{"id":3231,"date":"2026-06-18T14:36:32","date_gmt":"2026-06-18T21:36:32","guid":{"rendered":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/18\/would-a-san-diego-only-municipal-utility-result-in-big-savings-for-you\/"},"modified":"2026-06-18T14:36:32","modified_gmt":"2026-06-18T21:36:32","slug":"would-a-san-diego-only-municipal-utility-result-in-big-savings-for-you","status":"publish","type":"post","link":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/18\/would-a-san-diego-only-municipal-utility-result-in-big-savings-for-you\/","title":{"rendered":"Would a San Diego-only municipal utility result in big savings for you?"},"content":{"rendered":"
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A review co-authored by a longtime supporter of the city of San Diego ditching San Diego Gas & Electric to create its own municipal utility says the potential benefits are greater and can be implemented faster than a previous study has projected.<\/p>\n

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However, SDG&E disputes the figures and modeling assumptions.\u00a0<\/p>\n

\u201cThere\u2019s just such a tremendous savings that it underscores the need to pursue this,\u201d said Bill Powers, a board member for Public Power San Diego and a registered engineer.<\/p>\n

Along with Mark Hughes, Powers wrote a report following up on studies by NewGen Strategies, a consulting firm that specializes in the utility industry, that analyzed the pros and cons of San Diego establishing a stand-alone municipal power company.<\/p>\n

NewGen Strategies presented its most recent evaluation, called Phase II, to the San Diego City Council in April. The called a potential municipal electric utility an \u201coperationally, technically and financially feasible alternative worth considering.\u201d<\/p>\n

While acknowledging the Phase II projections \u201cremain highly theoretical and dependent on several assumptions,\u201d NewGen said the potential financial benefits could ultimately result in annual savings of more than $600 million in the latter stages of a 30-year period, which would translate to $500 per customer.<\/p>\n

The NewGen study used a baseline analysis of SDG&E rate increases of 4% per year, though the firm conceded that figure understates \u201chistorical trends where retail rates have risen over 6% annually.\u201d<\/p>\n

But the review done by Public Power San Diego said the 4% number was based on \u201cvery conservative assumptions\u201d in the financial model, and estimated the actual SDG&E revenue growth rates is about 7% per year.<\/p>\n

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\u201cA very low rate of growth is going to underestimate the potential economic benefit of public power,\u201d Powers said in a phone interview with the Union-Tribune.<\/p>\n

Earlier this week, SDG&E filed a request with the California Public Utilities Commission for its next general rate case proceeding that asked for a revenue requirement increase of 8.1% compared to estimated levels for 2027.<\/p>\n

Even if the number is set at 6%, Powers said, it would boost the cumulative benefit of establishing a municipal utility to $60 billion over 30 years, compared to an estimated $19 billion in NewGen\u2019s 4% scenario. <\/p>\n

Further, the Public Power review calls for the city of San Diego to create a distribution-only municipal power company, rather than the transmission-and-distribution utility that the NewGen Phase II study envisions.<\/p>\n

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Transmission carries electricity over long distances on lines ranging from 60 to 500 kilovolts on towers you might see on the side of the freeway. Distribution lines cover shorter distances at lower voltages atop power poles you may see along neighborhood streets.<\/p>\n

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Powers said creating a distribution-only utility within the city of San Diego is feasible and predicts it will reduce the time it would take to get a municipal power company up and running. That\u2019s because it would bypass involvement by the Federal Energy Regulatory Commission (which regulates transmission of electricity that crosses state lines), the California Independent System Operator and the Local Agency Formation Commission, known as LAFCO.<\/p>\n

Doing so \u201callows us to cut the project implementation schedule in half,\u201d Powers said, from roughly 11.5 years to 5.5 years.<\/p>\n

\u201cWhen you use a realistic SDG&E growth rate, there\u2019s really no doubt that public power is overwhelmingly beneficial to the community,\u201d Powers said. \u201cAnd when you go with a distribution-only utility, you create a situation where the timeline is reasonable.\u201d<\/p>\n

NewGen\u2019s Phase II study will be discussed during the San Diego City Council\u2019s meeting on Monday, which starts at 2 p.m. No vote will be cast on the issue, as it\u2019s an information-only item on the council\u2019s agenda.<\/p>\n

SDG&E challenged the findings touted by Powers.<\/p>\n

The Public Power San Diego analysis \u201cattempts to rework a transmission-and-distribution study into a distribution-only scenario without critical engineering and operational costs,\u201d SDG&E spokesperson Anthony Wagner said.<\/p>\n

Creating a municipal utility would require many steps, including San Diego purchasing all of SDG&E\u2019s infrastructure assets within the city. SDG&E officials estimate those costs would come to at least $9.3 billion, which is significantly higher than the NewGen Phase II\u2019s range of $2.4 billion and $7.6 billion.<\/p>\n

\u201cMost importantly, both studies omit key cost drivers including exit fees and rising wildfire insurance costs,\u201d Wagner said. \u201cWithout these additional metrics, the Powers analysis does not offer a reliable basis to assess true feasibility.\u201d<\/p>\n

The city and SDG&E do business under a 20-year franchise agreement that was hammered out and ultimately approved by the City Council in June 2021. However, San Diego can opt out after 10 years if it creates a municipal utility.<\/p>\n

Soaring utility bills have become a hot topic for SDG&E and other investor-owned utilities in California.<\/p>\n

According to the most recent\u00a0electric rates report by the California Public Advocates Office, the average per-kilowatt residential rate has increased 98% in SDG&E\u2019s service territory in the past 10 years. Southern California Edison customers have seen a 101% increase over the same time frame, with Pacific Gas & Electric average residential rates climbing 69%.<\/p>\n

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Public Power San Diego predicts greater benefits than previously projections, but SDG&E says the numbers don’t add up.<\/p>\n","protected":false},"author":1,"featured_media":3230,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-3231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy"],"yoast_head":"\nWould a San Diego-only municipal utility result in big savings for you? - Los Angeles Moving Insider<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/18\/would-a-san-diego-only-municipal-utility-result-in-big-savings-for-you\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Would a San Diego-only municipal utility result in big savings for you? 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