The first call came in December. In a statement, SoCalGas, the natural gas company that serves 22 million people from central California to the border with Mexico, announced that during the winter its users would receive higher bills than normal. “At the peak of winter, prices are expected to increase between 25% and 30%,” the statement said. In mid-January, another arrived with an even more worrying tone: “There is no easy way to say this. “January collections will be higher than normal.” Rates in the west of the country were double those of December. It was clear that it would be a long winter. In January, reality dealt a hard blow to people like Brent Elridge, a pastor from Long Beach, south of Los Angeles. The man turned on the jacuzzi at his house in December and a month later he regretted it. The bill came to him for 907 dollars (857 euros), eight times higher compared to the start of last year. His case has been covered by the media for being one of the most extreme, but it is far from the only one. SoCalGas has noted that the average bill price is $300, double the same period last year. The situation is similar in northern California, where the supply of natural gas is in charge of another company, Pacific Gas and Electric Company. Although there was a significant drop in rates during February, almost everyone in California has resigned themselves to the fact that For the third consecutive month, they will receive a payment with astronomical figures. Furthermore, the weather is not in our favor. A winter storm has left snow in the mountains north of Los Angeles, something that has not happened in decades. The temperature has decreased in California, with 40 million inhabitants, which has forced the thermostat to be raised. Previously, the region suffered for three weeks intense rains and drops in the thermometer that are more typical of the east coast of the country. Demand has skyrocketed natural gas prices. Fuel reserves are well below the average of the last five years. The shortage and rising cost of natural gas transportation have served as a reminder to California that a war has been going on in Eastern Europe for a year that has turned energy prices upside down. SoCalGas has already asked the regulator for permission to raise rates in 2024, which will inflate bills by about $8 on average if it receives the go-ahead.
Battle against oil companies
As millions of families struggle to pay their bills, California Governor Gavin Newsom is waging a battle against Big Oil after some made record profits. This initiative occurs in a context of a sharp increase in gasoline prices in a State that practically cannot import fuel from other regions due to its restrictions. The Democratic politician is leading a crusade to accelerate the transition of California's gigantic auto market to a cleaner economy. Newsom has threatened to introduce a law that would force oil companies to pay a tax on their profits when profit margins exceed certain levels. Only Alaska, an oil state, has done something similar. Republicans in the local Congress, and even some members of the governor's same party, have been skeptical of the tax initiative. California will continue to have the highest gasoline rates in the United States, while consumers wait for natural gas prices to give them a break.Here you can consult the latest Letters from the correspondentFollow all the information from Economy and Business on Facebook and Twitteror in our weekly newsletter