By Hillary Schuler-Jones | SDUN Reporter

Some Uptown residents will ring in the New Year with the prospect of higher utility bills if a rate increase proposed by San Diego Gas & Electric (SDG&E) is approved in February.

The SDG&E-proposed 2012 General Rate Case, currently under review by the California Public Utilities Commission (CPUC), calls for a $1.1 billion inflation-adjusted increase in SDG&E’s revenue requirement over the next four years, said Erin Coller, a spokesperson for SDG&E.

That translates to about $4.32 per month, or a three percent increase, for the average consumer, Coller said.

The rate increase is based on an extensive review of SDG&E’s services and forecasted future expenses for compliance, insurance, taxes and system maintenance and operations, as well as projected profits for shareholders of Sempra Energy, SDG&E’s parent company.

However, the Division of Ratepayer Advocates (DRA), a government agency charged with advocating for consumer and environmental protections in the utilities industry, protests the proposal.

After conducting its own 10-month audit, DRA concluded that, “the magnitude of SDG&E’s request for additional revenues…is unwarranted,” according to a statement on their website. CPUC is reviewing the DRA’s findings as part of the State’s approval process.

The General Rate Case has also drawn distress from solar users and advocates, who said they could see higher fees under the plan due to a change in how rates are calculated.

Under the current model, customers pay a fee per kilowatt-hour – a term used by SDG&E to measure energy used and the duration – of electricity used, and fixed costs for system maintenance and operations are built into that rate.

When solar users generate their own electricity, they use SDG&E’s grid to store and draw on that energy, but they are not charged for using the network, Coller said. The new proposal would base fees not only on how much net electricity customers use, but also how much they tap into SDG&E’s infrastructure.

Representatives from the Center for Sustainable Energy estimates that residential solar users who generate enough energy to cover the majority of their household consumption could see monthly increases of as much as $40 per month. The organization has also expressed concern about how the higher rates will affect small businesses and schools that save money by generating solar power.

San Diego Senator Christine Kehoe sent a letter to CPUC on Dec. 16, 2011 explaining her concerns with the proposed rate change, specifically with concerns on its impact on solar energy users.

Kehoe said in the letter, “Homeowners, school districts, water districts, municipalities and the military have responded enthusiastically to the California Solar Initiative, even during our current economic downturn, the public is also in strong support of in-region installation of solar. The solar industry has added tens of thousands of new jobs in California and in turn, is helping reduce the state’s greenhouse gas emissions. Unfortunately, the prospect of a monthly charge of $37 averaged over five ratepayer tiers has created a chilling effect on this new growth industry.”

In a statement to customers regarding the potential rate increase, Rick Hernandez, senior energy programs advisor at SDG&E, said, “SDG&E recognizes that any increase in rates may be difficult for our customers and we are committed to helping customers find ways to reduce energy usage and bills.”

The CPUC is expected to make a final decision on the proposal in February, and rates retroactive to Jan. 1 could start appearing on bills as early as March, Coller said.

“Since I live on my own and I don’t use a lot of gas or electricity, [the rate increase] probably won’t effect me that much,” said North Park resident John Garcia, “but for people who are trying to raise a family and provide a good life for their children, it makes it that much harder. I think people in San Diego are struggling enough as it is.”