The California Public Utilities Commission approved energy rate increases requested by both Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E) that will raise electricity bills for many by up to nine and 12 percent, respectively. Some customers of the utility companies will be paying hundreds more per year for the same level of usage. It is estimated to cost homeowners and businesses $500 million dollars more in total utility energy expenditures.
Currently, these utilities have the highest electric rates in the continental United States (surpassed only by Hawaii). The rate hike is higher than usual because of it being a retroactive increase, making up for lost revenue. The increase is set to take effect September 1, 2013, one of the hottest months of the year
"The bigger bills will not only hurt ratepayers, but are reminder of SDG&E's stranglehold on the local energy market," says Jacob, "Consumers need more choices on where and how they get their energy so they're not at the mercy of the utility giant every time it wants to boost its bottom line." - San Diego County Supervisor Dianne Jacob
The CPUC said the typical electric bill (500 kilowatt hours per month) will leap 12.2% or $9.95 per month; the average gas bill (33 therms per month) will rise 9.6% monthly or $3.55.
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(Note: In December of 2006, SDG&E filed a case before the FERC requesting a 22% increase in its annual retail rates along with an indefinite continuation of formula rates. The CPUC, along with other intervening parties, protested SDG&E's filing stating that its 22% rate increase, its proposed return on equity (ROE) and the indefinite length of formulaic rates are unjust and unreasonable.)
(Note: In December of 2006, SDG&E filed a case before the FERC requesting a 22% increase in its annual retail rates along with an indefinite continuation of formula rates. The CPUC, along with other intervening parties, protested SDG&E's filing stating that its 22% rate increase, its proposed return on equity (ROE) and the indefinite length of formulaic rates are unjust and unreasonable.)