With some national predictions for an easing of natural gas prices in the last weeks of winter, Pacific Gas and Electric Co. predicted lower retail utility bills for its gas customers this month, noting it expects the average utility bill to drop 17% in February, compared with January gas bills. The utility cited reduced wholesale prices and lower demand by customers.

A utility spokesperson said winter appears to have “peaked,” for California’s colder climate regions. This outlook marked a change from two weeks earlier when the San Francisco-based combination utility was warning customers that natural gas prices “still remain at historically high levels due to a number of factors that have been in place over the last year.” PG&E’s utility at that time saw a continuation of increased demand and bad weather, combining with the continued leveling off of domestic production of gas supplies.

The utility cited U.S. Department of Energy statistics last week that showed nationally natural gas spot prices fell 18 cents, or about 3%, while regional markets saw price declines of up to 42 cents, PG&E’s spokesperson told local news media, emphasizing that ultimately California’s natural gas prices are tied to national market conditions.

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