The power company says it is asking for the increase to recover its investments in the shut-down of the San Onofre nuclear power plant.
The California Public Utilities Commission has to approve the request from SDG&E which owns a 20 percent stake in the plant operated by majority owner Southern California Edison. U-T San Diego reports the proposed increase includes some continued operational costs and says Edison is seeking to recover more than $2 billion from its customers.
The Public Utilities Commission will rule on whether it is justified and reasonable for utility customers to pay for costs associated with the plant breakdown and a facility that no longer produces power, potentially calling for a rebate and shifting some costs to utility stockholders.
"Just as customers would see the benefit of assets that are still productive after fully depreciated (paid off), they should also be responsible for paying costs for assets that are retired early as long as those assets were operated prudently," SDG&E argued in testimony to the commission.