Switching San Diego from SDG&E to Public Power 'Feasible,' Report Finds
NBC 7 San Diego · Jun 23, 2026 — Even under conservative assumptions, ratepayers could save $7 billion over 30 years. Council President LaCava: "We need to keep our options open."
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Switching San Diego from SDG&E to Public Power 'Feasible,' Report Finds
Even under conservative assumptions, ratepayers could save $7 billion over 30 years. Council President LaCava: "We need to keep our options open."
San Diego City Council Considers Public Power in Lieu of SDG&E
Full council hears Phase 2 — residents and union members pack chambers, council signals momentum to keep options open.
Alliance of Local Groups Urges City Council to Form Public Utility
SDEJC coalition — including PPSD, SD350, ACCE, Climate Action Campaign, and In Good Company — calls on council to begin the transition ahead of Monday's hearing.
Would a San Diego-Only Municipal Utility Result in Big Savings for You?
The Union-Tribune examines what switching from SDG&E to a city-run public utility could mean for ratepayers' wallets.
Study says a San Diego Municipal Utility to Replace SDG&E Could Work
SDUT's coverage of the Phase 2 hearing — confirming the study's findings that public power is financially viable.
New Study Finds a Public Utility Could Save San Diegans $500 Every Year
Phase 2 estimates $2.4–$7.6B in acquisition costs but says transition costs would be "dwarfed" by long-term savings.
Opinion: Why San Diego Needs a Nonprofit Electric Utility
An op-ed making the public case for replacing SDG&E with a community-owned utility.
Phase 2 Public Power Feasibility Study Released
The city's most comprehensive look yet at municipalization. Confirms long-term savings even under conservative assumptions.
Energy Advocates Push to Replace SDG&E With Nonprofit Power Company
A coalition of faith, climate, and community groups calls out Sempra's billions in profits as two in five households fall behind on bills.
San Diego's Utility Company Earned $563 Million in Profits in 2025
Even after a costly regulatory decision, SDG&E pulled in $563 million in profits last year — paid for by some of the highest rates in the country.
San Diegans Protest SDG&E President as He Addresses Industry Conference
Dozens of demonstrators rally outside the Rady Shell as SDG&E's president speaks at the DTECH utility conference.
Public Power Can Tackle the Affordability Crisis
PPSD organizers join the Local Energy Rules podcast to discuss how San Diego's affordability crisis demands public power.
How Much Could a City-Run Utility Save San Diegans? $130 Billion, a New Analysis Finds
A new analysis projects up to $130 billion in savings over 30 years if San Diego replaces SDG&E with a nonprofit utility.
How We Got Here
A chronological archive of news coverage, official studies, and regulatory decisions tracing San Diego's long relationship with SDG&E — the franchise agreements, the rate hikes, the feasibility studies, and the organizing that grew into today's public power movement.
The Foundation (1970–1999)
1970 — City grants SDG&E a 50-year franchise
San Diego signs its first modern franchise agreement with SDG&E, setting a 3% franchise fee and a 1/2%-per-year-increasing undergrounding allocation (capped at 4.5% of gross receipts). The city's willingness to accept terms despite SDG&E being the sole bidder would shape the next five decades.
1972 — SDG&E passes its franchise fee onto ratepayers
A year after the franchise was signed, SDG&E petitioned the CPUC to add a 1.9% electricity surcharge and 1% gas surcharge inside city limits — effectively having San Diegans pay the fee the company owed the city.
1996 — California deregulates electricity (AB 1890)
State Sen. Steve Peace, a San Diegan, was the architect. The law would fall apart catastrophically four years later.
The 2000–2001 Energy Crisis
July 1999 – Summer 2000 — San Diego becomes the national guinea pig
SDG&E paid off its stranded-asset debt first, so its rate freeze lifted before PG&E's or SCE's. San Diegans were the first Americans to experience the full deregulated market. Later federal investigation would confirm that the price spikes were not simply a supply-and-demand story: FERC's 2003 final report found that Enron and other electricity traders manipulated the Western markets, prolonging and worsening the crisis.
- Consumer Watchdog — The History of the Deregulation Debacle — Between May and June 2000, wholesale prices rose 240% and bills doubled. The crisis cost the regional economy an estimated $100 million per month.
- FERC — Final Report on Price Manipulation in Western Markets (March 2003) — The federal investigation documenting market manipulation by Enron and other traders during the crisis.
- CBO — Causes and Lessons of the California Electricity Crisis (2001)
- Wikipedia — 2000–2001 California Electricity Crisis
July 25, 2000 — San Diego declares a state of emergency
The City Council and County Board of Supervisors passed resolutions demanding a rate rollback and calling for legislative hearings on repealing deregulation. While San Diego stayed with SDG&E, nearby Chula Vista and San Marcos began exploring public power options in response to the crisis — San Marcos went so far as to create its own utility in 2000.
August 2000 — Legislature caps San Diego rates at 6.5¢/kWh
A temporary rate freeze was imposed for San Diego customers through 2003 — but the legislation (lobbied by SDG&E) allowed the utility to eventually recover the difference from ratepayers.
The 2007 Wildfires and Their Aftermath
October 21–22, 2007 — Witch, Guejito, and Rice Canyon fires
Cal Fire later concluded that arcing SDG&E power lines started the Witch and Rice fires, and that a Cox Communications wire touching an SDG&E line sparked the Guejito fire. The fires burned 207,500 acres, killed two people, and destroyed more than 1,300 homes.
2009–2012 — SDG&E pays out more than $1 billion in settlements
SDG&E's insurance covered nearly all of the wildfire claims, except for roughly $300 million that exceeded the utility's coverage limits. SDG&E then made considerable efforts to recover that uncovered amount from ratepayers through the CPUC — but ultimately failed (at the U.S. Supreme Court, as noted below) and had to absorb the cost itself.
October 2019 — U.S. Supreme Court refuses SDG&E's appeal
The Court let stand a ruling that SDG&E customers should not pay for the 2007 wildfires through their rates.
The Climate Action Plan Era and CCA (2015–2019)
December 2015 — San Diego adopts its Climate Action Plan
Setting a 100% renewable electricity target by 2035.
July 2017 — CCA Feasibility Study released
The first major third-party study laying out how San Diego could buy power independently of SDG&E.
October 2018 — Mayor Faulconer commits to CCA
San Diego becomes the largest U.S. city to formally pursue community choice energy.
2019 — SDG&E's proposed 28% rate hike over four years
Bigger wake-up call for ratepayers as the next decade's rate trajectory became visible.
September 17, 2019 — San Diego City Council forms San Diego Community Power (SDCP)
San Diego joins Chula Vista, La Mesa, Encinitas, and Imperial Beach in a regional JPA — the second-largest CCA in California.
The Franchise Fight (2020–2021)
The 50-year SDG&E franchise was set to expire January 17, 2021. The organizing around whether to renew it became the catalyst for today's public power movement.
April 2020 — NewGen/Advisian/MRW "Electric and Gas Franchise Agreements Consultant Report"
The first formal city-commissioned look at whether municipalization made sense. The consultants concluded that in the "Base Case," both a city-owned electric distribution utility and a city-owned gas distribution utility would be economically feasible — a finding often missed in later coverage.
July 2020 — JVJ Pacific Consulting report on franchise agreement terms
- KPBS — SDG&E's 50-Year Contract With San Diego Expires In January. So, What's Next? — Breaks down the JVJ numbers: SDG&E earning ~$300M/year in profits from city ratepayers alone.
August 2020 — Council fails to agree on franchise agreement
Three different motions fail; bidding proceeds without council consensus.
September 2020 — KPBS Investigates the franchise question
An in-depth look at the municipalization debate as it was happening.
November 2020 — Council President Georgette Gómez refuses to docket the deal
Wanting the incoming Gloria administration and new council to make the call, Gómez insists on a one-year extension. SDG&E responds by refusing to negotiate.
- OB Rag — SDG&E Tries to Bully San Diego
- SanDiego350 — Update: SDG&E Plays Hardball on Franchise Agreements — Records the coalition's delivery of 1,200+ petition signatures.
March 1, 2021 — San Diego Community Power officially launches
Municipal accounts enroll first, with commercial following in June and residential in 2022.
April 2021 — SDG&E is the lone bidder, again
Only bidder in the re-opened bidding process; meets the minimum bid of $70M for electric and $10M for gas.
June 4, 2021 — Rally at City Hall
A coalition including Public Power San Diego, Protect Our Communities Foundation, Racial Justice Coalition, Citizens Franchise Alliance, Activist San Diego, and Sunrise Movement San Diego rally against the proposed 10+10 franchise agreement.
June 8, 2021 — Council approves the 10+10 franchise on a 6–3 vote
Moreno, Montgomery Steppe, and Joe LaCava vote no. The deal includes an Energy Cooperation Agreement and a city-commissioned feasibility study of nonprofit public power as the organizers' "consolation prize."
Rate Hikes and Organizing (2022–2023)
May 2022 — SDG&E proposes 5.6% electric and 18.1% gas hike for 2024
The general rate case that would ultimately shape bills through 2027.
October 2022 — NewGen Strategies awarded the Public Power Feasibility Study contract
January 2023 — Natural gas bills more than double
A shock moment that energized public power organizing. PPSD and coalition partners held rallies calling for an investigation into the gas price spike.
July 11, 2023 — Phase 1 Public Power Feasibility Study released
NewGen, Bell Burnett & Associates, and Siemens PTI find that acquiring SDG&E's distribution grid within city limits for around $2 billion could save ratepayers 13–14% in the first decade.
- Phase 1 Public Power Feasibility Study (official PDF)
- KPBS — Study Finds Municipal Utility Could Save San Diego Ratepayers Up to 14%
- Voice of San Diego — Morning Report: Study Says Public Takeover of SDG&E Could Save San Diegans Money
- APPA — Report Finds It Financially Feasible for San Diego to Acquire City Electric Assets
October 2023 — Power San Diego campaign announces its ballot initiative
Signature drive to put municipalization directly before voters in November 2024.
The Ballot Initiative Year (2024)
February 2024 — SDG&E funds Responsible Energy San Diego PAC to oppose the ballot measure
March 2024 — Concentric Energy Advisors (SDG&E-commissioned) releases its counter-study
Estimates total direct costs at $7.4–$9.3 billion — more than three times the NewGen estimate — using a market-based valuation approach rather than the Original Cost Less Depreciation (OCLD) method used by NewGen.
April 18, 2024 — City Council Rules Committee declines to put the measure on the ballot
May 14, 2024 — Power San Diego delivers 30,000+ signatures
Short of the 80,020 required, but enough to bring the measure back for a full council vote.
June 11, 2024 — City Council votes 8–0 to keep the measure off the ballot
Council members cite unresolved questions in the initiative's text while reaffirming support for continuing the feasibility study.
December 19, 2024 — CPUC approves SDG&E's 2024 General Rate Case (D.24-12-074)
Sets the revenue requirement at $2.699B for 2024 with 3% annual post-test-year increases — locking in upward pressure on bills through 2027.
Building the Movement (2025)
January–June 2025 — SDG&E residential rates rise 4.5–9.7% in waves
As the General Rate Case implementation hits bills.
July 2025 — CPUC approves a 10.5% combined revenue requirement increase for SDG&E
Bundles wildfire mitigation, undergrounding, and grid modernization into a single decision.
October 2025 — SDG&E restructures residential bills with a new "base services charge"
Under new state legislation, adding fixed costs to every bill regardless of usage.
Phase 2 and the Road to a Council Vote (2026)
March 9, 2026 — KPBS publishes its definitive explainer on why San Diego bills are so high
Documents that the typical customer now pays nearly $200/month — more than six times the inflation-adjusted 2009 rate — while SDG&E's annual profit more than tripled between 2007 and 2024.
April 3, 2026 — Phase 2 Public Power Feasibility Study released via mayor's memo
April 16, 2026 — City Council Environment Committee hearing on Phase 2
NewGen estimates acquisition costs between $2.4 and $7.6 billion, with transition costs "dwarfed" by long-term savings — even under the most conservative scenarios modeled.
June 17, 2026 — PPSD commissions independent review of Phase 2 study
Public Power San Diego retained economists Powers & Hughes to independently evaluate the NewGen Phase 2 report. Their review affirms the study's core findings on long-term savings while identifying areas where the conservative assumptions likely understate the case for public power.
June 22, 2026 — Full City Council hears Phase 2; SDEJC coalition packs the chamber
The San Diego Energy Justice Coalition — including PPSD, SD350, ACCE, Climate Action Campaign, and In Good Company — mobilizes dozens of speakers. Council President LaCava signals the council needs to "keep our options open" as NBC 7 and ABC 10News cover the hearing.