Energy prices are extremely high this winter. The prices that the City of Palo Alto Utilities (CPAU) and other utilities in the region pay for the natural gas and electricity delivered to customers have risen significantly this year. CPAU is informing customers in advance to take action and save energy to try to avoid surprisingly high utility bills.
Natural Gas
Gas market prices can fluctuate greatly from month to month. Extremely high gas market prices are projected for January and February, the highest since the 2001 energy crisis. Gas commodity prices for January and February are projected to be 1.5 to 2 times higher than last year's winter gas prices. Gas customers across California are experiencing similar impacts. This is due to historically cold weather, low regional gas storage levels, constraints on gas supplies flowing into California, and an increased reliance on natural gas in the electric power sector as a result of the ongoing drought’s impact on hydroelectric supplies. Like other utilities, CPAU does not control the market prices it pays for gas and does not mark up the cost of the energy it purchases on behalf of its customers.
Electricity
Very high electricity market prices and low hydroelectric generation due to the drought are affecting the City’s electric utility. The City uses a hydroelectric rate adjuster to pass the costs or benefits of higher or lower hydroelectric generation and associated electricity market conditions through to customers. Starting in January, this adjuster will be increased to account for very high market prices and poor hydroelectric output, leading to electric retail rates that will be about 20% higher than they were in December until conditions improve. Utilities across California are experiencing similar issues, which is why, despite these increases, Palo Alto retains a deep cost advantage against its neighboring utility, PG&E.
How to Save on Energy Costs this Winter for Businesses
Space heating and cooking account for the most natural gas use in many commercial facilities. CPAU offers a great variety of rebates and free services for upgrading equipment and appliances for energy efficiency.
- The Business Energy Advisor offers free consultation and on-site assessments to identify opportunities for your business to improve energy and water efficiency at your facility and save on your utility bill. To qualify, you must be a non-residential commercial customer with a facility smaller than 50,000 square feet. Give the Business Energy Advisor a call at (650) 761-6417 to learn how you can save.
- The Business Electrification Technical Assistance Program assists non-residential CPAU customers with conversion of gas equipment to efficient electric alternatives at their facility. By signing up, you will receive a free on-site assessment to identify electrification opportunities for your business, ongoing technical support, and assistance with applying for the Business Customer Rebates.
- CPAU also offers a Commercial and Industrial Energy Efficiency Program, which provides our commercial and industrial (C&I) customers with a free high-level assessment of their facility's energy usage and concrete recommendations for saving energy. This service is provided for business facilities larger than 50,000 square feet in size.
With Energy Efficiency, You Can Keep Utility Bill Costs Low!
We want to make sure you have information in advance about higher energy prices and know where to go for energy efficiency tips to keep utility costs down.
View no-cost and low-cost ways to save energy and money this winter at your business and home.
Contact Utilities Customer Service at (650) 329-2161 or your Key Account Representative if you have questions about your utility account or bill or login to MyCPAU to manage your utilities account online.
Carbon Neutral Electricity
Consider switching appliances from natural gas to electric to take advantage of CPAU's clean, renewable, carbon-neutral electricity and reduce your carbon footprint to help us meet our climate action goals! Visit cityofpaloalto.org/electrification for resources and rebates.
