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November Natural Gas Bills Slightly Higher Than a Year Ago

Release Date: November 9, 2007
Contact: PG&E External Communications (415) 973-5930

ared to November 2006, with total average gas bills expected to be $50.50 for the month. This increase is driven in part by higher expected usage, this year, and in part by a 7 percent higher cost of gas.

North America and the Western US are entering the winter with very full storage fields and without physical damage from hurricanes to the supply system, which exacerbated gas prices in past winters. Natural gas costs could rise or fall in the winter months, depending on weather and market conditions, but PG&E has worked to protect our customers from severe price spikes through smart purchasing decisions, financial hedging against price spikes, and using our extensive pipeline and storage infrastructure to help lower gas purchase costs.

PG&E offers several options to manage your winter energy costs, including tips for reducing gas use, rebates on efficient equipment, and a 10/20 Plus Winter Gas Savings program. PG&E also offers a number of financial assistance options to help customers with high natural gas bills. See www.pge.com/winter for more details. A forecast of PG&E natural gas rates and bills over the next year is also available at www.pge.com/tariffs.

Residential Natural Gas Cost Comparison

AVERAGE RESIDENTIAL CUSTOMER November-07 October-07 Percentage Change November-06 Percentage Change
Therms of Gas Used 38 25 52.0% 35 8.6%
Cost of Gas Procurement
(per therm)
$0.852 $0.881 -3.3% $0.797 6.9%
Average Transportation Charge
(per therm)
$.438 $.438 0.0% $.434 0.9%
Total Rate $1.290 $1.319 -2.2% $1.231 4.8%
Public Purpose Program (PPP) Surcharge $0.039 $0.039 0.0% $0.050 -22.0%
Total Rate
(including PPP Surcharge)
$1.329 $1.358 -2.1% $1.281 3.7%
Total Natural Gas Bills
(including PPP Surcharge)
$50.50 $33.95 48.8% $44.84 12.6%

Notes: Forecast November 07 and October 07 usage is based on three year averages for these months. November 06 is based on actual November 06 average use. Totals may not match exactly due to rounding.
Therm: A measurement for natural gas. One therm contains thermal energy equivalent to 100,000 British thermal units. Procurement: The cost of the natural gas itself delivered to PG&E's local transmission system. Procurement costs fluctuate on a monthly basis, based on market prices. Transportation: The cost of transporting the gas to PG&E's customers on PG&E's local transmission and distribution system. The transportation rate included here is an annual average of the baseline and excess rates. Public Purpose Program (PPP) Surcharge: Prior to March 1, 2005, the transportation rate included public purpose program surcharges mandated by state. In compliance with D. 04-08-010, issued August 19, 2004, gas PPP surcharges are removed from gas transportation rates effective March 1, 2005.

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