Want to lower your energy bills?

Cram at least 48 items into your dishwasher

There is obviously more to the story.

While none of the panelists used terms like “market manipulation” or “price gouging,” one representative from the Los Angeles Department of Water and Power insinuated that market forces played a big role.

“It was the markets that were selling to these large buyers and other electric generators, us included, that took this news (of the unusually cold weather) and increased the prices because all of a sudden there was more demand for it,“ said Marlon Santa Cruz, manager of fuel and purchased power at LADWP.

“There’s just interesting things going on in the market,” he continued.

“Why is it that the day after Senator (Steven) Bradford sent a letter to the CPUC calling for an investigation prices were slashed in half from the $20 mark to the $10 mark? And as news (broke) about Gov. Newsom’s letter ... now we stabilize at $5 as of yesterday.”

Running full loads in the dishwasher is an energy-saving tip offered by SoCalGas, but it won’t do much to reduce any bills. It’ll save up to $10 per year, according to the utility.

By Stephanie Finucane

February 13, 2023

Talk about adding insult to injury.

After blindsiding me with a bill for $462.51, SoCalGas followed up a week later with this advice: “Top recommended tip for you: Run full dishwasher loads.” (In case you’re wondering what constitutes a “full load,” it’s 10-12 place settings or 48-50 items.)

According to the letter, filling up my dishwasher — and then letting the dishes “air dry” — would save me up to $10 a year in energy costs. That works out to less than $1 a month. Big whoop.

To be fair, there were other tips as well: Lower the thermostat by 5 to 8 degrees, “health permitting,” and install weatherstripping on doors and windows.

SoCalGas also informed me that I’m using much more natural gas than my neighbors — 56% more, to be exact, which it rated as “fair.” That was kind. I probably deserve a grade of “poor” and, yes, I really should look into that weatherstripping.

But there’s another subtle message conveyed by that letter: It’s primarily my fault that my bill is so high — and it will continue to be my fault in the event of future spikes.

Because weatherstripping. And dishwasher.

Was there market manipulation?

The massive increase in my bill — along with everyone else’s — was not due to the fact that I used more energy in the January billing period. In fact, I used less. Rather, it was because the price per therm — the measurement used to determine consumption — skyrocketed, especially in the West.

California utilities like PG&E and SoCalGas offered semi-plausible excuses and stressed that they don’t profit from the increase in rates. They repeated their explanations at a Tuesday meeting of the California Public Utilities Commission, called for the express purpose of figuring out what was going on with the natural gas market. By and large, the session was a rehashing of what we already knew.

There was lots of talk about pipelines being out of commission and stockpiles being lower than usual, but the main culprit was the super cold weather that caused us to crank up our thermostats.

Newsom’s letter asked the federal Energy Regulatory Commission to investigate whether “market manipulation, anticompetitive behavior, or other anomalous activities” were to blame for higher natural gas prices in the Western United States. Good for him.

One of the commission’s chief goals is “to ensure just and reasonable rates, terms and conditions.” It has the authority to impose fines for rules violations; in 2021-22 the agency’s enforcement division reached settlements totaling $55 million, including $23 million in penalties and $32 million in reimbursements, according to its annual report. It’s time to put natural gas producers who jacked up our rates under the microscope.

What more can be done?

While Tuesday’s CPUC hearing focused more on the immediate situation than on long-term fixes, panelist Fred Heutte, senior policy analyst with the Seattle-based NW Energy, made several meaningful suggestions, including:

• Enhanced consumer protection, including bill payment assistance

• Reforming fuel cost adjustments

• Expanding gas market transparency

• Windfall profits recapture

Communication was also a biggie.

“A very high priority for us in the Northwest Energy Coalition is to provide customer information during these kinds of events to avoid the kind of total price shock we’re seeing,” Heutte said.

Are you listening, California utilities?

The ultimate answer, though, was this: “The root cause is not markets, though they have problems, but rather, over-dependence on gas,” Heutte said — a conclusion repeated by other panelists.

They’re not wrong, which is why solar panels and electric appliances are looking better and better — though the price tags are prohibitive for many Californians.

For now, our best recourse is to insist that public officials hold utilities and energy suppliers accountable, and to push for policies that will fast-track the transition to renewable energy.

In the meantime, weatherstripping.

Also, it probably wouldn’t hurt to shove a few more plates into the dishwasher.