In order to avoid a rate increase, you may enroll in the new here. If you do not enroll, you will be automatically enrolled in the 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 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, , 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 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 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.
- : SJCE’s New Low-Cost Option : An Affordable Alternative to Opting Out of SJCE
includes 36% renewable energy and up to 80% carbon-free power. The remaining 20% would be California grid system power.
charges are the same price as PG&E standard rates, meaning generation charges would be 0.25% higher than past generation charges. This would only be about a 12-cent increase per month for the average residential customer (E-1, using 482 kWh/month).
would be open to any customer.
If customers cannot afford to pay the up-to-8.25% premium for higher renewable content in , they can opt-down to at any time.
These customers can use the enrollment form at Your Choices - San Jose Clean Energy to enroll in .
- : SJCE’s Default Option : A Greener Version of Energy
remains SJCE’s default service for new and current customers.
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.
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 will begin to see impacts from the new rates on their June or July bills, depending on the timing of their billing cycle.
Customers would be able to opt out of and switch their service at any time at www.SanJoseCleanEnergy.org/Your-Choices
- : SJCE’s 100% Renewable Upgrade Option
remains SJCE’s upgrade option for 100% renewable energy.
For residents, continues to be $0.01/kWh more than , or about $4 more than per month.
SJCE will continue to market 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 but remain customers to receive up to 55% renewable energy. SJ Cares customers will not save additional money by choosing .
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 , they can enroll in which is cost-competitive with PG&E.
A small part of the increase in 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 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.
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