There are several factors that affect your rates and they differ between natural gas and electricity.
All of these factors can get complicated, but a general understanding of how your baseline allowance and tiers work can help you make decisions about your energy use.
Understanding How Your Energy Use is Billed Can Help You Save Money
Baseline is your energy allowance for basic needs and is energy at the lowest rate. Every customer is allotted a baseline allowance. The amount is determined by factors such as your climate zone and the type of rate you are on. Once you exceed the baseline rate, (also known as your first tier), the rate becomes progressively higher for the next three tiers (tiers two through four).
Your natural gas rates also have a baseline allowance, and anything above baseline is “non-baseline” and is billed at a higher rate to encourage energy conservation.
To save money and energy, try to stay as close to your baseline allowance as possible. How? By conserving energy and taking advantage of SDG&E’s energy-saving tools and programs.
Getting to Know Your Baseline and Tiers
Your baseline allowance and tier usage are located on your monthly bill.
Here are the basics:
- Using less energy and staying in the lowest tiers possible helps you keep your energy bill down.
- In each tier, you are allotted a certain amount of kilowatt-hours (kWh). The amount of kWh depends on several factors such as where you live and the rate you are on.
- Once you use your allotted kWh in tier one, you go into tier 2, and so on.
- In tier 1 you pay the lowest cost for electricity. Tier two is slightly higher.
- In tiers 3 and 4 you pay the highest costs for electricity. Reducing your energy use can help you save or even avoid using energy in these tiers.
Regulatory Tariffs
SDG&E’s rates and rules are approved by the California Public Utilities Commission (CPUC). For more detailed information, the tariffs that we file with the CPUC are available online.
DR (Domestic Rate)
If you’re a typical household, you’re most likely on this rate.
DR-LI (Domestic Rate Low-Income)
This rate is associated with CARE, our 20% bill discount program and FERA, the discount on electricity available for households with three or more persons. Find out more about SDG&E assistance programs.
DR-TOU (Domestic Rate, Time Of Use)
This rate is for households using a lot of electricity (more than 1,500 kWh a month) This time-of-use rate works best if no one is home from noon to 6 p.m. on weekdays. Putting timers on large appliances such as electric water heaters or pool pumps works with this rate to help manage energy use.
DR-SES (Domestic Rate, Solar Energy System)
Households with solar energy systems are eligible for this rate. Visit the Net Energy Metering page for more information.
Medical Baseline
Additional baseline allowance is available to people with special medical needs. This includes people on life support or those that have multiple sclerosis, scleroderma, are paraplegic, quadriplegic or hemiplegic, or are being treated for a life-threatening illness or have a compromised immune system.
To receive this additional allowance, a doctor’s certification is required on the application. Household income is not a factor for qualifying. To see if you qualify, review our medical baseline application.
Assistance Programs for Limited-Income Households
SDG&E has two residential assistance programs that provide a discount on energy use, CARE and FERA. Both programs are based on total household income and household size.