Residential customers of Long Beach’s gas utility have the lowest natural gas bills in the state of California, after conservation efforts that have seen the average household natural gas usage decrease by more than 70 percent since the early 1970s, according to Long Beach Gas and Oil (LBGO).
“I’m proud that we are able to provide the lowest gas bills in the state, and I’m proud that Long Beach residents have been leaders in energy conservation,” said Long Beach Mayor Robert Garcia. “Not only does that reduce greenhouse gas emissions and help improve air quality, it means lower utility bills for our customers.”
A survey of the five other utilities that provide natural gas in California also confirmed that Long Beach utility customers had the lowest average gas bills last year. Other contributing factors include improved energy efficiency standards for buildings and appliances.
In 2014, the average monthly residential gas bill from Long Beach’s gas utility was $29.59, 15 percent lower than the cost of other utilities. The average Long Beach residential gas bill in 2015 is projected to be $26.08, a 42-percent decrease from 2000, when the average Long Beach residential gas bill was $44.66, according to LBGO.
“Our customers have done their part by making the effort to conserve energy and are saving real dollars every month by doing so,” said Chris Garner, director of LBGO. “It is our job to continue to work hard to provide our customers with natural gas in a safe and reliable manner at the lowest possible price. We have been providing natural gas to Long Beach and Signal Hill for over 90 years now and our goal is to continue to be the very best utility in California.”
Water conservation efforts in Long Beach have reduced the natural gas required for heating water and have tempered the use of natural gas for space heating.
LBGO’s rates for gas service to its customers are set by the Long Beach City Council, which requires that gas rates be market-based rather than cost-based.
Its gas utility is not allowed to pass through increasing operational costs to its customers, as its rates are effectively “capped” by the rates being charged by the surrounding private gas utilities.
This incentivizes LBGO to minimize its costs in providing service so as to remain competitive, according to its officials.
LBGO goes on to state that the fixed, minimum charge for its residential gas service has remained unchanged for over 20 years and is now lower than it was nearly 30 years ago.
Additionally, it implemented tiered rates so that efficient users who conserve the use of natural gas are financially “rewarded” through lower applicable gas rates.
According to LBGO officials, to further assist customers in their attempts to conserve energy and control their utility charges, it will soon initiate the first phase of installing a “state-of-the-art” advanced metering infrastructure (AMI) program of “smart meters.”
Source LBGO
