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Council adopts revised energy cooperation agreement with SDG&E after debate over solar-equity funding

San Diego City Council · May 13, 2025
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Summary

The council voted 5–2 to adopt a revised Energy Cooperation Agreement with SDG&E that tightens reporting and coordination on electrification and affordable housing energization. Councilmembers criticized SDG&E for declining a modest inflation-based increase in annual solar equity funding.

San Diego City Council on May 13 approved a revised Energy Cooperation Agreement (ECA) with San Diego Gas & Electric that updates the parties’ coordination on electrification, project energization timelines, wildfire safety and related city climate goals.

The updated ECA emphasizes measurable targets and accountability mechanisms identified during a multi-month review with city staff and the Franchise Compliance Review Committee. Key changes include quarterly electrification coordination meetings, biannual bi‑directional reporting on energization timelines, greater coordination for affordable housing energization and alignment with the City’s 2022 Climate Action Plan. The agreement also directs SDG&E to work with San Diego Community Power (SDCP) on regional energy network programming and to provide more transparent reporting to the city and public.

At the Environment Committee staff and council asked SDG&E to increase its annual contribution to the solar equity program from $1,000,000 to $1,150,000 to offset inflation since the program’s adoption. SDG&E declined to increase that shareholder-funded commitment; SDG&E representatives said the current program is meeting targets and the program administrator is successfully delivering systems to qualifying households. Council members who pressed for the increase said a modest $150,000 adjustment (0.01% of the parent company’s reported profits cited in public comment) would preserve program impact as costs rise.

Councilmember debate centered on whether the revised ECA strengthens the city’s ability to coordinate large-scale electrification while also holding SDG&E accountable on affordability and equity programs. Supporters said the new reporting and measurable goals will reduce project delays and improve coordination on building electrification and EV infrastructure; critics said the utility missed a chance to protect low-income households by refusing the solar-equity increase.

The council adopted the revised ECA 5–2, with Councilmembers Ilo Rivera and Foster voting no. The mayor’s office and DGS staff will finalize an implementation plan within 120 days to specify roles, timelines and reporting schedules called for under the ECA.