Sonoma County residents are struggling to cope with skyrocketing winter energy bills
$565.
$759.
And even $940.
These aren’t the usual figures associated with basic monthly gas and electric costs, but they’re numbers I regularly heard in talking to dozens of Sonoma County residents about their recent eye-popping energy bills -- sometimes hundreds of dollars or multiple times more than they’re used to paying.
“As I write you, I sit in my house freezing because I don't want to run up my PG&E bill,” Nixon Maloney said to me in an email this week. “It was 32 degrees last night. I know I'm not the only person living like me.”
Maloney’s bill steadily rose from $175 in November to $357 in December to $719 in January.
Bills have skyrocketed across the West driven by colder-than-normal winter weather and increased natural gas costs. It’s a twofold blow to customers, who, on top of paying more for gas service, are facing higher electricity prices since many power plants use natural gas to generate electricity.
According to Pacific Gas & Electric, average residential bills from November through March will be up 32% compared to the same period last year, though many have seen much steeper spikes.
The problem extends beyond the Northern California utility with Southern California Edison and San Diego Gas & Electric customers feeling a similar or even tighter squeeze.
It’s yet another setback for California communities that already weathered higher utility bills, record inflation and routinely have the country’s most expensive gas prices.
Khirsten Stavola’s bill shot up from about $200 per month to $350 “and climbing,” she told me.
“This is really just insane at this point. People can only move their budgets around so much to accommodate the rising energy costs,” said Stavola, who lives in a 1,000-square-foot home with her husband and young child.
The couple sets the thermostat to 63 at night and turns it, and all the lights, off during the day.
“On top of everything else being so expensive right now, this is really a big stressor,” said Stavola, who added that energy costs and how to cope are frequent topics in her local parent groups on Facebook. “It seems unfair that we just have to accept the fate of struggling to pay these cost increases while PG&E sees higher profits, and our government does nothing to help.”
On Jan. 7, the California Public Utilities Commission held a special hearing on the recent high natural gas prices.
“We saw these shockingly high prices that were well beyond our pessimistic expectations for January,” said Mark Pocta of the Public Advocates Office, which represents utility customer interests before the CPUC.
PG&E emphasized that it does not profit off spiking natural gas costs.
“PG&E does not control the market prices for gas and electricity, and like other utilities, PG&E does not mark up the cost of the gas and electricity that we purchase on behalf of our customers,” PG&E spokesperson Meghan McFarland said.
Between Jan. 19-25, California’s average natural gas prices were five times the national benchmark prices, according to the US Energy Information Administration.
California imports roughly 90% of its natural gas from other states.
This winter, interstate pipeline constraints, including problems with a major Texas gas pipeline, converged with lower-than-normal west coast gas storage inventories. At the same time, a prolonged drought has reduced the state’s hydroelectric output and required a heavier reliance on gas generation. Add a cold early winter, and the result is higher demand met with limited supply and utility flexibility--in other words, the formula for sky-high prices.
On Jan. 6, Gov. Gavin Newsom wrote to the Federal Regulatory Commission to investigate “whether market manipulation, anti-competitive behavior, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.”
At the utilities commission hearing, Michael Williamson, a natural gas trader for Williamson Energy, stressed utilities’ need to increase gas storage that can help balance demand and prices amid weather and other disruptions.
Storage in the Pacific region was 34% below the five-year average and 29% below last year, he said, in part due to an accounting measure by PG&E in 2021 to reclassify some of the gas it can use from storage without restocking lost inventory.
PG&E doesn’t “make money on natural gas, and they don’t make the market,” Williamson said. But “they don’t lose money on the natural gas either.”
While the market is now returning to normal, he urged, “if we don’t do something now, then this same thing will happen again and again.”
UPDATED: Please read and follow our commenting policy: