The average monthly cost of natural gas is expected to go down from $313 to $108 due to the protections.
The Long Beach Board of Utilities Commissioners has unveiled a new contract designed to safeguard Long Beach and Signal Hill residents from extreme natural gas prices.
Ratepayers will receive protections from fluctuations in natural gas prices over the upcoming winter season, as well as the following three winters.
“Long Beach families deserve hot food on the table and a way to heat their homes without breaking the bank,” Long Beach Mayor Rex Richardson said in a statement. “Last winter, natural gas bills were astronomical throughout California. But due to the work of our Utilities Department, Long Beach residents and businesses will be assured of much more reasonable winter gas bills this coming winter.”
During the winter months, an average single-family home in Long Beach typically consumes 65 therms of natural gas. Last winter, gas prices soared, and this average level of consumption resulted in a monthly bill of $313.36.
“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 to Long Beach City Council during public comment in February. “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?”
Thanks to new pricing protections implemented by the Utilities Department, it is anticipated that the average natural gas bill for January 2024 will be approximately $108.20, significantly lower than the charges incurred the previous January.
“Long Beach has always prided itself on being an affordable city to live in, with quality and reliable public services,” Long Beach Board of Utilities President Gloria Cordero said in a statement. “We take utility pricing seriously, and when confronted with record-setting high natural gas prices last year, our Board directed our staff to do their best to ensure that this never happens again.”
In pursuit of customer protection, Long Beach Utilities engaged in aggressive negotiations to secure natural gas pricing at an average of $0.625 per therm for the next three winters, a substantial reduction from the elevated prices experienced in the prior winter when natural gas prices rose to $3.8101 per therm in January 2023.
As California relies on out-of-state sources for approximately 90% of its natural gas supply, the Long Beach Utilities Department, acting as the municipal natural gas utility for Long Beach and Signal Hill, has worked to mitigate and stabilize both natural gas commodity and pipeline transportation costs, while also optimizing storage to maintain affordable rates for all customers.
