Upcoming changes to SDG&E’s business customer classes

Beginning April 1, 2026, California Public Utilities Commission (CPUC) approved updates to SDG&E’s business electric pricing plans will be implemented, including the creation of a new Medium Commercial customer class.

This change helps ensure that electric rates more accurately reflect the cost of serving businesses with different energy demands.

Overview

What is changing?

Today, SDG&E has two primary electric commercial customer classes:

  • Small Commercial and Medium/Large Commercial & Industrial

Starting April 1, 2026, SDG&E will offer three classes:

  • Small Commercial, Medium Commercial, and Large Commercial & Industrial

Frequently Asked Questions

Business accounts will be included in a new customer class based on electricity demand under the updated structure:

  • Medium Commercial: Demand between 20kW to less than 200kW
  • Large Commercial & Industrial: Demand of 200kW or more
  • For business accounts currently on TOU-M, eligibility is more specific:
    • A business account will remain on TOU-M if demand can be managed and maintained between 20 kW to less than 40 kW.
    • A business account that meets or exceeds 40kW demand will be included in either the Medium Commercial customer class or Large Commercial & Industrial customer class under the new structure.

It depends on energy use.

  • Businesses with lower demand that are currently in the Medium/Large Commercial & Industrial class may benefit from being included in the new Medium Commercial customer class.
  • Whether a business would benefit depends on its:
    • Demand level
    • Total energy usage
    • Pricing plans being compared

Beginning April 1, 2026, impacted business customers will be included in either the Medium Commercial or Large Commercial & Industrial customer class based on their following billing date. 

Customers should continue to remain aware of their business account demand level. A business account could shift customer classes at any time based on three consecutive months’ demand. 

If SDG&E moved your account to a new pricing plan as part of this change, you’ll have a one‑year waiver of Electric Rule 12, which will allow you to make one additional change to another eligible plan within one year. 

If you would like to preview the updated pricing-plan tariffs or would like to learn more about the new Medium Commercial customer class, please review Pending Electric Advice Letters 4791-E and 4791-E-A.

  • If one or more of your business accounts reaches or exceeds 200kW for three consecutive months, it may be included in the Large Commercial & Industrial customer class.
  • Receiving a notice does not guarantee that a business account will be included in the Large Commercial & Industrial customer class.
  • Whether a business account will be included in either the Medium Commercial or Large Commercial & Industrial customer class depends on actual demand, energy usage and eligibility criteria.

SDG&E is committed to providing clear information about the new Medium Commercial customer class.

  • If you have questions about how changes may affect your business, please contact our Business Care Center at 1-800-336-7343.
  • If you work with an Account Executive, you may reach out to them directly.