supplies on behalf of our 160,000 gas customers.
All natural gas customers in California are currently seeing extremely high utility bills, driven primarily by two factors: increased natural gas usage combined with the very, very high cost of natural gas.
The following chart below shows the increases in gas bills that an average single-family home might have experienced in the last three months.
It is important to note that natural gas bill components/rates that are set by the City Council/Board of Utilities Commission have not been changed or increased since 2019. The natural gas bill components/rates within Long Beach control include the Daily Service Charge, and the volumetric Tiered Usage Rates. It is clearly the dramatic, market-driven increase in Cost of Gas that is the primary factor impacting current gas bills, combined with increased usage.
California imports more than 90 percent of its natural gas supplies from West Texas, the Rocky Mountains, and Canada. Competitive natural gas markets set the price of natural gas monthly, with pricing being driven largely by supply and demand market forces. Various factors impacting the market include increased usage due to colder weather, increased usage of natural gas to fue...
Click here for full text