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Have your bill handy and check out how increased energy use can make a big difference in your bill. You can enter different energy use amounts to see how rates rise in the tiers.

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Learn more about how tiers work

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

14¢

14¢

101% to 130% of baseline

Tier 2

16¢

16¢

131% to 200% of baseline

Tier 3

29¢

27¢

Above 200% of baseline

Tier 4

31¢

29¢

* 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.

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.

Rates in tier three and four are approximately double the rates in tier one and two in both summer and winter.

See an Example of Electricity Use By Tier

500 KWh vs. 1000 KWh – How Can it Change Your Bill?

Here are two examples of electric energy use.  The first example is for 500 kWh of energy used for the month.

  • The electric bill amount is $81.47

The second example is for 1,000 kWh.

  • The electric bill amount is $233.03

These examples are for a customer located in the Inland climate zone who receives basic service baseline allowances (receives energy from both an electric and natural gas), and the electric bill is based on a 30 day billing period for the summer season.

500 KWh Monthly Electric Usage Scenario

If 500 kWh of electricity was used for the month, only 13% of the monthly usage would be billed under the tier three rate, and no energy would be billed under the tier four rate.

By keeping most of the energy usage billed under the lower tier one (baseline) and two rates, the total amount of the monthly bill is lower.

 

 

Total Rate

KWh Used

Estimated Billed Amount

Baseline

Tier 1

14¢

336

$47.04

101% - 130% 
of baseline

Tier 2

16¢

101

$16.16

131% - 200% 
of baseline

Tier 3

29¢

63

$18.27

Over 200% 
of baseline

Tier 4

31¢

0

$0.00

 

 

500

$81.47

1000 KWh Monthly Electric Usage Scenario

If 1,000 kWh of electricity was used for the month, 56% of the energy usage would be billed under the tiers three and four rates.

Because the tiers three and four rates are significantly higher than the tier one (baseline) and two rates, the electric bill amount associated with tiers three and four usage is approximately 73% of the total electric bill.

 

 

Total Rate

KWh Used

Estimated Billed Amount

Baseline

Tier 1

14¢

336

$47.04

101% - 130% 
of baseline

Tier 2

16¢

101

$16.16

131% - 200% 
of baseline

Tier 3

29¢

235

$68.15

Over 200% 
of baseline

Tier 4

31¢

328

$101.68

 

 

1000

$233.03

This example is for a customer located in the Inland climate zone who receives basic service baseline allowances (receives energy from both an electric and natural gas), and the electric bill is based on a 30-day billing period for the summer season.

These examples are intended to be illustrative and use rounded total rates for SDG&E’s standard residential electric service, which includes rates under Schedule DR, Schedule EECC and Schedule DWR-BC, rounded to the nearest cents. 

Your actual rates can be found on your bill. These examples excludes “Other Account Charges” as identified on your bill.