San Diego Gas and Electric raised its rates in January and a federal agency confirmed that San Diego County pays higher rates than any other city in the country.
According to the United States Bureau of Labor Statistics, San Diegans paid an average of 36.5 cents per kWh last December, when Riverside county only paid 23.8 cents per kWh and Los Angeles paid slightly more at 24 cents per kWh.
The U.S. Energy Information Administration reports wholesale natural gas prices ended 2021 38% higher than at the start of the year. In January, the price of gas per therm was $1.91 back in January 2021 but now has risen to $2.38 per therm.
Customers who rely on natural gas to heat their homes saw an almost immediate bill impact because gas procurement costs are updated monthly.
“The procurement cost for natural gas is a straight pass-through to our customers – meaning SDG&E does not mark up or make a profit selling more natural gas to our customers. We remain vigilant to make our operations more efficient and use a suite of tools to buy energy at the best possible prices for our customers,” SDG&E said in a statement.
A contributing factor to heightened SDG&E bills is the “Public Purpose Programs,’ which are state-mandated assistance programs for low-income customers, which grew during the pandemic and further spiked prices. Additionally, the company's contribution to the state’s wildfire insurance fund through ‘Wildfire Fund Charge’ has added to the costs seen in customer bills.
"The company is not allowed to set its rate. Rather, as a regulated utility, we are required to file all rate requests with the California Public Utilities Commission, which conducts a rigorous public review process that involves many stakeholders, including consumer advocates, before approving rates paid by our customers," SDG&E said in a statement.
According to the company, billing increases are also due to an extended period of chilly weather that increased demand in energy use and a year-long runup in natural gas wholesale prices caused by a variety of factors, including bad weather and supply chain disruptions.
In December, a record for the longest stretch of cold temperatures seen in the past five years was set as San Diego’s average low was 49 degrees, and the average daytime high was 62.
“That translated into greater energy use to keep the thermostat at an ideal temperature. Historically, our customers tend to see higher bills during December and January due to colder weather and even holiday lights,” SDG&E wrote in a statement.
SDG&E customers may apply for financial assistance programs to get 30% or more off their energy bill.
