lolì 1 - 1 00 (R - 2 0 2 6 - 52 1 ) R ESOLUTIONN UMBERR -316829 D A T E O F F IN A L P A S S A G E JU N 1 8 2 0 2 6 A R ESOLUTION OF THE COUNCIL OF THE CITY OF SAN DIEGO SUPPOR TIN G CALIFOR NIA SEN ATE BILLS 90 5, 1 0 98 , 9 43 , 1 1 3 8 , 1 3 59 , A N D 91 3 A N D ASSE M BLY BILLS 2 46 3 ,1 761 ,2 51 6 , A N D 2 493 R ELA TIN G TO U TILITY AFFOR DABILITY AND ACCOUNTABILITY FOR THE 2025- 2 02 6 CALIFOR NIA LEGISLATUR E R EGULAR SESSION. R ECITALS T he C ouncil of the C ity of San Diego (C ouncil) adopts this R esolution based on the f ollowing: A .

R ising utility rates in C alif ornia continue to increase the cost of living f or millions of residents. Between 2 0 2 0 and 2 0 2 5, residential rates f or the three largest investor- owned utilities increased at a rapid pace, f ar exceeding infation. Pacif ic G as and E lectric Company rates increased by an average of 1 3 .3 % annually, Southern C alif ornia E dison by 1 2 .3 %, and San Diego G as & E lectric C ompany (SD G &

E) by 9.1 %. In D ecember 2 0 2 4, the C alif ornia Public U tilities C ommission (C PU

C) authorized an additional 1 8 % revenue requirement increase f or SDG&E. San D iego C ounty currently maintains the highest electricity rates in the nation, with costs reaching $0 .45/kWh, approximately 2 .5 times above the national average, and an average monthly residential bill of $3 1 3 . A ccording to 2 0 2 4 and 2 0 2 5 C PU C reports, SD G &E maintains the highest electricity rates in the state, and utility debt in the region has increased by over $2 0 0 million since 2 0 2 1 , with nearly 3 0 % of customers now qualif ying f or bill assistance programs. B .

T he f ollowing proposed legislation, currently pending in the 2 0 2 5- 2 0 2 6 C alif ornia L egislature R egular Session in both the Senate and A ssembly (collectively, U tility Af f ordability and A ccountability L egislative Package), aim to lower utility costs and hold investor- owned utility companies accountable: -PAGE 1 OF 4-

(R - 2 0 2 6 - 52 1 ) 1 . Senate B ill 9 0 5, as amended June 1 , 2 0 2 6 , seeks to reduce utility prof its on wildf ire investments, expand options f or low- cost public f inancing of capital projects, tie executive pay to reducing rate increases, and improve grid capacity. 2 . Senate Bill 1 0 98 , as amended March 2 4,2 0 2 6 , limits the use ofbalancing and memorandum accounts to bring more spending decisions into G eneral R ate C ases, reducing unlimited corporate overspending. 3 .

Senate B ill 9 43 , as amended M arch 2 3 ,2 0 2 6 , directs the C PU C to develop a more equitable methodology f or calculating high- voltage transmission charges and authorizes rate adjustments f or industrial customers who switch to clean electricity. 4. Senate B ill 1 1 3 8 , as amended A pril 9 ,2 0 2 6 , gives load- serving entities f lexibility to meet up to 2 5% ofresource adequacy obligations through short- term transactions, reducing unnecessary procurement costs passed to ratepayers. 5.

Senate B ill 1 3 59 , as amended May 1 4, 2 0 2 6 , directs the C PU C to rigorously review gas inf rastructure investments over $1 0 , 0 0 0 , 0 0 0 to ensure non- gas pipeline alternatives are prioritized, and f orces developers instead o f ratepayers to pay all upf ront costs f or new natural gas line extensions starting in 2 0 3 0 . 6 . Senate B ill 91 3 , as amended May 1 4, 2 0 2 6 , proposes several policy changes to authorize and expand the use of aggregated distributed energy resources to satisf y resource adequacy requirements. 7.

A ssembly B ill 2 46 3 , as amended A pril 1 3 , 2 0 2 6 , requires the C PU C to conduct a comprehensive, systemwide review o f methodologies used to determine the cost of capital and authorized return on equity f or electrical and gas corporations to bring greater consistency and ratepayer protection. -PAGE 2 OF 4-

(R - 2 0 2 6 - 52 1 ) 8 . A ssembly B ill 1 76 1 , as amended March 1 9, 2 0 2 6 , requires the C PU C and investor- owned utilities to publicly disclose all data and methodologies used to calculate the Power C harge Indiff erence A djustment to identif y billing errors. 9. Assembly Bill 2 51 6 , as amended A pril 1 3 ,2 0 2 6 , establishes the Calif ornia G rid Manuf acturing Initiative to aggregate demand, coordinate procurement of critical grid components, and incentivize in- state manuf acturing. 1 0.

A ssembly Bill 2 49 3 , as amended A pril 1 3 ,2 0 2 6 , helps prevent utility overspending by increasing independent oversight of transmission projects and enabling lower- cost alternatives instead of expensive inf rastructure build outs. C. C ollectively, passage ofthe U tility Af f ordability and Accountability Legislative Package will help lower costs, ensure f air electricity pricing, and advance equitable and af f ordable energy f or residents across the state. D.

The C ity of San D iego's (C ity) support f or the U tility A ff ordability and A ccountability Legislative Package is consistent with previous actions by the Council to ensure accountability by investor- owned utilities and reduce rates f or San Diegans. For example, in N ovember 2 0 2 3 , the Council adopted San D iego R esolution R - 3 1 52 1 4 (N ov. 1 4,2 0 2 3 ) calling on the C PU C to implement improvements to oversight of gas and electric rates. E .

The Off ice of the C ity A ttorney prepared this R esolution based on the inf ormation provided by C ity staff , including inf ormation provided by af f ected third parties and verif ied by C ity staf f , with the understanding that this inf ormation is complete and accurate. -PAGE 3 OF 4-

(R - 2 0 2 6 - 52 1 ) ACTION ITEMS B e it resolved by the C ouncil ofthe C ity of San D iego: 1 . T he C ouncil declares its full support f or the U tility A ff ordability and A ccountability L egislative Package, as ref erenced in R ecital B. 2 .

T he C ouncil requests the C ity's G overnment A f f airs D epartment staf f transmit this R esolution to the C ity's state lobbyists and other appropriate individuals to ensure this R esolution is received by state representatives and made part of the of f icial record of support f or the U tility A ff ordability and A ccountability L egislative Package, as ref erenced in R ecital B. A PP R O V E D IE A T H E R F E R B E R T , C ity A ttorney l el43By Alm a R obbins D eputy C ity A ttorney A R :nja A pril 2 3 ,2 0 2 6 O r. Dept: C ouncil District - 9 Doc.

No. 4406721 I certif y that the C ouncil of the C ity of San D iego adopted this R esolution at a meeting held on JU N I 6 2 0 2 6 DIANA J.S. FUENTES City Clerk puty C ity C l k A pproved: G llý( 1 (date) TO D D G L O R IA, Mayor Vetoed: (date) TO D D G LO R IA , Mayor -PAGE 4 OF 4-

JU N 1 6 2 0 2 6, by the f ollowing vote:P assed bythe C ouncil of T he C ity of S an D iego on Councilmem bers Yeas N ays N ot PresentR ecused Joe L aC ava Jennif er C ampbell S tephen Whitburn H enry L . F oster 1 1 1 M arni von Wilpert Kent L ee R aul A . C ampillo Vivian Moreno Sea n Elo-R ivera 0.

JU N 1 8 2 0 2 6 D ate of f inal passage (Please note: When a resolution is approved by the M ayor, the date of final passage is the date the approved resolution was returned to the O f fice of the C ity C lerk.) AU THEN TICA TED B Y: TODD GL OR IA M ayor of T he C ity of S an D iego, C alif ornia. (Seal) DI AN A I.S. FUEN TE S C ity C lerk of T he C ity of S an D iego, C alif ornia. B y , D eputy U O f f ice of the C ity C lerk, S an D iego, C alif ornia R esolution N umber R - 31 G629