California Electricity Rates: SDG&E vs Every Power Provider

The Big Picture

California has three types of electric utilities: investor-owned utilities (IOUs) like SDG&E that must generate profits for shareholders, municipal utilities owned by cities that reinvest locally, and Community Choice Aggregators (CCAs) that buy power but use IOU infrastructure.

A household using 500 kWh per month pays about $175 with SDG&E versus $85 with SMUD — a difference of $1,080 per year.

What SDG&E Actually Charges

SDG&E uses "time-of-use" pricing — you pay more during peak hours (4-9 PM) and less at other times. In October 2025, they added a $24.15/month fixed charge to every bill regardless of usage.

SDG&E residential rates (January 2026)

A typical household using 400-500 kWh pays $155-$200 per month.

Municipal Utilities: Half the Price

Municipal utilities are owned by cities, not shareholders. They don't need to generate profits for Wall Street, so they charge less. California has dozens of them.

Even the most expensive municipal utility (Glendale) charges 25-30% less than SDG&E. The cheapest ones charge less than half.

Rural Cooperatives: Even Cheaper

Small rural electric cooperatives and public utility districts offer some of California's lowest rates.

What About San Diego Community Power?

San Diego Community Power (SDCP) is a "Community Choice Aggregator." Remember the two parts of your bill? SDCP replaces only the generation part — they buy cleaner electricity on your behalf. But you still pay SDG&E for delivery, which is 60-70% of your bill.

Why SDCP can't dramatically lower your bill: They're a non-profit with no shareholders, but they can only compete on generation costs — roughly 30-40% of your bill. The bulk of what you pay goes to SDG&E for the power lines, regardless of who generates your electricity.

This is why municipal utilities like SMUD charge so much less: they own both the power plants and the power lines, so they control the whole bill.

The Other Big Utilities: PG&E and SCE

California's three investor-owned utilities — SDG&E, PG&E, and SCE — serve about 75% of the state. They all charge far more than municipal utilities.

Even among investor-owned utilities, SDG&E charges the most. SCE is the "cheapest" of the three, but still far more expensive than municipal utilities.

Full Rankings: Every California Utility

Here's every utility ranked from cheapest to most expensive.

What This Means for San Diegans

SDG&E charges double what efficient municipal utilities charge — and nearly triple the cheapest California providers.

Why? Remember the two parts of your bill. SDG&E's delivery charges — power lines, wildfire mitigation, infrastructure — are where most of your money goes. Those costs have skyrocketed, and as an investor-owned utility, SDG&E must also generate profits for shareholders on top of everything.

Municipal utilities like SMUD control both generation and delivery. They don't have shareholders demanding returns, and they often have lower infrastructure costs. That's why they can charge half as much.

Ready to explore your options? Whether it's going solar, joining community programs, or supporting public power — find your path to energy independence →

How California Compares to Other States

California has the highest electricity rates in the continental US. Here's how SDG&E compares to other large-economy states:

An SDG&E customer using 500 kWh/month pays $1,300-$1,500 more per year than a Texas customer for the same electricity.

Only Hawaii ($0.40/kWh) has rates comparable to SDG&E — and Hawaii is an island that imports all its fuel.

Rate Sources

Rates verified January 2026. Electricity rates change frequently — check official sources for current pricing.