Local PG&E Customers Are Seeing Rising Bills — But Why Now?

February 2021

Good Day Sacramento

Faculty Affiliate  Lucas Davis comments in the Good Day Sacramento article about the rising natural gas prices. He offers his opinion and expertise on why gas prices have seen such a stark increase.

“Natural gas prices are pretty high right now and I think until we see that change, it’s going to be reflected in higher natural gas bills…High demand and soft supply created the current market. U.S. production of natural gas is just coming back online after being hit hard in 2020…U.S. production exports about 10 percent of its liquefied natural gas – meaning increased exports pushes the price up in North America. It’s unclear when prices will flatten out.”