Gov. Newsom urges federal investigation into high natural gas prices

Gov. Newsom urges federal investigation into high natural gas prices
Gov. Gavin Newsom on Monday urged the federal government to investigate the recent spike in natural gas prices . Newsom said in a letter to the Federal Energy Regulatory Commission (FERC) that it “immediately focus its investigatory resources on assessing whether market manipulation, anticompetitive behavior, or other anomalous activities are driving these ongoing elevated prices in the western gas markets.
” “Since late November 2022, wholesale natural gas prices throughout the West have risen to alarming levels that greatly exceed prices in the rest of the country,” Newsom wrote. He said that California’s residential customers are “suffering the economic burden” as a result. "We want look to into why these price spikes are happening," said Matt Baker, director of the California Public Utilities Commission (CPUC) office of the public advocates.
Baker said he supports the governor's call upon FERC to investigate. "Really look at what were the causes of the price spike and what were some of the opportunities, if there were any opportunities, for either profiteering or market manipulation," Baker explained. "It is difficult to prove, but if you’re a federal agency, and you have subpoena power and you can compel testimony, it is possible to get to the bottom of it.
" Pacific Gas & Electric Company told KCRA 3 recently that customer bills on average were 32% higher than they were last year because of high demand and tighter supply. One resident in West Sacramento said his bill has skyrocketed to $662, with more than $400 going toward gas. That was up from $200 combined the previous month.
Newsom said in his letter that early cold weather exacerbated the increases but argued they didn’t explain the “longevity of the price spike. ” As for action being taken at the state level, the governor's office announced the CPUC and California Energy Commission will hold a hearing Tuesday -- bringing together market experts to examine the possible drivers behind the natural gas price spikes and explore potential state actions that can be taken. "The hearing includes participation of the California Independent System Operator and market experts from across the country to discuss possible drivers and explore any state measure to protect California customers," read a statement from the governor's office.
More information about the meeting and a link to join virtually are available at this link . Last week, the CPUC ordered utility companies to give customers a credit to lower home heating bills “as soon as possible” instead of later in the spring because of high natural gas prices. The move to speed up the delivery of the Climate Credit instead of waiting until April could knock $91 to $121 off the next bill for customers who receive both electricity and natural gas from PG&E, Southern California Edison, San Diego Gas & Electric and Southern California Gas Company.
Customers of Bear Valley Liberty, PacificCorp and Southwest Gas will also get their credit sped up. You can see the specific amounts of the credits here . .