Local Resolutions: San Diego and Chula Vista Push Back Against SDG&E Plans

Local governments in San Diego County are formally challenging San Diego Gas & Electric through two new resolutions.

The San Diego City Council Environment Committee passed a resolution on Thursday to evaluate creating a municipal utility. In Chula Vista, Mayor John McCann announced a separate resolution opposing a proposed rate increase. Chula Vista council members will vote on that measure on Dec. 8.

SDG&E filed a general rate case with the California Public Utilities Commission, requesting an approximately 8% revenue increase for the 2028 through 2031 period. If approved, typical residential bills would rise by 8.5% compared to 2027 levels. McCann stated that residents face financial pressures and need protection from large monthly bill increases.

Shane Harris, founder of the Office of the San Diego Public Advocate, argued that these resolutions commit city lobbying resources to the CPUC. Harris noted that the city will send letters to the commission and take a public stance on behalf of all 283,000 Chula Vista residents.

In San Diego, the resolution supports evaluating public power to improve affordability and local accountability. Councilmember Sean Elo-Rivera, chair of the Environment Committee, said the city needs a path forward that signals seriousness to SDG&E. A 202-page analysis by NewGen Strategies & Solutions, Siemens, and another firm found a municipal electric-only utility feasible. The study projected annual savings of over $600 million in later stages of a 30-year period, or $500 per customer, though it described projections as highly theoretical.

SDG&E Vice President Brittany Applestein Syz countered that public power is a gamble with initial bill increases and delayed savings. The San Diego resolution also protects union employees' pay, benefits, and pensions. IBEW Local 465 business manager Nate Fairman previously warned that if a transition fails, the public and workers will pay the cost. The San Diego resolution passed 2-1, with Councilmember Jennifer Campbell voting no in favor of focusing on the CPUC.

The city can opt out of its 20-year franchise agreement with SDG&E after 10 years if it seeks to establish a municipal utility. San Francisco is currently exploring a similar move against Pacific Gas & Electric, with the city and the utility disagreeing on asset valuations. The CPUC expects to issue a proposed decision on the SDG&E rate case late next year.