Can this be legal. Our SDG&E bill

Below is our SDG&E bill It has a ridiculously low baseline and astronomical surcharges in the form of fees for exceeding it. 35% of our bill is for actual Electric use, 65% is additional charges. What's wrong with this picture?



Service/RateMeter #   Dates/Meter Readings    MeterConstant ThermMultiplier Total Usage     Amount
ELEC/DR                    08-20 09-21
                                   33455       36712                     1                                     3,257 kWh      $617.12

Baseline Allowance 371 kWh
Baseline Usage 371 kWh @ $.01692
101% - 130% of Baseline 111 kWh @ $.03709
131% - 200% of Baseline 260 kWh @ $.19880 21/ 32 Days
Over 200% of Baseline 2,515 kWh @ $.21880 21/ 32 Days
131% - 200% of Baseline 260 kWh @ $.20379 11/ 32 Days
Over 200% of Baseline 2,515 kWh @ $.22379 11/ 32 Days
DWR Bond Charge 3,257 kWh @ $.00491 16.00

Electric Energy Charge
Baseline - 371 kWh @ $.10684                                                   39.64
101% - 130% of Baseline - 111 kWh @ $.10684                        11.86
131% - 200% of Baseline - 260 kWh @ $.10684                        27.78
Over 200% of Baseline - 2,515 kWh @ $.10684                         268.70

TOTAL ELECTRIC CHARGES                                                 $981.10

The Total Electric Charges shown above include the following components. Please see definitions on back of bill.

Electric Energy                                         347.98 
This is the charge for the electricity you use. Residential  electric rates are tiered so your energy usage is reflected  within the established tiers

DWR Bond Charge                                 16.00  
The charge covers the repayment of bonds issued by the Department of Water Resources (DWR) to cover DWR’s cost in purchasing energy for California.  

Transmission                                            38.62  
This is the cost for delivering highvoltage electricity from power plants to local distribution wires. It includes the cost of high-voltage power lines and towers, as well as monitoring and control equipment.

Distribution                                              252.74  
This is the charge for delivering electricity to your residence or place of business. This cost includes wires and poles, repair crews and emergency services. In all cases, SDG&E is responsible for the distribution of your electricity.

Public Purpose Programs                         316.18   
This charge recovers the costs of various state-mandated programs (such as low-income and energy efficiency) and includes the costs of providing discounted rates for residential usage up to 130% of the baseline allowance. The costs associated with providing discounted rates for usage up to 130% of baseline are recovered through higher rates paid by residential customers who use in excess of 130% of their baseline allowance.
 
Nuclear Decommissioning                        1.50          
This charge covers the costs of closing down nuclear power plants.
 
Competition Transition Charge                 6.40         
Through this charge, SDG&E recovers past investment in generating facilities and long-term power contracts with non-utility generators. From May 1, 2008 through December 31, 2008, a credit will appear on your bill as a result of an over-collection from the Trust Transfer Amount charge that was removed from residential bills in October 2007.
 
Reliability Services                                   1.68         
These are costs passed on to SDG&E by the Independent System Operator (ISO) to ensure adequate power to maintain electric system reliability. This means having enough power to meet electricity demand at all times. Through the end of 2008, a credit will appear in this line item due to the decreased costs associated with the ISO.
 
Total Electric Costs                                 981.10