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SDG&E's new fixed-rate proposal explained — What does it mean for you?

How much you pay for electricity could change based on a new proposal by SDG&E. 

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The California Public Utilities Commission is holding public forums for San Diego Gas & Electric customers to get input on the proposal of "fixed-rate" electricity plans.

The idea is that you would pay a flat fee based on your income.

SDG&E says it should decrease rates for residential customers and small commercial properties while increasing rates for agricultural customers.

There was an in-person event this Nov. 6 at the Escondido city council chambers.

SDG&E came up with this fixed-rate proposal to comply with a new state law requiring utilities to implement income-based billing.

The San Diego Gas & Electric (SDG&E) logo.
San Diego Gas & Electric
The San Diego Gas & Electric (SDG&E) logo.

How does it work?

Your bill is basically made up of two parts – the amount of energy you use, and fees. Right now, the amount you pay for those fees is based on how much energy you use each month.

Under the new proposal, that would change, and you would pay a flat rate for fees, based on your income.

  • Households earning less than $28,000 a year would pay $24 a month. 
  • Those coming in between $28,000 to $69,000 would be on the hook for $34 a month.
  • If your income is between $69,000 and $180,000 it’ll be $73 and incomes above that will be paying $128 every month.

SDG&E says every income bracket, except the highest one, will pay less each year.

You’ll still pay for the amount of electricity or natural gas you use, and if you buy your energy from a third-party supplier such as San Diego Community Power, only the SDG&E portion of your bill would be impacted - the third-party will still determine your usage rates.

Critics of the proposal say it doesn’t encourage families to conserve energy, and believe those with solar panels will actually see higher bills.

Now, the next chance for you to weigh in on this proposal is later this month at a virtual public forum on Nov. 20.

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