PUC Scrubs Disputed Charge by SDG

The state Public Utilities Commission on Friday rescinded a controversial $4.80 monthly service charge that had alienated San Diego Gas & Electric customers who use relatively little electricity.

The PUC’s action will produce slightly lower bills for customers who use relatively little electricity. Customers who use a lot of electricity will probably see slight increases in their bills.

The PUC on Friday ordered SDG&E; to reinstate a $5 minimum bill that was dropped in January when the $4.80 service charge was added.

SDG&E; has collected $30 million since the $4.80 charge was instituted in January. However, commissioners did not endorse SDG&E;’s proposal to return that $30 million to residential customers in the form of lower rates.

Commissioners on Friday indicated that SDG&E; might have to increase its commercial and industrial rates in order to finance that $30-million residential rate decrease. The commission instead voted to take the $30 million into account when an overall rate review is completed later this year.

The commission’s actions on Friday drew a mixed review from Michael Shames, executive director of the Utility Consumer Action Network.

“I’m pleased that the commission saw fit to remove the customer charge, and I am disappointed that it failed to reduce rates by $30 million,” Shames said. Both SDG&E; and UCAN, a San Diego-based consumer group, had recommended that the $30 million be used to lower residential rates.

The PUC, which represents utility customers in commission proceedings, had recommended that the $30 million not be used to finance lower rates. SDG&E; suggested the rate reduction “to improve customer relations,” according to a PUC spokesman.