SAN DIEGO COUNTY, Calif. — Many San Diegans are “amped up” about their sky-high electric and gas bills.
A San Diego Gas and Electric vice president finally sat down with CBS 8 this week to answer some hard questions.
Utility Consumers’ Action Network (UCAN) Executive Director Edward Lopez watched the entire 30-minute interview with SDG&E's Vice President Scott Crider, conducted on Tuesday by CBS 8 reporter Shannon Handy.
“It was certainly a hard-hitting piece. I have to tell you, I was squirming in my own seat, and I wasn't the one being interviewed,” said Lopez.
“It’s frustrating at times. I just don't trust what I'm hearing from SDG&E,” said Lopez
The SDG&E executive blamed everything from high natural gas prices, to cold weather, to high inflation for the recent jump in utility bills.
“San Diego is experiencing a 40-year high in inflation, that means the cost of food, the cost of gasoline, the price of housing, everything is going up right now,” Crider told CBS 8.
According to the California Public Utilities Commission, SDG&E rate increases have outpaced inflation since at least 2013, and rates are predicted to increase in the future by 4.7% annually.
“As SDG&E even seemingly acknowledged, their rates are – not only now – but have been the highest in the country,” said Lopez.
The real problem, according to UCAN, is the built-in profits SDG&E makes on huge capital projects, like the $3 billion spent on wildfire prevention in the East County.
“They’re among the highest rates of return in the county, and have been for a while. Is that fair?” asked Lopez.
During CBS 8’s interview, SDG&E said it was pursuing legislation to make California taxpayers pay for some of the miscellaneous charges added to monthly utility bills.
Those add-ons are listed on the bill as Public Purpose Programs, and they amount to roughly 4 to 6 percent of the total SDG&E bill.
“If we want lower bills, there has to be less program costs. So, if there's a way to spread around those program costs beyond SDG&E customers, perhaps that could help lower the bill,” said Lopez.
The legislation SDG&E said it is pursing has not been introduced in Sacramento, and there is no guarantee it would be passed into law.
But make no mistake, Lopez said, SDG&E has spent millions of dollars on attorneys and lobbyists, fighting to keep their profits high.
“I can't remember the last time we've seen them (SDG&E) on their own, bring in an application, or participate in a ratemaking proceeding where they say, ‘No. No. No. It's high enough. We need we need to decrease it,’” said Lopez. "SDG&E is not a public entity. It's not a municipal utility. It is a private, investor-owned utility. They must deliver a profit to their investor, Sempra."
Crider, the SDG&E vice president, is scheduled to participate in a live, virtual workshop before the CPUC on Monday, February 28 and Tuesday, March 1.
The public is allowed to telephone into the virtual hearing, which is aimed at brainstorming ways to make gas and electric rates more affordable.
WATCH RELATED: CBS 8 sits down with SDG&E to discuss rising costs, frustrated customers | Part 2 (February 2022)