PUC Approves an Increase in Rates for SDG&E;, Decrease for SoCal Gas

The state Public Utilities Commission has approved a rate decrease for Southern California Gas Co. customers but an increase for San Diego Gas & Electric.

Both changes, which the commission made on Friday, take effect Jan 1.

An 8% rate reduction was approved for SoCal Gas because of lower gas costs. A 5.6% rate increase was approved for San Diego Gas & Electric because of inflation.

The average residential customer of SoCal Gas will pay $1.51 less a month for 55 therms of gas this winter, lowering the bill to $29.94, the PUC said. The typical summer residential monthly bill will be $16.06 for 25 therms, a decrease of $1.12.

The total rate decrease is $106 million. Industrial customers who arrange their own gas supplies, and pay SoCal Gas only for transportation, will pay 39.18% more next year, a total of $98 million, the commission said.

The company has more than 4 million customers.

SDG&E;’s average customer, using 400 kilowatt-hours of electricity and 40 therms of gas a month, will pay $66.44 in January, up $3.50 from the current monthly bill, the company said. It has 1.1 million customers.

Pricing manager Doug Hansen estimated the breakdown at $44.15 for electricity, up by $1.68 a month, and $22.29 for gas, up by $1.82.

The increase of $70.2 million covers operating costs and excludes the cost of fuel, Hansen said.

He said reduced fuel costs would be passed along in a rate reduction scheduled for next May. The PUC’s Division of Ratepayer Advocates has proposed a $69 million reduction, and SDG&E; has suggested $35 million, Hansen said. In either case, he said SDG&E; would be the cheapest regulated energy company in the state.

The PUC said the new SoCal Gas and SDG&E; rates include a narrowing of the difference between the lower prices charged for small monthly uses of energy, called the “base line” rate, and prices charged for higher amounts.

The commission and the state Legislature are phasing out base line subsidies, saying they have not worked to encourage conservation. Instead, they are trying to promote energy savings through economic incentives to utilities and consumers, while offering discount rates to low-income customers.