Understanding the Public Purpose Programs Line Item on Your Bill

PPP Charge line item location on typical SDG&E bill

PPP Charge line item location on typical SDG&E bill. Click bill to view larger.

The section on your bill that itemizes individual components included in the Total Electric Charges is where you will find the Public Purpose Programs (PPP) component.

What is PPP?

This bill component reflects the cost of state-mandated low-income and energy efficiency programs. The PPP bill amount includes two combined rates.

  1. The Total Rate Adjustment Component (TRAC)
  2. The Public Purpose Program (PPP)

The charges associated with these two rates are combined on your bill as a single line item called 'Public Purpose Programs'.

The Total Rate Adjustment Component (TRAC)

TRAC (formerly called the “2006 Rate Design Settlement Component”) could either be a credit or a charge.

For your energy usage in tiers one and two, the TRAC rate shows up as a credit since the total rates in these tiers are capped at February 1, 2001 levels as required by law under California State Assembly Bill 1X (AB1X) legislation.

For your energy usage in tiers three and four, the TRAC rate becomes a charge in order to recover costs that cannot be recovered in usage billed under tiers one and two.