SDG&E’s Proposal to Reset Electric Rates

Last week, San Diego Gas and Electric asked The California Public Utilities Commission to consider a realignment of their rate structure.  They proposed an increase in energy rates on users who use less energy and a reduction in rates on those who consume more.

Why would SDG&E want to punish conservative energy users in a time when conservation is being pushed and self-production of energy with sources such as solar are being highly incentivized?  This does not make sense.

Currently, SDG&E’s rates work similar to our tax system.  The more money you make, the more you pay per dollar.

Someone who lives modestly and conserves energy currently pays a monthly bill of $72.75 for 500 kilowatt hours at 14.6 cents per kWh.  A consumer who uses double the electricity, or 1000 kilowatt hours, pays over 3x that or $233.89.  The average price per kilowatt hour is 26.6 cents in this example.

San Diego Gas and Electric, along with Southern California Edison and Pacific Gas and Electric, say that they are not trying to increase their revenue.  Rather they are reallocating the cost among their residential customers.  All 3 utilities are private, for-profit companies.

These utility companies are mandated by the Government of California to generate 33% of their energy from renewable energy sources by 2020.  If a consumer does everything to make her house more energy efficient, which may include installing a solar electric system, she will be the one who bears the brunt of this energy rate increase.  SDG&E…this just doesn’t make sense.

1 Comment »

  1. So.. The more we make, the more we have to pay??? Really California Public Utilities Commission should consider this

    Comment by Stephanie — 05/30/2010 @ 4:31 am

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