Proposed Rate Cut Would Drop SDG&E; Electric Bills to SCE Level

San Diego Gas & Electric’s residential electricity rates, long among the nation’s highest, would be comparable to Southern California Edison’s rates if the state Public Utilities Commission approves a $121-million reduction recommended Friday by a PUC law judge, an SDG&E; official said.

Under the proposed reduction, monthly bills for SDG&E;’S average residential customer (based on 400 kilowatt-hours of electricity and 40 therms of natural gas) would fall by $2.40 to $59.37, down from $61.77.

SDG&E;’s average monthly gas and electricity bill hit an all-time high of $72.75 in the fall of 1983. With Friday’s recommended reduction, bills would be $13.38 below that 1983 peak, SDG&E; pricing manager Doug Hansen said.

SDG&E; has about 70,000 business and residential customers in southern Orange County.

Hansen predicted the proposed cut would make SDG&E;’s rates “right in there” with those of Southern California Edison. Edison spokesman Lewis Phelps, however, disagreed with the assertion that San Diegans’ residential rates will be similar.

“Depending on what actions the PUC takes on (SCE’s pending rate cases), our overall system rates for Edison and SDG&E; will be about the same after Jan. 1,” Phelps said. “However, we expect that our residential rates will continue to be about 10% below SDG&E;’s.”

Edison’s average rates also have been adversely affected by PUC-mandated rate collection procedures, Phelps said.

The rate discrepancy is important to San Diegans because SCEcorp, Edison’s Rosemead-based parent company, wants to acquire SDG&E; and blend the San Diego utility into Edison.

Friday’s recommended rate decrease, which must be approved by the state Public Utilities Commission, would take effect Jan. 1.