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What Goes into Your Bill?

Affordable, reliable energy powers our community. At SDG&E, we’re committed to making it more accessible through innovation, efficiency and a focus on customer needs. It’s a responsibility we take seriously — aiming to earn your trust through every decision.

But what exactly are you paying for when you receive your monthly SDG&E bill?
 

Understanding the Breakdown 

Your bill reflects more than just the energy you use. It includes energy generation – also called energy supply – delivery, state-mandated programs, taxes and fees and –  as of October 1 – the Base Services Charge, all supporting California’s broader energy goals. 

A couple sits on the couch looking at their SDG&E bill.

Here’s a closer look at what goes into your bill:

1. Energy Generation 

This portion is based on how much gas or electricity you use and when you use it.  It’s important to understand that SDG&E does not profit from the cost of purchasing gas or electricity supply on behalf of customers.

The unit cost of natural gas is measured in therms, which represents the amount of gas used over time. The unit cost of electricity is measured in kilowatts over time.

Consequently, today more than 1 million customers or about 80% in SDG&E’s service territory, now get their electricity supplies from two local community choice aggregators (CCAs). CCAs are public entities created and formed by local governments to replace SDG&E’s role of purchasing the electricity supply on behalf of residents and businesses in their jurisdiction.  

2. Energy Delivery  

California’s electricity market continues to trend towards a clear separation of energy delivery and electricity supply. This major change in the energy landscape has enabled SDG&E to primarily focus on developing and operating best-in-class energy delivery infrastructure for its 3.7 million consumers.  

  • Infrastructure Maintenance: Covers poles, wires, pipes, substations, meters and helps pay for customer service, service technicians and meters.  
  • Safety: Helps fund critical wildfire mitigation efforts — such as the installing more than 315 miles of underground lines, 1,600 fire-resistant poles and more than 10,000 miles of advanced Light Detection and Ranging Inspections (LiDAR). SDG&E safety-focused efforts have resulted in nearly 18 consecutive years without a catastrophic utility-caused wildfire.  
  • Sustainability & Innovation: Supports clean renewable resources, battery storage, electric vehicle (EV) charging stations and other technologies that are essential to California’s clean energy transition and decarbonization goals. 
  • Reliability: For 19 straight years, SDG&E has been nationally recognized for having the best electric reliability in America and top honors for outstanding reliability in the West.  

3. Public Purpose Programs  

We understand rising costs for essentials like food and housing make it harder to keep up with bills.

To help, SDG&E offers several assistance programs, including California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA), which provide monthly discounts on energy bills for eligible customers. These programs are part of state-mandated efforts to support efficiency and help low-income households.    

4. Taxes and Fees  

California residents and businesses pay various state and local utility taxes and fees, including franchise fees and municipal taxes.

5. Base Services Charge 

Starting October 2025, as part of a statewide initiative, SDG&E will implement the Base Services Charge – a monthly electric delivery fee that restructures how existing, fixed costs appear on your bill.

It’s not an added fee, but a reallocation of existing costs for essential services and infrastructure, including transformers and meters. 
The change improves bill clarity while supporting California’s clean energy transition. 
It maintains SDG&E’s current revenue structure without increasing profits.

Your Energy, Our Commitment 

By shedding light on the many factors that shape your energy bill, we aim to offer more than just information and transparency — we want to earn your confidence. Confidence in knowing that that we are working every day to balance affordability, reliability, and sustainability. As this series continues, we invite you to explore each topic and see how SDG&E is powering not just homes and businesses, but a cleaner, more resilient future for all.