News Summary
Beginning in 2025, San Diego Gas & Electric (SDG&E) will implement a new rate structure following legislative changes, impacting around 1.25 million residential customers. The adjustments aim to modernize billing and encourage electric appliance use, with some customers seeing a reduction in rates while others face an increase due to a new base services charge. In addition to utility increases, residents will also experience water rate hikes, raising concerns among lawmakers about affordability and financial relief measures.
San Diego residents can expect an increase in their utility bills beginning in 2025 as San Diego Gas & Electric (SDG&E) implements a new rate structure stemming from legislative changes. These adjustments, part of Assembly Bill 205, passed by California lawmakers and approved by the California Public Utilities Commission (CPUC), will impact around 1.25 million residential customers.
The changes aim to modernize the billing system and incentivize the adoption of electric appliances and vehicles. For many customers, the new rate structure will facilitate a decrease in electricity rates by an average of 10%, which translates to a reduction of approximately 5 cents per kilowatt-hour. However, not all customers will benefit equally; some will see their monthly charges increase significantly due to the implementation of a new monthly base services charge of $24.15. This charge helps cover fixed infrastructure and customer service costs while also contributing to public assistance programs for low-income residents.
In 2024, these adjustments have already begun to take effect and are expected to continue into early 2025. Customers’ individual financial statuses, locations, and energy usage habits will dictate the specific impact on their bills. For instance, a typical customer in the inland climate zone using 400 kilowatt-hours per month will see their bill rise by $4, bringing the total to $175. Conversely, those enrolled in programs like the California Alternative Rates for Energy (CARE) and Family Electric Rates Assistance (FERA) will notice a $4 decrease if they maintain the same usage.
The adjustments also mean that a customer using 600 kilowatt-hours will now pay $269, approximately $8 less than under the previous system, while CARE and FERA participants will experience reductions of $10 and $15, respectively. However, customers with low usage of 200 kilowatt-hours will see their bills increase by $14, from $84 to $98.
Background on Rate Changes
The changes were prompted by the rapid passage of AB 205 during the end of the 2022 legislative session as part of a broader omnibus bill. This legislative shift has received mixed reactions. Critics argue that the new structure adds financial burdens to everyday customers, particularly those not benefitting from reductions. In contrast, supporters highlight the positive impact of aiding low-income Californians with their electricity expenses.
Despite the concerns, the CPUC emphasizes that the new rate structure reallocates existing costs rather than generating additional profits for utility companies. This transformation responds to California’s ambitious goal of achieving 100% carbon-free electricity sources by 2045. The revised rate structure applies to all residential customers, including those involved in community choice energy programs and those with rooftop solar systems.
Water Rate Increases
In addition to rising utility bills, San Diego residents will experience a water rate increase of 5.5% effective May 1. This hike is linked to a broader 14% increase imposed by the San Diego County Water Authority. Projections suggest that customers may see a total rise of 61.1% in water rates by 2029, causing further financial strain on households.
Legislative Response to Rising Utility Rates
In light of these changes, legislators in Sacramento are exploring proposed bills aimed at lowering utility bills and holding investor-owned utilities accountable. Senate Bill 332 seeks to cap residential rate increases, while Senate Bill 636 intends to provide relief for customers facing financial hardships through bill deferrals. Nevertheless, concerns linger regarding the effectiveness of these proposals in genuinely alleviating high utility rates, particularly amid existing green energy mandates.
As SDG&E reported earnings of $891 million in 2024, customer complaints surrounding utility affordability are gaining prominence. The utility company acknowledges the growing discussions concerning affordability while reiterating that operational safety and reliability remain their top priorities. With such significant changes on the horizon, San Diego residents are urged to prepare for the financial adjustments coming in their utility bills and to stay informed about legislative movements aimed at addressing rising costs.
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Additional Resources
- San Diego Union Tribune
- Wikipedia
- NBC San Diego
- Google Search: San Diego utility bills
- MSN News
- Google Scholar: San Diego utility bills
- Fox 5 San Diego
- Encyclopedia Britannica: utility bills
- Mercury News
- Google News: san diego utility rate changes
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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.
