Following Hurricanes Katrina and Rita there were predictions that natural gas bills for California residents were going to soar because the supply comes from the Gulf area.
The price of the fuel is up slightly, but for many of the four million residential and business customers of P G & E, the most recent bills were about the same as last year's, even though the company had warned they could be as much as 50 percent higher.
P G & E spokeswoman Christy Dennis says moderate temperatures were a factor.
"People were probably not turning on their heater as much and P G & E has also armed it's customers with a lot of information as to how to manage natural gas costs."
Dennis warns demand for natural gas is going to increase and it's likely that by March heating bills are going to be significantly higher.
Some business operators say if their heating bills escalate a lot they'll have to pass some of the costs on to customers.