SAN DIEGO, Sept. 23, 2019 – San Diego Gas & Electric’s (SDG&E) residential customers could see lower electric bills next summer under a proposal the company filed today with the California Public Utilities Commission (CPUC) to eliminate seasonal pricing changes, which often creates bill spikes during hot summer months.
If approved by the CPUC, a typical residential customer would see their summer bills reduced by about $7 per month. Under the existing seasonal pricing structure, the pricing per kilowatt hour is adjusted twice a year. During the summer months, June-October, rates are adjusted higher to encourage conservation because energy demand tends to be higher during hot months. Winter rates are lower and in effect from November to May.
By eliminating seasonal changes in pricing, SDG&E’s proposal is intended to reduce bill volatility in the summer and provide customers with more consistent bill amounts throughout the year, so it’s easier for them to budget for household energy expenses.
The company’s request builds upon previous efforts to stabilize bills and create pricing structures that minimize burden on customers. After extreme bill volatility in the summer of 2018, SDG&E heard the concerns of its customers and filed a request to eliminate the state-mandated High Usage Charge, which led to higher bills for customers who used more than 400 percent of their baseline allowance. Prior to this summer, the CPUC denied SDG&E’s request to eliminate the High Usage Charge.
“We remain committed to helping our customers and will make every attempt possible to create fair, transparent and reasonable energy rates, said Scott Crider, SDG&E’s vice president of customer services. “While we were disappointed in the Commission’s position on the High Usage Charge, we respect their decision and look forward to working with them to eliminate seasonal pricing changes to benefit our customers.”
SDG&E’s proposal to eliminate seasonal pricing changes would apply to all residential customers, including those on Time-of-Use, non-Time-of-Use, and electric vehicle pricing plans. Today’s filing is the first step in a several month-long process for the CPUC to issue a decision on SDG&E’s request. Pending approval, the company hopes to eliminate seasonal pricing changes prior to the start of next summer.
SDG&E is an innovative San Diego-based energy company that provides clean, safe and reliable energy to better the lives of the people it serves in San Diego and southern Orange counties. The company is committed to creating a sustainable future by providing around 45 percent of its electricity from renewable sources; modernizing natural gas pipelines; accelerating the adoption of electric vehicles; supporting numerous non-profit partners; and, investing in innovative technologies to ensure the reliable operation of the region’s infrastructure for generations to come. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information, visit SDGEnews.com or connect with SDG&E on Twitter (@SDGE), Instagram (@SDGE) and Facebook.