Socialism is expensive and destructive. If San Diego took over the provision of gas and electricity to the people of their community, upfront cost will be $11 billion. If that is not bad enough. The already high energy costs will double or triple, just to finance the takeover. Along with the invasion of illegal aliens, the homeless and the large current deficit, this will kill San Diego.
“San Diego Gas and Electric says that if the city wanted to form its own public energy grid, it would have to cough up about $8 billion. That would be enough to buy the poles, wires and substations — and physically separate from the grid.
That’s several billion dollars more than consultants hired by the city came up with in a 2023 study that said municipalization — shifting a privately-owned power grid to one held by the government -– would eventually save ratepayers money.”
SDG&E: San Diego Would Be Out $11 Billion If It Breaks Away, Makes Public Grid
by MacKenzie Elmer, Voice of San Diego, 3/14/24 https://voiceofsandiego.org/2024/03/14/sdge-san-diego-would-be-out-11-billion-if-it-breaks-away-makes-public-grid/
So you want out? It’s gonna cost you.
San Diego Gas and Electric says that if the city wanted to form its own public energy grid, it would have to cough up about $8 billion. That would be enough to buy the poles, wires and substations — and physically separate from the grid.
That’s several billion dollars more than consultants hired by the city came up with in a 2023 study that said municipalization — shifting a privately-owned power grid to one held by the government -– would eventually save ratepayers money.
SDG&E hired its own consultant, Concentric Energy Advisors, Inc., to study the same question in the face of a proposed ballot measure by a group called Public Power San Diego to create a municipal utility by a vote of the people. SDG&E’s consultants say, all-told, the city would be out $11 billion if it includes the money it makes off SDG&E via property taxes and its franchise fee contract.
The franchise fee contract is like a rental agreement: The city (the landlord) signs with a private utility company (the renter) saying, sure, you can build your stuff on public land — typically along the public rights-of-way that border streets. But in exchange, you have to pay the government a fee (the rent) to do so.
Except SDG&E doesn’t pay that rent. Ratepayers do in the form of recouped franchise fee costs on their utility bill. That fee generates anywhere from $50 million to $80 million for the city’s general fund each year.
The Concentric study is more evidence that SDG&E is taking the public power ballot measure seriously. The company formed its own political action committee, Responsible Energy San Diego, to fight the initiative.
“We want customers to understand what a huge risk this is to the city,” said Scott Crider, a senior executive at SDG&E and a principal officer of the PAC.
Bill Powers, a leader of Public Power San Diego, said SDG&E’s study throws the city’s studies “under the bus.” The city has done three studies now since 2017 that tell us the value of SDG&E’s city grid is $2.5 billion, at the high end, Powers said.
There’s growing tension between public and private power as energy costs continue to rise. About 26 percent of SDG&E’s customers are at least one month behind on their energy bills. Critics point to the fact that SDG&E’s posted record profits two years in a row
