Baseline Allowance Facts

Your monthly bill contains detailed information on the calculation of your energy-related charges. Baseline Allowance (baseline) is one of the pieces of information found on your bill. To help you understand baseline, here are answers to commonly asked questions.

What is baseline?
Baseline is a billing structure that provides all residential customers with an allowance of energy for basic needs at a lower rate. This rate structure was established by the State Legislature and all utilities must follow it as ordered by the California Public Utilities Commission (CPUC).

In California, residential rates for electricity and natural gas have two levels. The first level is the Baseline, which is the least expensive rate. The next level is Non-Baseline, a higher rate for energy use that exceeds your baseline allowance.

Does my baseline allowance change?
Yes, there are two seasonal changes to your baseline allowance during the year, on May 1st and November 1st.

How is the baseline allowance determined?
Your baseline allowance amount is determined by six factors:

1. Your rate.
2. The climate zone in which you live. Different climates mean different energy needs, so allowances will vary.
3. The seasonal time of the year (summer or winter). Most allowances change May 1st and November 1st because of the change of seasons.
4. A percentage of the average energy usage of residential customers.
5. The fuel source for the space heating system installed in your home (gas, electric, or other).
6. The number of days in the billing period.

A key element in determining your baseline allowance is climate. The CPUC divided SDG&E's service area into four climate zones: (1) Coastal, (2) Inland, (3) Mountain, and (4) Desert. Single-family dwellings in the Coastal and Inland zones will receive these allowances:

People living in the Mountain zone (3) will receive a higher allowance for winter heating because of the colder weather. In the Desert zone (4), people will have a higher allowance in the summer for air conditioning.

How does baseline affect my tiered rate?
Under the current tiered rate system, your electric costs rise based on the amount of electricity you use above the baseline allowance. Your cost per-unit increases as your energy use increases.

Is additional allowance available for medical reasons?
Additional baseline allowance is availabl

e to people who use life support equipment, who have multiple sclerosis or scleroderma, who are paraplegic, quadriplegic or hemiplegic, or who are being treated for a life-threatening illness or compromised immune system. To receive this additional allowance, a doctor must certify the special needs of the patient. For more information and an application, click here.