A bright orange flyer landing in San Diego-area mailboxes, including in Coronado, falsely warns that electricity rates will jump 37% for customers who don't sign up for a specific program.

The mailer looks like an official San Diego Gas & Electric notice. It isn't. SDG&E confirmed it has no connection to the flyer, as first reported by CBS 8 on Tuesday, Sept. 22.

The flyer is an advertisement from a company called California Backup Battery Systems. It promotes the state's voluntary Virtual Power Plant program, which compensates homeowners who share stored battery energy with the grid during peak demand. The program is administered through the California Public Utilities Commission's (CPUC) Self-Generation Incentive Program (SGIP). Participation is entirely voluntary, and no utility requires homeowners to install equipment.

But no 37% rate hike is tied to non-enrollment, and SDG&E says it has no connection to the mailer.

Edward Lopez, executive director of the Utility Consumers' Action Network (UCAN), called the flyer "deceptive" after reviewing it. He told CBS 8 that many of the federal incentives for solar panels and batteries touted in the mailer have already expired and that the program is not open to everyone.

"I don't even know where you get the 37% figure," Lopez said.

Lopez also cautioned that not all customers qualify. "Not all of them are available right now. Not everybody is automatically an eligible customer," he said.

The flyer cites a section of the California Public Utilities Code and uses the phrase "assessments are being scheduled this week," according to a Better Business Bureau complaint filed in April 2026 against a separate company, the California Energy Initiative, over nearly identical mailers. That complaint describes a "PUBLIC UTILITY NOTICE" banner designed to mimic government communications, with the company's name appearing only in fine print at the bottom. The BBB gave the California Energy Initiative an F rating for similar flyers, CBS 8 reported.

CBS 8 reported that attempts to reach California Backup Battery Systems by phone were unsuccessful. A company spokesperson responded by email, acknowledging the wording could be misread and saying the company is reviewing its language.

The California Contractors State License Board has separately warned consumers about misleading energy advertisements distributed through door flyers, direct mail and door-to-door sales.

Coronado residents who receive the flyer can verify any SDG&E communication by calling the utility at (800) 411-7343 or visiting sdge.com. Complaints about misleading energy solicitations can be filed with the CPUC or the Contractors State License Board.