SDG&E

SDG&E bills heading higher if CPUC increase plan is approved

The average SDG&E electric bill could go up $4.46, while natural-gas customers could see a spike of a little more than five dollars per month

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The CPUC’s recent budget proposal outlines the potential rate hikes to electricity and gas bills. The Utilities Comission still needs to approve the proposal. 

While it may feel like your SDG&E bill just went up, that's not the case, but it may feel like its, since the utility reports on its operations budget annually to the California Public Utilities Commission (CPUC) and requests rate increases, which then grants them as they are warranted.

The CPUC recently put out its rate proposal for the coming year, which includes the estimated cost of maintaining and upgrading SDG&E's power system for the next four years.

To cover those costs, the CPUC is proposing to approve an electrical bill rate increase of 2.7%, which would mean that the average customer would see that portion of their bill increasing by $4.46 a month.

Customers who have natural-gas hookups could pay an additional 8.6% for those costs, with the average billpayer expecting to see a monthly increase of $5.01.

For its part, SDG&E thinks those added costs may not be enough to cover their outlays.

In the CPUC's rate proposal, the agency noted that "The decision adopts a 2024 TY (revenue requirement of $2.8 billion for SDG&E’s combined operations ($2.198 billion for electric and $602.123 million for its gas operations), which is $206.659 million lower than the $3.007 billion that SDG&E had requested in its update testimony."

Asked for a comment regarding the upcoming rate proposal, an SDG&E spokesman emailed NBC 7 the following:

“Based on the initial review of the 1,100-page proposal, we are concerned about the proposed decision and its potential impact on our ability to ensure safe and reliable operations of the electric and natural gas system, including support for the state's clean energy transition."

The final decision on the increases still needs to be approved by the CPUC by vote in December.

SDG&E customers did get a bit of a breather this month when customers got a $78.22 credit on their energy bill. Thanks were due to the state's climate credit program, which is administered by the CPUC as part of an effort by the state to fight climate change.

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