San Diego Gas & Electric Makes $1 Million Available for Customer Assistance

San Diego Gas & Electric Makes $1 Million Available for Customer Assistance
A lineman works to repair a power line in Paradise, Calif., on Nov. 26, 2018. Rich Pedroncelli/AP Photo
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SAN DIEGO—Following the recent news of natural gas prices skyrocketing and local utility bills going up, San Diego Gas & Electric (SDG&E) announced Jan. 10 it is making $1 million in customer assistance funding available for those experiencing financial hardship.

The assistance will be disbursed through the Neighbor-to-Neighbor program, which provides up to $300 in one-time grants to help offset past-due bills for SDG&E customers.

A company spokesperson said SDG&E, as a publicly traded company, has sources of money from shareholders in addition to funds received from ratepayers. The Neighbor-to-Neighbor program is entirely funded by shareholders and not ratepayers.

“While SDG&E doesn’t control the natural gas market, we feel it’s very important for us as a company to dedicate shareholder dollars to help our customers who are struggling to absorb significant increases in winter energy bills due to extreme commodity market conditions in the West,” SDG&E CEO Caroline Winn said in a statement.

How to Apply

SDG&E customers who reside in the company’s service territory in San Diego and southern Orange counties can apply for the Neighbor-to-Neighbor if they do not qualify for the federally funded Low-Income Home Energy Assistance Program, and if they certify they are experiencing serious illness, temporary unemployment, disability, or unusual hardship.

To apply, customers should call 2-1-1 San Diego or 2-1-1 Orange County, which will direct them to community-based organizations collaborating with SDG&E. Customer eligibility will be validated through an interview process.

Funds are pooled into a separate account and the non-profit community-based organizations apply funds as credits to customers’ accounts to offset overdue bills. The Neighbor-to-Neighbor program is intended to provide up to $300 per household in assistance for qualifying customers, and up to $400 for qualifying customers enrolled in the Medical Baseline program.

(Courtesy of San Diego Gas & Electric)
Courtesy of San Diego Gas & Electric

Causes of Increased Cost

New gas and electric rates went into effect Jan. 1. According to SDG&E, the cost per unit of natural gas—known as a therm—more than doubled over the past year, increasing from $2.36 per therm in January 2022 to $5.11 per therm in January 2023.

The increase means residents who had a peak winter gas bill of about $105 last year can expect this year’s bill to be around $225.

The reasons for the spike in natural gas prices, according to the U.S. Energy Information Administration, include widespread, below-normal temperatures resulting in high natural gas consumption; reduced natural gas flows caused by pipeline constraints, including maintenance in West Texas; and low natural gas storage levels in the Pacific region.

According to an SDG&E spokesperson, the three components of the rate customers pay are the commodity natural gas, public purpose programs, and delivery costs. The latest cost increase is caused almost entirely by the rise in the market price of natural gas.

Save Money With Assistance Programs and by Reducing Demand

In order to provide some relief, the utility offers a variety of assistance programs, including bill discounts, debt relief, payment plans, and energy efficiency programs.
In addition to assistance from SDG&E, customers can take control of their costs by reducing their use of energy. Here are some ways:
  • Use a humidifier. Increasing the humidity in the room helps the air to hold more heat and helps you feel warmer compared to dry air at the same temperature.
  • Adjust the thermostat. Turning the heat down 8 to 10 degrees for eight hours per day can reduce heating costs significantly. In summer months, consider allowing cool, evening air into the house instead of relying solely on the air conditioner.
  • Wash clothes with warm, or even cold water, instead of hot water.
  • Seal leaky windows and doors. Caulking and weather stripping can make your life more comfortable.
  • Make sure your appliances aren’t wasting energy. For electronics, consider using the off button on your surge suppressor. Check spas, pool heaters, fireplaces, and your kitchen range to make sure they’re not wasting energy.
City News Service contributed to this report.