If you have noticed an increase in your gas bill, you may be concerned that PG&E is increasing rates. Our rate information is always available to you on our tariffs page but we want to help you understand the different parts of your gas bill a little better.
Your gas charges are always made up of two parts, procurement (getting the gas) and delivery (getting the gas to you, metering, pipeline maintenance, etc.). PG&E buys gas and passes the cost directly to the customer without any markup; in other words, you pay what we pay for procurement. PG&E submits proposed delivery rates to the CPUC for approval; this is the portion of the gas charges that PG&E marks up for profit, but we are only allowed to make an agreed upon profit.
In the last three years, we have seen gas procurement costs skyrocket. The graph below shows how both procurement and delivery fees have changed over the last three years. You will see that delivery fees have increased by roughly 30 cents per therm (a therm is the unit of measurement used for natural gas). Meanwhile, procurement costs have seen an increase of 91 cents per therm, just shy of triple what they were in 2020.
These increases have changed how your bills are made up. In 2020, you would have seen the majority of your gas charges were in delivery. Today you will see procurement charges make up a larger portion of your bill than delivery charges.
So, where do we go from here? The good news is gas procurement prices can swing the other way and you would see a radical decrease from what you are currently paying. PG&E is committed to helping our customers through this unprecedented time. We offer a budget billing program to help equalize your bills throughout the year to avoid seasonal spikes. We offer flexible payment arrangements to help pay down an unexpected high bill over several months. We offer discount programs based on medical needs as well as income need. Log in to Your Account to see what programs we can offer to help you this season.
NOTE: All data and price points are pulled directly from PG&E tariffs and compare only procurement and delivery fees.