Also, since the city expects to float bonds to pay for the project, additional financing costs could add $1 billion to $1.5 billion to the final tab. As detailed by reporter Rob Nikolewski of The San Diego Union-Tribune, the 14 percent savings scenario depends on the city being able to buy SDG&E’s transmission and distribution assets for about $2.5 billion - and those ratepayer benefits vanish if the assets cost up to $6.2 billion, a distinct possibility. But the closer one reads the report from Colorado-based NewGen Strategies & Solutions, the more reason there is to temper any excitement. The big takeaway from the report that grabbed a lot of attention - that city utility customers could save up to 14 percent on the cost of the delivery of electricity within 10 years - sure sounded good. Many San Diegans already don’t like the fact that these rates provide big dividends to shareholders in SDG&E’s parent company, and are enamored with the success that Anaheim, Sacramento, Austin and other cities have with their programs. Īnyone sick of San Diego Gas & Electric’s sky-high rates may have felt a jolt of excitement reading a report by a consultant city officials hired to evaluate potential outcomes if San Diego were to set up a municipal power company to supplant SDG&E.
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