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Ouch! SDG&E rates to increase

SAN DIEGO -- Bills for San Diego Gas & Electric customers will rise as soon as Sept. 1 after the California Public Utilities Commission Thursday authorized a $123.4 million rate increase for the company.

The CPUC said a typical electric customer’s bill could increase about 12.2%, or $9.95 per month, while households that receive natural gas would have to pay an extra 9.6% per month, or around $3.55.

The CPUC estimates are based on use of 500 kilowatt hours per month of electricity and 33 therms of gas per month. SDG&E said in a statement that because of the way the rates are being structured, customers who use more than 500 kilowatt hours per month will pay higher increases.

The rate hike was $116 million less than SDG&E requested, the agency reported. The utility will be allowed $1.73 billion in revenue annually through 2015.

“Because regulators delayed a decision for nearly a year and a half, SDG&E now is required to start collecting 20 months of additional revenue that should have been collected starting in 2012,” the company said in its statement. “These `catch-up’ costs mean customers will see a larger bill impact than if the rates had been adjusted on schedule.”

Read the full story on Fox 5 News HERE.