WARNING SDGE Customers, TOU Rate Hikes are coming
March 1st will be the first of many rate changes for San Diego and South Orange County residents. The articles that i have researched all seem to be from 2018, so i decided to give SDGE (San Diego Gas and Electric) a call. I spoke to a representative and he explained that the rate hikes are happening March 1st and a TOU (Time of Use) Plan is affecting 100,000 residents in the area. This is the first roll out and others will be seeing TOU Plan as they expand to the remaining residents.
Now what does this mean for resident utility users?
The baseline for kwh usage for SDGE is 270 kw. As soon as you exceed 130% of the baseline your kwh rate goes from .23 to .40 per kwh. If you exceed 1,080 kwh in a month your rate increases to .47 per kwh now that you are in high usage.
Now that is the Tier System, with the roll out of Time of Use (TOU) you will still be held accountable for the baseline charges. If you currently are not on Time of Use, it will be forced upon you by the utility company. SDGE TOU is from 12AM to 6AM .22 per kwh, 6AM to 4PM .23 per kwh, and 4PM to 9PM .24 per kwh. When you exceed the baseline these rates will practically double. .22 to .39 cents per kwh, .23 to .40 cents per kwh, and .24 to .41 cents per kwh.
Here is the Channel 10 News video on how the rates were proposed to see 28% rate hikes by 2022.
Many of the customer utility bills that i see are well over 351 kwh which is 130% of the baseline. So this means the majority of the bills i see are paying a premium to their electricity usage. So the actual cost per kwh is not the lowest options but actually doubled what the lowest price is, so many people will pay approximately .40 per kwh.
Now i have taken the cost of solar installs and divided it by the amount of kwh the system can produce and the cost of solar is .06-.08 per kwh. By geeking out i found the pudding and the proof is in it. The cost of going solar will save you 50-75% on your utility bills.
If you use 1,000 kwh a month like me, this is what your system should look like. This system can be financed and you will no longer see a utility bill in the $200's, $300's, $400's, or $500's. Instead you will have a monthly payment with zero down payment that will be in the low $100's.