San Diego Could Save Billions by Turning Its Power Company Into a Non‑Profit

San Diego’s council now has the chance to cut electric bills for its residents. A new study shows that if the city replaces the current profit‑driven utility with a non‑profit public power company, it could save up to $19 billion in the next 30 years. Other analyses suggest savings could reach $100 billion, highlighting how much money is tied up in the present model. For a decade, the current utility has earned about $900 million each year. A recent regulatory decision cut those profits, but many experts think the company will bounce back to its old levels. That means San Diegans could be paying more than $1 million every day in profit fees. Across California, more than 40 cities use non‑profit utilities. Their customers pay roughly half the rate charged by San Diego’s current provider. In this city, electricity costs are among the highest in the country. About one‑quarter of households fall behind on their bills, and businesses also feel the strain. The problem worsens as more cars switch to electric power and buildings move toward full electrification. Higher usage will push up costs unless the city changes its approach. The new report is part two of a broader study.It argues that the city should act now to form a non‑profit utility that would lower rates and build resilience. However, many residents do not understand how the current company makes money. The utility’s profits come mainly from delivering power, not from selling it. It is more like a delivery service than an electricity generator. Customers pay extra for the cost of getting power to their homes. The bill shows that delivery charges often exceed the actual price of electricity. Proponents say a local public utility could grow on‑site generation, such as rooftop solar or solar on parking lots. Adding battery storage would make the grid stronger and reduce the need for expensive transmission lines that cross fire‑prone areas. The city’s earlier studies focused on building a local distribution network. Later reports mistakenly added transmission lines, which would raise costs and delay the project. A purely distribution‑based non‑profit utility would avoid these problems. The city’s own budget is already stretched. A public power model could reduce the municipal electric bill, easing the deficit. In short, local generation is cheaper and safer than long‑haul delivery. A non‑profit public utility could provide that solution for San Diegans at a lower cost.