Without electricity and natural gas, modern life as we know it would be impossible. But if you live in the San Diego Gas & Electric (SDG&E) service area, you’re already paying some of the highest utility rates in the state.
SDG&E is required to update the San Diego City Council every three months on rates and energy issues. On Monday, the utility reported that electricity prices will rise by an average of $3 per month, with natural gas increasing by $1 per month.
Several San Diegans spoke to the council about why they’re opposed to the increases.
Gail Viamonte described herself as a senior on a fixed income.
“San Diego residents, business and community groups — schools, continue to suffer from the inordinately high profits being drained from our city by SDG&E and its parent company, Sempra,” Viamonte said.
Serena Pelka said she works with the Climate Action Campaign.
“As you know, SDG&E is bringing in record profits while San Diego families suffer,” Pelka said. “They fight every program and legislation that would bring great relief to San Diegans.”
A combined $4 hike might not sound like much, but spread across SDG&E’s more than 3 million customers, it can have an effect, said University of San Diego economics professor Alan Gin.
“If you spread that over all the households we have in San Diego, that could take a little bit of buying power then out of the local economy,” Gin said. “Right now, with prices rising on products, with inflation, people are stressed. They really don't need this on top of that, even though it's a small amount.”
SDG&E said the increases are needed for a variety of reasons, including wildfire mitigation, improvements to the grid, burying utility lines and rising natural gas prices.
But much of the increase could go away next August. Because of some complex accounting, utility bills could fall about $3 a month by then, according to a SDG&E spokesperson.
KPBS asked SDG&E for an interview to discuss the rate increases.
Instead, the company provided a statement, which said:
“At SDG&E, we work every day to manage our costs and develop programs and tools that help make energy more affordable and accessible. We know that any change in energy costs makes a difference to our customers, and we work to keep bills as low as possible while continuing to deliver the safe, reliable energy that families and businesses across Southern California depend upon every day.”
The California Public Utilities Commission reviews and approves all rate increases. The commission has already approved this one, so you’ll see it on your January bill.
