LOS ANGELES, Oct. 12, 2005 (PRIMEZONE) -- Southern California Gas Co. (The Gas Company) has asked the California Public Utilities Commission (CPUC) for expedited approval of three new programs to help its customers manage expected record-high natural gas costs this winter. Utilities nationwide are experiencing increased natural gas costs due to a number of market factors including increased demand and tighter supplies.
"We expect that the nationwide increase in natural gas prices will pose a very real hardship for our customers this winter," said Anne Smith, senior vice president of customer services for The Gas Company. "We are making these requests to the CPUC so that we can help buffer our customers from these escalating costs."
In its first filing, The Gas Company has asked for approval of new and streamlined procedures this winter to enable more customers to take advantage of special assistance programs. The Gas Company is seeking CPUC approval to:
-- Suspend requirements for certain customer documentation in order
to expedite and increase enrollment in the California Alternate
Rates for Energy program (CARE). CARE provides a 20-percent
energy bill discount to income-qualified customers.
-- Revise CARE income guidelines for seniors and disabled customers
to enable an additional 84,000 customers to qualify for the CARE
discounts.
-- Expand CARE outreach to include a targeted campaign to enroll
eligible customers by phone.
-- Allow for more replacement of low-efficiency natural gas
forced-air furnaces to provide energy and cost savings for
customers eligible for its Direct Assistance Program (DAP).
DAP is an energy-efficiency program that provides weatherization
services at no cost to income-qualified customers.
In its second filing, The Gas Company has asked for CPUC approval of a natural gas hedging plan that will help mitigate the impacts of severe price spikes this winter. A portion of this insurance plan will be dedicated to its CARE customers. This hedging insurance plan is needed to help protect customers against price run-ups in the event unforeseen conditions in the market should develop.
And in its third filing, The Gas Company has asked for CPUC approval of a project that will provide an additional benefit for the utility's low-income CARE customers this winter. 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 the project can help CARE customers to avoid nearly $48 million in natural gas costs over this winter.
Given the urgent need for consumer help, driven by the national rise in natural gas prices, The Gas Company has asked the CPUC to consider the request of the first two filings at its upcoming meeting Oct. 27 and approve the third filing by Nov. 18, 2005.
Meanwhile, The Gas Company has assembled a comprehensive array of programs and services to help consumers prepare for and manage increases in natural gas prices expected this winter. The Gas Company is initiating for the winter flexible credit procedures for low-income customers experiencing difficulties paying their bills, including a no shut-off policy for those customers who make minimum payments and the waiver of certain fees, and increasing its contribution to funds to help needy customers pay bills.
The Gas Company continues to urge all customers to conserve the use of energy, and take advantage of all available programs and services it offers to assist customers in managing energy costs this winter. Customers can visit The Gas Company's Web site, at www.socalgas.com for information on energy-efficiency rebates, conservation tips and customer-assistance program eligibility and application information. In addition, customers can call The Gas Company at (800) 427-2200.
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. To learn more, go to www.socalgas.com.