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The state Public Utilities Commission approved a settlement determining how rates, customer bills and accounting procedures will change after June 30, when San Diego Gas & Electric will have paid off most of the charges tied to the restructuring of the state’s electricity market.

When that happens, San Diego will become the first part of the state to experience relatively unfettered competition in electricity retailing. The electricity rate freeze imposed by deregulation legislation will end, and SDG&E; is projecting that base rates will fall 5%, although bills could be higher in summer months when usage causes electricity prices to spike.

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