San Diego, California — San Diego Gas & Electric customers could face another increase in their monthly utility bills, with company officials warning that energy costs are expected to continue climbing into 2026, adding new pressure for residents already struggling with affordability.
During a recent annual briefing to the San Diego City Council, SDG&E executives outlined projected rate changes and answered questions about efforts to limit customer impact. According to an SDG&E representative, the average customer will see about a $4 increase in electric delivery and natural gas charges beginning as soon as next month, part of a broader, multi-year rate adjustment plan.
Why SDG&E Rates Are Going Up
The current increase falls within a three-year rate plan approved by the California Public Utilities Commission (CPUC), which allows SDG&E to gradually raise rates to cover infrastructure, safety, and operational costs.
Company officials cited wildfire mitigation efforts as one of the major drivers behind rising bills. These include vegetation management, power line upgrades, and system hardening designed to reduce the risk of catastrophic fires in Southern California.
“We know customers depend on us each and every day, and it’s something that we take very seriously,” an SDG&E representative told city leaders, emphasizing continued investment in reliability and safety.
While the upcoming adjustment may appear modest on paper, residents and advocates argue that even small increases can be devastating for households already operating on tight budgets.
Residents Say Costs Are Becoming Unmanageable
Public comment during the council discussion reflected growing frustration over utility affordability. Barbara Pinto, a San Diego resident approaching her 80th birthday, said she was forced to take on part-time work just to keep up with basic living expenses.
“The rates have soared, in my opinion, out of control,” Pinto said. “People like me are struggling to pay rent.”
She described difficult tradeoffs many seniors and fixed-income residents face, including cutting back on groceries and relying on food assistance from churches to make ends meet.
“We’re stretching to the limit,” she said. “Some of us are going without food just to make it every month.”
For Pinto, electricity is not a luxury but a necessity — one that continues to take up a growing share of her income.
Critics Question SDG&E’s Cost Structure
Energy and climate advocates say San Diego residents already pay some of the highest electricity rates in the nation, raising questions about whether the increases are justified.
Parke Troutman, with advocacy group San Diego 350, said the region is failing to fully leverage its natural advantages.
“We have some of the most sun in the country,” Troutman said. “We have a lot of potential for solar.”
He argued that greater investment in local renewable energy could help stabilize long-term costs and reduce reliance on expensive delivery infrastructure.
Advocates have repeatedly called for reforms that would accelerate clean energy adoption while lowering customer bills, particularly for low-income households.
SDG&E Responds to Affordability Concerns
In a statement, SDG&E acknowledged customer frustration and said it remains committed to keeping costs as low as possible while maintaining service standards.
“We know that any change in energy costs makes a difference to our customers,” the company said. “We work to keep bills as low as possible while continuing to deliver safe, reliable energy.”
The utility emphasized that rate increases are reviewed and approved by state regulators, not unilaterally set by the company.
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National Trends Add to the Pressure
The local increases mirror a broader national trend. According to a Climate Power report, U.S. energy bills have risen about 13% since early last year, driven by inflation, infrastructure investments, and climate-related costs.
For San Diego residents, that national rise compounds already high local rates, intensifying concerns about what 2026 may bring if current projections hold.
What Customers Can Expect Going Forward
While SDG&E has not released exact 2026 figures, officials indicated that upward pressure on rates is likely to continue, particularly as wildfire prevention, grid upgrades, and regulatory requirements expand.
For residents like Pinto, even incremental increases feel unsustainable.
“We need energy,” she said. “Make it affordable for us. Be fair.”
As regulators, city leaders, and utilities debate the path forward, many San Diegans are left bracing for higher bills — and hoping relief measures arrive before costs climb further.
How are rising energy bills affecting your household, and what changes would you like to see from utilities or regulators? Share your thoughts in the comments below.
