SDG&E customers will soon see a new charge on their bill: the Base Services Charge or BSC. Below is some information to help you understand what is changing on your electricity bill and why.
WHY IS MY ELECTRICITY BILL CHANGING?
Back in June 2022, the CA Legislature passed AB 205 requiring the California Public Utilities Commission (CPUC) to develop and implement an “income-based fixed charge” with the goal of protecting lower income customers from unaffordable electricity bills. This fixed charge is now called the Base Services Charge (BSC) and will begin showing up on your bill October 2025.
WHAT COSTS ARE INCLUDED IN THE BASE SERVICES CHARGE?
The BSC includes basic equipment costs to get electricity into your home. This includes the meter outside your house and the transformer on or near your street. While your electricity usage may vary month-to-month, these basic equipment costs do not. The BSC will also cover costs for the SDG&E Customer Service Team.
HOW WILL I BE CHARGED FOR THE ELECTRICITY I ACTUALLY USE?
Your actual electricity used will be charged per kilowatt-hour (kWh). Because of the BSC, this hourly charge may be reduced as much as 10% (roughly 5 cents/kWh). While the BSC will stay the same each month, the charge for your electricity usage will vary depending on how much you use. If you are on the Time-of-Use plan (TOU) your per kWh costs are higher during the peak hours of 4-9 pm.
IS THE BASE SERVICES CHARGE SIMILAR TO THE FIXED CHARGES ON MY WATER BILL?
Water bills from the City of San Diego include fixed charges such as a Residential or Commercial Base Fee, a Sewer Base Fee, a Sewer Service Charge and a Storm Drain Charge. Actual water used is charged separately per a unit measurement called hundred cubic feet (hcf). The City of San Diego uses tiered rates for usage costs with higher usage tiers costing more per hcf of water. Your bill will be lower if you use less water, but your fixed charges are always the same.
WILL SDG&E MAKE MORE MONEY BECAUSE OF THE BSC?
No, the BSC covers costs that used to be covered with the per kWh charges. Like the water system (think pipes, drains, valves, hydrants) the overall electricity system is in place no matter how much electricity you use (think transmission lines, substations, distribution lines, service drops which are the final connections to your home). Instead of SDG&E collecting revenue solely from a variable rate, it will now collect part of that same revenue amount from a fixed cost, your Base Service Charge. This may help lower the per kWh cost for your actual electricity. SDG&E will still collect the same overall amount to run the electricity system, just in a different way with a portion allocated to fixed costs and the rest recovered with the variable per kWh charge.
HOW CAN I LEARN MORE ABOUT THIS NEW BASE SERVICES CHARGE
Go to SDG&E’s dedicated web page for more information: https://www.sdge.com/electric-billing