7 min read • Updated October 2026 • By the CliQ Team — the team that created Blink
Why are SDG&E rates going up? The biggest jump came on January 1, 2026, when San Diego Gas & Electric's average residential rate rose 11.4%, from 41.0 to 45.7 cents per kilowatt-hour. SDG&E said the main reason was lower forecast electricity sales: the same fixed costs spread over fewer kilowatt-hours. Its average residential rate is now 45.6 cents, about 10% higher than a year ago and the highest of California's three big utilities. It's nearly two and a half times the US average of 18.31 cents, according to the EIA. SDG&E has already asked regulators for another increase in 2028.
About 254,000 SDG&E customers are behind on their bill. If that's you, the CARE discount takes 30% or more off for a family of four earning up to $66,000. Here's why SDG&E costs so much, what changed this year, what's coming, how to get help, and the part of the bill you control.
Why SDG&E Rates Went Up
Most of what SDG&E spends on poles, wires, wildfire safety, and customer service is fixed. It gets divided by the number of kilowatt-hours customers buy. When sales fall, the price of each kilowatt-hour goes up. That's what SDG&E said drove January's increase. CBS 8 covered SDG&E's presentation to the San Diego City Council in December, along with the response from the Utility Consumers' Action Network (UCAN), a ratepayer group.
Video by CBS 8 San Diego via YouTube, December 2025. The bill figures in the clip are from SDG&E's December presentation; the figures in this post come from SDG&E's January rate notice. Not affiliated with CliQ.
The bigger picture is the same across California. The CPUC's Public Advocates Office names three main drivers: wildfire prevention and liability costs, transmission and distribution investments, and rooftop solar incentives, under which customers with solar panels pay less toward the shared grid. SDG&E's residential rates are up 97% since 2016. Wildfire-related costs were $676 million in January 2026, 14% of what SDG&E collects from customers, up from 9% in January 2023.
SDG&E's current rate case, approved by the CPUC in December 2024, also raises its gas and electric revenue each year through 2027: 5.45% in 2025, 4.17% in 2026, and 4.11% in 2027.
The short version: SDG&E's costs are mostly fixed and keep growing, while the kilowatt-hours they're spread across keep shrinking. That pushes the per-kWh price up even in years when nobody's using more.
What Changed in 2026, and What's Coming
Every rate change since October 2025
| Rates in effect | Average residential rate | Rate change | Typical bill change |
|---|---|---|---|
| Before October 2025 | 41.5¢ per kWh | — | — |
| October 2025 | 41.0¢ per kWh | −1.2% | +1.9% |
| January 2026 | 45.7¢ per kWh | +11.4% | +10.5% |
| April 2026 | 46.4¢ per kWh | +1.5% | −0.6% |
| June 2026 | 45.5¢ per kWh | −2.0% | −1.9% |
| August 2026 | 45.6¢ per kWh | +0.4% | +0.3% |
From SDG&E's rate notices, for customers who buy both delivery and power from SDG&E. "Typical bill" is a non-CARE customer using 400 kWh a month on the TOU-DR1 plan, before the Climate Credit. The typical bill was $191 a month as of August 2026.
In October 2025, the per-kWh rate dipped but the typical bill rose, because that's when the new fixed charge started. April added costs from SDG&E's 2019 to 2022 wildfire safety work, but the typical bill still fell slightly because of cheaper super off-peak hours. June's decrease came from a federal ruling on transmission rates. August added more wildfire safety costs, offset by removing temporary rate case charges.
If your power comes from San Diego Community Power or Clean Energy Alliance, SDG&E still delivers it and sets the delivery rate. In January, SDG&E's average residential delivery rate went up 11.6%, from 25.2 to 28.2 cents per kilowatt-hour. Your power supply rate is set by your community choice provider.
The Base Services Charge
Since October 2025, SDG&E bills include a fixed Base Services Charge of about $24 a month for most customers, $12 for FERA customers and qualifying deed-restricted affordable housing, and $6 for CARE customers. SDG&E says it's not a new charge: these costs, for things like transformers, meters, and customer service, used to be built into the per-kWh price.
2028: SDG&E's next rate request
In June 2026, SDG&E asked the CPUC for about $3.8 billion for 2028, an 8.1% increase over 2027. SDG&E says that would add about $14.03 a month to a typical residential electric bill and $8.45 to a typical gas bill, about 8.6% overall, starting January 1, 2028, if approved. SDG&E says it's needed for wildfire safety, aging equipment, gas pipeline safety, and cybersecurity. UCAN says it will fight it. CBS 8 covered both sides.
Video by CBS 8 San Diego via YouTube, June 2026. Not affiliated with CliQ.
The CPUC decides how much SDG&E actually gets. Public comment runs through the case. For how California compares with other states, see which states have the highest electricity rates.
SDG&E CARE Program and Other Help Paying Your Bill
About 254,000 SDG&E customers, 18%, were behind on their bills in May 2026, owing $501 on average, according to the Public Advocates Office. These are the main programs, from the CPUC, SDG&E, and the state.
CARE: 30% or more off your bill
The California Alternate Rates for Energy program is the biggest discount on an SDG&E bill, and CARE customers pay just $6 a month for the Base Services Charge. For June 1, 2026, through May 31, 2027, the income limit is $43,280 for a household of one or two, $54,640 for three, $66,000 for four, and $11,360 more for each additional person. You also qualify if anyone in the household gets Medi-Cal, CalFresh, WIC, SSI, CalWORKs, LIHEAP, or free school lunch. Apply at sdge.com/assistance.
FERA: 18% off electricity, for incomes just above CARE
The Family Electric Rate Assistance program covers households earning a bit too much for CARE: up to $54,100 for a household of one or two, $68,300 for three, and $82,500 for four. FERA customers pay $12 a month for the Base Services Charge.
Arrearage Management Payment Plan: up to $8,000 forgiven
If you're on CARE or FERA, have been a customer for at least six months, and owe $500 or more with some of it 90 days past due, SDG&E forgives one-twelfth of the debt for each on-time monthly payment, up to $8,000. You're protected from disconnection while you're enrolled. Call 1-800-411-7343 to enroll.
LIHEAP and Neighbor-to-Neighbor: one-time help
LIHEAP is run by the state Department of Community Services and Development through local agencies, for households earning up to 60% of state median income. Find your local agency at csd.ca.gov or call (866) 675-6623. SDG&E's Neighbor-to-Neighbor fund provides up to $150 toward your bill if you're facing a temporary financial hardship.
Shutoff protections in extreme weather
Under CPUC rules, SDG&E can't disconnect residential electric service for nonpayment when temperatures below 32°F or above 90°F are forecast within the next 72 hours. The CPUC lowered the heat trigger from 100°F to 90°F in July 2026. If you're falling behind, ask SDG&E about a payment arrangement before a shutoff notice arrives, and if someone at home has specific medical needs, apply for the Medical Baseline program.
The Part You Control: How Much You Use, and When
The CPUC sets SDG&E's rates. How much you use, and when, gets set at home.
On SDG&E's TOU-DR1 plan, electricity costs the most from 4 to 9 p.m., every day. Since May 2026, weekdays from 10 a.m. to 2 p.m. are super off-peak all year, the cheapest price of the day, along with midnight to 6 a.m. on weekdays and midnight to 2 p.m. on weekends and holidays. SDG&E explained the change, including pre-cooling your home during the cheap midday hours.
Video by CBS 8 San Diego via YouTube, April 2026. Prices in the clip were current then. Not affiliated with CliQ.
Then there's how much you use. Heating and cooling account for more than half of the energy used in a typical US home, according to the EIA. The Department of Energy says turning the thermostat back 7 to 10 degrees for 8 hours a day, like overnight or while the house is empty, saves up to 10% a year on heating and cooling, and that savings are greater in milder climates like San Diego's. (DOE does caution that deep setbacks aren't a good fit for heat pumps.)
What that's worth: about $80 to $100 a year for the average US household. The Base Services Charge is fixed, so the part of the bill you can cut is still the part you use, and when you use it.
The catch is doing it every day. Nobody remembers to cool the house at noon, ease off at 4, and turn it down again at bedtime. A schedule does it for you. For other reasons a bill runs high, see why your electric bill is so high, and check what a normal electric bill looks like.
That's where CliQ comes in. It's a $69.99 smart thermostat that runs the schedule for you. You set four temperatures for morning, day, evening, and night, so the day setting can pre-cool during super off-peak hours and the evening setting can ease off during the 4 to 9 p.m. peak. Away mode adjusts the temperature when you leave and brings it back when you're home, including automatically based on your phone's location. The app is free, with no subscription.
It also fits older San Diego homes. Plenty of them have a thermostat with no C-wire, the constant-power wire most smart thermostats need. CliQ doesn't need one. It works with most 24V systems, including gas furnaces, central air conditioning, and single-stage heat pumps. It doesn't control electric baseboard or wall heaters, or ductless mini-splits. If your old thermostat is a compatible Honeywell two-wire model, CliQ clicks onto the existing wall plate with no tools. Otherwise it's a screwdriver and a few minutes.
SDG&E sets the price for every hour. Your thermostat decides which hours you pay for.
See the CliQ Smart Thermostat →$69.99 MSRP. No C-wire required.
Frequently Asked Questions
Why are SDG&E rates going up?
SDG&E's average residential rate rose 11.4% on January 1, 2026, mainly because of lower forecast electricity sales, which spread the same fixed costs over fewer kilowatt-hours. Wildfire safety costs, transmission and distribution investment, and rooftop solar incentives also push California rates up. SDG&E's residential rates are up 97% since 2016.
How much did SDG&E rates go up in 2026?
The average residential rate for customers who buy both delivery and power from SDG&E went from 41.0 cents per kilowatt-hour in late 2025 to 45.7 cents in January 2026, then moved between 45.5 and 46.4 cents. It was 45.6 cents as of August 2026, about 10% higher than a year earlier. A typical 400 kWh bill was about $191 a month.
What is the SDG&E Base Services Charge?
It's a fixed monthly charge that started in October 2025: about $24 for most customers, $12 for FERA customers and qualifying deed-restricted affordable housing, and $6 for CARE customers. SDG&E says these costs used to be built into the per-kilowatt-hour price, so per-kWh rates went down when it started.
What are SDG&E's peak and super off-peak hours?
On the TOU-DR1 plan, on-peak is 4 to 9 p.m. every day. Super off-peak, the cheapest price, is midnight to 6 a.m. and 10 a.m. to 2 p.m. on weekdays, and midnight to 2 p.m. on weekends and holidays. The weekday 10 a.m. to 2 p.m. window became year-round on May 1, 2026.
What are the SDG&E CARE program income limits?
For June 1, 2026, through May 31, 2027, the CARE income limit is $43,280 for a household of one or two, $54,640 for three, $66,000 for four, and $11,360 for each additional person. You also qualify if anyone in the household gets Medi-Cal, CalFresh, WIC, SSI, CalWORKs, LIHEAP, or free school lunch. CARE takes 30% or more off the bill.
Will SDG&E rates go up in 2028?
SDG&E has asked for an increase. Its June 2026 request seeks about $3.8 billion for 2028, which SDG&E says would add about $14.03 a month to a typical residential electric bill and $8.45 to a typical gas bill, starting January 1, 2028, if approved. The CPUC will decide how much to allow.
Prices verified as of October 2026. Check retailer links for current pricing.
Sources
San Diego Gas & Electric — Electric Rate Change Alerts, October 2025; January, April, June, and August 2026 — sdge.com
CPUC Public Advocates Office — Q2 2026 Electric Rates Report, July 2026 — publicadvocates.cpuc.ca.gov
Sempra — Form 8-K on the CPUC's final decision in SDG&E's 2024 General Rate Case, December 19, 2024 — sec.gov
San Diego Gas & Electric — 2028 General Rate Case request, June 2026 — sdgetoday.com
San Diego Gas & Electric — Base Services Charge — sdge.com
San Diego Gas & Electric — Time-of-use pricing plans (TOU-DR1) — sdge.com
Times of San Diego — SDG&E expands super off-peak weekday hours year-round, April 21, 2026 — timesofsandiego.com
CPUC — CARE/FERA Program, income guidelines June 1, 2026 – May 31, 2027 — cpuc.ca.gov
San Diego Gas & Electric — Payment and bill assistance — sdge.com
San Diego Gas & Electric — Arrearage Management Payment Plan — sdge.com
California Department of Community Services and Development — Paying My Energy Bills (LIHEAP) — csd.ca.gov
CPUC — Resolution E-5468, disconnection temperature thresholds, July 16, 2026 — docs.cpuc.ca.gov
US Energy Information Administration — Electric Power Monthly, Table 5.6.A, average residential price by state — eia.gov
US Department of Energy — Programmable Thermostats — energy.gov
US Energy Information Administration — Residential Energy Consumption Survey 2020, end-use consumption — eia.gov
Photo by SUKHEE LEE via Pexels
0 comments