California Public Utilities Commission denies SDG&E request to eliminate High Usage Charge
The California Public Utilities Commission (CPUC) recently denied a request by San Diego Gas & Electric (SDG&E) to eliminate or suspend the state-mandated High Usage Charge (HUC).
The HUC was added into SDG&E’s billing structure in late 2017 per state requirements to encourage energy conservation. Customers incur the charge if they use more than 400 percent of their baseline allowance of electricity. Last summer, due in part to the multiple heat waves the area experienced, more than 120,000 customers were impacted by the HUC, SDG&E said.
“Last summer was a challenge for our customers, particularly for people who experienced dramatic increases in their bills due, in part, to the High Usage Charge,” Scott Crider, SDG&E’s vice president of customer services, said. “We heard their concerns and took action to have the HUC removed on their behalf, but unfortunately the CPUC did not approve our request.”
SDG&E said that it will pursue other bill relief options in the coming months, such as eliminating seasonal pricing changes. Under the seasonal pricing structure, higher electricity prices go into effect from June to October. Eliminating seasonal pricing would require CPUC review and approval.
The company noted that residential customers can avoid the HUC by enrolling in one of several Time-of-Use (TOU) pricing plans, which are not subject to the charge.
