San Diego utility rates are the highest in the nation, and as residents continue to struggle with the double-digit rate hike that hit at the beginning of 2022, San Diego Gas & Electric (SDG&E) has their sites set on new increases to begin in the next year and half.
SDG&E has proposed rate increases for 2024 - 2027 with the California Public Utilities Commission. If approved, the increases that would go into effect in 2024 are:
- 5.6% increase for non-discount, electricity consumers who use 400 kilowatt-hours per month
- 18.1% increase for natural gas consumers who use 24 therms per month
The increases are outlined in the company's general rate case, which is a budget request that estimates what they believe it will cost to maintain and upgrade the power system throughout their service region.
When faced with backlash over their 2022 increases, SDG&E said that “surging natural gas prices – along with the ongoing need to strengthen safety, reliability and sustainability and provide public benefit programs,” were to blame.
In late April it was reported that 26.7% of SDG&E customers had fallen behind in paying their utility bills.
In response to the increases proposed for 2024-2027, Bruce Folkmann, SDG&E's CEO said, “We recognize the reaction that a customer may have is, ‘Here’s another cost increase I need to absorb. I’m paying more for gasoline, for rent or mortgage. That is a part of our calculus whenever we’re considering a proposal like this and certainly, we want to be as thoughtful as possible.”
In April, SDG&E's parent company, Sempra Energy reported record high profits, with SDG&E being its most profitable subsidiary with earnings of $819 million in 2021.