In response to the skyrocketing rate of natural gas prices last month, the Long Beach City Council called a special meeting on Wednesday, Feb. 1 to discuss how to provide financial assistance to residents in need.
“I’ve got my senior mom at home in Long Beach, freezing, scared to turn her heater on because she can’t afford the bill every month,” Long Beach resident Heidi Kitchen said during public comment. “You know what I mean? My little 4-year-old daughter tells me, ‘Mommy I’m cold,’ and then I’m scared my gas bill is going to be over $500. I mean, that’s pathetic. We’re talking about a hot shower. We’re talking about drying clothes or heating your home. It’s 35 degrees outside. Isn’t this basic human rights?”
According to Southern California Gas Co., the steep rise in gas bills was caused by higher wholesale prices for natural gas. Many residents across Long Beach and California received utility bills for January that were more than double or triple the usual rate.
“We have a crisis as [it] relates to high natural gas bills here in Long Beach and across California,” Mayor Rex Richardson said. “We have skyrocketed to levels that we haven’t seen in the last 20 years. And it’s a short-term, temporary spike but impactful nonetheless. We know that families are struggling to make ends meet, folks are still working to recover from the impacts of the COVID-19 pandemic.”
Long Beach Utilities will create the proposed Natural Gas Spike Relief Program, which will give the increased tax revenue caused by the price spike back to residents in need. The department addressed the City Council Wednesday to ask for discretion in deciding how much money will be allocated to the program.
According to Kevin Roper, the city’s financial management director, when the budget for fiscal year 2023 was created, it was estimated that the city would receive $5.3 million from the Utility Users Tax on gas.
Now that gas prices have spiked, the City would receive an estimated $6.8 million from the Utility Users Tax on gas, according to Roper. However, that amount could change as gas prices fluctuate, meaning that the extra $1.5 million used for the Natural Gas Spike Relief Program could also grow or shrink.
These funds would usually be placed into the city’s general fund, which pays for services such as police, firefighters, public works, libraries and more. Due to the unexpected hike in gas prices, the City is trying to figure out how to distribute the estimated $1.5 million back to residents most in need of relief.
“We would really like to use an equity lens as we approach this. We know a lot of people are not happy about higher gas bills, but those who are low income, those who are disabled, those who are seniors on fixed incomes, have really no options to pay this bill and so they need the help the most.”
City Manager Tom Modica
District 5 councilmember Megan Kerr mentioned that residents who may not qualify for the Natural Gas Spike Relief Program will still struggle to pay their January gas bill.
“We know that there are families that might not qualify for reimbursement, and they might miss that mark by $500 or $1,000, which is what their bill might be this month,” Kerr said. “So I just wanted to acknowledge and put out there that there are folks who this is going to be really difficult for. This is a childcare payment, it’s a car payment’s worth of money that they’ll have to reallocate in their budget, as the mayor said, in a time that they’re already tightening their budgets and dealing with inflation and higher costs all around.”
Utilities Department Director Chris Garner said that the extended payment plan option is open to all residents, regardless of income level. The extended payment plan allows residents to pay their gas bills over a series of months or even years.
“Right now, our call center is inundated with phone calls,” Garner said. “As you can imagine, people are getting frustrated because there’s long waits and they may hang up. I ask them to be patient.”
The Long Beach Utilities will hold a special meeting to finalize the creation of the Natural Gas Spike Relief Program in the near future.
Long Beach residents struggling to pay their bills can call Long Beach Utility Services at (562) 570-5700 to arrange a payment plan. More information can be found at longbeach.gov/energyresources.
