As part of its monthly natural gas watch program, Pacific Gas and Electric Co. reported Thursday that retail gas utility rates for its residential customers will be about 25% higher this month compared with December 2004, and the average total gas bill for the month will be $110.55. While substantial, the amount of the hike is far less than the 40% to 70% increases that were predicted for this winter only a couple of months ago, the utility said.

“Unseasonably warm weather throughout California and the United States moderated natural gas use and prices significantly in November, causing rates for the fuel to come down slightly,” PG&E’s utility said in its December “Natural Gas Watch.”

Even with the weather-related softening, PG&E’s utility said the national U.S. natural gas market “remains very fragile and a major cold snap anywhere in the country could cause prices to rise again in California.” It also noted that while gas prices have moderated in recent weeks, the hurricane damage to energy infrastructure in the Gulf of Mexico region “continues to keep prices higher than this time last year.”

With the unusually mild weather nationally, gas costs actually dropped 20% last month compared with November 2004, according to PG&E.

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