Tiered rates and how they affect your bill

Your baseline allowance corresponds with the lowest rate per kWh. Electricity rates rise progressively as your electricity use reaches the second, third and fourth tiers. They also differ slightly from winter to summer.

Residential Electric Rate — Tiers Breakdown By Summer/Winter

Residential Electric Rate	Tiers	Total standard electric rates per kWh
		Summer	Winter
Baseline *	Tier 1	13¢	13¢
101% to 130% of baseline	Tier 2	15¢	15¢
131% to 200% of baseline	Tier 3	28¢	26¢
Over 200% of baseline	Tier 4	30¢	28¢

* Electricity use that falls within the monthly baseline allowance of kWh shown on your SDG&E bill is billed at the baseline rate per kWh, which is the lowest rate.

• See an example of electricity use by tier

A substantial Rise in Your Electric Rates Begins in Tier Three

You will see the biggest jump in your rates once your usage gets into the third and fourth tiers. One reason for this is because the electric rates for usage in tiers one and two are capped under State Assembly Bill AB1X. Therefore, any rate increases are allocated entirely in tiers three and four.

However, because of California Senate Bill 695, passed on Dec. 17, 2009, the California Public Utilities Commission is now authorized to increase the rates to tiers one and two and decrease the rates to tiers three and four.  The increase to tiers one and two was necessary to make rates more fair and equitable among all residential customers.

• More information about AB1X

As shown in the following chart, rates in tier three and four are approximately double the rates in tier one and two in both summer and winter.