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In the latest development in the pursuit of a new electric and gas franchise for the city of San Diego, San Diego Gas & Electric might stop collecting more than $100 million in surcharges that go into city coffers if a new deal between the utility and the city is not reached before the existing pact expires on June 1.
SDG&E said it is just following state regulations and the move “does not change our commitment” to reach a deal with the city. But the City Attorney’s Office accused SDG&E of “trying to assert leverage in the negotiations” and said it would take the utility to court if the surcharges are eliminated.
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A group of nine environmental and political nonprofits wants the San Diego City Council to hold a proceeding to potentially disqualify San Diego Gas & Electric from bidding on the city’s electric and gas franchise agreements because of a legal dispute between the city and the utility over a water recycling project.
“Our request is for a full-fledged discussion as an informational item so the facts are heard,” said Sonja Robinson, program manager for the Protect Our Communities Foundation, one of the organizations that sent a letter to all nine members of the city council. “And if it is determined that SDG&E is in breach over the material terms of the franchise agreement, then it is within the city of San Diego’s municipal code to debar them.”
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