‘It’s really been a shock’: Outrage grows over sky-high energy bills

When Katherine Gregor moved to Petaluma from Texas in September, she had no idea how much she’d be paying for energy in her new home.

The wake-up call came a month later, after she received her first $500 PG&E bill.

“It’s really been a shock,” Gregor said. “We were like, ‘What’s going on?’”

It’s a question that many people in Petaluma and beyond have been asking this winter, as the region sees lower-than-average temperatures coupled with higher-than-average energy bills – about a third higher compared to last winter.

The sky-high energy costs have many resorting to turning their thermostat down and finding other means of staying warm, like piling on the blankets or using electric space heaters – as Gregor said she did after receiving that first bill.

She ended up calling the previous owner, who told her they never used the central heating when living in that home due to the high cost.

“I thought, I don’t really want to live that way, so we decided to invest some money to get an electric heat pump system put in, because it’s more climate-friendly and the furnace was 27 years old anyway,” Gregor said, adding that the electric heat pump cost $30,000.

But she figured making the upgrade would be worth it – until she received yet another $500 bill.

“That was also very disappointing,” she said.

According to PG&E, the increase in pricing is “driven by higher demand and tighter supplies on the West Coast, as customers use more natural gas for heating during cooler than normal temperatures, and as power plants use more natural gas to meet electricity demand.” The majority of California’s natural gas is imported, according to energy experts.

“As of Jan. 25, PG&E projects that residential energy bills will be about 32% higher from November 2022 through March 2023 compared to the same months last winter,” said PG&E spokesperson Megan McFarland.

The Public Utilities Commission confirmed that higher prices in natural gas are driving the higher costs to customers, which is why on Feb. 2 commissioners accelerated so-called climate credit payouts “of roughly $90 to $120” on PG&E bills. The commission said the payouts “will automatically show up (on bills) as soon as possible.”

‘Pretty disgusted’

Ben Ventura and his family of five live in a 1,400-square-foot home in East Petaluma. He said they have a new refrigerator, new clothes washer, new water heater and only run their heater at night when the temperatures dip below 50 degrees.

But, he said, their gas furnace is an older model and they use natural gas for cooking, which has contributed to their recent PG&E bills reaching between $800 and $900 per month.

“I am pretty disgusted to be paying so much, it's very difficult,” Ventura said.

McFarland said PG&E customers have used more natural gas this winter than over the five-year historic average. November’s usage was 20% higher, December’s was 10% higher and January’s was about 3% higher, she said.

McFarland added that, beyond the changes driven by natural gas supply costs, gas and electric rates changed on Jan. 1 as part of an annual process called the “true-up,” which consolidates rate changes authorized by the California Public Utilities Commission.

“These rate changes include charges for gas and electric delivery, electricity supply, and state-mandated assistance programs for income-qualified customers, energy efficiency and public-interest research and development,” she said.

As part of this year’s true-up, average residential gas bills decreased by 4.6%, while average residential electric bills increased by about 3.4%.

Federal investigation

This week, California Gov. Gavin Newsom announced that he has requested the federal government to investigate the state’s soaring energy bills, and that Californians should expect to receive relief credits of $90 to $120 showing up on gas and electric bills as soon as next month.

“Like other utility companies, PG&E does not control the market prices it pays for gas and electricity nor does PG&E mark up the cost of the energy it purchases on behalf of its customers,” McFarland said.

PG&E also said it offers discounts to low-income customers and those with medical needs. Residents who use certain financial assistance programs may be eligible to receive a discount of 20% or more on their gas and electric bills through the utility agency’s CARE program. And households with three or more people may also receive 18% discounts off their electric bills through its FERA program.

“PG&E is working to reduce or offset investment costs in its energy system for customers, including selling licensing agreements to wireless providers to attach equipment to transmission towers to generate more than $970 million, undergrounding power lines to reduce recurring maintenance costs, and pursuing federal funding to offset some costs of making the energy system safer and more climate-resilient,” McFarland said.

Appliances can help

That’s fine by Nickola Frye, an elderly Petaluma resident who lives in a local mobile home community and uses a gas heater, stove and dryer. Despite the high gas usage, she said her January PG&E bill was roughly equal to last year’s.

“I believe that this can be solely attributed to having installed, in the summer, a tankless water heater,” said Frye, who for medical reasons pours a soaking tub multiple times per week. “I am no longer heating water many times a day in a standard water heater.”

To lower energy usage and save money on bills, PG&E also suggests customers lower their thermostats by at least 10% if they are able – for example, from 70 degrees down to 63 degrees – keep areas around vents clear of furniture or other blockages, lower the water heater temperature, and wash laundry in cold water.

Amelia Parreira is a staff writer for the Argus-Courier. She can be reached at amelia.parreira@arguscourier.com or 707-521-5208.