San Diego Gas & Electric customers are pushing back against a proposed rate increase that could add almost $270 a year to the average household’s energy costs, while the utility seeks billions in additional revenue over the next four years.
SDG&E has asked California regulators to authorize $280 million more in revenue for 2028 than the company expects to collect in 2027. If approved, the utility would bring in approximately $3.8 billion that year.
For customers, the request would translate into an average 8.6% increase across electric and natural gas bills beginning in 2028 — roughly $22.48 more each month. SDG&E is also seeking continued revenue growth through 2031, with the four-year total reaching an additional $1.07 billion.
The proposal drew strong criticism Tuesday during a California Public Utilities Commission meeting in Santee. A full City Council chamber heard customers and community advocates question the utility’s profits and the impact of higher bills on local families.
Several speakers described the request as corporate greed, arguing that SDG&E should not seek more money from customers while reporting substantial earnings.
Tyler Andre of SanDiego350 noted that SDG&E reported $862 million in profit during the first nine months of 2026, while San Diego residents already pay some of the country’s highest utility rates.
“SDG&E just reported record profits for the third quarter and is expected to surpass $1 billion this year for the first time,” Andre said, prompting boos from the audience.
Other residents focused on the strain of paying for essential services that they said are becoming increasingly out of reach.
“This is a slap in the face to us, the customers, because we are the ones keeping this company in business,” one resident said during public comment.
Another asked regulators, “Before you approve another increase, can you tell me what we’re supposed to give up to afford it?”
SDG&E says the added revenue is needed to fund wildfire mitigation, upgrades to its infrastructure, cybersecurity, insurance and other operational expenses.
“We understand that affordability is a serious concern for our customers, and we take that concern seriously,” a utility spokesperson said in a statement. “We are working to control costs, improve efficiency and identify ways to keep bills as manageable as possible while continuing to deliver safe, reliable energy. This rate request is only a proposal and will be subject to a detailed public review.”
The California Public Utilities Commission will now examine the request and host additional virtual public meetings on Dec. 9 and 10 to hear from the public.
Regulators are not expected to issue a final decision for at least another year. Until then, the proposed rate increases remain unapproved and would not take effect immediately.
