Depending on your energy usage, you might see a significant spike in your monthly electricity costs.
San Diego Gas and Electric announced a rate increase of up to 30% effective after September 1st. This rate hike will only affect individuals in the top two tiers of energy consumption, which equates to approximately 25% of households. Consumers in Tiers 3 and 4 will be expected to pay an additional 15-30%, which makes the previous average annual increase of 6.7% seem negligible at best.
SDG&E released a report discussing the factors driving the energy costs. The two major changes inflating the costs are increased environmental initiatives and enhancements to the electric system. Currently, 20% of SDG&E’s electricity derives from environmentally friendly sources. However, the utility company’s objective is to reach 33% by 2020. In order to reduce greenhouse gas emissions, SDG&E is adhering to stricter environmental laws, thus requiring the use of increasingly expensive energy means.
The electric system is also experiencing improvements. The investments in the system are designed to better safety features, reliability, and security. The additions include smart switches to automatically re-route power after a blackout, 144 weather stations to monitor winds in high fire risk areas, technology and backup power to manage solar and wind energy, and support for electric vehicle demand (SDG&E).
The price increase may seem daunting but the September 1st release date was set to give homeowners ample time to make any necessary changes to reduce their energy use. SDG&E included its own list of recommendations on easy ways to save. For more ideas, check out our own suggestions so you’re ready for the rate hike. At Vaha, we firmly believe that there’s no reason to pay way you do for your energy bills. Learn what you can do to combat those high costs.