January 4, 2002—According to Pacific Gas and Electric Company (PG&E), natural gas prices in California are beginning to stabilize and are more reflective of natural gas costs during the past five years than prices were this same time last year.
In January 2001, the cost of natural gas hit an all-time high during of $1.41 per therm. Comparatively, prices for January 2002 are $0.39 per therm. This drop represents a 60-percent decrease in commodity prices.
PG&E pointed out in a release that the Federal Energy Regulatory Commission is considering allegations by the California Public Utilities Commission and other parties that El Paso Natural Gas companies withheld capacity thereby driving up natural gas prices last year.
Although natural gas prices are beginning to stabilize, the California Public Utilities Commission’s imposed rate surcharge for electricity remains in effect. PG&E reminds its customers that there are programs to help manage energy bills. CARE (California Alternate Rates for Energy) provides a 20-percent discount on both gas and electricity for eligible customers. Medical baseline provides qualified customers with a higher allocation of both electricity and natural gas at the lowest rate. Qualified customers of CARE and medical baseline are also exempt from the state’s surcharge on electric rates.
For more information about these programs and others, contact PG&E at 800/PGE-5000.
