Customers Have Saved $69 Million Since Launch
Sunnyvale, Calif. – New electric generation rates for Silicon Valley Clean Energy (SVCE) took effect on January 14, 2021. SVCE’s 2021 generation rates have been reduced significantly, offsetting a major increase in PG&E’s Power Charge Indifference Adjustment (PCIA) fee. SVCE customers now earn a one-percent discount to the equivalent PG&E electric generation rate. Since launching service in 2017, SVCE has provided electricity generated exclusively from renewable and carbon-free sources, and direct on-bill savings totaling $69 million for all customers.
In December, the SVCE Board of Directors voted to lower SVCE generation rates and change the discount to PG&E rates from four to one percent. This was done in response to lower PG&E electric generation rates in 2021, as well as a 40 percent increase in the PCIA fee paid to PG&E. SVCE continues to account for these fees in the agency’s rate setting process so customers still save compared to PG&E generation rates. While customers will generally pay less for electric generation than last year, PG&E transmission and delivery rates, and added fees, have increased.
The PCIA is a fee charged by PG&E to customers who are served by Community Choice Energy providers like SVCE, or other independent energy service providers. The Franchise Fee (FF) is another fee collected from PG&E to cover costs associated with rights to use public streets to provide gas and electric service. SVCE has been an active participant in the California Public Utilities Commission proceeding for the PCIA as the fee is an ongoing challenge for the 23 Community Choice Energy providers throughout California. More PCIA info at cal-cca.org/pcia.
“SV Clean Energy is committed to delivering on our promise to provide affordable, reliable and clean energy to our customers and communities,” said Girish Balachandran, SVCE CEO. “To achieve this, we must remain nimble and fiscally prudent to be able to maintain our competitiveness in the ever-evolving energy markets and regulatory environment.”
SVCE recently received an ‘A’ credit rating from S&P Global, following a Baa2 rating from Moody’s in 2020. The credit ratings are a result of sound financial policies and stable outlooks for the agency’s finances and enable SVCE to negotiate new energy supply contracts at lower costs, resulting in lower energy rates for customers.
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing clean electricity from renewable and carbon-free sources to more than 270,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at SVCleanEnergy.org.
Contact Pamela Leonard
O: 408-721-5301 x1004