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SDG&E June rate change temporarily inverts comparative prices; SDCP files protest and readies direct mailer to customers
Summary
SDG&E’s June 1 rate filing temporarily reduced bundled rates, making SDCP’s 50% renewable product appear more expensive for some customers. SDCP and partner CCAs filed a protest with the CPUC, prepared a direct mailer to explain implications to customers and urged outreach to limit costly opt‑outs.
San Diego Community Power staff told the Community Advisory Committee on Aug. 12 that a June 1 SDG&E rate filing temporarily reduced SDG&E’s bundled generation rates, creating a short‑term inversion in the customer value proposition and prompting a joint protest with other community choice aggregators to the California Public Utilities Commission.
Lucas (SDCP staff) explained that the June filing used an advice‑letter mechanism that made the new rates effective immediately and that, as a result of how SDG&E adjusted volumes for the June filing, SDG&E’s base 31% renewable bundled service was briefly less expensive than SDCP’s 50% renewable product. Lucas told the committee that SDCP and its partners filed a protest with the CPUC, and that SDG&E subsequently filed an “error trigger” on July 15 acknowledging under‑collections related to the adjustment.
Staff said they expect bundled rates to increase again in calendar 2023 and warned customers that opt‑outs made after the 60‑day automatic‑switch window are subject to a 12‑month minimum stay with the incumbent utility. Lucas described customer communications planned to reduce poor decisions driven by short‑term comparisons: SDCP will mail informational notices to customers (email delivery around Aug. 26 and printed mailers delivered by the end of the month) explaining the short‑term inversion and urging customers to consider the longer‑term price trajectory before switching service.
SDCP staff also reported strong customer participation rates overall and provided a local snapshot: in Encinitas staff recorded about 389 accounts enrolled in SDCP’s higher‑renewable product, of which staff said 54 were nonresidential and about 335 residential. Staff emphasized a continuing outreach push to answer technical questions and counter misinformation appearing on social media.
On partnerships and outreach, staff highlighted a new customer program partnership with BoomConnect to notify enrolled customers of critical high‑cost hours and to pay customers for reduced usage during those hours. Staff also noted marketing partnerships with local professional soccer clubs (San Diego Wave and San Diego Loyal) and listed upcoming public events and tabling opportunities for SDCP staff.
Committee members urged SDCP and board members to remain active in regulatory proceedings and to continue public education explaining how rate mechanics and timing can temporarily change the apparent cost comparison between providers.
