San Diego Gas & Electric on Tuesday filed a rate application with the California Public Utilities Commission seeking an increase that would average $9 per month for electricity and $9.60 for natural gas beginning Jan. 1. 2024.
The utility’s filing includes a four-year capital investment plan focused on expanding the power grid while increasing the supply of clean energy.
“Our company’s average electricity bills are the lowest among California’s investor-owned electric utilities, but we also recognize that it is difficult to ask our customers to pay more given the state of the economy and inflationary pressures and we are mindful of every dollar we are asking our customers to pay,” said SDG&E President Bruce Folkmann.
“The budget proposal we presented represents the conscientious efforts of hundreds of SDG&E employees to strike the right balance between cost containment and the infrastructure investments needed for a clean energy future,” he added. , noting that electricity consumption in California could nearly double. by 2045.
As a regulated utility, SDG&E’s rates, cost forecasts and capital investment plan must be approved by the Public Utilities Commission every four years. It will be 18 months before the commission rules on SDG&E’s latest request.
The plan for 2024 to 2027 includes the following investments, which SDG&E says are designed to achieve carbon neutrality by 2045:
- Develop electric vehicle charging infrastructure throughout the region.
- Modernize the electrical grid to allow the integration of much more solar and wind generation as well as battery storage in homes and businesses.
- Install more large-scale battery systems at strategic locations to maximize the use of electricity from solar power.
- Invest in hydrogen technology for clear transportation and power generation.
- Reduce wildfire risk and minimize power outages for public safety by hardening 590 miles of power lines.
- Accelerate the replacement of aging plastic natural gas pipes to improve safety and reliability and reduce methane emissions.
- Give customers more control by implementing the next generation of smart meters.
The tariff increase comes as natural gas costs, which are passed on to customers, have soared around the world due to the war in Ukraine and sanctions from Russia, which is a major gas producer.
More information about the SDG&E filing can be found at sdgeratesinfo.com.