The San Diego City Council finalized a new utility franchise agreement between the city and SDG&E, confirming a deal that will see the utility continue to provide power service within the city limits for up to 20 years: the new deal will run for 10 years and has an automatic renewal for another 10 years. If for any reason the city is unhappy with SDG&E, it has a window to void the 10-year automatic renewal. The extension can also be nullified if the city decides to pursue creating its own municipally run power company or if it determines a breach of the agreement has occurred.
SDG&E agrees to pay the city: $80 million — $70 million for the electric franchise and $10 million for the gas franchise, and $20 million to help advance the city’s climate equity goals, which include a recently created Climate Equity Fund that will build parks, plant trees and improve public transit in lower-income areas. A key guarantee was that the monies will come from shareholder funds, not ratepayer funds.
Opponents of the agreement urged the city to seek to create its own municipal utility. Mayor Todd Gloria said he would support a feasibility study to explore the details and costs of what is called “municipalization.” You can read more here: https://www.sandiegouniontribune.com/business/energy-green/story/2021-06-08/franchise-vote-number-2.