Homeowners will continue to feel the hurt of heating bills in February, with prices near record highs and the average bill topping $100.
PG&E announced today that average natural gas bills are expected to rise 23 percent this month compared to last year, a far cry from the 50 and 70 percent jumps the company had been reporting for previous months. Average February bills are expected to be $107.44, roughly $20 more than they were for February 2005.
The costs could be moderated even further if households continue efforts to conserve on natural gas, which in most California households is the energy source for furnaces and hot water heaters.
PG&E's residential customers have been reducing their natural gas use by an average of 12.5 percent. Households and small business customers who cut their natural gas use by at least 10 percent from January through March will receive a 20 percent rebate on their bills.
Unlike electricity, where rates are approved by regulators and set on an annual basis, the cost of natural gas fluctuates every month. PG&E is allowed to pass on the cost of purchasing natural gas, but is not allowed to profit nor does it need to take a loss from the sale.
The cost of natural gas has has skyrocketed since hurricanes Katrina and Rita last fall, which crippled nearly 20 percent of the nation's natural gas supply.
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