SDG&E rate increases, a surprise for all?
SDG&E electricity customers have probably read or heard that the utility has been granted an 11 percent rate increase by the PUC effective Sept. 1, 2013. What they may not know is that not all ratepayers are affected equally.
Instead of applying the 11 percent “across the board,” SDG&E is allowed or mandated to distribute the rate increases according to how much electricity a customer uses. The chart on SDG&E’s website at www.sdge.com/2013Rates shows the rate increases for various levels of consumption based on $ per month on a customer’s bill as well as kilowatt hours per month consumption.
The reason for the skewed rate application is because of the four-tier billing structure most utilities use.
So, if you are consuming in the first tier, your percentage rate increase will be 2.5 percent and 5 percent depending on how deep into the tier you are. If you are in tier 4, your rate increase will be between 30 percent and 39 percent depending on how deep into that tier you are.
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