A recent newspaper article touting a new study claims that a government-run electric utility, via a takeover of San Diego Gas & Electric’s infrastructure, would save San Diegans $130 billion on their electric bills — an outlandish claim giving false hope to San Diegans.
This analysis is the latest piece of (mis)information coming from a local municipalization activist, attempting to mislead San Diegans with unsubstantiated claims and forcing the city of San Diego down a dangerously expensive and risky path.
At a time when general affordability is at the forefront for San Diegans, most would jump at the opportunity to save anything they can. Unfortunately, when something seems too good to be true, it usually is.
Let me be direct: municipalization is a risky, costly gamble that threatens working class jobs, and our city’s economic stability, public safety, and electric reliability.
Recent analysis and filings show that startup costs for a municipal utility could reach $9 billion or more, with massive annual operating costs that were never mentioned by the study’s author. These estimates do not include the costs of wildfire insurance, overruns, and litigation that the new operator (the city) would be responsible to pay, via you, the taxpayer.
With the city of San Diego already facing budget constraints, it needs to focus on core priorities: repairing roads, addressing homelessness, supporting housing affordability, and maintaining public safety. Municipalization is a costly distraction that diverts resources from these urgent needs.
This study errs in many ways and uses some creative math and subjective assumptions to paint a rosy picture to fit a misleading narrative. It suggests that to cut costs, the city of San Diego should be powered solely by rooftop solar and batteries — but proposes no mechanism to pay the costs for every home to have such a system.
The study’s author also assumes that San Diego residents would not have to pay their share of costs for existing wildfire mitigation, rather relying on residents from other cities in the county to pay for those costs. Imagine going to a 10-course dinner with your friends and trying to walk out before the bill comes, leaving them to pay.
The San Diego Regional Chamber of Commerce opposes municipalization. As a former councilmember, I’ve heard these promises before. The City Council has rightly rejected this path many times, and the risks and costs continue to far outweigh any speculative benefits.
San Diego’s future depends on sound decision-making, not wishful thinking. Municipalization is a risky government takeover that needs to be put to bed once and for all.
Chris Cate, a former member of the San Diego City Council, is president and CEO of the San Diego Regional Chamber of Commerce.
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