California Gov. Newsom calls for probe into soaring natural gas prices

California Gov. Gavin Newsom called for federal energy regulators to investigate a hike in natural gas prices that has resulted in sky-high utility bills.

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Newsom, a Democrat, asked the Federal Energy Regulatory Commission in a letter to look into whether market manipulation, anticompetitive behavior or other activities have driven up the cost of gas in the US West, according to a statement Monday.

California utilities warned of outrageously high bills after the wholesale price of natural gas soared to more than nine times that of US natural gas benchmark futures in December. There are several factors that have contributed to the soaring prices including colder than normal weather, reduced pipeline capacity due to maintenance and low gas storage levels in the US West.

PG&E and Sempra Energy's Southern California Gas Co. two of the state s biggest gas utilities said they support Newsom's call for an investigation. The utilities said they don't set the price of gas and its cost is passed along to customers without a markup.

State energy regulators are scheduled to hold a hearing on Tuesday to examine the causes and impacts of the elevated gas rates. The state regulators voted to speed up payouts of credits ranging from $90 to $120 to help offset high utility bills.

Matt Baker, director of the Public Advocates Office, said now is the time to identify the causes of the alarmingly high gas bills that are affecting millions of Californians. We need to know whether there has been profiteering or market manipulation. None When Hackers Hobbled Ireland s hospitals, They Took Themselves Down, Too