Sdg&e Advice Letters

Sdg&e Advice Letters – Copyright © 2022, The San Diego Union-Tribune | CA Notice of Collection | Don’t Sell My Personal Information

After calls from SDG&E, the California Public Utilities Commission voted to eliminate high-use charges for customers from the billing system.

Sdg&e Advice Letters

More than 300,000 San Diego Gas & Electric customers who are still on competitive rate plans won’t have to worry about the impact of paying “high usage rates” this summer.

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The California Public Utilities Commission on Thursday voted to eliminate the charge, following calls from SDG&E officials who supported the mandate to eliminate it after the hottest summer of the year. 2018 resulted in a significant increase in prices for some customers in the land area that caused them to lose. cool air to get some relief.

“We have heard from our customers loudly and clearly that they feel that the high spending is punishing and unfair, especially for those who live in the cloud. hot air and, of course, use more energy for cooling during the summer,” SDG&E’s Chief Customer Officer Scott Crider said in a statement.

The price has done something terrible for the customers of the competitive price, which users pay a low price for electricity. When spending more than 130 percent of the family’s monthly allowance, costs increase. A spending spree begins when customers spend four times as much, or 400 percent, of their base.

But SDG&E was inundated with complaints in the summer of 2018 after some customers reported their monthly bills had increased by as much as 50 percent.

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SDG&E employees went to the health board, asking for an end to the bill. In June 2019, the board withdrew the request. In May 2020, the board reduced prices but did not eliminate them, in an effort to give customers some financial relief during the financial impact of the COVID-19 outbreak. .

On Thursday, however, the commission concluded the high spending “does not have a significant impact on energy conservation” and paved the way for its elimination.

SDG&E officials say they hope to be cleared before the warm weather arrives this summer, pending a document called a report to the board and SDG&E’s operations. fee payment.

It should be noted that the declining number of SDG&E customers is in the price competition. That’s because at the top of the decision, California’s electric utility companies are switching customers from competitive pricing to “time-of-use” – a model in which the price paid to customers is based on when they use energy. Prices are higher when there is more demand on the grid and higher electricity costs, such as the peak hours of 4 p.m. to 9 pm.

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SDG&E began transitioning customers to time-of-use in 2019. As of this month, about 312,000 customers are still on competitive pricing plans. Last year, approximately 25,000 SDG&E customers were affected by the outage.

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SDG&E may not have to collect up to $100M for the city of San Diego if the franchise agreement is completed

An existing contract to deliver electric and gas services within the city limits of San Diego has been in place since the 1970s, but the city and San Diego Gas & Electric have yet to reach an agreement. new.

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The City Attorney said he will use the utility to go to court if the items are not collected; The existing contract runs until June 1

In the latest development in the search for new electricity and gas for the city of San Diego, San Diego Gas & Electric will not collect more than $100 million in additional funds that go into the city’s coffers. If there is a new contract between the utility and the city. not until before the existing contract expires on June 1.

SDG&E said it was only complying with state regulations and that the move “does not change our commitment” to reach an agreement with the city. But the District Attorney’s Office accused SDG&E of “trying to gain leverage in the negotiations” and said it will take the power to court if the additional charges are dropped.

Under an existing franchise agreement, SDG&E collects an initial fee from customers within the county. On top of that, a surcharge of 5.78 percent is applied to electricity and 1.03 percent is tacked on fuel.

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If the current contract expires, SDG&E said it will continue to collect the base costs and send them to the city – to the tune of $25 million to $30 million per year.

But the utility may seek an agreement to avoid paying additional fees – also known as the franchise fee difference. While doing so would lower the monthly bills of San Diego residents, it would have an impact on the city’s budget.

The difference comes to $101.9 million in 2020. The money is transferred to the city and placed in the general fund, the city’s Development Fund and its Utilities Program.

SDG&E made the request in a May 4 filing to the California Public Utilities Commission, which oversees utilities in the state. It’s unclear when the board will approve the request or order SDG&E to pick up the additional costs.

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In the letter, the electricity prices mentioned in the existing contract, unless the agreement is “renewed with the same terms,” ​​SDG&E “will have no way law” to cover the difference, according to CPUC regulations.

“Utility regulators are required to notify the CPUC if there is a possibility their rates will change,” SDG&E spokeswoman Helen Gao said. “SDG&E informs the city of this responsibility before applying.”

SDG&E sent a similar letter to the board in October but backed off after the city and utility agreed to extend the existing contract through June Month 1.

In an email to the Union-Tribune, the District Attorney’s Office said it knew SDG&E would send the letter on May 4 but said the utility could wait until the June 1 and explained the move was an attempt to gain leverage in the negotiations.

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“We believe that the proposal is a process and a question, the issue we will address in our opposition” to the committee, which is May 24, the spokesman Hilary Nemchik has said.

Last year in a memo to the city council, City Attorney Mara Elliott acknowledged that SDG&E could stop collecting additional fees if the franchise agreement expires but also said the city could take the utility to Superior Court “for violations and problems,” since SDG&E would still be using city roads for its gas and electricity electricity infrastructure.

Nemchik said, “On June 2, if there is no contract in place and the franchises lapse, SDG&E will be on the city’s roads and benefiting from city taxpayers without rights.” ,” Nemchik said. “That includes misdemeanors and other crimes.”

The city and the utility have already been established in the lawsuit. In January 2020, Elliott filed a $35.6 million lawsuit to get back money for moving SDG&E equipment that blocked the city of Pure Water San Diego’s recycling project. Information is pending.

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In agreement with the local government, a municipality provides special services for the use of the public right of transmission and distribution, as well as the right to install and maintain wires, poles, power lines electricity and gas underground and power lines.

As it has for over a century, SDG&E is a city franchisee. The existing contract has been in place since 1970. It was set to expire in January but the city and utility agreed to a five-month extension in anticipation that the new contract could be brokered between the new mayor Todd Gloria and SDG&E – and then approved by the San Diego City Council.

Any new franchise agreement requires a “yes” vote by a majority of at least six of the council’s nine members.

Another extension is possible but, contractually, it would need approval from both the city and SDG&E, the City Attorney’s Office said last year. The city had requested a one-year extension when SDG&E said it wasn’t interested in one of those lengths before a five-month extension was approved in January.

Gloria recently released details for a new contract that includes the utilities agreeing to pay the city $80 million ($70 million for electric services and $10 million for gas) ) and the term “10-plus-10” – that is, agreement to work. for 10 years with automatic 10-year renewals if the city finds that the franchisee has complied with all terms and conditions.

Some council members want stricter terms and Gloria has been negotiating with SDG&E in recent weeks to change the deal. According to city law, it is up to the mayor to introduce the proposal before the council for a vote.

SDG&E critics say the utility bill is an attempt to get the city to agree to a new franchise agreement.

“Utility is the city’s tenant, using our land to make billions of dollars and it needs