Just started auditing in California and I'm shocked by what I'm seeing. SDG&E customers got hit with a 22% rate increase in January that I'm just now catching up on. A manufacturing client went from $28,000/month to $34,200/month with zero change in usage. How are businesses even surviving this?
SDG&E 2025 rate shock - 22% increase in California
Carol - welcome to California utility rates! I've been here 2 years and the increases are relentless. That 22% was actually spread across base rates (14%) and a new wildfire cost recovery charge (8%). The wildfire charge shows up as a separate line item on Schedule AL-TOU bills.
Grace is right about the wildfire charges. I'm in Orange County and seeing $0.025/kWh just for wildfire cost recovery. On top of that, SDG&E changed their time-of-use windows. Super off-peak is now midnight to 6 AM only instead of midnight to 2 PM. That killed a lot of energy management strategies.
Bob, that TOU change is huge. My manufacturing client was shifting production to those old super off-peak hours. Now they're paying $0.39/kWh during the day instead of $0.18/kWh. I calculated they need to shift to midnight-6 AM operations to maintain their old costs. Not realistic for most businesses.
You California folks make me appreciate Kern County's PG&E territory. We're only seeing 11% increases this year. But I audit some SDG&E accounts in Imperial County and the story is the same - businesses are getting crushed. The state really needs to address the regulatory structure.
Rodney, even 11% is rough but you're right that SDG&E is the worst. The combination of high base rates, wildfire charges, and the new TOU structure is forcing some manufacturers to consider relocating out of state. I have three clients actively looking at Arizona and Nevada.
The California situation highlights why comprehensive auditing is more critical than ever. When rates increase this dramatically, every billing error, inappropriate rate schedule, or missed efficiency opportunity becomes magnified. Focus on demand response programs and storage options - they're becoming essential rather than optional.