Your electricity bill is going up next year.
The California Public Utilities Commission on Thursday approved San Diego Gas & Electric's request to increase customers' electricity bill by 2.6% next year, which is equivalent to about $4.38. Natural gas customers will see a 1.8% increase, or $1.02. Those enrolled in California's low-income bill support program, CARE, will see a monthly increase of 3.5%, or $1.40, the CPUC said.
The approval also sets increases for the next three years. SDG&E said they will be alerting customers in the coming weeks how -- and when -- the decision will impact their bills. Rate hikes could start as early as January 1, 2025.
"We understand that energy costs are a significant part of every household and business budget, which is why we actively work to reduce operating expenses and pass those savings on to customers," SDG&E said. "We’re also collaborating with policymakers to explore strategies that can help lower energy bills across California."
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In a letter to the CPUC ahead of Thursday's vote, San Diego Mayor Todd Gloria argued against the proposal's approval. In it, he said the city will continue to analyze the feasibility of forming a public power entity as it continues to track SDG&E’s performance.
Lee Trotman with The Utility Reform Network (TURN), which pushes for more affordable energy rates in California, said he completely agrees with the letter.
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“You kind of force the utilities to say, ‘Whoa, we have competition now, we can’t raise our rates so high,' ” Trotman said.
Also approved was SDG&E's revenue requirement of $2.699 billion for the utility's combined operations in 2024, which was ower than the more than $3 billion SDG&E had requested, according to the CPUC.
Revenue requirements will increase to $2.85 billion in 2025, $2.97 billion in 2026 and $3.09 billion in 2027.
