Mayor, SDG&E Agree To 10-Year Extension Of Franchise For Electric And Gas Service

San Diego CA

14 May, 2021

6:04 PM

Description

By City News Service, Times of San Diego May 14, 2021 Mayor Todd Gloria announced Friday a tentative agreement with San Diego Gas & Electric to provide electricity and natural gas service in San Diego for another 10 years. The agreement comes after Gloria rejected the utility's initial bid for 20 years, and the City Council extended the current 50-year-old agreement for another six months until June 1. There were no other bidders. "The agreements I've reached with SDG&E reflect our renewed partnership to address the existential threat of climate change, while providing financial benefits to the city," Gloria said. "If approved by the council, these agreements put us on a path toward environmental sustainability, community equity and financial certainty, while providing an easy off ramp for the city. This is a better deal for the city and for ratepayers," he said. SDG&E, whose parent company is San Diego-based Sempra Energy, has held the exclusive franchise to provide gas and electric service since 1920. The franchise agreements allow use of the public right-of-way for pipes, poles and wires to provide energy to residents and businesses. Key elements of the tentative franchise extension are: Gloria said the agreement will reset the relationship between the city and the utility and ensure "unprecedented transparency about customer rates, environmental commitments and equity." Critics of the utility and its rates have called on the city to create a municipal utility, but buying out SDG&E would cost taxpayers as much as $9 billion. Times of San Diego is an independent online news site covering the San Diego metropolitan area. Our journalists report on politics, crime, business, sports, education, arts, the military and everyday life in San Diego. No subscription is required, and you can sign up for a free daily newsletter with a summary of the latest news.