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SDG&E Rate Hike Goes Into Effect In September


Lee Schavrien, Senior Vice President, San Diego Gas and Electric

Lee Friedman, Economist, Professor of Public Policy UC Berkeley


It may cost you more to turn on the lights starting September 1.

San Diego Gas and Electric is raising rates for some households and most businesses.

High energy users, or about 25 percent of SDG&E customers will see some increase on their bills.

The rate hike was approved by the Public Utilities Commission earlier this year. The utility says the rate hike is needed to help pay for energy from renewable sources which is more expensive than electricity produced from natural gas.

California's greenhouse gas reduction goals call for 33 percent of energy to come from renewable sources by 2020.

But despite an increasing use of renewable energy sources like wind and solar and changes in the way households receive energy, the way energy rates are calculated has stayed the same.

A new report by nonpartisan organization Next 10 finds that rate reform is needed in order to meet California's greenhouse gas reduction goals.

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