In order to avoid a rate increase, you may enroll in the new GreenValue here. If you do not enroll, you will be automatically enrolled in the GreenSource program and be charged an increase of 8.25% ($4/month). You may switch your service at any time.  


Why are the Rates Changing? 

Looking for a quick video about why Energy rates are going up? Watch Councilmember Mahan’s lightning round recap about energy rates from May 11th, 2021. Energy rates for the default plan with San Jose Clean Energy (SJCE) are increasing by 8% or an estimated $3-4 per month in order to:  


1. Alleviate additional increases in PG&E’s above-market costs. 

As an electricity consumer in PG&E’s territory, San Jose Clean Energy (SJCE) is subject to a number of fees, including the PG&E’s Power Charge Indifference Adjustment (PCIA). The PCIA fees cover legacy contracts, in other words PCIA fees allow SJCE to use existing PG&E infrastructure for providing energy to residents. This charge has increased by 900% since 2013, from $2.13 per month to $20.80 per month for the average residential customer in San José. However, historically SJCE has avoided passing these fees onto residents and maintained a consistent rate of approximately 1% less than PG&E’s rate. For more information on this shocking increase see item 6.1 from the May 11th, 2021 Council Meeting. 

SJCE must take the PCIA and other PG&E added fees into account when setting customer rates, thus SJCE is raising GreenSource generation rates by 8.25%. Without this increase PG&E would effectively force SJCE into a downward spiral on costs, eliminating any change of economic stability for the company.  

  •  

To learn more about this fee, visit https://cal-cca.org/pcia/.  

To file a complaint about it with the CPUC, visit https://www.cpuc.ca.gov/complaints/. 


2. Increase renewable energy & expand customer choices. 

To help address our global climate emergency, SJCE is increasing the renewable content of the default service, GreenSource, from 40% to 55%.  

SJCE is committed to increasing renewable energy content for all customers, and with the proposed SJ Cares discount program, low-income customers will pay the lowest generation charges but remain in GreenSource service, receiving up to 55% renewable energy.  

SJCE also proposed a new lower-cost service that costs the same as PG&E, but will still give customers energy saving options. SJCE will market this service and other electricity bill assistance programs to customers who may not qualify for CARE/FERA but cannot afford the GreenSource rate increase. 


What is the New SJCE Proposal? 

SJCE was unanimously approved by the City Council in 2017 to fight climate change and provide customers with choice. In order to meet this goal and maintain fiscal health, SJCE proposed a restructuring of its services and rates at the May 11th, 2021 City Council meeting. These changes are outlined below. 

 

  

  • GreenValue: SJCE’s New Low-Cost Option : An Affordable Alternative to Opting Out of SJCE 

  • GreenValue includes 36% renewable energy and up to 80% carbon-free power. The remaining 20% would be California grid system power.  

  • GreenValue charges are the same price as PG&E standard rates, meaning generation charges would be 0.25% higher than past GreenSource generation charges. This would only be about a 12-cent increase per month for the average residential customer (E-1, using 482 kWh/month). 

  • GreenValue would be open to any customer. 

  • If customers cannot afford to pay the up-to-8.25% premium for higher renewable content in GreenSource, they can opt-down to GreenValue at any time. 

  • These customers can use the enrollment form at Your Choices - San Jose Clean Energy to enroll in GreenValue. 

  • GreenSource: SJCE’s Default Option : A Greener Version of Energy 

  • GreenSource remains SJCE’s default service for new and current customers. 

  •  GreenSource increased from 40% to up to 55% renewable energy to more quickly reduce greenhouse gas emissions, improve air quality, and combat climate change. It contains a total of up to 90% carbon-free power from hydroelectric and nuclear. The remaining 10% would be California grid system power. 

  • GreenSource generation charges would increase by up to 8.25%, or about $4 per month for the average residential customer (E-1, using 482 kWh/month). 

  • Customers who stay in GreenSource will begin to see impacts from the new GreenSource rates on their June or July bills, depending on the timing of their billing cycle. 

  • TotalGreen: SJCE’s 100% Renewable Upgrade Option 

  • TotalGreen remains SJCE’s upgrade option for 100% renewable energy. 

  • For residents, TotalGreen continues to be $0.01/kWh more than GreenSource, or about $4 more than GreenSource per month. 

  • TotalGreen is open to any customer, and customers can upgrade at any time. To upgrade, visit www.SanJoseCleanEnergy.org/totalgreen, call 833-432-2454, or email [email protected]. 

  • SJCE will continue to market TotalGreen to customers to ensure progress on climate goals 

  • SJ Cares Program: SJCE’s Option For Low-Income Customers 

  • SJ Cares allows low-income customers (customers enrolled in state discount programs CARE or FERA) to pay the lowest generation charges of GreenValue but remain GreenSource customers to receive up to 55% renewable energy. SJ Cares customers will not save additional money by choosing GreenValue. 

  • Existing CARE/FERA customers would be automatically enrolled, with no action required by the customer. 

  • If customers have experienced changes in their income due to the pandemic, they should review CARE/FERA requirements to see if they now qualify. Visit https://sanjosecleanenergy.org/discount-programs/ to learn more.  

  • If a customer does not qualify for CARE or FERA but cannot afford to pay the up-to-8.25% premium for GreenSource, they can enroll in GreenValue which is cost-competitive with PG&E. 

  • A small part of the increase in GreenSource generation charges will fund SJ Cares.  


What Can Be Done? 

In order to reduce any future burden on residents, SJCE is advocating for better management of PG&E’s resources at the state legislature and California Public Utilities Commission (CPUC). Mayor Liccardo has also advocated in support of SB 612 (Portantino) which, if enacted, would ensure fair and equal access for all customers and ensures that portfolios are managed to maximize value for all customers. 

For more updates, subscribe to the District 10 Newsletter here.