Tiered rates and how they affect your bill

Your baseline allowance corresponds with the lowest rate per kWh. Electricity rates rise progressively as your electricity use reaches the second, third and fourth tiers. They also differ slightly from winter to summer.

Residential Electric Rate — Tiers Breakdown By Summer/Winter

Residential Electric Rate	Tiers	Total standard electric rates per kWh
		Summer	Winter
Baseline *	Tier 1	13¢	13¢
101% to 130% of baseline	Tier 2	15¢	15¢
131% to 200% of baseline	Tier 3	28¢	26¢
Above 200% of baseline	Tier 4	30¢	28¢

* The Standard Residential Electric Rates reflect Total UDC rates under Schedule DR, SDG&E's primary schedule for residential electric service, and the applicable rates under Schedules EECC and DWR-BC.

• See an example of electricity use by tier

A substantial Rise in Your Electric Rates Begins in Tier Three

You will see the biggest jump in your rates once your usage gets into the third and fourth tiers. One reason for this is because the electric rates for usage in tiers one and two were capped under State Assembly Bill AB1X. Therefore, any rate increases were allocated entirely in tiers three and four.

However, because of California Senate Bill 695, passed on Dec. 17, 2009, the California Public Utilities Commission is now authorized to increase the rates to tiers one and two and decrease the rates to tiers three and four. The increase to tiers one and two was necessary to make rates more fair and equitable among all residential customers.

• More information about AB1X
• Summer Rate Brochure (pdf)

As shown in the following chart, rates in tier three and four are approximately double the rates in tier one and two in both summer and winter.