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SDG&E May Have Customers Pay for 2007 Wildfire Damages

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Story Published: Feb 21, 2012 at 10:58 AM PDT

Story Updated: Feb 21, 2012 at 10:58 AM PDT

Battle lines are being drawn as SDG&E appears to be laying the ground work to have its customers pay hundreds of millions of dollars in costs, in relation to the 2007 wildfires.

According to the watchdog group, "Utility Consumers Action Network", known as UCAN, SDG&E is seeking to raise rates to cover $463 million in damages not covered by insurance. It could cost every costumer hundreds of dollars. 

"We believe that this is absolutely unconscionable," said UCAN spokesperson David Peffer. "Rate payers should not bare the responsibility of insuring San Diego Gas & Electric for fires that were their fault."

UCAN argues the fires could have been prevented with proper maintenance, like brush clearing and fortifying power lines.

But SDG&E says wildfires are a natural occurrence which are impossible to completely defend against when customers must be served in high risk areas.

"If something bad happens when we are fulfilling our obligation to serve, the courts and the regulators have said, that's a cost of doing business," said SDG&E spokesperson Stephanie Donovan. "A cost of doing business that should be shared across the whole customer base, so not one or two or a handful of people have to bare the burden."


That said, SDG&E says any effort to raise rates would require a separate application to the California Public Utilities Commission, which would include public input.
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