SDG&E April 1 Filing: Wildfire Track 2 Adds $48 Million/Year; Delivery Rates Up 1.3%, Residential Bills Slightly Down

A new SDG&E Advice Letter (4791-E, available here) implements rates adopted in the company's 2024 General Rate Case Phase 2 decision (D.25-09-006) and in the Track 2 wildfire mitigation cost-recovery decision (D.26-01-021). These changes will take effect April 1.

System average electric delivery rates (excluding the California Climate Credit) will rise by about 0.3¢/kWh, or 1.3%, and total bundled average rates will increase by 0.7%, primarily due to recovery of 2019–2022 Wildfire Mitigation Plan costs.

SDG&E Wildfire Costs + Provider of Last Resort Framework

An SDG&E General Rate Case decision disallows $206.1 million in O&M costs and $242.5 million in capital expenditures

CALIFORNIA REGULATORY INTELLIGENCEMC

SDG&E will amortize $181.3 million in electric wildfire undercollections over 45 months, adding approximately $48.3 million annually to distribution revenue requirements.

Despite the overall rate increase, typical bundled residential bills are projected to decline modestly (−0.6% for non-CARE; −1.5% for CARE), largely because SDG&E is expanding the weekday Super-Off-Peak period (10 a.m.–2 p.m. year-round), which shifts more usage into lower-priced hours.