UCAN

UCAN's argument against SDG&E's proposed $1.4 billion rate hike

Today, UCAN's Executive Director, Michael Shames, made public 366 pages of expert testimony protesting SDG&E's demand for a $1.4 billion rate increase during the next six years. UCAN's auditors have meticulously documented egregious abuses of the budget setting process. For a quick overview, readers may examine the first 40 pages of this intensively researched document by clicking on the image at right. Key findings include:

1) San Diego ratepayers have been overcharged for seven years. 

Since 2000, SDG&E electric rates have climbed to the second highest in the nation and the highest in the Western United States. Only the ratepayers of New York City's ConEd electric monopoly pay more.

2) SDG&E profits have skyrocketed.

Since the year 2000, SDG&E has experienced profit increases of more than 80% in some years.

3) SDG&E customer service has declined.

Customer service and customer satisfaction has declined at SDG&E. An alarming 50% of all SDG&E customers think rates are unreasonably high. In addition, SDG&E's reliance on complicated and annoying voice-activated phone answering systems has resulted in numerous complaints. The Labor Day blackouts reveal that SDG&E's maintenance of its local power lines has also been lacking.

4) SDG&E has gamed the rate setting process.

SDG&E has withheld vital documents proving that rates should be reduced. SDG&E misled the Commission by withholding its secret "Utility of the Future" cost-cutting plans that justify rate decreases. It has double-counted costs and over-stated expenses in virtually every department examined by UCAN. In one of the worst displays of double-counting, SDG&E intentionally underestimated the savings from new advanced meters that do not require meter-readers, and then demanded additional safety training for non-existent employees to read the meters that make the employees obsolete.