Power content label on San Diego utility bill is called misleading

 

The San Diego Union-Tribune --Oct. 30

Oct. 30--Careful utility bill readers -- particularly those who favor renewable energy sources -- are being misled by a small insert included in San Diego Gas & Electric bills.

The most recent copy of the insert -- called a "power content label" -- declares that 8 percent of the electricity supplied by SDG&E is derived from renewable resources.

But SDG&E acknowledged that the inserts are inaccurate. "It is not the percentage we have under contract," said Ed Van Herik, a spokesman for SDG&E. "The plan is to update the label next year." SDG&E derives about 4 percent of its electricity from renewables. But rather than provide this percentage to customers, SDG&E has been copying the percentage from a second column on the insert that indicates the percentage of renewable power statewide.

The statewide figures are calculated by the California Energy Commission. SDG&E is alone among the state's major utilities in failing to provide accurate power content labels.

Southern California Edison, the utility serving customers north of SDG&E's territory, says it regularly calculates its renewable percentage and updates its labels. Its current insert says the utility will derive 19 percent of its power from renewables this year, up from 17.4 percent last year. Pacific Gas & Electric Co., which serves the Bay Area, says it updates its content labels twice yearly and it's currently deriving 13 percent of its power from renewable resources, a figure indicated on its label. Renewable electricity is generated from windmills and solar arrays, as well as geothermal, biomass and small hydroelectric projects. A spokeswoman for the California Energy Commission said regulators ordered power content labels at the start of deregulation, when it was believed that power suppliers would compete for customers, particularly those offering electricity from renewable sources.

Because the state ended the option of choosing power suppliers for all but the largest customers, the content labels lost their relevance in that regard, said Claudia Chander, the energy commission spokeswoman. Michael Shames, executive director of the Utility Consumers' Action Network, still called on SDG&E to correct the inserts.

"It is important that information to customers be accurate and updated because, believe it or not, some people read these inserts and rely upon them," Shames said.

The labels also allow customers to monitor a utility's progress in meeting a state mandated goal of deriving 20 percent of its electricity from renewables by 2010. The target is the most ambitious in the nation. SDG&E last year expected it would reach a 7 percent renewable level by now but the failure of some wind-power contractors to fulfill commitments left the utility short of that target.

Van Herik says the company is still on track to reach the 20 percent goal by 2010. SDG&E is now evaluating responses to a request for renewable energy and hopes to announce a list of finalists in the next few weeks and select suppliers in the first half of next year.

Matthew Freedman, a staff attorney with The Utility Reform Network, which has been a strong advocate of the state renewable standard, said SDG&E had resisted passage of the target but has since exceeded requirements under the law.

"SDG&E went way beyond what they had to do," he said. "They were very aggressive in pursuing renewables."

Freedman added that the most recent setback for SDG&E "was not their fault and it was not them trying to back step."

"Right now I am optimistic SDG&E is taking the steps necessary to meet its obligation," he said.

 

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