Home Residential Services Resource Center Understanding Your Bill California Bills & Gas Prices FAQ
What You Need to Know
There are three main factors that could affect your gas bill:
- Changes in usage
- Changes in the cost of gas which impacts customer gas cost rates
- Changes in the delivery charge (or Gas Usage on a customer’s bill)
Your usage changes month-to-month. Typically you use more gas in cooler months to heat your home, water, and cook meals.
Natural gas, like any commodity, is subject to price fluctuations based on a variety of factors, including supply and demand. We purchase gas on your behalf, and your gas cost rates reflect the price that we actually paid for that gas. California gas cost rates are adjusted monthly.
The delivery charge (or Gas Usage) reflects a Basic Service Charge component which includes the cost of operating the natural gas utility in California and recovering our investment in the natural gas distribution system in the state. That component of the delivery charge only changes as a result of a General Rate Case, which occurs approximately every five years. Our regulators scrutinize and approve changes to that rate prior to implementation.
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If you find yourself in need of aid to cover utility bills or are seeking more effective ways to manage your budget, we're here to help.
Learn more about changes in residential natural gas pricing history at U.S. Energy Information Administration.
Find more information about
California Rates & Regulation
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View historical gas costs and average bills for Southern and Northern Nevada in the charts below.
South Lake Tahoe Average Bill
Delivery Charge and Gas Cost comparison for the average single-family residential monthly bill in South Lake Tahoe.
Northern California Average Bill
Delivery Charge and Gas Cost comparison for the average single-family residential monthly bill in Northern California.
Southern California Average Bill
Delivery Charge and Gas Cost comparison for the average single-family residential monthly bill in Southern California.
We hope this information helps provide a simple explanation for what can be a very complicated process and helps you better understand how your bills are calculated and how usage, cooler weather, and market prices for natural gas can all contribute to fluctuations customers may see in their bills.
Understanding Your Bill
What are the different charges I see on my bill?
Your bill includes two primary charges: the Gas Cost and the Delivery Charge (or Gas Usage).
The Gas Cost component of your bill is based on the cost of gas which impacts the gas cost rates, and your usage. Natural gas, like any commodity, is subject to price fluctuations based on a variety of factors, including supply and demand. We purchase gas on your behalf, and your gas cost rates reflect the price that we actually paid for that gas. Southwest Gas bills customers on a per-therm basis. Based on your natural gas usage, your total therms used each month may increase or decrease.
The Delivery Charge (or Gas Usage) component of your bill reflects the cost of providing safe and reliable natural gas service in California and recovering our investment in the natural gas distribution system in the state. This includes a fixed monthly charge (Basic Service Charge), a per therm rate, and various authorized surcharges to fund programs for low-income and infrastructure replacements. The Basic Service Charge component is only adjusted after it has been scrutinized and approved through a General Rate Case regulatory proceeding.
The remaining costs are comprised of surcharges for specific programs that are adjusted on an annual basis with an effective date of January 1 for the upcoming year.
Why does my bill change every month?
Two main factors could affect changes in your bill: changes in usage and changes in the cost of gas.
Your usage can depend on several factors. Wintertime and cooler temperatures will be the primary contributors to increased usage—things like your thermostat setting, the number of family members or guests in your home, the number of loads of laundry you wash and dry, the number and length of hot showers, or the use of natural gas appliances such as fireplaces or pool heaters. Your home's energy efficiency is another factor. Leaks and cracks around windows and doors and the type of insulation your home has may contribute to increased gas usage to maintain your home's comfortable temperature.
If your usage is similar but your bill has increased, the difference can be related to the cost of gas, which impacts gas cost rates. The price of natural gas, like other commodities, is affected by supply and demand. We purchase gas on behalf of our customers – the price you pay is the same as we pay, with no markup or profit to the Company. Changes in the gas cost rates are made monthly pursuant to the authorization granted to the Company by the Commission.
Gas Costs
Why does the cost of gas change?
The price of natural gas, like other commodities, can rise and fall and is affected by supply and demand and other external factors like weather events, policy changes, and other economic factors.
We purchase gas on behalf of our customers, and your cost of gas reflects the price paid for the gas with no profit to the Company. Southwest Gas adjusts its California gas cost rates monthly.
Does Southwest Gas profit from the gas I use in my home?
No. We purchase gas on your behalf, and the price you pay reflects what we paid - there is no profit to the Company.
We are only allowed to earn a return on the investments we make in our system to help ensure the safe and reliable delivery of natural gas service to your home or business. Our regulators scrutinize and approve these investments and the return as part of a General Rate Case.
DELIVERY CHARGE (GAS USAGE)
Why does the Delivery Charge (or Gas Usage) change?
Annually, the Delivery Charge (or Gas Usage) component of your bill changes.
A customer’s bill reflects the cost of providing safe and reliable natural gas service in California and recovering our investment in the natural gas distribution system in the state. This includes a fixed monthly charge (Basic Service Charge), a per therm rate, and various authorized surcharges to fund programs for low-income and infrastructure.
The Basic Service Charge component only changes as a result of a General Rate Case, which occurs approximately every five years. Our regulators scrutinized and approved the charge prior to implementation.
Additionally, other various surcharges included in the Gas Usage component of your bill are normally adjusted on an annual basis with an effective date of January 1 of the following year.
What is a General Rate Case?
Southwest Gas is a regulated utility and only earns a return on our investments that are approved by our regulators. We are not allowed to adjust the delivery charge (Gas Usage) and Basic Service Charge without regulatory approval.
The Company makes significant investments in our distribution system to ensure our customers can rely on their natural gas service. Unlike traditional companies, regulated utilities can only recoup those investments after they have been scrutinized and approved through the regulatory process of a General Rate Case.
We will continue to prioritize efforts to operate efficiently and find cost savings initiatives to ensure we are working on your behalf to manage expenses and ensure just and prudent costs for providing safe and reliable energy service to our communities.
How does a General Rate Case affect me?
In September 2024, we proposed a base rate adjustment to the California Public Utilities Commissions (CPUC), seeking approval to adjust rates to reflect the current level of operating expenses and recover the cost of our investment in California to improve safety and reliability and support growth in the State.
Our last base rate adjustment was effective in April 2021. If approved, we estimate the following impacts to customers’ bills would take effect January 1, 2026.
We are also proposing to continue our five Conservation and Energy Efficiency programs so that customers may become more energy efficient and help reduce their gas bills.
Southwest Gas is very committed to managing our costs to ensure you continue to receive safe, reliable, and affordable service. Despite the significant investments we have made in California to help support growth and the ongoing demand for natural gas service, we have managed costs with the result of keeping our costs of providing service relatively flat over time. Normally, any fluctuations in your gas bill are primarily related to the cost of gas.
Will I be notified if rates change?
Yes. Southwest Gas provides written notice to customers of delivery charge (or Gas Usage) rate changes, which includes bill inserts in compliance with applicable CPUC regulations.
If you have any additional questions about this information, call us at
877-860-6020
or visit
swgas.com/contactus
.
CUSTOMER ASSISTANCE
Is there any way I can lower my bill?
Simple efforts like being mindful of thermostat settings, installing weather stripping around doors and windows, and replacing air filters can all help keep winter bills down.
Some homeowners and renters may even qualify to receive assistance with money-saving home improvements to increase the energy efficiency of their homes at no cost.
We encourage all residential customers to take advantage of the energy savings portal on our website. Here, you can find personalized tips on how to lower your energy use and compare your energy use to similar or comparable homes.
What if I need help paying my bill?
We are here to help and have a variety of payment and assistance programs available.
You can sign up for the Equal Payment Plan to help manage your payments and monthly budget. We also offer assistance programs, including California Alternate Rates for Energy (CARE) program, Energy Savings Assistance (ESA) program, Medical Baseline, and emergency assistance programs through Energy Share, as well as Installment Plan for those with outstanding bills.
For more information about these and other programs, call us at
877-860-6020
or visit
swgas.com/caassist
.
Special Assistance Programs
Southwest Gas offers money-saving options for residential customers who qualify for assistance. To find out if you meet the criteria for these programs, choose your location below.
Energy-Saving Tips
When you're spending more time at home, your energy use may increase. On average, natural gas can save your household $1,132/year when compared to other homes that use electricity to heat, cook, and dry clothing.
Residential Rebates
Save money when you use high-efficiency natural gas appliances. Get rebates on qualified appliances and equipment in your area.
