Refund check for erroneous baseline allowance? SDG&E paying you? What's next, potholes actually being fixed? (And seeing all this rain we've had, we actually need it!) But, it's true. Some SDG&E customers received a letter in the mail with an apology and a check from SDG&E. Apology? Check? When I plugged those words into my SDG&E pun generator, it caught on fire and burst into flames. So, I'm flying solo on this one, so forgive me if my post on allowances doesn't make sense. 

First, a bit of background. SDG&E is an investor-owned electric and natural gas utility company. This means that the California Public Utilities Commission, using the Public Utilities Code, regulates SDG&E's activities.

The baseline allowance, or first tier, is the amount of energy a typical consumer uses per month. This baseline allowance is charged at a lower rate to promote conservation. Once the baseline rate is exceeded, a consumer is bumped into a higher tier with a higher rate of electricity. For more on understanding your electricity bill, check out this post.

The Public Utilities Code provides the six factors for energy companies to use to determine its residential baseline allowances:

1. The current residential rates for each tier.
2. The climate zone in which the customer lives. Different climates create different energy needs, so allowances vary.
3. The seasonal time of the year (summer or winter).
4. The average energy usage of residential customers in specific climate zones.
5. The fuel source for the space heating system installed in the residence (gas, electric, or other).
6. The number of days in the billing period.

(http://www.cpuc.ca.gov/PUC/energy/Electric+Rates/Baseline/baselineintro.htm)

SDG&E provides a calculator on its website to determine your baseline rate using the above factors: http://www.sdge.com/customer/rates/baselineTierCalculator.shtml However, it appears that SDG&E wasn't using its own calculator. 

Some SDG&E customers in Ramona received letters stating that there was a billing error based on an incorrect daily allowance. The apology went on to say that SDG&E correct the billing error. It's nice that SDG&E is taking responsibility for it error, but that's not the weird part.

The affected customer I spoked with received a check for the amount SDG&E overbilled the account. A check! The check also included INTEREST at an APR of 7%. Last time I checked, my "high yield" online savings account is paying out 1.1%. While I'm not advocating for people to use SDG&E's erroneous billing tactics instead of a money market account, you might be able to earn a nice return on SDG&E's mistakes.

However, amidst the flowery apology and nice check, there was some information missing. Most importantly, over what period was SDG&E overbilling its customers and for how long? What other SDG&E customers are affected?

Have you received a check from SDG&E for erroneous billing? Call or e-mail your story to the Fraud Squad and let us know your experiences. If you haven't, use SDG&E's baseline calculator to see what your baseline allowance should be and compare it to what SDG&E is charging you.

Questions or complaints about your SDG&E bill? Call the Fraud Squad at (619) 696-6966 or fill out our online complaint form.