Written by Nicholas Vetrisek
For the first time in nearly 50 years, the City of San Diego is getting prepared to negotiate a new deal regarding the exclusive use of public right-of-ways for transmission and distribution in the city.
As proof that the city is serious about getting a new deal for 2021, the San Diego City Council hired two consulting groups last month, at the cost of almost $1 million, to assist the city in getting the best deal possible.
According to SDG&E Vice President of State Governmental and External Affairs Mitch Mitchell, “We know what (the city’s) focus areas are as it relates to this. One is going to look at the value of the grid that we operate in the city and the other is going to focus on the specific terms of the franchise agreement and we look forward to those conversations.”
Despite this, the city is keeping its options open and hoping for other companies to compete with SDG&E.
San Diego Deputy Chief Operating Officer Erik Caldwell said, “It is not outside the realm of possibility that another utility, whether it’s one that operates in California today or one that may be thinking about having an opportunity of operating in California, could submit a response to our solicitation later this year and respond.”
With the end of this deal, Jan. 17, 2021, the monopoly that SDG&E has had on energy for the last half century may officially end.
