Mayor Todd Gloria
FOR IMMEDIATE RELEASE
Friday, May 14, 2021
SAN DIEGO – Following through on his commitment to advance the City’s climate goals, distribute environmental benefits more equitably, protect the City’s financial interests, and provide strict transparency and accountability, Mayor Todd Gloria announced today that he has reached a tentative agreement with San Diego Gas & Electric (SDG&E) to provide energy services to San Diego residents and businesses.
“The agreements I’ve reached with SDG&E reflect our renewed partnership to address the existential threat of climate change, while providing financial benefits to the City,” Mayor Gloria said. “These agreements contain strong transparency and accountability measures that would not have been possible without the thoughtful input from members of the public and the City Council. If approved by the Council, these agreements put us on a path toward environmental sustainability, community equity and financial certainty, while providing an easy offramp for the City. This is a better deal for the City and for ratepayers.”
Agreement highlights include:
SDG&E has held exclusive franchises with the City to provide gas and electric service since 1920. The agreements allow the franchisee to use the public right-of-way to install and maintain the infrastructure, such as pipes, poles and wires, necessary to provide energy to San Diego’s residents and businesses.
The current franchise agreements, signed in 1970, were set to expire on Jan. 17, 2021. Under a process created by the previous administration, SDG&E was the lone bidder for new franchises. Mayor Gloria cancelled the Invitations to Bid (ITB) process and reached an agreement with SDG&E to extend the current agreements through June 1, 2021.
In January, Mayor Gloria initiated a robust public-outreach effort to educate city residents about the franchise agreements and solicit opinions about San Diego’s energy future. The process included partnering the City Council to hold 13 virtual community forums, which hundreds of people attended, and an online survey that drew nearly 1,400 responses.
In March, the Mayor released new ITBs. SDG&E was the lone bidder.
The City Council is expected to vote on the agreement on May 25.