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Economy

New Electricity Pricing Proposal Raises Questions

New Electricity Pricing Proposal Raises Questions
San Diego Gas and Electric has proposed a new pricing system for residential electricity customers. A consumers advocacy group likes the idea but also has some concerns.

San Diego Gas and Electric has proposed a new pricing system for residential electricity customers. A consumers advocacy group likes the idea but also has some concerns.

SDG&E filed an application with the California Public Utilities Commission to create a new time-of-day pricing option for residential customers in San Diego County.

The current system charges customers as they use electricity -- the more you use, the more you pay. The cost also depends upon where you live in the county.

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However, electricity is most expensive during the peak of the day and on summer afternoons.

Michael Shames with the Utility Consumers Action Network said rewarding customers with pricing incentives for changing when they use electricity is an attractive concept, but he has some questions.

"How much would those incentives be?" Shames asked. "Will customers who can't shift their power usage, will they be punished? That's something that we don't want to see happen."

If the SDG&E proposal is approved, customers in the county would have the option of using the new billing system starting in 2013.

Shames said there likely won't be a decision on the proposal until sometime next year.