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    Relief for California’s gas price pains

     

    CalMattersBen Christopher  BEN CHRISTOPHER

    Maybe the governor called a special legislative session for the wrong type of gas price.

    In the face of wallet-busting gasoline prices across the state last summer, Gov. Gavin Newsom convened a special session of the state Legislature in December to tax the “excessive” profits of California oil refiners. But since then, prices at the pump have fallen back to their still-high-but-not-uncharacteristically-so California average, according to AAA.

    In the meantime, Californians are getting hammered with the soaring cost of natural gas. Wholesale prices for the home-heating, water-boiling, climate-warming commodity rose 63% since October, even while prices nationwide were cut in half, Bloomberg reports.

    And even that vertiginous average conceals much higher spikes in some locales.

    But lower bills may be on the way.

    With some of the supply bottlenecks easing up, utilities are already promising a steep reduction in prices.

    And today, the state’s Public Utilities Commission is expected to vote on offering Californians some financial relief by speeding up the rollout of an annual bill-reducing credit.

    The California Climate Credit, meant to compensate households for higher energy bills that result from the state’s emission reducing cap-and-trade program, is scheduled to go out in April from the natural gas companies. But the utility commission’s public advocate is seeking an emergency order to get the money out this month, to help cover astronomically-high January bills.

    If approved, the credit is expected to give customers roughly $50 each. Pacific Gas & Electric, San Diego Gas & Electric and SoCal Gas all support the move. So do state Senate Republicans, who wrote the CPUC on Monday urging them to send out the credit “as soon as possible.”

    The utilities commission is set for a broader discussion on natural gas prices next Tuesday.

    Those prices began their eye-watering ascent along the West Coast in December. Though some consumer advocates are calling for an investigation into possible market manipulation, analysts at the federal Energy Information Administration laid the blame on that familiar duo, supply and demand.

    High natural gas prices cast painful economic ripples: Much of the power that California uses during peak hours come from gas-powered plants. That means higher natural gas prices might also be spilling over onto your electricity bill. In a new poll from the Public Policy Institute of California, six in ten Californians say that recent price increases have caused financial hardship.

    Meanwhile, with the Legislature still slowly considering his still-to-be-fleshed-out oil tax proposal, Newsom continued his war of words with major oil companies this week.

    According to record-breaking earnings reports released on Tuesday, last year unleashed a geyser of cash for the nation’s oil giants. That prompted a predictable excoriation from the governor.

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    Ray Blattel
    Ray Blattel
    1 year ago

    Same old excuses. Does the Eastern and Northern states have sufficient natural gas? Why don’t we. Same old excuses. Soon, we might hear that about peanut butter too.

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