SAN DIEGO (KGTV) — San Diegans are expressing concern about San Diego Gas & Electric's proposal for a significant rate hike in 2023.
“It doesn’t seem fair to me that they keep raising rates," said SDG&E customer Gino Granda. “I looked at my energy bill after this heat wave and was already crying about it. Seeing it go up, I’m not going to be too psyched about it," said customer John Smith.
This week, the utility company began outreach to customers, warning them about its proposal. All customers would see a $15 increase for electricity delivery, while those who do not receive energy through a community power organization (about 45% of the county) are projected to see their average bill go up $28. Customers with natural gas would also see an additional increase of at least $6.
“We recognize that any increase for our customers is very difficult," SDG&E Senior Vice President Scott Crider told ABC 10News in an interview Wednesday. “We want to make sure we’re more transparent, that we’re giving customers more time to really prepare for a potential change in rates and higher bills in January.”
Crider says the rate increase is necessary due to the worldwide increase in the price of natural gas, as well as the billions of dollars the company is investing in wildfire prevention and improvements to San Diego's electric grid.
However, critics point out that the SDG&E is raising rates at the same time it is collecting record profits and paying record dividends to investors of its parent company, Sempra. “We’ve seen more than enough evidence that their interest first and foremost lie in returning rates of return and profitability back to Sempra," said Edward Lopez, Executive Director of the Utility Consumers Action Network.
During the interview with Crider, ABC 10News asked repeatedly how SDG&E squares the idea of expressing empathy for customers while raising rates during a time of record profits. "We are a for-profit company. So we’ve always acknowledged that," Crider said, while attempting to redirect the question to programs available to customers to help lower their bill or delay repayment.
Lopez says claims that the company is concerned for its customers ring hollow, saying SDG&E has consistently fought recent efforts by regulators with the California Public Utilities Commission to lower it's rate of return, the guaranteed profit built in for publicly-owned utilities. “They fought to keep their rate of return higher. That’s not in the interest of SDG&E customers. That’s not in the interest of ratepayers. That’s solely in the interest in their shareholder, Sempra.”
The CPUC will meet in December to vote on the proposed rate hikes. Lopez says he expects a rate hike to pass, but he hopes the regulators will at least lower the increase. “It’s not a question of if, it’s a question of how much. And, as we’ve seen, the how much is always too much.”
