San Diego Gas & Electric
| Company type | Subsidiary |
|---|---|
| Industry | Public utility |
| Founded | 1881 |
| Headquarters | San Diego, California , United States |
Area served | San Diego County and southern Orange County, California, United States |
| Products | Natural gas and electricity |
Number of employees | 5,000 |
| Parent | Sempra |
San Diego Gas & Electric (commonly abbreviated as SDGE or SDG&E) is a regulated public utility that delivers both natural gas and electricity to residents and businesses in San Diego County as well as the southern part of Orange County in southwestern California, United States. It operates as a subsidiary under Sempra, a Fortune 500 energy services holding company based in San Diego.
Serving approximately 3.3 million customers, SDGE manages about 1.4 million electric meters alongside more than 840,000 natural gas meters within a service territory spanning 4,100 square miles. The company’s workforce numbers around 5,000 employees.
Generation portfolio
In 2004, the California Public Utilities Commission gave its approval to SDGE’s comprehensive long-term energy strategy, which focuses on a diversified approach to satisfy the increasing energy requirements of San Diego. This strategy includes boosting energy efficiency programs, expanding renewable energy sources, adding baseload power plants, and upgrading transmission infrastructure. By 2014, SDGE had achieved a renewable energy mix constituting 36.4% of its portfolio, surpassing the state-mandated 33% target set for 2020. By 2016, renewables accounted for 43.2% of the company’s electricity supply.
The company’s electrical network comprises 134 distribution substations, with an extensive grid including 10,558 miles of underground cables and 6,527 miles of overhead power lines.
Power plants
- Palomar Energy Center (PEC)
- Desert Star Energy Center (DSEC)
- Miramar Energy Facility (MEF)
- Cuyamaca Peak Energy Plant (CPEP)
- Escondido Battery Energy Storage System (Escondido BESS)
- El Cajon Battery Energy Storage System (El Cajon BESS)
- Ramona Solar Energy Project (RSEP)
Interconnections
SDGE maintains two 230 kV transmission lines—the Miguel-Tijuana and LaRosita-Imperial Valley circuits—that connect California’s power grid with Mexico’s Comisión Federal de Electricidad in Baja California. The Path 45 corridor across the U.S.-Mexico border supports a transmission capacity of 408 MW. Additionally, SDGE operates a 500 kV line linking to Arizona Public Service and a 230 kV line connecting to the Imperial Irrigation District; both are components of the Path 46 system that ensures reliable electricity supply throughout Southern California.
The Sunrise Powerlink consists of approximately 117 miles of both overhead and underground lines operating at 500 kV and 230 kV voltages with key substations along the route. Commissioned on June 18, 2012, this line connects San Diego to the Imperial Valley—a significant center for renewable energy—facilitating the delivery of solar-generated electricity into San Diego’s grid.
Founding
The origins of San Diego’s gas lighting trace back to 1881 when eight local entrepreneurs established the San Diego Gas Company to supply gas for street lamps. By 1888, the city introduced incandescent lighting powered by a small-scale plant that also energized its inaugural electric streetcar system.
Henry H. Jones, a civil and electrical engineer born in Pennsylvania in 1874, joined the San Diego Consolidated Gas & Electric Company in 1910 as vice president and manager before soon advancing to president. Prior to his move to San Diego, Jones gained substantial experience in traction and electric power engineering roles throughout Illinois and Idaho.
In response to rising demand in 1905, Chicago-based H.M. Byllesby & Company acquired the San Diego Gas and Electric Light Company, renaming it San Diego Consolidated Gas and Electric Company. At that time, its holdings included an electric generating facility with four steam turbines, a gas treatment plant, an extensive network of electric lines and gas mains, as well as a customer base exceeding 3,400.
Under Jones’s leadership by 1920, the utility expanded its service footprint across San Diego and adjacent regions reaching toward both the Mexican border and Orange County. Customer counts surged from fewer than 6,000 electric and around 9,000 gas accounts in 1910 to nearly 27,000 each by the decade’s end. Infrastructure development paralleled this growth with over 500 miles of gas mains installed alongside more than 700 miles of electric poles.
Jones also contributed as an executive committee member for the Panama–California Exposition held in 1915, where he was responsible for supervising the design and construction of Balboa Park’s initial buildings.
Subsequent Developments
In 1940, to adhere to federal regulations, the company dissolved its corporate ownership structure, went public with its stock, and adopted the name San Diego Gas and Electric Company (SDG&E).
Construction of the South Bay power facility commenced in 1958, with the initial oil-fired unit becoming operational in 1960. This plant played a crucial role in supplying electricity to fuel the area's economic expansion.
During the late 1950s, SDG&E explored nuclear energy options and, in 1961, collaborated with Southern California Edison to establish the San Onofre Nuclear Generating Station (SONGS), a 350,000-kilowatt facility in which SDG&E held a 20% share. The station began generating power in 1967.
Throughout the 1970s, SDG&E expanded its service territory by acquiring the Mountain Empire Rural Electric Cooperative, thereby increasing its presence in eastern San Diego County.
In 1976, SDG&E submitted an application to construct two Westinghouse reactors, each rated at 974 MWe, at the Sundesert Nuclear Power Plant site near Blythe, California. The initiative encountered significant resistance from both legislators and community members. Californians voted down Proposition 15, which sought to restrict nuclear plant operations and prohibit new construction absent proven safety and waste disposal methods. Despite this rejection, opposition to nuclear power intensified. SDG&E was unable to satisfy regulatory bodies regarding adequate waste management solutions. Both Governor Edmund G. Brown Jr. and the California Energy Commission opposed the Sundesert project, resulting in legislative setbacks for exemption proposals. After investing over $106 million across six years, SDG&E ultimately terminated the project.
Ownership of the South Bay Power Plant shifted multiple times over fifty years, including transfers to Duke Energy, the Unified Port of San Diego, and LS Power. The plant transitioned from oil to natural gas as its primary fuel source. At full capacity, it produced up to 700 megawatts, delivering electricity to roughly half a million homes throughout Southern California. In 1988, the Port initiated efforts to decommission the facility to repurpose its 13-acre location. Although officially retired in 2010, two units remained operational through 2011 to support grid stability as mandated by the California Independent System Operator (CAL ISO). Demolition activities concluded in 2012.
United States v. San Diego Gas & Electric
The Encanto Gas Holder was a natural gas storage installation comprising more than of underground piping spread over approximately in Lemon Grove, California, near San Diego. Having been functional since the mid-1950s, it was taken out of service between 2000 and 2001 by San Diego Gas and Electric (SDGE), a subsidiary of Sempra Energy, with IT Corporation serving as lead contractor. TriState was engaged to remove asbestos-containing coatings from pipes amid concerns about hazardous asbestos exposure during removal operations.
In 2006, SDGE was indicted by U.S. Attorney Carol C. Lam on five charges including conspiracy, fraud, and violations related to asbestos handling under the National Emissions Standards for Hazardous Air Pollutants. Other defendants included SDGE’s environmental compliance director and IT Corporation’s project manager. Although initial charges were dismissed, they were refiled in 2007. By July of that year, SDGE along with IT project manager Kyle Rhuebottom and SDGE environmental specialist David "Willie" Williamson were convicted of making false statements, failing to report asbestos presence to authorities, and breaching asbestos work regulations aimed at reducing compliance expenses. Meanwhile, Jacquelyn McHugh, SDGE’s environmental director, was acquitted.
Later in 2007, U.S. District Judge Dana Sabraw ordered a retrial for SDGE and associated personnel. On October 6, 2009, criminal charges against SDGE were ultimately dismissed.
2008 Marine Helicopter Crash Litigation
On September 3, 2008, a jury awarded $55.6 million to the families of four Marine aviators who perished when their UH-1 helicopter collided with a 130-foot SDGE utility tower at Camp Pendleton. The total award comprised $15.2 million in compensatory damages and $40.4 million in punitive damages. SDGE was found liable for $9.48 million of the compensatory damages as well as the entirety of the punitive damages.
The plaintiffs contended that SDGE was negligent by installing warning lights only on towers exceeding 200 feet in height. SDGE argued that the power line had been present on the base for 25 years and that lighting would have been installed if the Marine Corps had requested it. Following the incident, SDGE added lights to the tower and announced intentions to challenge the court’s decision.
2011 Countywide Power Outage
On September 8, 2011, a significant blackout affected all 1.4 million customers served by SDGE. The disruption originated from a fault at an Arizona Public Service (APS) substation near Yuma, Arizona, which caused widespread outages across western Arizona and eastern California. Due to this event, SDGE’s system drew excessive power from the San Onofre Nuclear Generating Station (SONGS) and Los Angeles until a protective system shut down SONGS, triggering a rapid collapse of the grid caused by an imbalance between generation and load.
Investigation traced the outage to actions taken by an APS employee at the North Gila substation; however, it remained unclear why local safeguards failed to contain the problem. SDGE activated its restoration protocols and cautioned customers about potential extended outage durations.
By the morning of September 9, power service was fully restored to all affected SDGE customers.
2020 Emmanuel Cafferty Termination
In the aftermath of the 2020 George Floyd protests and heightened awareness surrounding racism and white supremacy, SDGE became embroiled in national controversy after dismissing employee Emmanuel Cafferty, a Mexican-American worker, over allegations that he displayed the OK gesture, recently associated with alt-right symbolism. Cafferty maintained that he was unaware of any such implications linked to the gesture. The case attracted extensive media coverage, with SDGE opting not to comment publicly amid scrutiny. Subsequently, Cafferty filed a defamation lawsuit against the company.
Rates
San Diego Gas & Electric consistently ranks among U.S. utilities with some of the highest residential electricity prices. Since 2013, electricity costs in California have approximately doubled, with SDGE’s rates increasing from 28.9 cents per kWh in 2020 to 47.6 cents per kWh by 2024. Despite these rate hikes, SDGE reported record earnings of $936 million in 2023, an increase of $21 million over its $915 million profit in 2022. Its parent company, Sempra, disclosed profits totaling $1.75 billion from its California subsidiaries—including SDGE and SoCalGas—in 2023. In 2024, SDGE’s profits reached $891 million.
Regulatory Actions
On December 19, 2024, the California Public Utilities Commission (CPUC) authorized Decision 24-12-074, establishing a Test Year 2024 base revenue requirement of $2.699 billion. This decision results in an average monthly increase of approximately 2.6-2.7% ($2.84-$5.48 per month) on residential electric customer bills.