Frequently Asked Questions

Switch to a non-profit electricity utility. SDGE operates as a for-profit monopoly; converting to a publicly accountable utility could lower rates by at least 20% while eliminating excessive corporate salaries and advertising expenses.

SDGE/Sempra prioritizes shareholder profits over customer benefits, consistently choosing expensive power production methods. A non-profit model would prioritize cost-effective generation and delivery.

Short-term savings of approximately 20% by eliminating SDGE profit margins and associated taxes. Long-term projections suggest savings up to $130 billion over 30 years based on historical SDGE profit growth rates.

By eliminating the 20% gross profit margin, avoiding CPUC regulatory constraints favoring for-profit interests, financing solar/battery projects at lower municipal rates, and focusing on affordable local solar development.

Yes—60% of San Diego residents support replacing SDG&E with a municipal utility according to 2024 polling data.

The initiative targets the City of San Diego initially, with potential expansion to other communities through California's constitutional provisions for municipal utility expansion.

A municipal revenue bond of approximately $2.3 billion would be issued to purchase SDGE assets. Repayment occurs over 30 years at roughly 3¢ per kilowatt-hour through ratepayer payments—no new city taxes required.

Yes. San Diego City Charter Sections 1 and 104 authorize municipal acquisition of utility property for public welfare. SDGE acknowledges this right, and the city maintains eminent domain authority if needed.

Distribution grid assessment: $1.7 billion (fair market value), Separation/reintegration costs: $250 million, Startup expenses: $300 million. Total: $2.3 billion.

Residents already pay a 'mortgage' to SDGE for poles and wires. The non-profit utility would finance this through revenue bonds. Amortized acquisition cost amounts to approximately $0.02 per kilowatt-hour, translating to roughly $10 monthly for average 600 kWh residential usage—compared to approved 10% annual SDGE rate increases.

Zero. Revenue bonds backed by ratepayer payments remain the utility's sole responsibility. City borrowing capacity remains unaffected since bonds don't represent municipal debt.

SDGE receives fair market value compensation. Customers ultimately funded infrastructure development while SDGE retained legal ownership—this arrangement would change under public ownership.

Even at $3.1 billion (1.5x fair market value plus costs), rate impact remains under $0.03 per kilowatt-hour.

SDGE customers currently pay approximately $200 million annually in SDGE income taxes. Non-profit utilities avoid such tax expenses.

Initial 20-25% reduction through profit elimination, tax avoidance, and executive compensation reductions to levels typical of comparable public utilities.

SDGE makes over $1.4 million a day in profit from its City of San Diego customers, with approximately 90% originating from electric operations.

CPUC projections show SDG&E rates increasing 10.4% annually. Assuming continued profit growth at historical rates, SDGE profits would reach approximately $20 billion by 2042.

The non-profit utility prioritizes local solar development, avoiding expensive transmission access charges. Commercial rooftop solar production costs are projected at one-third of SDGE's 2030 transmission charges per National Renewable Energy Laboratory forecasts.

Sacramento Municipal Utility District (SMUD) residential rates are approximately one-third of SDG&E rates for identical consumption.

Public power utilities represent American ideals of community cooperation. In California, 46 out of 49 electric utilities are public and provide significantly lower rates than SDG&E.

Local control, accountability, improved service, enhanced reliability, lower rates, stronger local economies, superior renewables achievement. All U.S. municipalities achieving 100% renewables power are non-profit utilities.

Community Power (SDCP) is a non-profit energy procurement entity contracting for power supply while SDGE maintains poles and wires ownership. SDCP hasn't substantially pursued lower rates. A municipal utility owning distribution infrastructure offers greater rate-reduction potential and local solar synergies.

Approximately 25% of California's electric power comes from non-profit utilities—46 total, including Los Angeles Department of Water and Power (LADWP) and Sacramento Municipal Utility District (SMUD).

Over 30 new non-profit utilities have been established nationally within the past 30 years, including success stories like Long Island Power Authority (1998), Kauai Island Utility Cooperative (2003), and Moreno Valley Electric Utility (2004).

Yes! The City Public Utilities Department (water/wastewater), Metropolitan Transit System, San Diego Community Power, and UC San Diego's microgrid all operate as non-profit utilities.

Superior to SDG&E. SDG&E experienced three major blackouts within a decade (April 2010, September 2011, August 2020) under conditions it should have managed. UC San Diego's self-supply microgrid prevented blackouts during 2007 SDGE-caused wildfires.

Staying with SDG&E involves known risks: 10% annual rate increases, continued expensive wildfire costs, and transmission line construction through fire-prone areas. Since 2007 wildfires, SDG&E spent approximately $5 billion in ratepayer funds on wildfire prevention.

Local generation increases system resilience. Long transmission lines create vulnerabilities. National Defense Strategy emphasizes 'deterrence by resilience' for critical infrastructure protection. Heat wave buildings with solar avoided outages while grid-dependent facilities experienced failures.

Only utility-scale concentrated battery facilities present substantial fire risk. Distributed home battery systems distribute storage at one ten-thousandth energy density per site, dramatically reducing fire impacts. Lithium iron phosphate chemistry presents lower fire risk than older compositions.

IBEW Local 465 represents SDG&E electrical workers and also represents Imperial Irrigation District (IID) public utility workers. The same union already works for both private and public utilities.

The non-profit utility must honor existing collective bargaining agreements by state law. Worker transition should be seamless since all California public utilities employ unionized labor. IBEW 465 members have precedent transitioning between SDGE and public utilities.

California Public Utilities Code Section 854.2 mandates three-year protection requiring successor employers to maintain predecessor wages, hours, terms, conditions, and total employee numbers. Additional protections would be addressed in initiative language.

Sacramento Municipal Utility District uses an elected seven-member board. Imperial Irrigation District has an elected five-member board. LA DWP has a mayor-appointed, council-confirmed commission. Anaheim and Riverside have council-appointed boards.

Public Power San Diego is evaluating appointed versus directly-elected board approaches. A hybrid model—partial direct election with board-appointed expert members—is also under consideration, similar to 2023 Maine's ballot initiative.

Four expert members with minimum 10-year direct experience: Law (utility, business, regulatory, or finance), Economics (utility or business), Engineering (electrical/mechanical), and Environmental/Social Justice expertise. Staggered five-year terms ensure continuity.

Direct city employees fill strategic positions: executive management, strategic planning, engineering, regulatory compliance, control room operations. Competitive bidding selects independent contractors for other operational roles with five-year contract caps.