How Does San Diego Community Power Work?
What is San Diego Community Power?
San Diego Community Power (SDCP) is a community choice aggregation program formed to provide renewable energy options to residents and businesses in the San Diego region. It is a joint powers authority created in 2019 by the five member cities of Chula Vista, Encinitas, Imperial Beach, La Mesa and San Diego.
As a community choice aggregator, SDCP purchases power on behalf of electricity customers within its service area. It provides an alternative to the incumbent utility, San Diego Gas & Electric (SDG&E), by offering competitive rates and allowing customers to choose their renewable energy mix.
SDCP is a not-for-profit public agency focused on providing clean energy choices at competitive rates. As a CCA, SDCP takes over the role of purchasing power for its member communities while SDG&E continues to deliver the electricity over its distribution system and provide customer billing services.
How was SDCP formed?
San Diego Community Power (SDCP) was created in 2019 by five cities in San Diego county: San Diego, Chula Vista, Encinitas, La Mesa and Imperial Beach. These cities formed SDCP as a joint powers authority (JPA) to provide renewable electricity to residents and businesses. https://sdcommunitypower.org/about/about-sdcp/ Each city passed an ordinance to participate in the JPA and enable SDCP to provide electric services in their communities.
What cities participate?
San Diego Community Power (SDCP) was originally formed through the partnership of five cities in the San Diego region: San Diego, Chula Vista, La Mesa, Encinitas, and Imperial Beach. These original five cities joined together with the goal of providing clean, renewable electricity to residents and businesses at lower rates than the incumbent utility SDG&E.
Since its launch in 2021, SDCP’s service area and participating members have expanded. As of 2022, SDCP additionally serves the cities of National City, Unincorporated San Diego County, and Del Mar. Over 200,000 customers are enrolled across SDCP’s entire service area.
How does enrollment work?
San Diego Community Power enrollment happens in phases for the 8 member cities (https://sdcommunitypower.org/faq/). Customers are automatically enrolled based on their location and service start month. Residents and businesses do not need to take any action to get San Diego Community Power service.
If customers want to opt out and stay with SDG&E, they must submit an opt out request by their designated enrollment date (https://sdcommunitypower.org/wp-content/uploads/2021/09/Phase-1-Enrollment-Notice-2.pdf). There are several ways to opt out – online, by phone, or by mail. Customers who opt out will see no change to their electric service – SDG&E will continue as their energy provider.
The enrollment timeline varies for each of the 8 member cities. San Diego, Chula Vista, La Mesa, and Imperial Beach enrolled first in 2021. Then in 2022, Encinitas, Del Mar, Santee, and National City began enrollment. All customers should receive advance mailed notices with details on their enrollment date and instructions for opting out if desired.
What are the rate options?
San Diego Community Power offers three rate options for customers:
The default rate option is Power100 Renewable, which provides 100% renewable energy at rates competitive with SDG&E. According to San Diego Community Power, “Power100 Renewable costs about 1% less than SDG&E’s current rates” [1].
Customers also have the choice of Power50 Renewable, which is 50% renewable energy, or Power100 EcoSource, which is 100% renewable energy from geothermal and solar sources located in Imperial Valley. The Power50 Renewable and Power100 EcoSource options have slightly lower rates than the Power100 Renewable default option.
Overall, San Diego Community Power aims to provide competitive rates compared to SDG&E across all of its offerings. The rate options allow customers some choice over the renewable energy source and balance of cost savings versus 100% renewable energy.
Where does the energy come from?
San Diego Community Power sources its electricity from a mix of renewable sources like solar, wind, and geothermal power. This renewable energy mix is blended with electricity from conventional sources to provide reliable service at competitive rates.
Approximately 50% of the electricity provided by SDCP comes from renewable or emissions-free sources. This represents a higher renewable energy percentage than what is currently provided by San Diego Gas & Electric. SDCP is working to steadily increase its renewable energy mix over time with a goal of achieving 100% renewable energy by 2035.
By pooling the electricity demand of participating cities across the region, SDCP can purchase competitively priced clean energy on behalf of the customers it serves. This gives residents and businesses local control over their energy supply while providing access to more renewable energy.
How is billing handled?
SDG&E handles the billing, metering, and transmission for San Diego Community Power customers, while SDCP provides the electricity generation (https://sdcommunitypower.org/billing-rates/understanding-your-bill/). Customers receive a single electric bill from SDG&E that includes charges from both SDG&E and SDCP.
The SDCP charge is listed separately on the SDG&E bill under the “Electricity Generation” section. This charge goes to SDCP for the cost of procuring electricity on behalf of customers. The transmission, distribution, and other charges on the bill go to SDG&E for delivering the electricity and maintaining infrastructure (https://sdcommunitypower.org/billing-rates/residential-rates/).
Customers pay SDG&E directly for the full amount owed each month. SDG&E then remits the SDCP charges to San Diego Community Power. This consolidated billing approach makes the transition to SDCP seamless for customers.
What are the benefits?
There are several key benefits to enrolling in San Diego Community Power, including:
More renewable energy options – SDCP provides much of its electricity from renewable sources such as solar, wind and small hydroelectricity—which do not pollute or produce greenhouse gases (https://sdcommunitypower.org/faq/). Customers can choose from two different “Green” energy plans with 50% or 100% renewable content.
Lower rates – SDCP offers competitive rates aimed at being 1-2% lower than the local utility (https://sdcommunitypower.org/faq/). Any savings generated are reinvested back into community programs.
Reinvests revenue in community – As a not-for-profit public agency, SDCP returns net revenues back to the community through customer savings and local programs (https://sdcommunitypower.org/wp-content/uploads/2021/01/SDCP_FAQs_English.pdf). This keeps money local instead of paying corporate shareholder profits.
What is the governance structure?
San Diego Community Power is governed by a Board of Directors comprised of elected officials representing each city that participates in the program. The Board is responsible for establishing SDCP’s policies and objectives (https://sdcommunitypower.org/about/your-sdcp-team/).
There is also a Community Advisory Committee that provides input and recommendations to the Board on issues such as rate setting and program design. The committee consists of community members appointed by each participating city (https://sdcommunitypower.org/resources/meeting-notes/). This structure allows for both elected leadership oversight as well as community engagement and participation.
How can customers participate?
There are a few ways SDCP customers can get involved and participate:
Customers can attend SDCP board meetings, which are open to the public. Board meetings provide an opportunity for customers to learn about SDCP operations and provide public comment.
Customers can also apply to join the Community Advisory Committee (CAC). The CAC consists of community volunteers who provide input on SDCP policies and programs. CAC members attend monthly meetings and act as liaisons between the community and the SDCP board.
In addition, customers can provide input and feedback directly to SDCP. Customers can call SDCP, email staff, or submit comments through the website. SDCP states that they welcome customer feedback as they work to provide clean energy choices at competitive rates.1
