Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations

SDGE Alleged to Have Hid Information in Order to Boost Rates

Two major consumer groups are charging that San Diego Gas and Electric didn't provide all the information it should have when asked state regulators to approve a huge rate increase. KPBS reporter Alan

SDGE Alleged to Have Hid Information in Order to Boost Rates

Two major consumer groups are charging that San Diego Gas and Electric didn't provide all the information it should have when asked state regulators to approve a huge rate increase. KPBS reporter Alan Ray has the story.

San Diego-based Utility Consumers Action Network and The Utility Reform Network in San Francisco claim that SDGE had plans for a major cost-cutting program, but kept the plans secret when it told the state Public Utilities Commission that it needed rate increases totaling $1.5 billion to cover rising costs.

A consultant to the consumer groups tells the Union Tribune the utility plans to cut over-all costs by five per cent, and reduce staffing in some departments by half.

SDGE says it needs to keep the cost-cutting plan confidential so it doesn't effect negotiations with vendors. The consumer groups now say they want a delay of at least several months so they can study the 5,000-page plan.

The utility wanted the rate increase to start next year, but a delay in PUC approval could change that timeline.

SDGE claims the cost-cutting plan is still in the review stage, and any saving it might produce would be passed on to customers.