As we start the new year, I want to take a moment to share some reflections from my first six months as President of SDG&E. This time has been defined by listening. Genuinely listening. In periods of change, open and transparent communication is more than just helpful; it is essential. That’s why I’m launching this stakeholder newsletter to keep you informed about our key priorities and initiatives to meet the community's needs.
California stands at the forefront of a global energy transformation. Meeting the state’s ambitious climate goals with innovative grid technologies that integrate more clean energy while balancing cost stability is fueling this shift. At the same time, more frequent extreme weather events and heightened wildfire risk highlight the urgent need for resilience. In response, we are meeting these challenges with innovation and collaboration.
We’ve prioritized operational improvements that deliver tangible benefits. For solar customers, we approve connections in just three days, among the fastest in the state. We accelerated service line connections for new electric projects, reducing timelines by 50%. We improved our notification process, providing earlier communications when crews are working nearby. I am also proud to share that we recently earned the ReliabilityOne Award for the 20th consecutive year, recognizing our commitment to dependable service.
Listening and acting. An essential part of our response is also keeping our customers and stakeholders informed. I’ve prioritized conversations with customers, community leaders and partners to better understand your concerns and expectations.
One theme I hear repeatedly is the strain of rising household costs, including energy costs, are placing on families and businesses. Budgets are tight. Our customers rely on us to deliver the energy they need safely and reliably, while doing everything we can to keep bills as affordable as possible. To help, we’ve invested more than $7.6 million in shareholder funding for programs like Neighbor-to-Neighbor, which helps customers with past-due balances. This year, we are contributing $800K to continue this support.
What we’re doing. State policy, infrastructure upgrades and regulations affect energy prices. That’s why we’re taking action. We’re pushing for smarter policies and streamlining operations to cut costs and pass savings on to customers. For example, our battery storage investments will return nearly $200 million in federal tax credits to customers in 2025 and $100 million more in 2026, helping offset rising costs. We’ve also made significant operational improvements to reduce the cost of strategic undergrounding in our highest fire-risk areas by nearly 50%.
We’re also actively advocating in Sacramento. More than half of SDG&E’s residential bills are driven by state-mandated programs that lack sunset provisions or regular review. My team is collaborating with lawmakers and regulators to promote policies that eliminate non-cost-effective programs from bills, enhancing affordability without sacrificing safety or reliability. Our efforts include reforming the California Climate Credit so customers receive it during the hottest months when it’s needed most, discontinuing non-cost-effective energy-efficiency programs to save customers $300 million, and shifting funding for state-mandated public purpose programs from utility bills to the state budget, saving the typical residential customer about $100 annually.
While we’ve taken some steps to offset rising energy costs, we know there’s more to do. We’ll keep acting with urgency and focus until we see real progress. Our customers and communities deserve nothing less. Looking ahead, we’ll continue our commitment to enhancing safety, improving customer service, and making bills more manageable by leveraging advanced technology at a lower cost.
I’m proud of our progress in delivering safe, reliable energy. The conversations and partnerships we’ve built have shaped our direction and strengthened our ability to serve. Thank you for your candor and collaboration. As we move forward, I welcome your feedback and suggestions. Your input is invaluable as we strive to better serve you. Wishing you a new year of continued dialogue and greater impact.
Warm regards,
Scott Crider
President, SDG&E