SJCE Celebrates Second Anniversary of Service

In February 2021, San José Clean Energy (SJCE) celebrated two years of serving San José residents and businesses. Since launch, SJCE has invested in nearly 500 MW of new renewable generation, partnered in delivering $14 million of new infrastructure funding to double the amount of public EV charging stations in San José, and collectively saved customers $8.5 million while providing more renewable energy. SJCE staff have helped the City better respond to emergencies and plan for a cleaner, more resilient, and more distributed future.

A recent report from the UCLA Luskin Center found that Community Choice Aggregators (CCAs) like SJCE are accelerating California’s transition to clean energy. Between 2011 and 2019, CCAs purchased 204% in excess of state renewable energy requirements, indirectly leading investor-owned utilities like PG&E to invest in more renewables, too. CCAs have come a long way from first launching in 2010 in Marin County; 23 CCAs represent more than 30% of the state’s population and have signed onto the development of more than 10,000 MW of new renewables.

We are proud to be part of the model that is innovating energy solutions and will be key in transitioning California to a safe, fossil-free economy.

New Time-of-Use Schedule Takes Effect in March 2021

As mandated by the California Public Utilities Commission (CPUC), new time-of-use (TOU) rates, wherein the peak and most expensive hours will occur in the evening (4 p.m. to 9 p.m.), will become mandatory for commercial customers starting March 1, 2021. This change will apply to both PG&E and SJCE charges.

These new TOU rates can help maximize the benefits of renewable energy on the California grid by incentivizing usage during the day when demand is lower and more solar energy is available. Between 4 p.m. and 9 p.m. when the sun sets and fossil fuel power plants are needed to meet the peak in evening energy demand, prices will be higher.

In addition:

• The more expensive summer season has been shortened by two months and now runs only from June 1 through September 30.
• For most commercial customers, summer off-peak hours are between 11 a.m. and 2 p.m. During the winter (October 1 through May 31), off-peak hours are between 2 p.m. and 4 p.m. and 9 p.m. to 9 a.m.
• A new “Super Off-Peak” rate will be introduced for March, April, and May for the hours between 9 a.m. and 2 p.m. when solar production is plentiful and air conditioning demand is not as high as in the summer.

Customers with a solar Net Energy Metered (NEM) system that was interconnected prior to July 31, 2017 will be grandfathered into their current TOU rate plan for 10 years from the date of interconnection.

Please reach out to the SJCE team with any questions and refer to PG&E’s page for more information.

PCIA Opportunity in 2021

One of the most significant drivers of energy costs in California is the above-market costs in investor-owned utility energy portfolios, which all ratepayers pay for via the Power Charge Indifference Adjustment (PCIA). The above-market costs stem from legacy energy contracts and power plant operating costs. The current value of these resources is subtracted from their annual cost, so in theory, as energy prices rise, this PCIA will fall due to increased value from the generation assets. However, the PCIA in PG&E territory has risen over 900% between 2013 and 2021, while energy prices have remained relatively stable (see the chart below). The large increases in above-market costs limit the savings that customers can receive today from low cost renewable resources.

SJCE and other California Community Choice Energy programs will push in 2021 for PCIA regulations that reduce costs for all customers. This is a major policy area for SJCE and represents a key energy cost driver that can be improved through smart policy. Please look out for more communications from SJCE on this topic and reach out if you would like to support.

PG&E January & March Rate Changes

In its January rate change, PG&E released some slight generation rate decreases. For example, kWh charges for E19S/B19S customers dropped an average of 0.11% and kWh charges for E20S/B20S customers also dropped an average of 0.11%. But the overall trend shows rising costs. PG&E generation rates are increasing by about 2% this month, and their distribution costs will also continue to rise, partially due to increased wildfire related costs.

To track rate changes, you can access all of our rate sheets and memos to the City Council on our Resources page. And again, the greatest opportunity for reducing energy costs is working with SJCE and community partners to reduce and reform the PCIA and allow CCAs in California to pass more savings to their customers.

CALeVIP Update and Another Opportunity for EV Public Charging Funding

In a showing of the strong demand for transportation electrification, the San José portion of funds for the California Electric Vehicle Infrastructure Project (CALeVIP) ($14 million) quickly filled with applications within hours of opening in December. Center for Sustainability (CSE), the program administrator, and SJCE staff are currently vetting applicants to ensure they meet participation criteria and will begin awarding funding in just a few months. If your organization is interested in future electric vehicle charging infrastructure incentives, we still encourage you to apply on the Project website and join the waitlist. SJCE hopes to use the list of applicants for future program outreach.

The Bay Area Air Quality District’s (BAAQMD) Charge! Program presents another opportunity to receive grant funding for the purchase and installation of new publicly accessible chargers for light-duty electric vehicles at workplaces, destinations, transit parking locations, and multi-unit dwelling facilities. A total $6 million in grant funding is available for organizations including governments, businesses, and nonprofits in the Bay Area.

All applications are due on or before March 18, 2021. All prospective applicants MUST attend at least one mandatory pre-application workshop before applying. Each workshop will be held online via webinar and is limited to 100 attendees. Registration is required. The next workshop is scheduled for March 2, 2021 at 1 p.m.

Find updates, questions and answers, details on eligibility and the application process, the online application, and more on BAAQMD’s website.