San Diego Community Power was able to beat its investor-owned competitors’ energy prices this winter, but summer may be a different story.
The public power company’s governing board OK’d electricity rates on Thursday that are 1.5 percent lower than its investor-owned competitor, San Diego Gas & Electric. But San Diego Community Power’s summer electric rates will be 15 percent higher than its competitor, if SDG&E’s prices don’t change this year.
Background: Undercutting SDG&E’s rates while providing a higher renewable energy content to its customers are key pieces of San Diego Community Power’s mission. The government-run company led by a board of elected officials buys and builds renewable energy projects on behalf of its member cities of National City, San Diego, La Mesa, Chula Vista, Encinitas, Imperial Beach and unincorporated San Diego County.
In January, both companies were able to slash overall electric prices as the cost of natural gas dramatically dropped from record high prices a year ago. A cold weather snap drove up use of gas-powered heaters. Problems with pipelines and low stockpiles of the fossil fuel domestically attributed to the spike.
This year’s price drop helped San Diego Community Power lower its winter electricity rates by over 23 percent, and summer rates by over 12 percent, according to company documents.
Those customers still pay SDG&E for the cost of delivering electricity over the poles and wires that the private company maintains, and for which it receives a guaranteed return on investment.
SDG&E was able to slash delivery prices by 11 percent this winter, according to a letter sent to customers on Jan. 5. That’s due, the company said, to lower costs for purchasing energy related to the drop in natural gas prices. And, SDG&E expects to see an increase in electric sales over the coming year as cities and vehicles begin to electrify. It means the company can spread out its costs over a larger customer base.
The delivery price could spike mid-year as the state’s energy regulator, the California Public Utilities Commission, is working to approve a number of planned SDG&E costs for wildfire prevention, trimming trees and building infrastructure among other programs.
About That New City Homelessness Fund
The city’s got what it hopes will be a new fundraising engine to help it combat homelessness.
During his State of the City address last week, Mayor Todd Gloria announced that a new campaign called “San Diegans Together Tackling Homelessness” already had $250,000 in commitments.
Donations won’t be flowing directly to the city. The San Diego Foundation will be taking in the contributions, which must ultimately go to nonprofits rather than the city itself.
The city’s goal is to bring in $370 million to build affordable housing, prevent homelessness, shelter more homeless San Diegans and help more of them find permanent homes.
Chief Operating Officer Eric Dargan told Voice of San Diego that he will decide how the funds are doled out with input from a 10-member advisory board he’s now assembling. He said the city plans to share details on investments on its website and partnered with the San Diego Foundation on a structure that ensures gifts will only back efforts to address homelessness.
Dargan, the city’s top bureaucrat, already has one big ticket item in mind. He’d like the fund to help bankroll a city-owned 40-story, 400-unit affordable housing complex at the old Central Library in East Village.
Join Us for Brews and News
Our team will be at Modern Times Beer and Coffee in Point Loma on Feb. 8 for a special live recording of the VOSD Podcast. There will be news, brews and plenty of nerds. It’s going to be a good time.
In Other News
- A new city report revealed a third of city streets are rated poor or worse – and that it’ll take $1.9 billion to get city streets up to snuff. (CBS 8)
- City Councilman Kent Lee announced he plans to propose a city ordinance banning rodeos following a three-day event at Petco Park. (City News Service)
- San Diego County animal shelters are struggling with overcrowding. (KPBS)
- County Board Chairwoman Nora Vargas will give the annual State of the County speech later this month. (Union-Tribune)
- San Diego Unified now allows students and staff who test positive for Covid but don’t have symptoms to remain at school. (NBC 7)
- The city of Chula Vista is asking the state Supreme Court to rule on whether its police drone footage can remain confidential. (Union-Tribune)
The Morning Report was written by MacKenzie Elmer and Lisa Halverstadt. It was edited by Andrea Lopez-Villafaña.
VOSD should take a look at Anaheim Public utilities for a comparison article.
https://www.anaheim.net/2104/About-Electric-Services