San Diego Residents Just Packed a Meeting to Tell SDG&E: Record Profits Don't Justify a Rate Hike

 

San Diego Residents Just Packed a Meeting to Tell SDG&E: Record Profits Don't Justify a Rate Hike

**By [moonlight editiory team] | November 11, 2026 | 11-Minute Read**

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## The Short Version (For the Busy American)

San Diego Gas & Electric is asking for an 8.6% rate increase, and the people who pay the bills just showed up to say no.

More than 100 customers packed the Santee City Hall chambers on Tuesday, with rallies outside and testimony inside, to oppose SDG&E's proposal to raise electric and gas bills by an average of **$22.48 a month—nearly $270 a year—starting in 2028** . The utility wants to collect **$3.8 billion in 2028**, which is **$280 million more** than its expected 2027 revenue, with additional increases through 2031 totaling another **$1.07 billion** .

The crowd wasn't subtle. One speaker called it **"a slap in the face to us, the customers, as we are the ones who keep this company running."** Another asked: **"Before you approve another increase, could you tell me: What do we need to give up to pay for it?"** .

**The punchline:** SDG&E's parent company, Sempra, is on track to top **$1 billion in profits this year**. And the people paying some of the highest electricity rates in the country just told regulators they've had enough.

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## What SDG&E Is Actually Asking For

Let me walk you through the numbers, because the scale matters.

### The Request

SDG&E filed a General Rate Case application with the California Public Utilities Commission (CPUC). The utility wants to increase revenue by **$280 million, or 8.1%, from 2027 to 2028**. It's also seeking a formula that would allow additional increases of **5.5% to 8.7% annually through 2031** .

For the average residential customer using 400 kWh of electricity and 24 therms of gas per month, the impact would be roughly **$14.03 more for electricity and $8.45 more for gas—about $22.48 total per month** . That's **nearly $270 a year** .

### The Justification

SDG&E says the money is needed for **wildfire mitigation, infrastructure modernization, cybersecurity, insurance costs, and employee healthcare**. The utility has pointed to **$1 billion in wildfire liability coverage** and rising healthcare costs as major factors .

A spokesperson said: **"We know our customers are concerned about affordability, and we take that seriously. We're focused on controlling costs, operating more efficiently and finding ways to keep bills as manageable as possible, while continuing to provide safe, reliable energy. Our rate request is a proposal, and it will undergo a thorough public review"** .

### The Timeline

This isn't happening tomorrow. The CPUC's schedule shows a **proposed decision in December 2027**, with a **final commission decision in January 2028** . The rate increase, if approved, wouldn't take effect until 2028.

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## The Human Touch: Why This Matters Beyond San Diego

Let me put this in terms that actually connect to your life, because this isn't just a California story.

### The Profit Problem

Here's the number that set the room on fire. **Sempra, SDG&E's parent company, reported $862 million in profit for the first nine months of 2026** . The company is expected to **break $1 billion in annual profit for the first time this year**.

Tyler Andre of SanDiego350 laid out the contrast: **"We pay some of the highest rates in the nation. SDG&E just reported record profits for quarter three and are expected to break a billion dollars this year for the first time"** .

The crowd booed.

For customers, the math feels simple: if the utility is making record profits, why do they need more of my money?

### The California Rate Crisis

SDG&E customers already pay some of the highest electricity rates in America. The state average is **35.25 cents per kWh**, nearly double the national average of **17.91 cents**. For SDG&E specifically, rates are estimated at **40+ cents per kWh** .

A typical two-bedroom apartment in California using 800 kWh runs about **$280 a month**—compared to **$143 nationally** . The gap widens with usage.

This rate hike would make that gap even wider.

### The Human Cost

The speakers at Tuesday's hearing weren't abstract. They were **seniors on fixed incomes**. **Small business owners**. People already stretched thin by the cost of groceries, gas, and housing.

**Lemon Grove Mayor Alysson Snow** put it plainly: **"We have seniors living on fixed incomes, small business owners and we're all being financially throttled by the high cost of living in Southern California"** .

One speaker asked the question that hung over the entire hearing: **"What do we need to give up to pay for it?"** .

### The Divided Community

It wasn't unanimous. Some voices supported the utility. The **Carlsbad Chamber of Commerce** president said infrastructure upgrades are vital for a thriving regional economy. **Meals on Wheels** noted that SDG&E funds emergency food kits for seniors during power shutoffs—a partnership that saves lives .

The tension is real. The infrastructure needs are real. But so is the affordability crisis.

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## Frequently Asked Questions

### How much is SDG&E asking for?

An **8.6% increase in combined electric and gas bills** starting in 2028, averaging **$22.48 more per month** for typical customers—about **$270 a year**. The utility wants to collect **$3.8 billion in 2028**, with additional increases through 2031 totaling **$1.07 billion** .

### Why does SDG&E say it needs the money?

For **wildfire mitigation, infrastructure modernization, cybersecurity, rising insurance costs, and employee healthcare**. The utility says it needs **$1 billion in wildfire liability coverage** .

### How much profit does Sempra make?

Sempra reported **$862 million in profit for the first nine months of 2026** and is expected to **top $1 billion for the full year** .

### Is the rate hike approved?

**No.** The CPUC will hold additional virtual public hearings on **December 9 and 10**. A proposed decision is expected in **December 2027**, with a final vote in **January 2028** .

### How can I comment on the proposal?

You can participate in the **virtual hearings on December 9 and 10** by phone (1-800-857-1917, passcode 1673482#) or webcast. You can also submit **written comments** through the CPUC's website .

### Why are California electricity rates so high?

California's residential rates average **35.25 cents per kWh**, nearly double the national average of **17.91 cents**. The reasons include wildfire mitigation costs, grid modernization, renewable energy investments, and the state's aggressive climate policies. SDG&E's rates are among the highest in the state, estimated at **40+ cents per kWh** .

### What happens if the CPUC rejects the request?

The utility would have to operate under its existing revenue requirements. It could appeal or file a new request. The CPUC has previously reduced or rejected utility rate requests that it found unjustified.

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## The Path Forward: What to Watch

### The December Hearings

The CPUC will hold **virtual public hearings on December 9 and 10** at 2 p.m. and 6 p.m. This is the next opportunity for customers to speak directly to regulators .

### The Evidentiary Hearings (April 2027)

The formal evidentiary phase begins in **April 2027**, with hearings expected to last up to four weeks. Intervenors—including consumer advocacy groups like TURN—will present testimony challenging the utility's request .

### The Proposed Decision (December 2027)

The administrative law judge will issue a proposed decision in **December 2027**. That document will reveal how much of SDG&E's request the judge believes is justified. The full commission will vote in **January 2028** .

### The Political Pressure

A coalition of **48 organizations** and **18 elected leaders** has drafted a letter asking local governments to oppose the rate hike and urge the CPUC to do the same . Watch whether other cities and counties join the opposition.

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## Conclusion: The Bill Comes Due, But Who Pays?

Here's what I want you to take away from Tuesday's hearing.

SDG&E has real costs. Wildfire mitigation isn't optional. Infrastructure needs to be maintained. Cybersecurity matters. The utility isn't making up these expenses.

But the people who showed up in Santee weren't wrong either. **Record profits and rate hikes don't belong in the same sentence.** When a company is on track to break a billion dollars in profit while its customers are choosing between electricity and groceries, something is broken.

The CPUC will spend the next year deciding who's right. The utility will present its case. Consumer advocates will challenge it. And the people who packed that chamber will have to wait to find out if their voices made a difference.

The bill is coming due. The question is who pays it.

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## Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation regarding the rate case. The author is not a licensed financial advisor. The CPUC's decision is pending, and the rate increase has not been approved. Readers should verify all details with the CPUC or SDG&E before making any decisions. Data and figures cited are accurate as of the date of publication but may change.

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