SAN FRANCISCO–The California Public Utilities Commission (CPUC) today approved a refund of $120 million to customers of San Diego Gas and Electric Company (SDG&E) as a result of an over-collection of funds needed to pay for the cost of electricity.
The overcollection is in SDG&E’s Energy Resource Recovery Account (ERRA), which was established by the CPUC to record the investor-owned utilities’ fuel and purchased power revenues against actual recorded costs. The overcollection is due to lower than expected fuel cost expenses and higher than expected refunds from the Federal Energy Regulatory Commission. The CPUC has trigger mechanisms in place that require SDG&E to notify the CPUC of any over- or under-collections so that the CPUC can take action.
Refunds will be made to customers in the form of a one-time bill credit beginning September 1, 2010. Most credits will range from $15 to $25, with some customers receiving more than $100, depending on energy usage and the climate zone in which they live.
Said CPUC Commissioner Nancy E. Ryan, “We are acting as quickly as possible to get this refund into the hands of consumers, many of whom are struggling in the current economy.”