News Summary
Two San Diego County supervisors are advocating for new state legislation to address soaring utility costs. Vice Chair Monica Montgomery Steppe and Supervisor Paloma Aguirre are collaborating with the Climate Action Campaign to propose bills that will manage utility rate increases and reform utility company practices. With San Diego having the highest electricity rates in the U.S., these bills aim to relieve financial pressure on residents, particularly seniors and low-income families. Additionally, new billing changes for SDG&E customers are set to take effect soon.
San Diego – Two San Diego County supervisors are urging for new state legislation aimed at addressing the significant rise in utility costs. Vice Chair Monica Montgomery Steppe and Supervisor Paloma Aguirre are collaborating with the Climate Action Campaign to push for two crucial bills that aim to limit utility rate increases and reform how utility companies manage wildfire and transmission costs.
Montgomery Steppe has stated that San Diego reportedly has the highest electricity rates in the United States, with some residents paying more than 52 cents per kilowatt-hour. The proposed legislation includes Senate Bill 254, which mandates that utility companies submit their wildfire management plans for review every four years. Under this bill, companies must prioritize cost-effectiveness if they plan to raise rates.
Another important piece of legislation under consideration is Assembly Bill 1167, known as the California Ratepayer Protection Act. This bill seeks to prevent utility companies from passing on their lobbying and public relations costs to customers. Aguirre has pointed out that many seniors and working parents are feeling the financial strain of these increasing utility bills, which could be jeopardizing their health and overall security.
Supporters like Contreras from the Climate Action Campaign have criticized for-profit investor-owned utility companies for their record profits, which they believe come at the expense of community welfare. Montgomery Steppe plans to introduce a resolution to the board of supervisors to support these legislative efforts, emphasizing the urgency of addressing the rising cost of utilities.
In addition to the proposed legislation, changes to billing for San Diego Gas & Electric (SDG&E) customers are set to take effect soon, following legislation passed three years ago. Under the new rules, residential customers will see an average electricity rate reduction of 10%, amounting to approximately 5 cents per kilowatt-hour. However, they will also face a new monthly base services charge of $24.15, which covers fixed costs related to infrastructure and customer service, as well as funding programs that assist low-income customers.
Statistics reveal that around 26% of SDG&E customers are currently enrolled in assistance programs to help mitigate their energy costs. Bill changes will vary depending on individual electricity consumption; some customers will likely experience increases in their bills while others will see reductions. Critics of the new billing structure argue that it disproportionately burdens low-usage customers and emphasize that efforts should focus more on reducing utility overspending.
The California Public Utilities Commission (CPUC) has maintained that the new billing system reallocates existing costs but does not generate additional profits for the utilities. Future reviews of this rate plan are scheduled, giving the commission an opportunity to adjust rates based on effectiveness and community impact.
As part of the regulatory process, the CPUC recently approved SDG&E’s request for rate increases for electricity and natural gas in the upcoming years, which raises their revenue requirements to $2.699 billion for 2024. Mayor Todd Gloria has publicly opposed these rate hikes and is investigating the feasibility of establishing a public power entity for the city to provide residents with potentially more affordable utility options.
SDG&E is actively promoting various financial assistance programs for qualifying customers and is incentivizing reduced power usage during peak energy times through its Power Saver Rewards program. These efforts aim to alleviate some of the financial pressures faced by customers during a time of soaring utility costs.
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Additional Resources
- CBS 8: San Diego County Supervisors Push for State Legislation to Reduce Utility Costs
- Wikipedia: Utility Rate
- San Diego Union-Tribune: A Big Change is Coming to Your SDG&E Bill
- Google Search: California Utility Rate Reform
- NBC San Diego: SDG&E Rate Hike Approved
- Encyclopedia Britannica: Electricity Rates
- 10 News: How to Save Money on SDG&E Bills
- Google News: Rising Electricity Costs California
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SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
