The price of many things has increased over the past few years and energy is no exception. With recent California Public Utilities Commission (CPUC) decisions, energy costs for most businesses will continue to go up. We want to help you understand why costs are increasing, as well as steps you can take to manage your use and help lower your costs.
Why Rates Are Changing
This is what’s happening with energy rates and the combination of factors that are contributing to higher costs.
A smart energy network
We are upgrading and enhancing the electrical system to take advantage of new technologies that will provide greater reliability, safety and security for the power grid, more choices for customers and save energy in the long run. These infrastructure costs are incorporated into the "delivery" component of your rate.
Environmental change
Federal and state policies in California are moving us toward a
cleaner environment and a more sustainable future. We are committed to delivering clean, renewable energy to our customers.
This commitment to a green, low-carbon future carries a higher cost than traditional energy sources. Since the cost of the electric commodity that we purchase is directly passed through to customers, the increased costs of clean, renewable power are causing this portion of the rate to increase.
Understanding Demand and TOU Rates
To learn more about how electric demand can impact your energy bill and how Time of Use rates work, please take a look at the presentation and corresponding audio for more information.
Rate Information
The first part of understanding rates is knowing what makes up your electric bill. Most SDG&E business customers fall into one of three main billing rates for electricity, based on the amount of electricity used, and in the case of many larger customers, demand for electricity.
How can I tell what rate my business is on?
If you look at your SDG&E bill, under the “Electric Service” section you’ll see what rate your business is on.
