SDG&E rates set the California benchmark
SDG&E's complete rates combine generation, transmission, distribution, and various surcharges into among the nation's highest electricity costs. The October 2025 implementation of a $24.15/month Base Services Charge partially reduced per-kWh rates but added a fixed cost that affects all customers regardless of usage.
SDG&E residential rates (effective November 2025)
| Rate Plan | Tier 1/Off-Peak | Tier 2/On-Peak | Fixed Charge |
|---|---|---|---|
| DR (Standard Tiered) | $0.374/kWh | $0.471/kWh | $24.15/mo |
| TOU-DR1 (3-Period) | $0.342-$0.360/kWh | $0.425-$0.522/kWh | $24.15/mo |
| TOU-DR2 (2-Period) | $0.352/kWh off-peak | $0.425-$0.522/kWh on-peak | $24.15/mo |
| TOU-ELEC (EV/Storage) | $0.307/kWh super off-peak | $0.450/kWh on-peak | $24.15/mo |
On-peak hours run 4-9 PM daily year-round. Super off-peak occurs midnight to 6 AM. Average monthly bills for typical 400-500 kWh residential usage range from $155-$200.
SDG&E commercial rates (effective October 2025)
| Customer Size | Energy Charges | Demand Charges | Monthly Fee |
|---|---|---|---|
| Small (<20 kW) | $0.25-$0.56/kWh | None | $11-$86 |
| Medium (20-500 kW) | $0.12-$0.26/kWh | $37-$52/kW | $213-$767 |
| Large (>500 kW) | $0.12-$0.24/kWh | $20-$53/kW | $68-$1,671 |
Commercial TOU periods mirror residential, with summer rates (June-October) significantly higher than winter.
Other major IOUs: PG&E and SCE comparison
California's three investor-owned utilities—SDG&E, PG&E, and SCE—serve approximately 75% of the state's electric customers and collectively charge the highest rates.
PG&E rates (effective September 2025)
| Plan | Below Baseline | Above Baseline | vs SDG&E |
|---|---|---|---|
| E-1 (Tiered) | $0.40/kWh | $0.50/kWh | Similar |
| E-TOU-C (Peak 4-9 PM) | $0.36-$0.51/kWh | $0.46-$0.61/kWh | Similar |
| E-TOU-D (Peak 5-8 PM) | $0.43/kWh off-peak | $0.56/kWh peak | Similar |
| EV2-A (Home Charging) | $0.30/kWh off-peak | $0.61/kWh peak | 5% lower off-peak |
PG&E's average residential rate of $0.40-$0.45/kWh closely matches SDG&E. Both utilities have implemented base service charges and multiple rate increases in 2024-2025.
SCE rates (effective October 2025)
| Plan | Off-Peak | On-Peak | vs SDG&E |
|---|---|---|---|
| Schedule D (Tiered) | $0.32/kWh Tier 1 | $0.42/kWh Tier 2 | 10-15% lower |
| TOU-D-4-9PM | $0.27-$0.30/kWh | $0.45-$0.59/kWh | Similar peak, lower off-peak |
| TOU-D-5-8PM | $0.23/kWh super off-peak | $0.74/kWh peak | Lower off-peak, higher peak |
| TOU-D-PRIME | $0.07-$0.10/kWh off-peak | $0.37-$0.38/kWh on-peak | Much lower with fixed fee |
SCE's average residential rate of $0.35/kWh runs approximately 12-15% below SDG&E, making it the least expensive major IOU. A 12.9% rate increase took effect October 2025.
Municipal utilities deliver massive savings
California's publicly-owned utilities consistently beat IOUs on price, often by 40-60%. These utilities reinvest profits locally rather than distributing shareholder dividends.
Large municipal utilities
| Utility | Residential Rate | Fixed Charge | vs SDG&E Savings |
|---|---|---|---|
| SMUD (Sacramento) | $0.12-$0.37/kWh TOU | $26.20/mo | 45-55% lower |
| LADWP (Los Angeles) | $0.23-$0.37/kWh tiered | $2-$23/mo | 35-45% lower |
SMUD offers California's most competitive major-utility rates. Standard TOU pricing runs $0.15/kWh off-peak and $0.37/kWh peak in summer, with winter rates dropping to $0.12-$0.17/kWh. Average monthly bills for 750 kWh usage total approximately $145—versus $200+ for equivalent SDG&E usage.
LADWP charges $0.23/kWh for Tier 1 residential usage (first 700-1,000 kWh depending on zone), rising to $0.37/kWh for high summer usage. Time-of-use rates offer $0.23/kWh base and $0.31/kWh high-peak. LADWP ranks #1 in sustainability among U.S. utilities and has eliminated coal from its portfolio.
Mid-sized municipal utilities
| Utility | Avg Residential Rate | vs SDG&E |
|---|---|---|
| Silicon Valley Power (Santa Clara) | $0.15-$0.18/kWh | 55-60% lower |
| Turlock Irrigation District | $0.16-$0.17/kWh | 55-60% lower |
| Imperial Irrigation District | $0.14-$0.18/kWh | 55-60% lower |
| Pasadena Water and Power | $0.14-$0.17/kWh + fees | 50-55% lower |
| Palo Alto Utilities | $0.21-$0.23/kWh | 40-45% lower |
| Anaheim Public Utilities | $0.20-$0.21/kWh | 45-50% lower |
| Burbank Water and Power | $0.19-$0.21/kWh | 45-50% lower |
| Riverside Public Utilities | $0.20-$0.21/kWh | 45-50% lower |
| Modesto Irrigation District | $0.22/kWh + $32/mo | 40-45% lower |
| Roseville Electric | $0.20-$0.27/kWh | 35-45% lower |
| Glendale Water and Power | $0.28/kWh | 25-30% lower |
Silicon Valley Power and Turlock Irrigation District offer the lowest rates among mid-sized municipal utilities, approximately one-third of SDG&E's average rate. Glendale's relatively higher rates reflect major infrastructure investments but still undercut SDG&E by approximately 30%.
Electric cooperatives and small utilities span the full range
Rural electric cooperatives and small public utility districts show remarkable variation, from California's absolute lowest rates to costs approaching IOU levels.
Lowest-cost providers
| Utility | Residential Rate | Notable |
|---|---|---|
| Surprise Valley Electrification | $0.1348/kWh | Lowest in California |
| Valley Electric Association | $0.1548/kWh | +$40/mo service charge (2025) |
| Trinity PUD | ~$0.12/kWh (energy + wholesale) | 100% hydropower |
| Lassen MUD | $0.195/kWh + $30/mo | Recent rate increases |
Surprise Valley Electrification Corp charges $0.1348/kWh—approximately 65% below SDG&E—making it California's cheapest electricity provider. Trinity PUD's hydropower rates remain extraordinarily low, though system access charges add to the total cost.
Other small utilities
| Utility | Residential Rate | vs SDG&E |
|---|---|---|
| Redding Electric | $0.2088/kWh | 45% lower |
| Lodi Electric | $0.1962/kWh | 50% lower |
| Healdsburg Electric | $0.2161/kWh | 45% lower |
| Alameda Municipal Power | $0.2481/kWh | 35% lower |
| Ukiah Utilities | $0.21-$0.28/kWh | 30-45% lower |
| Truckee Donner PUD | ~$0.22-$0.25/kWh (est.) | 35-40% lower |
| Plumas-Sierra REC | $0.259/kWh | 35% lower |
| Anza Electric Cooperative | $0.2779/kWh | 30% lower |
Even the highest-priced cooperatives and small utilities charge 25-35% less than SDG&E.
Community Choice Aggregators offer modest savings with greener power
CCAs provide electricity generation while customers continue paying IOU delivery charges. This model limits total savings but offers access to higher renewable content.
CCAs in SDG&E territory
| CCA | Default Product | Rate vs SDG&E | Renewable % |
|---|---|---|---|
| San Diego Community Power | PowerOn | +2.7% higher | 54% renewable |
| SDCP Power100 | 100% renewable | +5.4% higher | 100% renewable |
San Diego Community Power currently costs more than SDG&E bundled service—approximately $5.51/month extra for the default PowerOn plan on a typical 382 kWh residential bill. However, SDCP provides significantly cleaner power (54-100% renewable vs. SDG&E's 45%) and operates as a non-profit.
CCAs in PG&E territory
| CCA | Default Savings vs PG&E | Renewable % |
|---|---|---|
| Peninsula Clean Energy | 10% below | 50-100% clean |
| Sonoma Clean Power | 7% below | 51% renewable |
| Valley Clean Energy | 5% below | 80% renewable |
| Silicon Valley Clean Energy | 4% below | 43-100% clean |
| East Bay Community Energy | 3% below | 40% renewable |
| San Jose Clean Energy | ~2% below | 60% renewable |
| CleanPowerSF | Equal/below | 89% renewable |
| Redwood Coast Energy Authority | 0.5% below | Higher than PG&E |
| Central Coast Community Energy | 1-2% below | 30% renewable |
| MCE (Marin Clean Energy) | +$2-3/mo higher | 60-69% renewable |
Peninsula Clean Energy delivers the strongest CCA savings at approximately 10% below PG&E generation rates, translating to roughly $7-20/month in savings depending on usage. Most PG&E-territory CCAs offer 1-7% savings on total bills.
CCAs in SCE territory
| CCA | Default Savings vs SCE | Renewable % |
|---|---|---|
| Clean Power Alliance | 2% below (Lean Power) | 40-100% clean |
Clean Power Alliance, California's largest CCA with 1 million accounts, offers its Lean Power product at 2% below SCE rates with 40% clean energy.
Complete rate comparison summary
Residential rates ranked (average $/kWh, lowest to highest)
| Rank | Utility | Avg Rate | vs SDG&E |
|---|---|---|---|
| 1 | Surprise Valley Electrification | $0.13 | -65% |
| 2 | Valley Electric Association | $0.15 | -62% |
| 3 | Trinity PUD | $0.12 (+ charges) | -60% |
| 4 | Silicon Valley Power | $0.15-$0.18 | -58% |
| 5 | Turlock Irrigation District | $0.16-$0.17 | -58% |
| 6 | Imperial Irrigation District | $0.14-$0.18 | -58% |
| 7 | SMUD | $0.15-$0.21 | -50% |
| 8 | Pasadena Water and Power | $0.17 + fees | -50% |
| 9 | Lodi Electric | $0.20 | -50% |
| 10 | Anaheim Public Utilities | $0.20-$0.21 | -48% |
| 11 | Riverside Public Utilities | $0.20-$0.21 | -48% |
| 12 | Burbank Water and Power | $0.19-$0.21 | -48% |
| 13 | Redding Electric | $0.21 | -47% |
| 14 | Palo Alto Utilities | $0.21-$0.23 | -45% |
| 15 | Healdsburg Electric | $0.22 | -45% |
| 16 | LADWP | $0.23-$0.29 | -40% |
| 17 | Modesto Irrigation District | $0.22 + $32/mo | -40% |
| 18 | Alameda Municipal Power | $0.25 | -38% |
| 19 | Roseville Electric | $0.20-$0.27 | -38% |
| 20 | Ukiah Utilities | $0.21-$0.28 | -35% |
| 21 | Plumas-Sierra REC | $0.26 | -35% |
| 22 | Anza Electric Cooperative | $0.28 | -30% |
| 23 | Glendale Water and Power | $0.28 | -30% |
| 24 | SCE (tiered average) | $0.35 | -12% |
| 25 | PG&E | $0.40-$0.45 | Similar |
| 26 | SDG&E (Benchmark) | $0.40-$0.47 | — |
| 27 | SD Community Power | $0.42-$0.43 | +3-5% |
Commercial rate patterns
Commercial customers generally see similar percentage differentials. Municipal utility commercial rates typically run $0.12-$0.22/kWh, while IOU commercial rates range $0.20-$0.55/kWh depending on size, demand characteristics, and time-of-use period. Demand charges add $6-$53/kW at SDG&E for medium and large commercial customers.
Conclusion
The California electricity market exhibits extraordinary price variation based primarily on utility structure rather than geography. SDG&E customers pay rates that are effectively double what customers of efficient municipal utilities like SMUD, Silicon Valley Power, or Turlock Irrigation District pay—and nearly triple the rates at Surprise Valley Electrification.
Key structural factors driving this disparity include shareholder profit requirements at IOUs (absent at public utilities), wildfire liability costs concentrated in IOU territories, and differing infrastructure investment philosophies.
For SDG&E customers seeking alternatives, San Diego Community Power offers cleaner energy at a modest premium, while relocation to a municipal utility territory remains the only path to dramatically lower rates. The gap between California's cheapest provider ($0.13/kWh) and SDG&E (~$0.42/kWh average) represents approximately $175/month in additional costs for a household using 600 kWh—or over $2,100 annually.