Legislation Details

File #: 9442   
Type: Consent Status: Passed
File created: 1/12/2024 Department: Board of Supervisors
On agenda: 1/23/2024 Final action: 1/23/2024
Subject: Opposition to the Proposed Southern California Gas Company Utility Increase
Attachments: 1. RES-BOS-01232024-SCG Rate Increase Resolution, 2. Item # 4 Executed BAI, 3. Executed Resolution

REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY

AND RECORD OF ACTION

 

                                          January 23, 2024

 

FROM

DAWN ROWE, Chair and Third District Supervisor, Board of Supervisors

         

SUBJECT                      

Title                     

Opposition to the Proposed Southern California Gas Company Utility Increase

End

 

RECOMMENDATION(S)

Recommendation

Adopt resolution opposing the proposed utility increase from Southern California Gas Company.

(Presenter: Dawn Rowe, Chair and Third District Supervisor, 387-4855)

Body

 

COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES

Operate in a Fiscally Responsible and Business-Like Manner.

Ensure Development of a Well-Planned, Balanced, and Sustainable County.

Provide for the Safety, Health and Social Service Needs of County Residents.

 

FINANCIAL IMPACT

Approval of this item will not result in the use of Discretionary General Funding (Net County Cost) as it is non-financial in nature. 

 

BACKGROUND INFORMATION

On May 16, 2022, the Southern California Gas Company (SoCalGas) filed its 2024 General Rate Case Application No. A.22-05-015 (Application) with the California Public Utilities Commission (CPUC). The Application requests authority to increase SoCalGas revenues by $4,740,000,000 over a three-year period, from 2024 through 2027.

 

If the Application is approved by the CPUC as proposed, the typical residential monthly natural gas bill would increase by approximately 13.2% per month.  This rate increase is being proposed at a time when California is already ranked amongst the top 10 states with the highest utility rates and San Bernardino County residents are facing record inflation.  Additionally, throughout the county, more than 20% of families with minor children are led by single parents supported by one income, 12% of households are seniors on fixed incomes, and nearly 10% of residents rely on cash assistance or CalFresh benefits.  Higher utility bills will impose another financial burden on the success and wellbeing of County residents in need.

 

According to SoCalGas, more than 90% of households in Southern California rely on natural gas to heat homes and hot water and about 60% of the electricity in the state is generated using natural gas.  The recommended resolution will demonstrate the Board of Supervisors’ (Board) strong opposition to the substantial increase in natural gas rates.  It will also request that SoCalGas report to the County the status of their Application, why they are requesting $4,740,000,000 in revenue from customers, and when the proposed rate increases would go into effect.

 

The Board strives to create a County in which those who reside and invest can prosper and achieve well-being and the proposed substantial rate increases go against the values and principles of the County. 

 

PROCUREMENT

Not applicable.

 

REVIEW BY OTHERS

This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on January 3, 2024; Finance (Erika Rodarte, 387-4919 and Stephanie Maldonado, 387-4378, Administrative Analysts) on January 4, 2024; and County Finance and Administration (Robert J. Saldana, Deputy Executive Officer, 387-5423) on January 4, 2024.