San Diego Gas & Electric’s new ReduceYourUse program is a no-risk, no-lose proposition for residential and small business customers.
Every customer with a smart meter — 99% of all SDG&E customers — is automatically enrolled.
On the designated days, participating customers should take steps to cut their electricity use between 11 am and 6 pm. SDG&E will then compare their actual usage during those hours to their “baseline,” and give them an energy bill credit which corresponds to this difference. (The baseline is what customers would otherwise have used and is calculated based on usage during previous days.)
Of course, customers only get this rebate if their actual energy use is lower than their baseline. But what if it’s higher, or unchanged? No harm, no foul — those customers will continue to pay their normal electricity price.
Rebates will be paid at 75¢ per kWh — roughly five times the typical rate currently paid by SDG&E residential customers. SDG&E’s residential rates range from 14¢ to 31¢ per kWh. A slight majority of residential usage is billed at the lowest (14¢) rate.
SDG&E estimates it will call about nine ReduceYourUse days this summer — but it might be a few more or less.
Disclaimer: for information and entertainment purposes only