CPUC meeting

California Public Utilities Commission Votes on New PCIA Methodology

SV Clean Energy financially prepared and evaluating potential impacts

Sunnyvale, Calif. – The California Public Utilities Commission (CPUC) voted on Oct. 11 to change the way that the Power Charge Indifference Adjustment (PCIA) is calculated. The decision sets a new methodology for the way that utilities calculate a fee charged to Community Choice Energy (CCE) customers for power that was contracted before customers switched to another power provider, such as Silicon Valley Clean Energy (SVCE) or Direct Access.

“The CPUC adopted an alternate decision that was not the outcome we had hoped for and ignored the rigorous, equitable solutions for reforming the PCIA that the California Community Choice Association provided, which would have saved money for all ratepayers,” says Don Eckert, SVCE Director of Finance and Administration.

“We planned for the worst-case scenario in our financial modeling and have been preparing for this unfavorable outcome. SVCE was founded to provide our communities with carbon-free electricity and rates competitive to PG&E, this commitment will not change. This decision will not impact our ability to deliver carbon-free energy to our customers.”

While this decision clarifies what the PCIA methodology will be going forward, SVCE will not be able to calculate the decision’s precise impact on 2019 rates and revenues until PG&E’s 2019 rate forecast is released in November.

In 2017, the SVCE Board of Directors set rates for the agency’s first year to be one percent below PG&E’s equivalent generation rate. This discount included PG&E’s added fees, such as the PCIA. This allowed SVCE to quickly build up reserves, which are crucial for protecting ratepayers in the state’s ever-changing regulatory environment. This reserves policy allowed for SVCE to become debt-free in early 2018 by repaying all initial startup loans two years ahead of schedule.

The fight for fair competition and equitable rates is not over. SVCE is working with other CCE agencies through CalCCA, the CCE trade association, to investigate options for appealing some aspects of this decision. Further, SVCE is participating in PG&E’s 2019 Energy Resource Recovery Account proceeding, which is the annual proceeding in which the PCIA methodology is combined with PG&E’s actual cost and contract data to calculate the PCIA for the next year. SVCE is also preparing for Phase 2 of the PCIA proceeding, which seeks to develop further, longer-term improvements to the PCIA process.


About Silicon Valley Clean Energy

Silicon Valley Clean Energy is a community-owned agency serving the majority of Santa Clara County communities, acquiring clean, carbon-free electricity on behalf of more than 270,000 residential and commercial customers. As a public agency, net revenues are returned to the community to keep rates low and promote clean energy programs. Member jurisdictions include Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and unincorporated Santa Clara County. SVCE is guided by a Board of Directors, which is comprised of a representative from the governing body of each member community. For more information, please visit SVCleanEnergy.org.

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