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How Natural Gas Prices Are Driving Up California’s Electricity Bills

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Despite its leadership in renewable energy, California still relies heavily on natural gas to generate electricity — especially during peak demand. Unfortunately, natural gas prices are volatile, and recent years have seen sharp spikes driven by supply constraints, global demand, and inflation.

When natural gas prices go up, the cost of producing electricity increases — and those costs are reflected in your monthly bill. Even households that use solar are affected, since utilities rely on gas-fired power plants to fill gaps in supply.

This makes long-term solutions like solar panels and battery storage even more valuable. With solar and storage, you can shield yourself from market-driven price shocks and reduce your dependence on fossil fuels altogether.

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