San Diego Gas & Electric (SDG&E) customers showed out in force to speak against a proposed rate hike Tuesday afternoon.
The for-profit utility wants to raise electric and gas rates by more than 8% in 2028. The California Public Utilities Commission held two public hearings at Santee City Hall to gather feedback on the proposal, which would make an average power bill rise about $14 over 2027 estimates.
Lemon Grove resident Jacquelyn Clark said small price jumps for transportation, groceries, rent and utilities reach into the same household budget — and add up.
“People are already struggling in jobs, working extra shifts and cutting expenses. And the math still doesn’t math,” she said. “The bills are bigger than the money coming in. These multimillion dollar companies are here asking you to protect their bottom line. We’re asking you to protect ours.”
More than 100 people signed up to speak during the first hearing. Their feedback informs a complicated regulatory process, known as a general rate case, to essentially figure out SDG&E’s budget over a four-year span starting in 2028.
The company wants to charge customers roughly $3.8 billion in 2028, an 8% bump over what SDG&E estimates it will collect next year. The utility is allowed to earn a specific percentage profit — set during a separate CPUC proceeding — above what it costs to run its system.
Sempra, SDG&E’s parent company, last week reported more than $900 million in adjusted earnings over the third quarter of this year — almost $200 million more than the prior year. Meanwhile, SDG&E is on track to bring in more than $1 billion in profits this fiscal year.
During Tuesday’s hearing, restaurant owner Kevin Rhodes said high utility costs are contributing to business closures in his area. He called SDG&E’s rates predatory.
“They need to take that profit and sink it back into their business. That’s what I do every day. If I have an oven that goes down for three or four thousand (dollars), I can’t go to anyone and say ‘OK, I’m going to raise the rates on my menu,” he said.
Nearly 1-in-5 households were behind on their bills by an average of $501 over the second quarter of 2026, according to the CPUC Public Advocate’s Office. Meanwhile, the office’s data shows SDG&E rates have risen 97% over the last decade.
Community leaders accused the company’s executives of greed during a rally outside Santee City Hall before the first hearing. Sempra CEO Jeffrey Martin made more than $22 million in 2025, according to the nonprofit Energy & Policy Institute.
San Diego City Councilmember Sean Elo-Rivera said if SDG&E doesn’t change course, local elected officials might take action.
“Because we're done waiting for SDG&E to give a damn,” he said in front of a cheering crowd. "We're taking the fight to them. We hired them to be our utility company. We can fire them.”
Elo-Rivera, chair of the City Council’s Environment Committee, mentioned an upcoming meeting when members will consider a resolution tied to a prospective public power utility for San Diego. Two city-commissioned studies found replacing SDG&E could save residents money in the long term, despite significant up-front costs.
In a statement responding to Tuesday’s hearings, SDG&E spokesperson Humberto Gurmilan acknowledged customers’ affordability concerns.
“We’re focused on controlling costs, operating more efficiently and finding ways to keep bills as manageable as possible, while continuing to provide safe, reliable energy,” he said. “Our rate request is a proposal, and it will undergo a thorough public review.”
The CPUC’s five voting commissioners will ultimately decide whether to approve or adjust SDG&E’s rate request next year.
