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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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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.

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

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.

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.

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.