SDG&E $100 Million Rate Hike Request Is Rejected

breakingnews(July 29, 2016 – San Diego)   SDG&E customers have averted a $100 million rate hike today — but you’ll likely not see this important news reported in the media.   This big news is somewhat obscured by the complexities of the regulatory process, so here’s what happened in a nutshell:   In 2015, SDG&E submitted a request with state regulators (Public Utilities’ Commission) to recover an additional $100 million for the Sunrise Powerlink which it built back in 2010.   SDCAN opposed SDG&E’s rate hike request (in fact, we were the ONLY entity — including PUC staff itself — to oppose the utility’s request).   Today, the judge assigned to hear the case for the PUC issued a ruling rejecting SDG&E’s request for more money calling it “moot”.   Instead, she ruled,  SDG&E has to now explain why it never told state regulators about the project cost-overruns, even though the regulators had warned SDG&E back in 2008 when it approved the transmission project that SDG&E had a legal obligation to inform regulators about any excess costs on the $1.8 billion project.   The judge’s ruling can be read here.    In sum, SDG&E was told not only will the PUC not permit SDG&E to increase its revenues to cover cost-overruns on the project but now it will consider penalties for SDG&E’s failure to inform the regulators of the overruns.

Later in 2016, we expect that the Commission will hold hearings on why SDG&E withheld this information from the CPUC and what, if any, penalties or refunds that SDG&E will have to give to the public.  But in the interim, SDG&E customers should breathe a sigh of relief that the Commission has rejected SDG&E’s $100 million rate hike request.


1 reply
  1. Martin Learn
    Martin Learn says:

    Yahoo, Michael. It sounds like you personally were responsible for saving ratepayers $100 Million.
    You are the best raterpayer advocate since Sylvia Siegel.

    Thanks very much.


Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.