A few compounding forces. The grid is old — much of it built decades ago and now incurring enormous maintenance costs. Wildfire liability — utilities pay billions in settlements and grid-hardening, and ratepayers foot the bill. Transmission spending — and here's the structural problem: California utilities earn a regulated profit margin on infrastructure spending. The more they spend, the more they earn. That's a system that rewards building, not saving.
The result: SDG&E rates average around $0.40-0.45/kWh — among the very highest in America — and 5-8% annual increases have been the norm, with some years hitting 40%+ cumulative over just a few years. An average San Diego home using 700 kWh/month pays over $300 for power that would cost $112 in Texas. Same electrons. Very different bill.