Extreme Winter Conditions - Energy Prices
Letter (2MB - PDF)
February 16, 2021
Dear Public Utilities Customers:
This letter serves to provide information regarding abnormally high natural gas and energy prices in California as current conditions may impact your business.
Extreme winter weather conditions outside of California have resulted in significant impacts to the supply and pricing of natural gas and energy within the California market. Unseasonably low temperatures across the lower Midwest and Gulf Cost dramatically increased gas demand outside Southern California and have also created supply disruptions. Consequently, natural gas and energy markets have experienced an unexpected surge resulting in extremely high prices in the California markets.
As your provider, Vernon Public Utilities (VPU) is impacted by gas and energy market volatility and, therefore, customers may see higher utility bills. Please note that the commodity price component of the Vernon gas bill is a straight pass-through to customers, meaning that there is no margin or profit collected by Vernon on the commodity portion of the bill. The commodity portion of the bill is simply the cost of supply for VPU, which is representative of the monthly cost of supply at the SoCal Gas city gate.
In response to the current situation, we urge customers to curtail any non-essential production during these unprecedented times in order to conserve gas and energy until market conditions improve. These less than ideal conditions are expected to continue through the week. VPU will continue to monitor the situation and advise you of any changes or updates.
Business & Account Supervisor for Vernon Public Utilities