SDGE BILLABLES ARE HIGH – 2022 OVERAGES & 2023 INCREASES

As the year is ending, Management and the Board have been reviewing the financials and budget performance and found San Diego Gas & Electric (SDGE) bills to be one of the major shortfalls of the 2022 budget. While the 2022 Budget increased for electricity and hoped for savings associated with the hallway LED project, the decreased average of kwh was insufficient for SDGE’s steep increases in their Delivery Charges and San Diego Community Power’s Electricity Generation Charges.
Traditionally, electricity generations charges have gone up by a few pennies per kWh between summer and winter months, but from 2021 to 2022 SDGE’s delivery charges went up by $11.56/kW and their kWh fees based almost doubled as well. This coupled with increased Electrical General up by $.02/kWh as well, has caused Aria’s electricity bills to be tracking $16,706 over budget year to date.
The Board and Management have reviewed the 2023 Budget, spoke with SDGE, and teleconferenced with other downtown San Diego high rise managers to best prepare for these continuing increases to electrical costs. Unfortunately, these rates, and their further increases in 2023 and beyond, are actually making the news.
The US Bureau of Labor Statistics, has San Diego’s price per kilowatt hour outpacing neighbor counties of Los Angeles and Riverside by 34%. And Utility Consumers’ Action Network (UCAN)’s Executive Director states San Diego’s “price per kilowatt is the highest in the country. ” (Read more at the article here: https://www.cbs8.com/article/money/amped/san-diego-has-the-highest-electricity-rates-in-the-country/509-b33c2aa1-5414-431d-a060-273059f1e0da.)
In response to their customer’s growing frustrations, San Diego Gas and Electric has recently published an article with their explanation of the reasoning behind their forecasted price increases beginning in January of 2023. Their article cites 1) Higher use of renewable energy to address climate change 2) Wildfire safety program development 3) CA state technology subsidies increasing electricity costs for non-solar customers 4) Legislative mandates that account for about 24% of electricity rates and 5) Improvements making the power grid more reliable during hot weather as their main reasons for why SDGE surpasses it’s competitors in rates. (Read more at their article here: https://www.sdge.com/rates/why-did-my-energy-bill-recently-go.)
The Board is deciding to make reduction of electricity use a major priority in order to combat these rising costs and its direct impact on the homeowners at Aria. Management and the Board are reviewing consultants that work to reduce electrical output of major components and are continuing to make changes to improve Aria’s routine electrical use.