San Diego Gas & Electric (SDG&E) digs doling out energy in sunny Southern California. The Sempra Energy company is a regulated utility that serves 1.4 million electricity customer meters and 855,000 natural gas customer meters in San Diego County and a portion of southern Orange County. The electric utility owns 22,360 miles of power distribution lines, which serve about 25 communities; its 1,920 miles of transmission lines are managed by the California Independent System Operator. SDG&E also has limited power generation operations (it owns or contracts 4,520 MW of generating capacity). The gas utility operates almost 170 miles of transmission pipelines and about 8,460 miles of distribution mains.
SDG&E provides electricity to 3.4 million consumers (1.4 million meters)and natural gas to 3.1 million consumers (855,000 meters).
SDG&E serves customers in San Diego County and a portion of southern Orange County. The electric utility's service area spans 4,100 square miles (two counties and 25 communities).
The company's operating revenues increased by 11% in 2011 due to a 12% rise in electric revenues because of a higher authorized base margin on electric generation and distribution (including the acquisition of the Desert Star generation facility in 2011), and the pass-through of higher costs of electric fuel and purchased power due to increased prices. It also reported higher revenues associated with a wildfire insurance premium.
SDG&E's natural gas revenues increased by 6% due to higher recovery of costs (the increase in costs of natural gas was caused by higher volumes sold and a rise in natural gas prices).
The company's net income increased by 27% in 2011 due to higher revenues and an increase in other income as a result of a $37 million increase in allowance for funds used during construction related to the Sunrise Powerlink project. It also reported $34 million of losses on interest rate instruments in 2010 which were not carried in 2011.
To meet and surpass state regulations for reducing carbon emissions, SDG&E is seeking to obtain 33% of its electricity portfolio from renewables by 2020. In 2012 it signed several renwable energy contracts, including long-term contracts to purchase 100 MW of wind power from an Iberdrola Renewables unit and 200 MW of solar power from an 8minutenergy Renewables project.
In the first half of 2011 SDG&E added more than 1,200 MW of green energy to its portfolio. In July 2011 it signed a 25-year power purchase deal for 150 MW of solar power with Solar Gen 2 LLC and a 12-month contract for 40 MW of geothermal power with Silicon Valley Power.
In 2010 it signed a four-year power-purchase deal with a Calpine unit to buy 25 MW of geothermal energy from the Calpine Geysers facility in Northern California. That year it also launched two solar power demonstration projects that focus the light and heat from the sun to generate power, as part of its ongoing solar power research and development activities.