How Much Is Electricity in San Diego?

Electricity bills in a major metropolitan area like San Diego can appear complex, with numerous line items and varying charges. Understanding the components and factors influencing these costs provides transparency, allowing consumers to grasp their monthly expenses and manage electricity usage effectively. This overview aims to clarify the elements that contribute to electricity bills in the San Diego region.

Understanding San Diego Electricity Rates

The cost of electricity in San Diego is determined by per-kilowatt-hour (kWh) rates, which fluctuate based on the chosen pricing plan, time of day, and season. San Diego Gas & Electric (SDG&E) serves as the primary utility provider for most residential customers, setting base rates. Customers typically enroll in either a Time-of-Use (TOU) plan or a standard tiered rate schedule.

Time-of-Use plans charge different rates depending on when electricity is consumed. Rates can range from approximately 33 to 68 cents per kWh under these plans, influenced by the specific rate schedule, season, and time of use. “On-peak” hours, generally 4 p.m. to 9 p.m. daily, are the most expensive due to higher demand. “Super off-peak” hours, typically midnight to 6 a.m. on weekdays and midnight to 2 p.m. on weekends and holidays, offer the lowest rates, encouraging energy use during times of lower demand.

Alternatively, a standard residential rate plan features a tiered structure where the price per kWh increases with consumption. Under this plan, customers are charged Tier 1 rates for usage up to 130% of their baseline allowance, with higher usage moving into Tier 2. The baseline allowance is determined by factors such as climate zones within SDG&E’s service territory and the time of year.

Beyond the Rate: Other Bill Components

Beyond per-kilowatt-hour usage charges, several other components contribute to the total electricity bill in San Diego. These charges cover bringing electricity from its source to a customer’s home and fund various mandated programs. A significant portion of the bill is attributed to generation, transmission, and distribution charges.

Generation charges cover the cost of producing electricity itself, whether through power plants or purchased from other sources. Transmission charges cover moving high-voltage electricity from power plants across long distances to substations. Distribution charges account for the local delivery of electricity to homes and businesses through power lines, poles, transformers, and infrastructure maintenance.

Additional charges include public purpose programs, which fund state-mandated initiatives like low-income assistance and energy efficiency programs. Customers also see various state and local taxes and fees, including the State Surcharge Tax, State Regulatory Fee, and city Franchise Fees. A new Base Services Charge, projected to be approximately $24 per month for most customers starting October 2025, will cover investments in equipment and customer service, previously embedded within per-kWh delivery rates. The Power Charge Indifference Adjustment (PCIA) is a fee ensuring all customers contribute to the costs of legacy power contracts entered into by SDG&E on their behalf, regardless of their current energy provider.

How Your Usage Affects Cost

The amount of electricity consumed directly impacts a San Diego electricity bill, particularly under Time-of-Use (TOU) rate structures. Understanding when and how much electricity is used significantly influences the final cost. Higher overall consumption leads to higher bills, especially if that usage occurs during peak pricing periods.

Appliance energy consumption plays a large role in total usage. Running energy-intensive appliances like air conditioning units during on-peak hours (typically 4 p.m. to 9 p.m.) will result in a more expensive bill compared to operating them during off-peak or super off-peak times. Seasonal variations also affect usage; summer months often see increased electricity consumption due to air conditioning demands, contributing to higher bills. Conversely, lower usage during colder months can lead to reduced costs.

Monitoring and adjusting daily habits to align with lower-cost time periods provides financial benefits. Shifting activities such as laundry, dishwashing, or charging electric vehicles to super off-peak hours, for example, can help manage expenses. The timing of electricity use is as important as the total amount consumed in determining the final cost under TOU plans. Customers can track usage patterns through online utility tools to make informed decisions about their consumption.

Choosing Your Electricity Provider

In San Diego, customers have options for their electricity provider beyond San Diego Gas & Electric (SDG&E), primarily through Community Choice Aggregation (CCA) programs. These programs allow local governments to purchase or generate electricity for residents and businesses, offering an alternative to SDG&E’s generation services.

Two prominent CCAs serving the San Diego region are San Diego Community Power (SDCP) and Clean Energy Alliance (CEA). SDCP serves cities like San Diego, Chula Vista, La Mesa, and others, while CEA operates in areas such as Carlsbad, Del Mar, and Solana Beach. These CCAs aim to provide cleaner energy options, often with different rate structures or renewable energy content compared to SDG&E’s standard offerings. Customers are typically automatically enrolled in their local CCA but retain the option to opt out and return to SDG&E for electricity generation.

While CCAs manage electricity generation, SDG&E continues to handle transmission, distribution, grid maintenance, and billing services. Charges related to delivery, infrastructure, and other regulatory fees from SDG&E will still appear on the monthly bill, even for customers served by a CCA. For example, San Diego Community Power’s charges for electricity generation replace SDG&E’s generation charge, but SDG&E’s electric delivery charges remain. Customers can compare the generation rates and renewable energy content offered by CCAs, such as SDCP’s PowerOn or Power100 options, against SDG&E’s rates to determine the best fit for their energy needs and preferences.