Stay ahead of rising SDG&E Electricity Rates in 2025. Discover smart tips, plans, and tools to reduce your energy bills and save more every month.
Introduction to SDG&E Rates
San Diego Gas & Electric (SDG&E) is the primary utility company serving millions of residents in Southern California, especially in San Diego County and parts of Orange County. With the rising cost of living and increased focus on sustainable energy, understanding SDG&E Electricity Rates, gas rates, and overall pricing structures has never been more critical for households and businesses.
Electricity and gas bills can fluctuate significantly depending on the SDG&E rate schedule, usage patterns, and even the time of day. Whether you’re a homeowner looking to cut monthly expenses or someone considering solar panels, staying informed about current SDG&E Electricity Rates is a smart financial move.
In this article, we’ll explore:
- What the SDG&E kWh cost means for you
- The details behind residential rates
- What changed in SDG&E electric rates 2023
- And how you can potentially save money on SDGE power rates and gas usage
From cost comparisons to bill-lowering strategies, we’ll cover everything you need to know to better manage your energy costs with SDG&E Electricity Rates.
Current SDG&E Electricity Rates
Here’s an updated snapshot of the current SDG&E residential electricity rates as of February 1, 2025:
Time‑of‑Use (TOU) – Standard Plan DR‑Residential
- Total electricity cost (generation + delivery + fees): approximately $0.337–$0.343 per kWh, depending on tier and time block.
- Average monthly cost: around $135–$137 for typical usage of ~~401 kWh/month .
TOU‑DR1 – Off‑Peak/On‑Peak Tiered
- Total cost: $0.248–$0.254 per kWh
- Average monthly bill: $83–$87 for ~341 kWh usage.
TOU‑DR2 – Higher Usage Tier
- Total cost: $0.399–$0.412 per kWh
- Average monthly bill: $165–$170 for ~413 kWh usage.
EV‑TOU – Electric Vehicle Plan
- Total cost: $0.366–$0.377 per kWh
- Average monthly bill: $108–$112 for ~298 kWh usage .
Standard Tiered Rates (No TOU)
- Tier 1 (≤130% baseline): 26.1¢ off-peak; 38.7¢ on-peak; 62.7¢ super on‑peak
- Tier 2 (>130%): 37.1¢/49.7¢/73.7¢ respectively.
Key Highlights
- TOU pricing is dominant, featuring tiers and time‑blocks (on‑peak/off‑peak/super off‑peak).
- Summer (June–October) on‑peak hours are 4 PM–9 PM, with significantly higher SDG&E Electricity Rates during these times.
- A CPUC decision allows SDG&E to adjust sales forecasts, affecting electricity rates since January 1, 2025.
- On the horizon: a state-level billing revamp — adding a fixed monthly charge and lowering per‑kWh SDG&E Electricity Rates by 8–9.8% during peak hours — expected in late 2025.
What This Means for You
- Using 341 kWh/month on TOU-DR1 typically results in a bill around $85/month.
- Heavy users (>413 kWh/month) on TOU‑DR2 may see $165–$170/month.
- Opting for the EV‑TOU plan can reduce costs if charging an electric vehicle overnight.
Understanding SDG&E kWh Cost Breakdown
When you see an SDG&E bill or rate chart, the per‑kWh cost is not just one flat amount. It’s actually composed of several components—some from the utility itself, others mandated by regulation, and some tied to energy generation. Here’s how SDG&E Electricity Rates break down:
1. Delivery Charges
This covers transmission, distribution, and infrastructure upkeep. For standard residential Time‑of‑Use (TOU) plans, SDG&E Electricity Rates for delivery range approximately:
- Tier 1 (baseline): ~$0.244–$0.258 / kWh
- Tier 2 (above baseline): Similar range, slightly higher discounts/increase depending on tier.
2. Generation Charges
Paid for the electricity you actually consume. Under standard TOU-DR, SDG&E Electricity Rates for generation costs are around $0.147–$0.150 / kWh.
3. PCIA Fee (Power Charge Indifference Adjustment)
This small regulatory fee (about $0.0021 / kWh) is part of SDG&E Electricity Rates and helps balance costs for customers under different energy programs.
4. Franchise Fees & Taxes
Local charges, usually adding ~$0.003–$0.005 / kWh.
5. Tier & Time-of-Use Differences
SDG&E uses Tier 1 (up to 130% baseline) and Tier 2 pricing. Also, rates change based on:
- On-Peak, Off-Peak, and Super Off-Peak hours
- Seasonal periods, with higher summer costs (June–October) for on‑peak hours.
Example Calculation: TOU‑DR1 (Feb 1, 2025)
Let’s break down the total per‑kWh cost during on‑peak hours (4–9 PM):
| Component | Approximate Rate (/kWh) |
|---|---|
| Generation | $0.150 |
| Delivery | $0.245 |
| PCIA | $0.002 |
| Franchise/Taxes | $0.003 |
| Total | $0.400 / kWh |
During Off‑Peak or Super Off‑Peak, generation + delivery drop, making total around $0.395 – $0.402 / kWh depending on tier. That small difference in each kWh adds up quickly over months.
Why This Matters
- Breaking down SDG&E Electricity Rates helps identify where your money goes—whether it’s infrastructure or generation.
- Awareness makes it easier to shift usage to cheaper time periods or consider alternative plans.
- When SDG&E later introduces a fixed monthly fee (likely in late 2025), understanding the rate breakdown helps calculate individual trade-offs in kWh pricing reduction.
SDG&E Residential Rates – What You Pay
When it comes to SDG&E billing, residential users fall under specific pricing plans tailored to home energy needs. These SDG&E Electricity Rates for residential users vary based on usage tiers, time-of-use periods, and whether you’ve opted into special programs like EV or solar. Let’s break it all down.
1. Standard Residential Plan (TOU-DR1 & TOU-DR2)
Most homeowners are enrolled in Time-of-Use (TOU) plans. These plans divide the day into peak and off-peak hours with different SDG&E Electricity Rates.
TOU-DR1
- Peak hours (4–9 PM): ~$0.40 per kWh
- Off-peak: ~$0.25–$0.28 per kWh
- Great for users who can shift consumption to late evening or mid-day.
TOU-DR2
- Designed for higher usage households.
- Higher base rates but no steep penalties for crossing usage thresholds.
- Ideal for homes with more than 4 residents or heavy AC use.
2. Tiered Billing System
SDG&E uses a baseline allocation to determine your monthly threshold. You’re billed based on how much you use in relation to this baseline, which directly impacts your SDG&E Electricity Rates.
| Tier | Usage Level | Approx. Rate (/kWh) |
|---|---|---|
| Tier 1 | ≤130% of baseline | $0.26–$0.34 |
| Tier 2 | >130% of baseline | $0.40–$0.62 |
The SDG&E kWh rate climbs steeply once you cross Tier 1, especially during summer months when electricity demand spikes.
3. Baseline Varies by Climate Zone
San Diego has different climate zones, and your baseline allocation depends on your location. Inland areas typically get higher baseline kWh due to higher cooling needs, which can influence your SDG&E Electricity Rates.
4. Low-Income Plans (CARE/FERA)
For qualifying households:
- Receive 18–35% discount on electric and gas rates.
- Still subject to TOU pricing structure, but overall bill is much lower.
These programs directly affect your SDGE cost month-to-month and are worth checking if your income qualifies.
5. Electric Vehicle (EV) Plan
If you own an electric vehicle, SDG&E offers a separate EV-TOU plan:
- Super off-peak charging (Midnight–6 AM): ~$0.23/kWh
- Encourages overnight charging to reduce grid load.
Average Monthly Cost Estimates (2025)
| Plan Type | Avg. Monthly Usage | Avg. Bill |
|---|---|---|
| TOU-DR1 | 341 kWh | $85 |
| TOU-DR2 | 413 kWh | $165 |
| EV-TOU | 298 kWh | $108 |
Key Takeaways
- Time your usage wisely — run washers, dryers, and dishwashers during off-peak hours.
- Consider EV or CARE plans if eligible.
- Understand tier thresholds so you don’t unknowingly jump to high-cost usage.
SDGE Rate Schedule Explained
Understanding the SDG&E Electricity Rates schedule is essential to taking control of your energy usage and bills. The rate schedule lays out how much you’re charged based on when and how much energy you use — and it’s not one-size-fits-all. Let’s break it down.
Time-of-Use (TOU) Plans: Core of SDG&E’s Rate Schedule
SDG&E’s rate schedule is primarily time-based, not flat-rate. That means the price per kWh depends on:
- Time of day
- Season
- Energy tier
- Plan type (residential, EV, solar, etc.)
Rate Periods: When You Use Energy Matters
| Period | Hours (Weekdays) | Summer Rate (¢/kWh)* |
|---|---|---|
| Super Off-Peak | Midnight – 6 AM | 23.4¢ – 27.8¢ |
| Off-Peak | 6 AM – 4 PM, 9 PM – Midnight | 25.8¢ – 33.5¢ |
| On-Peak | 4 PM – 9 PM | 38.7¢ – 73.7¢ |
*Rates vary by tier and plan.
This means running your appliances at noon or midnight can be much cheaper than during the evening.
Summer vs. Winter Rates
- Summer (June–October): Higher on-peak rates due to high demand for AC and grid pressure.
- Winter (November–May): Slightly lower across all time bands.
Fixed vs. Variable Charges
- Fixed monthly charges: SDG&E currently has minimal base fees, but new fixed-rate billing is coming in late 2025, adding a $24–$34/month charge based on income.
- Variable charges: The bulk of your bill—kWh usage priced per time period.
Examples from Rate Schedule (2025)
| Plan | On-Peak (¢/kWh) | Off-Peak (¢/kWh) | Super Off-Peak (¢/kWh) |
|---|---|---|---|
| TOU-DR1 | 39.7¢ | 27.1¢ | 23.4¢ |
| TOU-DR2 | 41.2¢ | 28.9¢ | 24.8¢ |
| EV-TOU | 40.5¢ | 26.3¢ | 23.0¢ |
Why Rate Schedules Matter
- Helps plan energy-heavy tasks (like laundry or EV charging) during cheaper periods based on SDG&E Electricity Rates.
- Gives insight into bill fluctuations month to month tied to SDG&E Electricity Rates and usage patterns.
- Crucial if you’re budgeting or considering solar, battery storage, or a new pricing plan aligned with SDG&E Electricity Rates.
Gas Rates by SDG&E – What to Know
While electricity often steals the spotlight, SDG&E gas rates are just as important—especially for households that rely on gas for heating, water heaters, and cooking. Understanding the SDG&E Electricity Rates and cost structure for natural gas can help you better manage your full utility bill.
What Affects Your SDGE Gas Rates?
Unlike electricity, gas rates are more seasonally adjusted and supply-driven. SDG&E does not generate gas but delivers it, and the price is subject to:
- Wholesale market prices
- Weather and seasonal demand
- Regulatory adjustments
- Infrastructure and delivery charges
Components of SDG&E Gas Pricing
| Component | Description |
|---|---|
| Procurement | Market-based cost of the gas itself |
| Transportation | Cost to deliver the gas to your home |
| Public Purpose Programs | Funds CARE, FERA, low-income initiatives |
| Regulatory Fees | CPUC-approved surcharges |
Current SDGE Gas Rates (2025)
As of early 2025, typical residential gas rates in San Diego include:
- Procurement rate: ~$1.05 per therm
- Transportation: ~$0.45 per therm
- Total average rate: $1.50–$1.65 per therm
These are down slightly from the 2023 spike when rates soared over $2.00/therm due to supply chain disruptions.
Seasonal Usage Trends
- Winter months (Dec–Feb): Gas bills can rise 30–50% due to heating needs.
- Summer: Lower bills if your home uses electric cooling.
Sample Monthly Gas Bill (2025)
| Usage (therms) | Cost per Therm | Monthly Bill |
|---|---|---|
| 20 | $1.55 | $31.00 |
| 50 | $1.55 | $77.50 |
| 100 | $1.55 | $155.00 |
For reference, the average household uses 35–50 therms/month in winter.
Tips to Save on SDGE Gas Rates
- Install programmable thermostats
- Fix leaks and insulate pipes
- Use low-flow showerheads to reduce hot water consumption
- Switch to efficient gas appliances
SDGE Power Rates – Day vs. Night, TOU Plans
One of the most important aspects of understanding SDG&E Electricity Rates is the difference between day and night power rates—a concept built into Time-of-Use (TOU) plans. These plans reward customers for using electricity when demand is low and charge more when demand is high.
TOU Time Periods (As of 2025)
| Period | Time Range | Rate Type |
|---|---|---|
| On-Peak | 4 PM – 9 PM | Highest rate |
| Off-Peak | 6 AM – 4 PM, 9 PM – Midnight | Medium rate |
| Super Off-Peak | Midnight – 6 AM | Lowest rate |
Daytime Usage (Peak Hours = More Expensive)
During the day—especially 4 PM to 9 PM—demand spikes as people return home, turn on lights, cook, and run appliances. That’s why SDG&E Electricity Rates include premium charges during this high-demand window.
Example: TOU-DR1 Rates (Summer 2025)
- On-Peak: $0.397–$0.412 per kWh
- Off-Peak: $0.271–$0.289 per kWh
- Super Off-Peak: $0.234–$0.248 per kWh
Nighttime Usage = Big Savings
Running your dishwasher, charging your EV, or doing laundry at night (especially after midnight) can cut your energy cost by 30–40% per kWh. This is especially true for customers on SDG&E Electricity Rates under Time-of-Use plans:
- EV-TOU plans: Encourage charging at night
- Solar + Storage users: Shift grid use to off-peak hours
TOU Plans Available to Residential Users
| Plan Name | Best For | Rate Benefit |
|---|---|---|
| TOU-DR1 | Typical households | Balanced TOU plan |
| TOU-DR2 | High-usage homes | Avoids overuse penalties |
| EV-TOU | Electric vehicle owners | Cheapest overnight charging |
| CARE-TOU | Low-income households | TOU + CARE discounts |
Tip: Automate Energy Shifting
- Use smart plugs or timers to run appliances late at night.
- Charge EVs after midnight for super off-peak pricing.
- Run washing machines/dryers during weekends, when rates can be lower depending on your plan.
Summary
Understanding SDGE power rates by time of day helps you:
- Save money by adjusting when you use energy
- Avoid costly on-peak usage
- Choose the best TOU plan for your lifestyle
SDG&E Electric Rates 2023 Recap
To understand where current SDG&E Electricity Rates are heading in 2025, it’s helpful to look back at what happened in 2023. That year marked a turning point in how utility costs were calculated and communicated — and it laid the foundation for today’s high kWh rates and time-based pricing.
What Happened with SDGE Electric Rates in 2023?
2023 saw record-high SDGE electric rates, largely driven by:
- Rising natural gas prices (used to generate electricity)
- Transmission and wildfire mitigation costs
- California’s broader push toward renewable energy
Key 2023 Rate Figures (Average Residential)
| Month | Avg. kWh Cost | Notes |
|---|---|---|
| Jan 2023 | $0.335 | One of the highest in California |
| Mar 2023 | $0.295 | Slight drop as demand lowered |
| Aug 2023 | $0.385 | Peak summer rates kicked in |
| Dec 2023 | $0.342 | Stable winter rates returned |
Major Changes Introduced in 2023
- Increased TOU Differentiation
Time-of-Use plans widened the gap between peak and off-peak pricing. - Tiered Rate Penalties Got Sharper
Users exceeding 130% of baseline paid over $0.60/kWh during on-peak hours. - Public Backlash & Regulatory Review
News outlets and advocacy groups criticized SDG&E’s pricing as excessive, especially for low-income households. In response, the CPUC approved a future fixed-charge system, now expected in late 2025. - Electricity Cost Became a Political Issue
Several state legislators pushed for greater transparency and affordability in energy pricing.
Impact on Households in 2023
- Many residents saw monthly bills exceeding $300, even with moderate usage.
- Homeowners with EVs or AC units faced the steepest increases.
- There was a big spike in CARE/FERA applications as people sought relief.
Why This Matters Today
- The 2023 rate structure still influences the 2025 SDGE rate schedule.
- It triggered the current shift toward fixed monthly fees + lower per-kWh rates, which is expected to take effect in late 2025.
- If you thought 2023 was expensive, current rates are comparable or slightly higher — unless you’ve optimized your usage with a smart plan.
Comparing Costs – SDG&E vs Other Utilities
San Diego Gas & Electric (SDG&E) consistently ranks among the most expensive utilities in the U.S.—and comparing SDG&E Electricity Rates with other major providers reveals why many Californians are concerned about rising energy costs.
SDG&E vs. Other California Utilities
| Utility | Avg. Residential Rate (2023–2025) | Notes |
|---|---|---|
| SDG&E | $0.38–$0.41 per kWh | Among the highest in the nation |
| PG&E | $0.33–$0.36 per kWh | Slightly lower but also rising |
| Southern California Edison (SCE) | $0.30–$0.34 per kWh | Offers broader flat-rate options |
National Average vs. SDGE kWh Rate
| Region | Average Cost (2024–2025) |
|---|---|
| U.S. Avg. | ~$0.16 per kWh |
| SDG&E | ~$0.38 per kWh |
That’s more than 2x the national average. Even Hawaii, long known for high power prices, has seen better stability recently compared to SDG&E.
Monthly Bill Comparison (Typical Usage – 400 kWh/month)
| Utility | Est. Monthly Bill |
|---|---|
| SDG&E | $150–$165 |
| PG&E | $130–$145 |
| SCE | $115–$130 |
| U.S. Avg. | ~$65 |
Why Is SDG&E So Expensive?
- Geography & Wildfire Risk
High costs to maintain and upgrade infrastructure in fire-prone terrain. - State Climate Goals
Aggressive renewable energy investments drive up short-term rates. - Transmission Costs
SDG&E invests heavily in underground lines, grid reliability, and energy storage.
The Silver Lining
- SDG&E offers advanced customer tools, rebates, and incentives for energy efficiency, battery storage, and EV adoption.
- With smart energy habits and TOU optimization, your effective rate can drop below the headline price.
Managing Bills – Tips to Lower SDG&E Costs
Whether you’re a homeowner, renter, or EV driver, managing your SDG&E electricity rates and gas bills is possible—with the right strategies. Below are smart, practical ways to reduce your monthly SDGE cost using timing, tools, and program awareness.
1. Shift Usage to Off-Peak Hours
Time-of-Use (TOU) pricing means you pay less per kWh if you avoid the expensive 4–9 PM window.
Do this instead:
- Run laundry, dishwasher, and cooking appliances before 4 PM or after 9 PM
- Charge EVs after midnight (super off-peak = lowest kWh cost)
- Use timers or smart plugs for high-draw devices
2. Enroll in Bill Assistance Programs
If eligible, you can significantly reduce costs through these SDG&E programs:
| Program | Benefit |
|---|---|
| CARE | 30–35% off your total bill |
| FERA | 18% discount for moderate-income families |
| Medical Baseline | Extra kWh at Tier 1 pricing for medical needs |
3. Consider an Energy Audit
SDG&E offers free home energy checkups to identify:
- Drafts, leaks, and poor insulation
- Inefficient appliances
- Overloaded circuits or standby power usage
Use this audit to plan upgrades or behavior changes.
4. Use SDG&E Tools to Track & Forecast Bills
Log in:
- View real-time usage
- Compare day vs. night power consumption
- Estimate next bill based on current trends
5. Switch to the Best Rate Plan
Choosing the wrong plan can cost you hundreds of dollars per year.
Use SDG&E’s rate comparison tool to see:
- If TOU‑DR1, DR2, or EV‑TOU fits your usage pattern
- How solar or battery storage impacts your monthly bill
6. Solar + Storage = Long-Term Savings
If you own your home, installing solar (and especially battery storage) can:
- Offset on-peak usage
- Push energy to the grid during peak hours
- Qualify you for NEM 3.0 benefits and state incentives
7. Upgrade to Energy-Efficient Appliances
Look for ENERGY STAR labels and SDG&E rebate offers.
Rebates often apply to:
- Smart thermostats
- HVAC units
- Washers and dryers
- Water heaters
Summary: Combine Small Changes for Big Impact
| Action | Est. Monthly Savings |
|---|---|
| Shift usage off-peak | $15–$40 |
| Enroll in CARE/FERA | $25–$50 |
| Energy-efficient upgrades | $10–$30 |
| Rate plan optimization | $20–$60 |
Conclusion – Stay Informed, Save More
Understanding SDG&E Electricity Rates isn’t just about decoding your utility bill—it’s about taking control of your energy consumption and monthly expenses.
From the SDG&E Electricity Rates per kWh to gas rates, rate schedules, and residential plan options, the system may seem complicated—but once you break it down, you can use it to your advantage.
Key Takeaways Recap
- SDGE electricity rates are among the highest in the U.S., with TOU plans and seasonal tiers driving variability.
- Current SDG&E Electricity Rates range from 23¢ to over 73¢ per kWh depending on time and usage tier.
- SDG&E gas rates average around $1.50–$1.65 per therm, with spikes in colder months.
- Rate schedules like TOU-DR1, TOU-DR2, and EV-TOU let you match your lifestyle to the best billing plan under SDG&E Electricity Rates.
- By understanding SDG&E Electricity Rates—especially the differences between day vs. night pricing—you can time your energy usage for maximum savings.
- Changes in 2023 led to higher bills and new pricing models, with even bigger changes to SDG&E Electricity Rates expected in late 2025.
- Comparing SDG&E Electricity Rates to other utilities highlights just how expensive the region is—and why optimization is essential.
- Through smart habits, energy-efficient upgrades, and program enrollment, you can cut your SDG&E Electricity Rates cost significantly.
Final Tip
Use the tools SDG&E provides—such as usage dashboards, budget forecasting, and rate comparison features—to stay one step ahead. Whether you’re managing your own household or advising others, being informed about SDG&E Electricity Rates is the first step to paying less.