Contacts:

Craig Rose, 858-336-5378

Jerry Wanetick, 858-967-4615
For immediate release
Friday, February 26, 2022

NO SURPRISE:
NATION’S HIGHEST UTILITY RATES CREATE
HUGE PROFITS FOR SDG&E

SAN DIEGO – San Diego Gas & Electric (SDG&E) today gave more than (600 million???) reasons
why area residents pay the highest utility rates in the nation: It’s their profits.

The local utility today announced net earnings last of XXXXXXX, an XX increase over profits earned
the previous year. Those profits include more than $1 million each day from the City of San Diego
alone, which comprises less than half of SDG&E’s customer base.

The profit windfall continues a decade-long trend of increased earnings for SDG&E, an increase that
occurred as the cost to utility customers in this area rose to the nation’s highest level.

“SDG&E has identified where much of the money we pay for those high rates is going,” said Jerry
Wanetick, co-chair of Public Power San Diego (PPSD).

“The money goes from our pockets to SDG&E’s bottom line. There’s a better way to provide gas and
electric service – an independent, non-profit utility.”

Non-profit utilities already provide gas and electric service to about 25 percent of Californians. The
non-profit utilities differ in structure but share a key characteristic: They all charge substantially less
than SDG&E, including utility customers in Sacramento who pay less than half what San Diegans pay
for electricity.

Under its charter, the City of San Diego retains the legal right to organize a non-profit utility at any
time.

(MORE)
“The City Council can start moving in the right direction by harnessing the enormous public interest in
non-profit utilities and form a task force of informed citizens to study alternatives to SDG&E,” said
Craig Rose, a member of PPSD.

“The task force can help shape and direct a serious study regarding our options, compared with
continuing to suffer from SDG&E’s high rates and huge profits.”

The City of San Diego recently allocated $1 million for a public power study. Unfortunately, the
request for proposals (RFP) to conduct this study was written by San Diego’s mayor, who last year
declined to explore the city’s option of a non-profit utility before the City Council approved a new
franchise.

To note just one shortcoming in the mayor’s RFP, the proposal fails to include a requirement for
research into forming an independent, non-profit utility, with an elected governing board separate from
city government.

The City should withdraw the mayor’s request for proposals to study non-profit power, in order to
allow a citizen task force to review and, if necessary, suggest changes to the proposed study.

“We don’t want to waste $1 million for a study that isn’t what needed,” said Wanetick. “We need a
study that explores all our options to paying these high rates.”

SDG&E’s authority to provide service and charge its rates comes from state regulators, who set the
rates, and from the San Diego City Council, which last year approved a 20-year franchise agreement
granting SDG&E the exclusive right to provide gas and electric service in the city.

Six Councilmembers approved the SDG&E franchise deal, which was endorsed by the mayor of San
Diego. Councilmembers Vivian Moreno, Monic Montgomery Steppe and Joe LaCava voted against the
agreement.

“The council had alternatives to SDG&E last June and under the charter the city council has
alternatives now,” said Rose.

Public Power San Diego is a coalition of groups and individuals who believe non-profit utilities can
provide greater democracy and the lowest possible rates while we deal with the climate crisis. For
those wanting to learn more about our work or about non-profit public power, please visit our website
at https://www.publicpowersd.org.

-30-