The gas bill reminds Californians that thousands of kilometers away there is a war

The first call came in December. In a statement, SoCalGas, the natural gas company that serves 22 million people from central California to the Mexican border, announced that its customers would receive higher-than-normal bills during the winter. “At the peak of winter, prices are expected to increase between 25% and 30%,” the statement said. In mid-January came another with an even more worrying tone: “There is no easy way to say this. Collections for January will be higher than normal.” Rates in the west of the country were double those of December. It was clear that it would be a long winter.

Reality hit people like Brent Elridge, a pastor in Long Beach, south of Los Angeles, hard in January. The man lit the jacuzzi from his house in December and a month later he regretted it. The invoice came to him for 907 dollars (857 euros), eight times higher compared to the start of last year. His case has been picked up by the media for being one of the most extreme, but it is far from the only one. SoCalGas has noted that the average price of the receipts is $300, double that of the same period last year. The situation is similar in Northern California, where natural gas is supplied by another company, Pacific Gas and Electric Company.

Although during February there was a significant drop in rates, almost everyone in California has resigned themselves to the fact that they will receive a charge with astronomical figures for the third consecutive month. In addition, the weather does not play in favor. A winter storm has dumped snow on the mountains north of Los Angeles, something that hasn’t happened in decades. The temperature has decreased in California, with 40 million inhabitants, which has forced the thermostat to be raised. Previously, the region suffered for three weeks intense rains and drops in the thermometer that are more typical of the east coast of the country.

Demand has skyrocketed natural gas prices. Fuel reserves are well below the average of the last five years. The scarcity and the increase in the cost of transporting natural gas have served as a reminder to California that a war has been waged in eastern Europe for a year that turned energy prices upside down. SoCalGas has already asked the regulator for permission to raise rates in 2024, which will inflate receipts by an average of $8 if it gets the go-ahead.

Battle against the oil companies

As millions of families scramble to pay their bills, California Gov. Gavin Newsom is waging a battle against Big Oil after some posted record profits. This initiative takes place in a context of a sharp increase in gasoline prices in a State that is practically unable to import fuel from other regions due to its restrictions. The Democratic politician is leading a crusade to speed the transition of California’s giant auto market to a cleaner economy.

Newsom has threatened to introduce legislation that would force oil companies to pay a tax on their profits when profit margins exceed certain levels. Only Alaska, an oil state, has done something similar. Republicans in the local Congress, and even some members of the same party as the governor, have been skeptical of the tax initiative. California will continue to have the highest gasoline rates in the United States, while consumers wait for natural gas prices to give them a break.

Here you can consult the latest Letters from the correspondent

Follow all the information of Economy y Business in Facebook y Twitteror in our newsletter semanal