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Mayor Gloria Announces Agreement on Extension of Gas and Electric Franchises

SHORT-TERM CONTINUATION OF FRANCHISES ALLOWS FOR ROBUST PUBLIC INPUT ON SAN DIEGO’S ENERGY FUTURE

SAN DIEGO – San Diego Mayor Todd Gloria issued the following statement today regarding an extension of the City’s current gas and electric franchises:

“I am pleased to announce that I have reached an agreement with SDG&E on an extension of the current gas and electric franchises that will take us to June 1, 2021, and I urge the City Council to support it during their special meeting tomorrow. I thank SDG&E for working with me in a collaborative process.

“This extension will create certainty and continuity for ratepayers and provide the City with the time we need to craft new terms for the next franchise – one that will help us protect residents and businesses, strike the best deal for taxpayers, and achieve our climate goals. All options are on the table.

“Critically, the extension will allow San Diego residents ample time to make their voices heard as we prioritize people and sustainability and work together to create an energy future that works for all of us.”

Background:

SDG&E has held exclusive franchises with the City to provide gas and electric service since 1920. The current franchise agreements, established in 1970, are set to expire on Jan. 17, 2021.

Under a process created by the previous mayoral administration, SDG&E was the lone bidder for a new franchise. However, Mayor Gloria, in consultation with City Attorney Mara Elliott, determined that the bid was unresponsive to the minimum requirements set forth in the Invitation to Bid (ITB). Consequently, the Mayor cancelled the ITB process and initiated talks with SDG&E on extending the current franchises.

The proposed extension must be approved by the City Council on a two-thirds vote.

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