According to PG&E, average customer gas bills are expected to be $110 for the month, which is actually a smaller increase than what industry experts are predicting nationwide, where increases are likely to be between 40 percent and 70 percent. Warmer weather in California and the United States in November contributed to moderated natural gas use and prices, causing rates for fuel to come down slightly.

Even though the rates will be lower in December, overall bills will go up because of increased use to heat homes. The recent cold, rainy days and the higher power use during the holiday decorating season will also cause bills to go up. Then there is still the effect of the damage caused by Hurricanes Rita and Katrina to the energy infrastructure in the Gulf of Mexico, which is continuing to keep prices higher than this time last year.

PG&E is urging customers to take advantage of a new program called 10/20 Winter Gas Savings that offers residential customers a 20 percent rebate for reducing their gas usage by 10 percent or more from January through March 2006. The program, approved by the California Public Utilities Commission and developed in consultation with the Utility Reform Network, is a way for customers to participate in conservation efforts and make a difference on their PG&E bill.

The average residential customer who achieves the 10/20 program goal is expected to reduce winter gas costs by about $165, a 30 percent reduction in the gas costs that would otherwise be billed in the winter. Under the 10/20 Winter Gas Savings Program, residential and small business customers who reduce their natural gas usage from Jan. 1 through March 31 by 10 percent or more compared to the same months last winter will earn a 20 percent rebate on natural gas charges for those months.

Customers who reach the goal will save twice. Their bill will be lower each month because they will be using less natural gas and then they will receive another 20 percent in savings off their gas costs for the first three months of the year. The rebate will appear on their April or May bill. Due to differing schedules for meter reading, PG&E recommends that customers begin conserving when they receive their December 2005 bill and continue through their April bill. Enrollment is automatic, so customers do not need to sign up for the program. All residential and small business customers are eligible as long as they have been at their current home or residence since Jan. 1, 2005.

So, how can consumers reduce their bills? PG&E recommends the following tips to save both energy and money.

Energy Saving Tips

Set the furnace thermostat at 68 degrees or lower during the day, health permitting, and 55 degrees at night or when away from home for more than four hours. This could result in a savings of 5 percent to 10 percent on heating costs.

Clean or replace furnace filters monthly and make sure the furnace is clean, lubricated and properly adjusted.

When it's sunny outside, open the drapes to help warm the rooms.

When using the clothes washer and dryer, do only full loads and wash clothes in cold water. Clean the dryer lint trap after each use. Hang clothes outside to line dry, weather permitting.

If the pool is heated with natural gas, make sure to use a pool cover to conserve heat.

Close the damper on the fireplace when not in use and turn down the heater when there is a fire going.

Lower the water heater temperature to 120 degrees. Check the manufacturer's manual for the water setting for the dishwasher since it could have an internal heating element that allows a lower setting. Wash only full loads and use the energy save or air-dry cycle or open the door and let dishes dry naturally.

Don't preheat the oven. Put several dishes into the oven simultaneously and use the microwave whenever possible.

Install energy-saving showerheads and faucet aerators for a potential savings of 10 percent to 16 percent on heating costs.

Caulk windows, doors and pipes and anywhere air leaks in or out. Use weatherstripping around windows, doors and pipes to save up to 10 percent on heating costs.

Plug gaps around pipes, fans and vents that go through walls, ceilings and floors from heated to unheated spaces.

Install a programmable thermostat to prevent unnecessary heating or cooling.

Fix defective plumbing or dripping faucets. Water faucet drips cost energy and water loss up to 212 gallons a month.

Wrap an older model water heater with a water heater blanket, especially if it's in an unheated area.

For more information about how to conserve energy or to fill out a home survey to determine energy usage, visit www.pge.com.