Staff to return next week with rate scenarios after SDG&E advice letter and upcoming April rate design changes

Staff updated the Finance & Risk Management Committee on March 19 about changes to rate structure that may affect Community Power customers and said it will present concrete rate scenarios to the board on March 26.

Rates and Strategy Manager Aaron Lou summarized key elements: SDG&E filed an advice letter on March 2 that includes rate‑design changes, some of which will take effect April 1, 2026. Major items highlighted: moving seasonality adjustments from delivery into the commodity/generation component (to reduce seasonal volatility), extending the midday super off‑peak period year‑round (10 a.m.–2 p.m.), and creating a new medium commercial customer class defined by demand between 20 and 200 kW. Staff said the advice letter also affects PCIA allocations and that some customer classes will see larger percentage changes than the system average.

Lou said staff is actively assessing the advice letter and will bring a formal recommendation and rate scenarios to the board on March 26. He noted that the PCIA implementation for bundled customers has been delayed to 2027 per SDG&E filings, but several structural changes remain in effect April 1.

Public comment at the committee raised concerns about missing packet materials and requested that staff ensure all backup documents are published in the meeting packet beforehand.

Next steps: staff will present modelled rate scenarios and recommended actions at the March 26 board meeting.