Utility Warns of Higher Natural Gas Bills By KPIX - BCN

Pacific Gas and Electric Co. officials are warning customers that their bills for natural gas will be 60 percent higher in January than they were in December.

http://dailynews.yahoo.com/h/kpix/20010101/lo/utility_warns_of_higher_natural_gas_bills_1.html

A news release issued by the company says the average residential bill will rise to $125 in January, compared with a December average of $77. The average bill in January, 2000 was about $50. "Pacific Gas and Electric Company's current financial position, resulting from the outrageous wholesale electric prices we are being forced to pay on behalf of our customers, prevents us from being able to finance this high cost and spreading it out over a few months," PG&E President Gordon Smith said in a prepared statement. Company officials say they have told the California Public Utilities Commission that a cash and credit squeeze has prompted 15 to 20 of its natural gas suppliers to refuse to sell any more gas to PG&E than they are already committed to do.

Smith complained that many of the same companies that have refused to sell PG&E natural gas also own power plants in California and are charging the company as much as 30 times what it costs them to generate the power.

Company officials say that the utility has nevertheless been able to buy enough gas for projected use as long as temperatures don't drop and increase demand.

Customers can call (800) 933-9555 for information about how to conserve energy, and they can get information about two financial assistance programs at (800) 743-5000. Efforts to reach consumer advocates for comment today were unsuccessful . officials are warning customers that their bills for natural gas will be 60 percent higher in January than they were in December.

A news release issued by the company says the average residential bill will rise to $125 in January, compared with a December average of $77. The average bill in January, 2000 was about $50. "Pacific Gas and Electric Company's current financial position, resulting from the outrageous wholesale electric prices we are being forced to pay on behalf of our customers, prevents us from being able to finance this high cost and spreading it out over a few months," PG&E President Gordon Smith said in a prepared statement. Company officials say they have told the California Public Utilities Commission that a cash and credit squeeze has prompted 15 to 20 of its natural gas suppliers to refuse to sell any more gas to PG&E than they are already committed to do.

Smith complained that many of the same companies that have refused to sell PG&E natural gas also own power plants in California and are charging the company as much as 30 times what it costs them to generate the power.

Company officials say that the utility has nevertheless been able to buy enough gas for projected use as long as temperatures don't drop and increase demand.

Customers can call (800) 933-9555 for information about how to conserve energy, and they can get information about two financial assistance programs at (800) 743-5000. Efforts to reach consumer advocates for comment today were unsuccessful

-- Martin Thompson (mthom1927@aol.com), January 01, 2001