San Diego Gas & Electric to Lower Bills, Give Rebate

Residents and businesses in several south Orange County communities will get lower monthly utility bills and a one-time rebate this month as part of a $57-million refund by San Diego Gas & Electric.

The state Public Utilities Commission approved the $22-million rate decrease and $35-million refund Thursday after the utility, which has 94,000 Orange County homes and businesses among its 1.2 million customers, said its operating costs for the past year had been lower than expected.

The company, which buys about 60% of the electricity it distributes, bases its rates in part on annual estimates of the cost of acquiring electricity from other producers. It was able to buy power more cheaply last year because the cost of lower prices for the natural gas used to fuel generating equipment.

The utility is required to adjust its rates and make refunds to customers when costs are below estimates. By the same token, utilities can raise rates to make up for deficits incurred when their operating cost estimates are too low.

Consumer advocates say natural gas prices are rising now, making rebate programs less likely.

Beginning with SDG&E;’s bills on Monday, though, the utility’s typical residential customer will receive a $14 one-time credit and a regular rate reduction averaging 94 cents a month. Credits and rate cuts for business customers generally will be much larger because they use far more electricity than residential customers.

In Orange County, SDG&E; serves San Clemente, San Juan Capistrano, South Laguna, Laguna Niguel and Mission Viejo.