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This article originally appeared in the Solar & Efficiency Special issue of Home Energy Magazine.
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March 20, 2007
Today, most residences are billed for electricity usage according to the total amount used over a given month.  In the San Diego area, most residential customers are charged for their electricity use under the standard domestic residential, or DR, tariff applied by the local utility, San Diego Gas and Electric Company (SDG&E). Under this tariff, customers pay a set amount for the baseline usage—about $0.13/kWh with a baseline quantity of usually 300-500 kWh—and an increasing amount for each block, or tier, of electricity used thereafter. The subsequent tiers include up to 130% of baseline, up to 200% of baseline, 200%-300% of baseline, and over 300% of baseline. For this last tier, customers pay about $0.27/kWh.  It does not matter at what time of day the home uses that electricity; all that matters is the total amount used by the month’s end.

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