San Diego Gas & Electric Co. and Southern California Gas Co. customers will see rate increases over the next three years as a result of the California Public Utilities Commission's unanimous approval of higher revenues for both companies. Gas customers will get the largest rate increases.
Major portions of the revenue increases in the decision will go to enhanced risk-mitigation programs that were incorporated into the Sempra Energy subsidiaries' rate cases for the first time. The money will be used to reduce the risks of wildfires caused by San Diego Gas & Electric's, or SDG&E's, equipment and conduct pressure tests on gas equipment, as well as to carry out pipeline and valve replacement projects.
Rates will increase for customers of both utilities in 2019, 2020 and 2021.
The commission set a 2019 revenue requirement of nearly $2 billion for SDG&E's combined operations, including nearly $1.59 billion for electricity and $401 million for gas. That is nearly $214 million lower than SDG&E's updated request of about $2.2 billion. The result for 2019 is to raise revenues $106.2 million, or 5.64% over current revenues.
A typical inland residential electricity customer will see a monthly bill increase of 0.65% or $1.02. An average SDG&E residential gas customer can expect a monthly bill increase of 13.9%, or $4.83.
For Southern California Gas, or SoCalGas, the revenue increase for 2019 is $338.37 million, or 13.78% more than its previous level, for a new revenue requirement of $2.79 billion. That means an average residential SoCalGas customer will see their rates increase by 10.4%, or $4.57 per month. SoCalGas had asked for $2.93 billion.
In 2020, SDG&E will increase rates again by $136.31 million or 6.85%. SoCalGas will increase rates by $222.2 million or 7.95%.
A state law that took effect Jan. 1 prohibits utilities from including company officers' salaries, bonuses and benefits in customer rates. Instead, that money must come from shareholders. However, both utilities filed their rate cases on Oct. 6, 2017, well before the law took effect, so their rates still include those expenses. The PUC's decision requires the utilities to track compensation and file adjustments at the end of 2019 to refund those costs to ratepayers.
The decision forbids the utilities from using ratepayer dollars to oppose the state's climate goals. Commissioners Clifford Rechtschaffen and Martha Guzman Aceves pointed out that SoCalGas has inappropriately used ratepayer funds to oppose state policy promoting the replacement of gas appliances with electric ones.
The PUC refused the utilities' requests to set rates for four years instead of three years.
