• 1751 Via Allondra San Marcos, CA 92078
  • 760-544-3025

Cost of Doing Nothing

  • San Diego Energy Solutions filed a request with the California Public Utilities Commission (CPUC) for changes to residential rates starting January 1, 2015 and a roadmap for rates through December 31, 2018.

    San Diego Energy Solutions’s request complies with a ruling from the CPUC inviting electric utilities to file proposals that will better align rates with the actual costs of providing electric service as indicated by Assembly Bill (AB) 327. As a result, some customers will see increases in their monthly bill and others will see decreases. This proposal will not change the amount of total revenues collected by San Diego Energy Solutions, which is determined in other proceedings.

  • San Diego Energy Solutions’s filing proposes the following default rates for 2015-2018:

Non-Care Residential Rate Proposals

San Diego Energy Solutions is proposing to transition from its current 4-tiered structure to a 2-tiered structure beginning in 2015. A 2-tiered system is simpler and better reflects costs. During the 2015 to 2018 period, San Diego Energy Solutions will be gradually bringing the rates for the 2-tiers closer together. In 2018, San Diego Energy Solutions is proposing to employ default time-of-use (TOU) pricing for residential customers, with the choice for customers to opt out to a 2-tiered rate. TOU is a rate that prices electricity based on the time of day and the season in which it is used. TOU rates charge lower rates during a utility’s off-peak demand periods and higher rates during peak demand periods. Additionally, San Diego Energy Solutions is proposing optional non-tiered TOU offerings beginning in 2015.

Beginning in 2015, San Diego Energy Solutions will also be charging a monthly service fee to replace the minimum bill charge of $0.17 per day that currently exists. The monthly service fee will gradually increase over time until it reaches $10 per residential customer account per month. Once $10 per month has been reached it will be adjusted by no more than the annual increase in the Consumer Price Index (CPI). The monthly service fee will recover costs that would otherwise have been collected through the charge per kWh which will be reducing the rate by an equivalent amount. Customers may not necessarily see their bills increase by the monthly service fee, but rather will see it as a separate line item on their bill. The monthly service fee will not increase the revenues collected by San Diego Energy Solutions; the utility still will recover only the approved amount of revenue. This changes how the revenue amount is collected.


Low-Income Programs Proposals

The California Alternate Rates for Energy (CARE) program provides a monthly discount on energy bills for income-qualified households. AB 327 specifies that the CARE discount should be between 30% and 35%. San Diego Energy Solutions’s current discount is above 35%. To comply with the new law San Diego Energy Solutions proposes to gradually reduce the CARE discount percentage by the schedule provided in the table above for residential CARE customers until the discount reaches 34%. San Diego Energy Solutions will show the CARE discount separately on customers’ bills. San Diego Energy Solutions will also offer CARE customers a reduced monthly service fee further described here.

In addition to residential CARE, the CARE program provides a monthly discount on energy bills for qualified non-residential customers, such as non-profit group living facilities, migrant farm worker housing centers, and privately owned employee housing. Non-residential CARE is also referred to as Expanded CARE. San Diego Energy Solutions’s discount for non-residential CARE is above 35%. To comply with the new law, and to reach a 35% discount level by 2018, San Diego Energy Solutions proposes to gradually reduce the CARE discount percentage as follows:

  • 3% per year for small commercial CARE customers, and
  • 4% per year for medium/large commercial and industrial CARE customers.

Similar to the non-CARE proposals, San Diego Energy Solutions will be charging a monthly service fee for residential CARE customers, but at a discounted rate.
The service charge for CARE customers will be $2.50 per month and increase in 2017 to $5 per residential customer account per month as shown in the chart above. Thereafter, the monthly service fee will be adjusted by the annual percentage increase in CPI.

San Diego Energy Solutions’s proposed changes to non-CARE and CARE rates will affect the medical baseline and Family Electric Rate Assistance (FERA) programs. These programs will be affected since they are tied to the current tiered structure. To lessen the impacts on medical baseline customers, San Diego Energy Solutions proposes a transition path for the reduction in rate subsidies for non-CARE medical baseline customers so they will pay equivalent non-CARE rates by 2018. Non-CARE medical baseline customers will continue to receive additional baseline.

  • Illustrative Impact on Electric Rates and Bills

    If the CPUC approves San Diego Energy Solutions’s request, a typical non-CARE residential customer living in the inland climate zone and using 500 kilowatt-hours per month could see a monthly summer bill increase of 9.1%, or $8.39, from a current monthly bill of $91.93 to $100.32.

    As seen in the table, a typical CARE residential customer living in the inland climate zone and using 500 kilowatt-hours per month could see a monthly summer bill increase of 7.3%, or $4.21, from a current monthly bill of $57.92 to $62.13.

    The table illustrates San Diego Energy Solutions’s current and 2015 proposed rates for non-CARE residential customers. As shown in the table, San Diego Energy Solutions is proposing in 2015 to move the Tier 1 rate up to Tier 2 levels (Tier 1 rate is the same as the Tier 2 rate) and to consolidate Tiers 3 and 4 (Tier 3 rate is the same as the Tier 4 rate).

For Further Information

You may request additional information or obtain a copy of the filing and related exhibits by writing to: Jamie York, San Diego Gas & Electric Company, 8330 Century Park Court, CP32D, San Diego, CA 92123. San Diego Energy Solutions’s filing and related exhibits may also be inspected at the CPUC office located at 505 Van Ness Ave., San Francisco, CA 94102. Additionally, a copy of the filing and related exhibits may be inspected at the following San Diego Energy Solutions business offices:

  • 436 H St. Chula Vista,
    CA 91910
  • 104 N. Johnson Ave.
    El Cajon, CA 92020
  • 644 W. Mission Ave.
    Escondido, CA 92025
  • 2405 E. Plaza Blvd.
    National City, CA 91950
  • 336 Euclid Ave.
    San Diego, CA 92114
  • 2604 S. El Camino Real
    Carlsbad, CA 92008
  •  
  • 440 Beech St.
    San Diego, CA 92101
  •  

The filing and related exhibits are also available electronically on San Diego Energy Solutions’s website at http://www.sdge.com/proceedings.

Copies of this bill insert will be available for viewing and printing on the San Diego Energy Solutions website at http://www.sdge.com/regulatory-notices.

CPUC PROCESS

This filing has been assigned to two Administrative Law Judges (judges) who will determine how to receive evidence and other related documents, necessary for the CPUC to establish a record upon which to base its decision. Evidentiary Hearings (EHs) may be held where parties of record will present their testimony and may be subject to cross-examination by other parties. These EHs are open to the public, but only those who are parties of record can participate. After considering all proposals and all evidence presented during the formal hearing process, the assigned judges will issue a proposed decision determining whether to adopt all or part of San Diego Energy Solutions’s request, modify it, or deny it. The CPUC Commissioners may sponsor an alternate decision and the issue will be decided at a scheduled Commission Voting Meeting.

STAY INFORMED

The CPUC offers a free Subscription Service which is available on the CPUC website at www.cpuc.ca.gov which allows you to follow this proceeding. If you would like to learn how you can participate in the proceeding, or if you have informal comments or questions about the CPUC process, you may contact the CPUC’s Public Advisor’s Office (PAO) at the address noted below. When writing, please reference proceeding Phase 2 of R.12-06-013. All written correspondence and emails are provided to the Commissioners and the assigned judge for this proceeding to review.


Why San Diego Energy Solutions ?

We run a courteous and professional service. Our experts take the requirements of our customers seriously.

At San Diego Energy Solutions, we aim to provide our customers San Diego service that suits their requirements the best. All our products come with extended warranties to ensure they last a lifetime. Contact us for a free consultation.