San Diego Gas & Electric says the purchase of the city of San Diego’s electric distribution system could cost between $7.4 and $9.3 billion. The utility said costs could climb above $11 billion if franchise agreement fees and property tax revenue are factored into the equation.Even so, the utility numbers are much higher than the valuation in two city-funded studies. A report from 2020 and an ongoing study from 2023 put the value of the grid between $1.6 and $4.3 billion.
The investor-owned utility asked Concentric Energy Advisors to analyze the distribution system. NewGen Strategies & Solutions headlined the latest city analysis. SDG&E said the value of the distribution system could add a huge bill to any effort aimed at taking over the system.“When you look at the actual costs of the assets themselves, the wires and the meters and the poles that we have today,” said Scott Crider, an SDG&E vice president and a chief officer in the Responsible San Diego Political Action Committee fighting the Power San Diego proposal. “That is a value that they would have to purchas
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