SoCalGas Seeks 21% Revenue Increase

Despite rising concerns from ratepayer advocates, policymakers, and lawmakers about continually escalating utility bills as inflation worsens, Southern California Gas asked California regulators to approve a significant increase in its 2024 revenue, along with its sister utility San Diego Gas & Electric.

SoCalGas seeks a 21% increase in its revenue requirement to reach a total $4.43 billion. If approved, it would add $767 million to the gas company’s projected 2023 revenue.

Average monthly utility bills would be $8.60 above those expected in 2023. SoCal Gas serves 22 million residential and commercial consumers.

The Utility Reform Network strenuously objects to both the gas company’s and SDG&E’s proposed revenue increases.

SoCalGas’ general rate case filing, according to company president Maryam Brown, “reflects the company’s understanding of what it must do to maintain and enhance reliability, resilience, safety, and affordability while advancing California’s globe-leading efforts to decarbonize energy.”

Revenue would be used to improve the safety of its gas system and help transition it to alternative or low polluting fuels, from use of renewable natural gas to blending hydrogen produced by electrolysis into the natural gas pipes, according to SoCalGas.

Its proposed budget includes support for installing 1,600 electric vehicle chargers at all of its workplaces and building up to nine hydrogen refueling stations along with a pipeline network connecting the stations to local small-scale production sites between 2022 and 2024.

“Not a single additional ratepayer dollar should go to fund EV charging stations or EV infrastructure,” said Mark Toney, TURN executive director. He said investments in alternative vehicle infrastructure “need to come from the transportation sector, or federal or state funds.”

The company aims to replace half of the company’s 4,200 vehicles with battery electric, compressed natural gas, and hydrogen fuel cell electric vehicles by 2025.