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Keanna Spencer

8778 Spectrum Center Blvd.

San Diego, CA 92123

April 22, 2020

(San Diego County, n.d.)

Estella de Llano

8326 Century Park Ct.

San Diego, CA 92123

RE: Reducing Homeowners Cost of electricity in San Diego with Solar Panels

Ms. De Llano, thank you for taking the time to read my letter. My purpose in writing to

you is to express my concern about the rising cost per kilowatt-hour in San Diego and propose a

solution to solve this problem. The California Utilities Commission just approved a 6.74%

increase in cost per kilo-wat hour for this year and a 4.83% increase in 2021 (Nikolenski, 2019),

now is the time to take action. With your presence on the San Diego Gas & Electric board of

Vice Presidents and Chief Environmental Officer, I’m sure that this isn’t the first time you’re

hearing concerns about the continual rise of electricity costs in the city. There have been efforts

in the past to lower the cost of electricity bills for San Diegans, such as the time of use plan and

the Community Choice Energy program, but none of these solutions have solved the problem.

San Diego Gas & Electric should promote the installation of solar panels on homes in San Diego
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because this is the most effective way to reduce the cost of kWh (kilowatt-hour) and utilize

renewable resources.

Rising Cost per Kilowatt hour

As Bushnell and Mansur (2005) note, San Diego Gas and Electric rates have steadily

risen since the summer of 2000, because they “were subject to substantial retail rate fluctuation”

(Bushnell & Mansur, 2005 pg. 494). San Diego Gas & Electric has proposed an increase in the

minimum bill they charge residents (Hoffman, 2019). The current minimum bill is at $10.00,

their goal is to raise it to a minimum of $38.00, which would quadruple the minimum charge

(Hoffman, 2019). In addition to increasing the minimum bill, San Diego Gas & Electric has

requested a 6.9% increase for 2020, 5.1% in 2021, and 4.9% in 2022 (Lasky, 2018). The

California Public Utilities Commission approved a 6.74% increase for 2020 and 4.83% i 2021

(Nikolenski, 2019). Figure 1 below shows the average increase per kilowatt-hour since 2009.

Figure 1: (SolarTech, 2019)

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Time of use plan

One solution to the rising cost per kilowatt-hour is the Time of use plan. San Diego Gas

& Electric implemented its time of use plan for the first time last year (Thoubboron, 2020). The

Time of Use plan was an initiative to reduce the cost of electricity, save energy, keeping our

community cleaner, and protecting the environment (Thoubboron, 2020). With the Time of Use

plan the cost per kilowatt-hour is determined by the time and day electricity is being used

(Thoubboron, 2020). The challenge with this plan is the inconvenience it hails for San Diegans.

Typically work schedules range from 6 am to 6 pm. With the time of use plan the "on-peak"

hours (the highest rate) are from 4 pm to 9 pm this is the most popular time for people to come

home and make dinner, wash dishes, do laundry and watch tv. Consequently, residents are

having to pay a higher rate at the most popular time of day, or they have to wait for “off-peak”

hours (Thoubboron, 2020). The idea of the Time of Use Plan was a good one, however, it poses a

large inconvenience to the majority of San Diegans who work during the day.

San Diego Community Choice Energy (CCE)

Another solution to combat the San Diego Gas and Electric increasing charges would be

to join the Community Choice Energy Alliance. This program gives San Diego residents and

businesses a clean energy alternative by generating electricity with solar panels on top of parking

garages and using San Diego Gas & Electric to transmit the energy (San Diego Community

Choice Alliance, 2020). This is a great way to reduce our local carbon footprint Ms. De Llano

but there are additional fees called Power Charge Indifference Adjustment (PCIA) (San

Diego Gas & Electric Company, n.d.). This surcharge is added on by San Diego Gas & Electric

in compliance with California law that states any customers who opt to receive their energy from
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alliterative energy suppliers, are required to pay these additional fees (San Diego Gas & Electric

Company, n.d.). These fees are added per kilowatt-hour in addition to the regular rates, so it

increases the cost per kilowatt-hour which is why this isn't the best solution to aid in rising costs

for electricity. Figure 2 below shows historical PCIA fees per kilowatt-hour.

Figure 2: (San Diego Gas & Electric Company, n.d.)

Solution; Go Solar

Solar panels are the best solution to combat the rising costs of electricity in San Diego

while helping the environment. Solar panels work by allowing particles of light to knock

electrons free from atoms which in return generates a flow of electricity (Dhar, 2016).

Richardson (2020) notes, San Diego residents could save up to $11,795 on electricity bills over

the next 20 years. In addition to eliminating electricity bills for homeowners, solar panels offer

added benefits, including reducing carbon footprints, no greenhouse gas emissions, little
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maintenance and they provide renewable energy (Baker Electric Home Energy, 2016). Solar

panels can help us make major strides towards achieving environmental sustainability in San

Diego!

Ms. De Llano, being that you are the Chief Environmental Officer for San Diego Gas &

Electric, I wanted to take a moment to inform you of the major negative impacts of using non-

renewable resources produce in our community and the environment as a whole. The U.S

Environmental Protection Agency states electricity production is currently the greatest industrial

source of air emissions in the United States (Grover, 2007). Grover (2007) notes, “Fossil fueled-

fired power plants are responsible for 40 percent of man-made carbon dioxide emissions, 23

percent of the nation’s nitrogen oxide emissions, and 67 percent of sulfur dioxide emissions”

(Grover, 2007 pg. 21). Making the switch to solar panels in San Diego is a step in the right

direction to improve the environment for all.

After reaching out to local homeowners to get their opinions of going solar for energy to

eliminate their electricity bill, I found that many homeowners were open to the idea, but I did

come across two common apprehensions that arose. The first concern was the cost associated

with solar panels. Solar panels can be affordable, San Diegans are unaware of the cost-saving

options available to them such as the Investment Tax Credit. The Investment Tax Credit is a

federal tax credit that allows a deduction of 26% of the cost of installing solar panels on a home

on federal taxes (Matasci, 2020). San Diego county also implanted the Property Assessed Clean

Energy (PACE) program; a public-private partnership with the commercial banking industry that

offers loans at very good rates to homeowners for the purchase of solar panels (San Diego
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County, n.d.). These two programs provided make solar panels much more affordable. The

second concern local homeowners had was being able to use solar panel energy when it’s not

sunny outside. This is a problem that can be avoided by installing a solar battery with solar

panels. A solar battery will store excess solar electricity production in their homes so it can be

used at any time (Richardson, 2020). Figure 3 below shows PV solar panels on a home in San

Diego, these are the type of solar panels I'm suggesting San Diegans install on their homes.

Figure 3: (Connect California, 2015)

Conclusion

Ms. De Llano, we need to make a positive change today for a brighter future for

ourselves and the environment. The cost of electricity will continue to rise as it has been for

years due to revenue requirements and decreasing sales (Echols et al., 2019). By encouraging

homeowners to go solar for means of producing energy they could eliminate their electricity bill

all together! San Diego Gas and Electric would be able to promote the utilization of natural

sustainable resources to keep the beautiful city of San Diego running. I created a public service
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announcement to help spread the word of going solar in San Diego. Perhaps this can be sent out

to current San Diego Gas & Electric customers via email to start spreading the word to residents.

Thank you, Ms. De Llano, for taking the time to read my letter. I hope that you will consider my

solution to combat the increasing costs for electricity and increase sustainability

for the city of San Diego.

Best,

Keanna Spencer
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References

Baker Electric Home Energy. (2016, February 10). Benefits of solar energy for your home. Baker

Home Energy. https://www.bakerhomeenergy.com/residential/benefits-solar-energy-

your-home

Bushnell, J., & Mansur, E. (2005). Consumption under noisy price signals: A study of electricity

retail rate deregulation in San Diego. The Journal of Industrial Economics, LIII (4),

https://doi.org/0022-1821

Connect California. (2015). San Diego solar panels become a government standard. In Connect

California. https://www.connect.media/san-diego-solar-panels-become-a-government-

standard/

Dhar, M. (2016). How do solar panels work? Live Science. https://www.livescience.com/41995-

how-do-solar-panels-work.html

Echols, E., Karle, M., & Chau, N. (2019). Rate trends 2009-2019 [PDF file]. Public Advocates

Office. https://www.cpuc.ca.gov/uploadedFiles/CPUCWebsite/Content/News_Room/

NewsUpdates/2019/Cal%20Advocates%20Rate%20Trend%20Presentation%20-

%20April%2024th%202019.pdf

Grover, S. (2007). Energy, Economic, and Environmental Benefits of the Solar America

Initiative [PDF file]. In National Renewable Energy Laboratory. U.S. Department of

Energy Office of Energy Efficiency and Renewable Energy.

https://permanent.fdlp.gov/lps92332/41998.pdf

Hoffman, M. (2019, August 12). SDG&E Wants to Nearly Quadruple Its Minimum Charge to

Customers. KPBS Public Media. https://www.kpbs.org/news/2019/aug/12/sdge-looking-

increase-costs-some-customers-while-r/
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Lasky, J. (2018, June 14). SDG&E requests a major rate hike. KGTV; ABC 10 San Diego.

https://www.10news.com/news/san-diego-gas-and-electric-requests-major-rate-hike

Matasci, S. (2020). Solar tax credit – everything you need to know about the federal ITC for

2020. EnergySage. https://news.energysage.com/congress-extends-the-solar-tax-credit/

Nikolenski, R. (2019, December 26). Utilities Commission approves a 5.7% increase for

SDG&E. San Diego Union-Tribune.

https://www.sandiegouniontribune.com/business/energy-green/story/2019-09-26/public-

utilties-commission-hearing-on-sdg-e-general-rate-case

Richardson, L. (2020). How much do solar panels save? EnergySage.

https://news.energysage.com/much-solar-panels-save/

San Diego Community Choice Alliance. (2020). SDCCA – Your Energy, Your Choice.

Sdcommunitychoice.Org; Studio Press. https://sdcommunitychoice.org/

San Diego County. (n.d.). Go Solar...FAQs. www.sandiegocounty.gov; County of San Diego.

Retrieved April 23, 2020, from

https://www.sandiegocounty.gov/content/sdc/pace/gosolarfaq.html#q1

San Diego Gas & Electric Company. (n.d.). Joint Rate Comparison | San Diego Gas & Electric.

www.sdge.com; sdge. Retrieved April 23, 2020, from https://www.sdge.com/customer-

choice/community-choice-aggregation/joint-rate-comparison

SolarTech. (2019, April 3). SDGE rate increase 2019 explained. Solar Energy Blog by Solar

Tech. https://solartechonline.com/blog/sdge-rate-increase/

Thoubboron, K. (2020). Which SDG&E rate schedule is best? Understanding peak hours.

EnergySage. https://news.energysage.com/sdge-tou-rates/