SDG&E Rate Increase 2026: Why San Diego Pays the Highest Rates in America
SDG&E residential rates average 45.7¢/kWh in 2026 — the highest utility rate in the United States. Here's why, and what San Diego County customers can do about it.
The 2026 Numbers
Average residential SDG&E rate in 2026: approximately 45.7¢/kWh. Peak time-of-use rates: 60–80¢/kWh during summer late-afternoon windows. On top of that, the $24/month Base Services Charge (effective March 2026) applies regardless of usage.
Why SDG&E Rates Are the Nation's Highest
- Wildfire infrastructure recovery. The 2007 Witch Fire settlement and ongoing HFTD undergrounding continue to drive rate-base recovery.
- Long transmission distances. San Diego County imports most of its electricity from Imperial County and points north, spread across long transmission corridors.
- Limited generation diversity. Closure of the San Onofre Nuclear Generating Station (SONGS) removed a large baseload source.
- High wildfire liability insurance premiums. Baked into rate-base.
- CPUC-approved rate cases. SDG&E files a General Rate Case every 4 years; the most recent approved multi-year increases through 2028.
What San Diego Customers Can Do
- Switch to the right TOU plan. SDG&E offers EV-TOU-5 and other plans that can dramatically reduce costs for households that can shift usage to super-off-peak hours.
- CARE & FERA. Income-qualified discounts (30–35% and 18% respectively).
- Medical Baseline allowance. Extra low-tier electricity for medical-equipment households.
- Solar + battery is particularly attractive. At 45.7¢/kWh retail and 5–8¢/kWh NEM 3.0 export credit, self-consumed solar is 6–8× more valuable than exported solar. A battery tips the payback math meaningfully positive. See Solar Battery Backup in California.