To handle the mounting energy costs burdening Californians, San Diego Gas & Electric (SDG&E) has proposed to the California Public Utilities Commission (CPUC) seeking permission to end certain energy efficiency programs. The utility company anticipates this move could funnel back around $300 million to customers from 2026 to 2031. Reflecting on this development, SDG&E’s Chief Executive Officer Caroline Winn expressed their commitment to affordability, stating, "We know affordability is paramount for customers, and we strive to ensure that dollars spent bring meaningful benefits through our Fit for 2025 initiative designed to lower the company’s cost structure," as per San Diego Gas & Electric.
Governor Gavin Newsom's executive order from October 2024 and recommendations from a State Auditor report have added pressure on utilities to restructure their programs effectively. These advertisements call for adjustments to, or even a phasing out of, ratepayer-funded initiatives that prove ineffective or excessively costly. Furthermore, a March 2025 report by Cal Advocates insisted that the CPUC cease funding for non-cost-effective programs, stressing the importance of reevaluating energy initiatives that no longer benefit the customer base. "To address the affordability crisis facing ratepayers and advance the state’s climate and energy goals, it is critical to reevaluate funding sources for programs deemed non-cost-effective if they do not provide real benefits to ratepayers," SDG&E notes, indicating an urgency to reconfigure the state's approach to energy cost management.
SDG&E’s proposed course of action promises not to adversely affect low-income assistance programs such as the California Alternate Rates for Energy and the Family Electric Rate Assistance programs. By conserving the $300 million through discontinuing inefficient programs, SDG&E aims to distribute the savings directly to its customers.
