SDG&E Receives Approval to Eliminate Seasonal Fluctuations in Electricity Pricing

SDG&E Receives Approval to Eliminate Seasonal Fluctuations in Electricity Pricing 

One of several rate reform initiatives to offer bill relief to customers 

During these uncertain times, we could all use some good news. To make energy bills a little bit more predictable in the summer, we successfully petitioned the California Utilities Commission (CPUC) for approval to eliminate seasonal changes in energy pricing for residential electric rates.  

By having consistent rates year-round, we hope it will be easier for our customers to plan and budget for their utility expenses.

Based on the decision issued by the CPUC on April 16, the elimination of seasonal pricing due to take effect on June 1 applies only to customers who are on traditional tiered pricing plans, not those on Time-of-Use pricing plans. SDG&E has asked the CPUC to also consider eliminating seasonal pricing for those on TOU plans.  

“While this is a first step that helps some customers, specifically those on tiered rates, we call on the CPUC to also approve the summer relief we requested for customers enrolled in other rate programs,” said Scott Crider, SDG&E vice president of customer services. “SDG&E will continue to push for additional rate reforms because there is more that can, and should be done, to ensure rates are equitable for everyone.  The need is more important now than ever in light of the financial hardships many of our customers are facing because of the coronavirus pandemic.”

Historically, SDG&E customers have paid a higher per kilowatt hour cost during summer months, June 1-Nov. 1, when the marginal cost to buy energy on the open market is higher because of higher demand. Eliminating seasonal pricing means that customers will enjoy consistent rates year-round, possibly resulting in lower summer bills than in previous years.

Other Rate Relief Efforts

Eliminating seasonal pricing is one of several strategies that SDG&E is pursuing to help stabilize bills for customers. Last year, SDG&E filed a request with the CPUC to eliminate the state-mandated High Usage Charge (HUC), a fee charged to customers whose energy usage exceeds a certain threshold. That request was rejected by the CPUC.

Meanwhile, SDG&E has also garnered approval from the CPUC to change the timing of the California Climate Credit for electricity customers, so customers will receive the credit in August and September, instead of April and October, to help offset their summer bills. 

Tips for TOU customers

For customers on TOU pricing plans, the best way to save money is to shift some energy usage outside of the peak hours of 4-9 p.m. For example, running washers and dryers outside those hours can help reduce energy bills. 

Download our new mobile app to help you better keep track of your usage.

Visit to review all your pricing plan options.

More like this:

1. More Time at Home and What That Means If You Are on a Time-of-Use Plan

2. SDG&E Offers Bill Discount Programs to Help Customers In Need