During stretches of hot weather, staying cool isn't just about comfort. For many people, it's a necessity, but one that comes with very real concerns about higher monthly bills. As energy use increases, it’s natural to pay closer attention to those bills.  

It's easy to assume energy bills work like most other purchases: when you buy more of something, the company selling it makes more money. That's a reasonable assumption. Many people are surprised to learn that energy bills work differently.  

One thing you may be surprised to learn is that SDG&E does not profit from the cost of the electricity or natural gas you use. Those energy supply costs are passed through without markup. Like other California utilities, SDG&E's earnings are regulated by the California Public Utilities Commission (CPUC), which reviews utility rates and determines how much utilities can earn for building, maintaining and improving the energy system.

If SDG&E doesn't profit from the energy itself, what are you paying for? 

The answer starts with understanding that your energy bill covers more than just the energy you use. It also helps pay for the systems and services needed to deliver that energy safely and reliably to homes and businesses throughout our region. 

The graphic below breaks down the major components of a typical energy bill. It shows the difference between energy supply costs, which are passed through to customers by energy suppliers without a markup, and the charges that support energy delivery and state-mandated programs and services. 
 

Additionally, energy supply doesn't always come directly from SDG&E. Today, more than 1 million SDG&E customers receive their electricity supply from local Community Choice Aggregators (CCAs), which purchase electricity on their behalf.

Most of us don't think about the energy system until we need it. But every flipped switch, charged phone and cooled home depends on a network working behind the scenes to keep energy flowing safely and reliably. Looking beyond the total amount due can help paint a clearer picture of what an energy bill actually pays for.