Will high utility rates hit our economy?
Jonathan Horn, U-T SAN DIEGO
Friday, March 27, 2015
Kelly Cunningham, National University System
San Diego has some of the nation’s highest utility rates. The National University System Institute for Policy Research found local residential electricity costs averaged 12 percent more than other California investor owned utilities and 60 to 70 percent higher than competitor regions such as Seattle, Portland and Austin. This acts as a tax, raises costs of doing business and makes the region less competitive. More troubling, the gap is growing worse. Commercial per kilowatt costs increased 38 percent between 2010 and 2012. With higher labor costs, real estate, and regulatory burdens, San Diego and other California regions continue to receive poor marks by corporate executives when asked about the region’s business climate.