General Rate Case Media Statement

MEDIA STATEMENT

San Diego Gas & Electric (SDG&E) issued the following statement following the California Public Utilities Commission’s (CPUC) 5-0 vote to approve the company’s General Rate Case, which sets the utility’s operating budget for four years.  Today’s decision represents an increase of $123.4 million over current (2011) rates.  

“Today’s decision by state regulators will allow us to continue to operate our natural gas and electricity systems safely and reliably and to increase system efficiencies and customer benefits through technology enhancements. 

“The delay in reaching today’s decision has been difficult for the company, but also will affect our customers. Because regulators delayed a decision for nearly a year and a half, SDG&E now is required to start collecting 20 months of additional revenue that should have been collected starting in 2012.  These “catch-up” costs mean customers will see a larger bill impact than if the rates had been adjusted on schedule.  

“In the CPUC’s news release today, Commissioner Ferron acknowledged that, while the total amount customers will pay over the 4-year period will not change due to the delay, ‘had the decision gone into effect in 2012, the size of the increase would have been lower by between one-third and one-half.’

“The CPUC has determined the rate change will go into effect Sept. 1, which avoids the upcoming summer months, and the total “catch-up” amount will be spread out over 28 months through the end of 2015 to help mitigate the impact on customers.  SDG&E will reach out to residential and business customers to offer programs and solutions to help them manage their energy use and reduce their bills.

“Due to the current tiered electric rate structure, the majority of the residential portion of the increase approved today will be borne by customers who use more than 500 kilowatt-hours (kWh) each month, because, under current state law, rates for customers in the lower two tiers can rise only 3 percent to 5 percent per year.  SDG&E’s other customer classes also will see an increase.”

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