Match seasonal gas usage to contract pricing in California

California: Build a month-by-month exposure map

Start with EIA: supply, demand, weather and storage price drivers. The table below links this decision to the represented gas companies in California. It does not establish service or supplier availability for every account.

Use weighted prices

For each month, multiply projected therms by that month’s assumed supply price. Add applicable fixed fees separately. An unweighted average gives a low-volume summer month the same influence as a high-volume heating month.

Separate price exposure from operating exposure

A fixed commodity component does not establish firm transportation or remove a curtailment obligation. Ask operations to review notice and response requirements independently of finance’s price scenario.

California utility application

SoCalGas: the program detail behind this decision

SoCalGas separates an aggregator’s commodity service from utility transportation. Its CAT guidance expressly says that switching does not assure savings. Establish core or noncore status before using an aggregator proposal as the benchmark. Socal Cat.

Apply the evidence to an account file

In the monthly budget, keep Aggregator commodity and customer fees versus utility procurement, with delivery retained visible. Obtain the service response for Who supplies, balances and bills the account; conditions for returning to utility procurement before assuming that a winter price arrangement also guarantees the required operating flexibility.

Worked check: an average can hide the heating load

Assume a hypothetical two-month illustration uses 3,000 therms at $1.00 and 1,000 therms at $0.60. The commodity total is $3,600 and the usage-weighted price is $0.90 per therm. The simple average price is $0.80; applying it to 4,000 therms understates the illustration by $400. No fees or delivery charges are included. This is arithmetic, not a claim about which local months or prices will be higher. Use all twelve actual delivery months for the real budget.

Turn the review into a calculation

Build a monthly weighted budget. Enter documented assumptions in matching energy units. Keep any charge outside both supply offers separate; the result does not establish eligibility or an available quote.

Read the California utility guide for the wider service-company distinctions. Convert billed gas units using the bill’s heat-content factor when moving from volume to energy.