Here's Why Your PG&E Bill is Going Up

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Pacific Gas and Electric Company says customers may see a spike in their utility bills due to rising gas supply costs.

The news comes as the Bay Area braces for colder temps this week.

"One of the most significant drivers is the rising cost of natural gas being experienced globally," PG&E said in a statement. "Gas supply costs - what we refer to as the commodity price - have gone up significantly this winter over last winter, not just in our services are of CA, but nationwide and globally."

The utility also adds natural gas prices this winter were about 90% higher in PG&E's service territory than last year. In addition, European natural gas prices are up over 400% compared to last year, according to PG&E.

Drought and high temperatures also drove up demand for natural gas this summer, according to the utility.

PG&E said it has not see sustained prices this high since 2008.

And since market electricity prices are driven by the cost of natural gas, we are seeing similar spikes in the cost of electricity.

For an average-use residential gas and electric customer, the overall bill increase was up about $19 a month starting in January. This includes an approximate $12 increase for electric and $7 for gas.

Starting in March, average residential electric customers would experience another $13.82 monthly bill increase, according to PG&E.

The utility said customers can expect their bills to start coming down as the weather warms.

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