LOS ANGELES, Nov. 18, 2005 (PRIMEZONE) -- Southern California Gas Co. (The Gas Company) today received approval from the California Public Utilities Commission (CPUC) of a project that will provide an additional benefit this winter for the utility's low-income customers enrolled in the California Alternate Rates For Energy (CARE) program.
The utility has developed a plan to re-drill some natural gas wells in two of its underground storage fields that will enable it to withdraw natural gas stored many years ago at a very low cost. By withdrawing low-cost natural gas this winter to serve customers, The Gas Company can avoid buying an equivalent amount of natural gas at high prices. The result of this project can help CARE customers to avoid nearly $48 million in natural gas costs over this winter, based on the projection of winter gas prices at the time of the utility's CPUC filing.
The Gas Company is working to help natural gas customers manage their bills in what may be record-high prices this winter, caused by a very tight supply-demand balance in the national market.
"Today's CPUC action is a win for our customers. It is a welcomed addition to the Commission's approval last month to raise the income eligibility guidelines for the CARE program so that more customers may qualify for the rate discount program," said Anne Smith, senior vice president of customer services for The Gas Company. "Combined, these expanded efforts will provide our customers with added protection this winter from expected higher natural gas bills. The Commission is to be commended for its expedited review and approval."
The CPUC also approved last month a number of other requests designed to help in reducing energy costs for customers:
-- Streamlining the enrollment process in the CARE program
by suspending requirements for certain customer documentation
and expanding outreach efforts, in order increase customer
participation in the CARE program.
-- Increasing the replacement of low-efficiency natural gas
forced-air furnaces with high-efficiency units to provide
energy and cost savings for customers eligible for its
Direct Assistance Program (DAP). DAP is an energy-efficiency
program that provides home weatherization services at no
cost to income-qualified customers.
-- A natural gas-hedging plan that will help lessen the impacts
of severe price spikes this winter. The Gas Company will
dedicate a portion of its hedging plan, which is like a price
insurance policy, to its CARE customers.
The Gas Company is the nation's largest natural gas distribution utility, providing safe and reliable energy to 19.5 million consumers through 5.5 million meters. The company's service territory encompasses approximately 20,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is a regulated subsidiary of Sempra Energy (NYSE: SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company.