CPUC official outlines AB205 flat charge, audit finding that SDG&E profits exceeded approvals

Jesus Torres, the California Public Utilities Commission’s local government liaison, told the Carlsbad legislative subcommittee the CPUC has implemented AB205’s mandate to add a fixed monthly charge to better recover infrastructure costs while lowering bills for low‑income ratepayers.

Torres explained the three‑tier approach required under AB205 (CARE, FERA and other customers) and said the decision sets discounted flat rates for low‑income customers: "low income rate payers ... will see a reduction in their monthly bills ... with discounted flat rates of $6 for CARE and $12 for FERA," he said. Torres added that the CPUC will continue fine‑tuning in subsequent phases, including debate over whether to lower fixed or volumetric rates in off‑peak hours.

Councilmembers raised concerns about distributional impacts. One member asked how rooftop solar owners and households that have electrified would be affected; Torres said electrified homes could see bill reductions if their usage patterns align with the revised rate design and displayed example estimates provided in the CPUC materials. Councilmember Burkholder noted public frustration about perceived utility profits.

On the audit, Torres summarized a state auditor’s review of CPUC oversight of balancing and memorandum accounts and said the audit found SDG&E’s profit exceeded the CPUC‑approved level in nine of ten years. "The audit found that at SDG&E, their profit was more than what we had approved, 9 out of the 10 years," Torres said; he added CPUC staff will implement the auditor’s recommendations to tighten oversight and ensure expenditures recorded in balancing accounts match the work done.

Torres also reviewed technical matters: the CPUC’s Integrated Resource Planning targets for new clean resources, rapid growth in battery storage (from roughly 500 MW in 2020 to over 10,000 MW today) and an upcoming CPUC vote on carrier‑of‑last‑resort obligations for AT&T. He closed by listing resources for ratepayers facing hardship and said the CPUC will post updates and solicit public input in future rulemakings.

The subcommittee received no public comment on the PUC item and asked staff to continue monitoring the implementation details and audit follow‑up.