San Diego Gas & Electric reports $891 million in profit in 2024
San Diego, CA — San Diego Gas & Electric today reported near-record profits of $891 million off the backs of customers. SDG&E’s earnings report follows over $1.6 million spent in 2024 by its parent company, Sempra Energy, on lobbying at the California legislature and the California Public Utilities Commission (CPUC) on subject matters including rate increases.
"While SDG&E executives and shareholders rake in millions while bankrolling lobbying efforts, everyday San Diego residents are left struggling to afford skyrocketing utility bills," said Lee Trotman, Communications Director of The Utility Reform Network (TURN). "This profiteering at the expense of hardworking families demands immediate action from legislators and regulators to put an end to excessive profits and reckless spending."
One major driver of SDG&E’s profits is the “rate of return” — the guaranteed percentage of profit utilities earn on infrastructure investments, which is ultimately recovered through customer bills. State regulators have allowed SDG&E to rake in excessive profits from costly projects like overpriced power lines and wildfire mitigation equipment, encouraging unnecessary spending instead of prioritizing more effective and affordable alternatives that better serve customers.
In 2024, SDG&E’s authorized 10.65 % rate of return further widened the gap between for-profit and public utility rates. Today, for-profit utility rates in California are 67% higher than those of public utilities, burdening customers with some of the nation’s highest electricity costs. Regulators at the Public Advocates Office recently noted the high rate of returns for California for-profit utilities, marking a shift in the public discourse on this issue during a hearing before the Senate Energy, Utilities, and Communications Committee concerning electricity affordability.
"This week’s utility profits announcement raises important and urgent questions about what is really going into energy rates and why working people are paying so much," said Mary Creasman, Chief Executive Officer at California Environmental Voters. "Climate justice is about affordability, and state leaders must step up to hold utilities accountable and ensure they are working towards lower rates for Californians — not just investor profits."
"This profit report is a slap in the face of San Diego ratepayers who pay a third more for their electricity than the national average and 17% more than the California average," said Jamie Court, President of Consumer Watchdog. “The legislature needs to take steps to rein in investor-owned utilities’ profits because the California Public Utilities Commission has been little more than a rubber stamp.”
The CPUC will launch a proceeding in late March to evaluate the rate of return structure. Commissioner Darcie Houck recently acknowledged that authorized returns significantly exceed market standards and are fueling the state's electricity affordability crisis.
Contact: Lee Trotman • Ltrotman@turn.org • (415) 248-8446
Blake Marquez • Blake@sunstonestrategies.com • (310) 894-6690
