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Higher power bills likely headed for Southern California

As if extraordinarily high natural gas prices weren’t bad enough, Californians might need to brace for higher electricity bills this summer.

Southern California Edison is seeking to increase rates by 4.4%, which would take effect on June 1. The rate increase would garner an estimated $595.6 million.


At a special meeting to discuss soaring natural gas rates on Tuesday, William Walsh, vice president of energy procurement and management for SCE, told California’s Public Utilities Commission that spiking natural gas prices have also impacted its operating costs.

“The market moved too much,” Walsh told the panel.

SCE’s supply chain includes 12 gas-fired power plants and other “resources” which are primarily served by SoCalGas, Walsh said.

The rate increase still needs to be approved by the CPUC.

Southern California Edison is also asking for flexibility to potentially reduce rates if prices “self-correct,” Walsh said.

Natural gas use peaked in late December as a winter storm delivered snow and brutally cold temperatures to many parts of the U.S.

The weather coupled with supply issues caused gas supplies to plunge, leading to a dramatic spike in home heating bills, particularly in the western U.S., according to Energy Information Administration.

California customers have seen their gas bills soar to two or three times what they paid last January.

Last week, the CPUC directed utilities to apply Climate Credits to natural gas bills immediately rather than wait until April when they typically appear.

SoCalGas, California’s largest natural gas utility, says bills should be significantly lower in February due to falling wholesale prices.