Wiktor Wise
San Jose is exploring the launch of its own public utility, San José Power, to address the city's growing power needs. The city aims to tap into two high-voltage transmission lines that will run through the city by 2028, potentially offering lower rates and attracting new businesses. Currently, San Jose Clean Energy (SJCE) is the city's community choice energy program, providing renewable energy options to residents. However, PG&E is still responsible for transmission and distribution, and handles customer and billing services. With San José Power, the city hopes to take greater control of its energy supply and promote economic development.
| Characteristics | Values |
|---|---|
| San Jose's power utility | San Jose Power |
| Date of creation | 2023 |
| Type of utility | Public |
| Energy source | Two high-voltage transmission lines |
| Areas served | North San Jose, San Jose Mineta International Airport, and new development in North San Jose and Diridon Station |
| Account types | Large-scale accounts, including city facilities |
| Energy Department's role | Tapping into high-voltage transmission lines, buying energy and delivering it to select accounts |
| Benefits | Lower rates, faster connection to the grid, job creation, and improved disaster preparedness |
| San Jose Clean Energy (SJCE) | Community Choice Aggregator (CCA) providing renewable energy |
| SJCE's program options | Green Source and TotalGreen |
| PG&E's role | Transmission and distribution for SJCE customers |
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What You'll Learn
San Jose Clean Energy (SJCE)
SJCE offers two choices to its customers: Green Source and Total Green. Green Source is about 45% renewable energy and at least 80% carbon-free, while Total Green is 100% carbon-free and renewable. The program is designed to be competitive with PG&E's rates, costing about 1% less.
While SJCE generates the electricity, PG&E is responsible for its transmission and distribution in San Jose. PG&E also handles customer and billing services, so residents and businesses will continue to receive bills from PG&E.
In February 2019, San Jose residents and businesses were automatically enrolled in the Green Source program, with the option to upgrade to Total Green or stick with PG&E. Residents with rooftop solar panels were not automatically enrolled and were expected to be included in the program in 2020.
The creation of SJCE is part of San Jose's efforts to address its increasing power needs and provide cleaner and more affordable energy options for its residents and businesses.
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PG&E transmission and distribution
The Pacific Gas and Electric Company (PG&E) is an American investor-owned utility company that provides natural gas and electricity to 5.2 million households in the northern two-thirds of California. It is the state's largest utility and is overseen by the California Public Utilities Commission.
PG&E purchases wholesale electric energy and capacity from generators and suppliers. The company has 107,000 miles of distribution lines, 81,000 miles of which are overhead. In July 2021, PG&E announced plans to bury an additional 10,000 miles of its distribution lines over the next 10 years to reduce the risk of wildland fires.
PG&E has been responsible for the transmission and distribution of electricity in San Jose. However, the city has been transitioning to cleaner energy options through its community choice energy program, San Jose Clean Energy (SJCE). SJCE aims to provide cleaner and more competitively priced energy than PG&E. As of 2019, about a third of PG&E’s energy is from renewable sources and about 78% is carbon-free, while SJCE offers two choices: Green Source, which is about 45% renewable energy and at least 80% carbon-free, and Total Green, which is 100% carbon-free and renewable.
While SJCE generates the electricity, PG&E is still responsible for its transmission and distribution in San Jose, as well as customer and billing services. The city is also exploring the launch of its own public utility, San José Power, which would be responsible for buying energy and delivering it to select new accounts in a specific area of the city.
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San Jose Power
The creation of San Jose Power is intended to provide electricity at lower rates, attract businesses, and promote economic development. It is also expected to help the city prepare for disasters by creating innovative microgrids for important facilities like hospitals and emergency operation centers.
San Jose Clean Energy (SJCE) is a separate entity, also run by the City's Energy Department. It is a community choice aggregator (CCA), providing renewable energy to San Jose customers. SJCE offers two choices: Green Source, which is about 45% renewable energy and at least 80% carbon-free, and Total Green, which is 100% carbon-free and renewable.
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Renewable energy
San Jose Clean Energy (SJCE) is a community choice energy provider for 350,000 homes and businesses in San Jose, offering two renewable energy options. The first is Green Source, which is about 45% renewable energy and at least 80% carbon-free. The second is Total Green, which is 100% renewable and 100% carbon-free. The renewable energy sources for SJCE include solar, wind, and hydroelectric power.
In 2022, SJCE achieved a 95% carbon-free electricity mix, the cleanest electricity mix out of the ten largest cities in the US. Renewable sources like solar and wind comprised 60% of SJCE’s power mix, up from 45% in 2019. This is in line with California's goal of having at least 60% of the state's electricity come from renewable sources by 2030.
San Jose is also exploring the launch of its own public utility, San José Power, which would tap into two high-voltage transmission lines running through the city by 2028. The city is also working towards carbon neutrality by 2030, with additional climate efforts such as banning gas-powered appliances and systems in new building construction and encouraging electrification, energy efficiency, and on-site electric vehicle charging.
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Lower electricity prices
San Jose's electricity services are primarily managed through a partnership between San José Clean Energy (SJCE) and Pacific Gas and Electric Company (PG&E). While SJCE provides electricity generation services, PG&E handles the transmission and distribution of electricity.
SJCE is a Community Choice Aggregator (CCA) that aims to provide cleaner energy options to customers at competitive rates. Its Green Source program offers about 45% renewable energy and at least 80% carbon-free energy, while its TotalGreen program offers 100% carbon-free and renewable energy.
In 2019, the average monthly electric bill for residential customers in San Jose was $234, with an average electric rate of 32 ¢/kWh. This rate is 6% higher than the average electricity rate in California and 55% higher than the national average rate.
- Community Solar Programs: Participating in community solar programs can save San Jose residents 5-15% in electricity costs annually. For the average electricity customer, 10% annual savings would amount to $281 in savings per year.
- Time-of-Use (TOU) Rate Plans: Both SJCE and PG&E offer TOU rate plans, where electricity prices are lower during off-peak hours (before 4:00 p.m. and after 9:00 p.m.). Shifting energy usage to these off-peak hours can lead to cost savings. Customers can try TOU rates risk-free for one year with automatic bill protection.
- Net Energy Metering (NEM) Programs: For customers with rooftop solar panels, SJCE offers a NEM program that pays $0.0380375 per kWh for any excess solar energy produced and fed back into the grid. This rate is 25% higher than PG&E’s compensation rate.
- Energy Efficiency: Upgrading to energy-efficient appliances, LED lighting, and enhancing home insulation can help reduce energy consumption and lower electricity bills.
- Solar Panel Systems: Installing solar panels can reduce reliance on the grid and provide savings on electricity bills. On average, solar panel systems can pay for themselves in 5.42 years in San Jose.
- San José Power: The City of San José is exploring the launch of its own public utility, San José Power, which could save some new customers up to 25% on their energy bills. The new utility would serve large-scale accounts, including city facilities, and could create jobs and business opportunities for local contractors.
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Frequently asked questions
San Jose's electricity currently comes from PG&E, with some residents enrolled in the city's community choice energy program, San Jose Clean Energy (SJCE).
San Jose Clean Energy is a community choice aggregator (CCA), which means it supplies renewable energy for San Jose customers, while PG&E is responsible for transmission.
San Jose Clean Energy offers two choices: Green Source, which is about 45% renewable energy and at least 80% carbon-free, and Total Green, which is 100% carbon-free and 100% renewable. It aims to provide cleaner energy options at roughly the same price as PG&E.
San Jose Power is a proposed city-run electric utility that would be responsible for both the generation and delivery of energy to select new accounts in specific areas of the city.
As San Jose's power needs increase, the city aims to provide power at lower rates and bring more competitive development. A public utility could save new customers up to 25% on their energy bills and attract businesses. It could also lead to job creation and faster connection of projects to the grid.
