PUC Rulings Spur Drop in Natural Gas Rates

Southern California Gas Co.’s 18 million customers will see a $172.4-million reduction in natural gas rates that was effective Jan. 1 because of a series of rate rulings by the California Public Utilities Commission. Residential rates were sliced by $97 million, or 5.6%, because of lower costs and extra revenue above the allowed level generated by lower-than-normal temperatures. The average winter residential gas bill of 70 therms will fall to $43.64 from $46.34. However, some customers won’t notice the lower rates because a chilly December caused them to use more gas, the company said. Commercial and industrial customers received a $37.5-million cut. The remainder went to wholesale customers and utilities, among others. The PUC regulates how much of a return SoCal Gas can earn, and the $172.4-million reduction was the net result of a series of nearly 20 rulings, some increasing rates and some lowering rates.