Gas Users Gave Record Amount to Aid the Poor

Los Angeles-area residents, in a wave of generosity, donated record amounts of money to the needy to help pay their huge household gas bills from last winter’s bitter cold season, gas company officials said Friday.

Rich Puz of the Southern California Gas Co. said 20,554 customers contributed an average of $14.25 each, sending the money in donation envelopes that accompany gas bills, for a total of $292,970. The donations--a record--were combined with similar contributions from company shareholders, and eventually $612,705 was turned over to several social service agencies which distributed the funds to the poor, he said.

“This was a big help to a lot of people,” Puz said.

He said 6,828 families received help, averaging about $89 in assistance per family.

The cold weather--with nighttime temperatures hovering in the 40-degree range and dipping as low as the 30s in some areas last December and January--tripled and quadrupled many gas bills. That occurred because most households used so much natural gas that they were catapulted into a specially priced tier, set by the Legislature, that penalizes excessive gas use, regardless of family size, the age of the house, unusually cold weather or any other criteria.

Under the regulations, the gas company was allowed to boost charges from 35 cents per therm of gas to 95 cents per therm when gas usage went above 72 therms per month.

Thousands of customers called the gas company and news media to complain about bills of $200, $300 and even $1,000 for a month’s use. The hubbub prompted the gas company this year to seek greater latitude from the Public Utilities Commission in how they charge for winter gas usage.

Puz said new rules now being written will allow the gas company to charge fees that more closely reflect actual gas usage by a household. The old fees heavily penalized users, above and beyond the actual cost of the gas, and the money was used to subsidize small users, a group that includes many one-bedroom and bachelor apartment dwellers.

The practice, which the Legislature believed would encourage residents to conserve gas usage, in fact ended up penalizing many of the poor who have large families and aging, inefficient heating systems, gas company officials said last winter.