San Diego Community Power (SDCP) launched earlier this March! This is an exciting step towards climate conscious energy provision, and a pathway to providing 100% renewable energy for all of Encinitas. SDCP is a Community Choice Aggregator (CCA), which increases the community’s investment in clean electricity while providing competitive electricity pricing. SDCP fulfills a key goal of the City’s CAP, launching a Community Choice Energy program that serves 100% renewable electricity to customers by 2030. This is a particularly impactful portion of the City’s greenhouse gas (GHG) reduction strategy due to the fact that our electricity has traditionally been sourced from fossil fuels, contributing heavily to overall carbon emissions, with a limited percentage of renewables as an addition.
SDCP will automatically opt in all customers in phases and offer options to opt for various offering or opt out to receive power from SDG&E. SDCP has launched service in Phase 1 currently, providing service to municipal accounts and other similar accounts, like school districts. Phase 2 will roll out in June 2021, providing service to commercial and industrial accounts. Beginning in Phase 2, Encinitas customers will be opted in at the 100% renewable energy tariff, Power100, thanks to a City Council decision made in February. Finally, Phase 3 will roll out in May 2022, providing service to residential accounts.
California currently has 23 CCAs in operation, serving over 11 million customers. SDCP is the second-largest CCA in the state, and is expected to onboard 770,000 customers within the next year. SDCP will ensure our region is prepared to meet the statewide goal of 100% carbon free electric energy by 2045 well ahead of that mark.
How does electricity choice work?
Without a CCA, the typical scenario is for an investor-owned utility to control and decide energy procurement, as well as distribution and pricing. Our local utility, SDG&E purchases sources of electricity from natural gas, solar, wind, etc. to meet customers energy needs. SDG&E also maintains responsibility over distribution (poles, wires) to deliver the electricity to the public. Finally, SDG&E handles billing and customer service issues associated with that service.
With a CCA in place, Encinitas customers will have two options in which to purchase their electricity, SDCP or SDG&E. Meanwhile, SDG&E will maintain responsibility for the delivery of electricity through poles, wires, and other transmission equipment. SDG&E will also continue to handle billing, although San Diego Community Power will appear on your bill from SDG&E as your new electricity supplier.
1. What benefits does San Diego Community Power provide?
There are numerous benefits to SDCP, including cleaner power at competitive prices, local control by community representatives, reinvestment of revenues into community programs, local green job creation, and proven success in over 170 communities across California.
2. Who runs San Diego Community Power?
As a locally-run not-for-profit, SDCP is essentially run by the residents and businesses of the cities of Chula Vista, Encinitas, Imperial Beach, La Mesa and San Diego. All key decisions are made by the Board of Directors, who are local elected leaders accountable to their constituents, at open meetings. Leadership of day-to-day operations is managed by Interim Chief Executive Officer, Bill Carnahan, a highly experienced public utility and CCA executive.
3. How does San Diego Community Power procure clean and renewable energy?
San Diego Community Power will buy a higher percentage of electricity generated from renewable sources on the open market. Over time, SDCP will also invest in and build local renewable energy projects, as other more established CCA programs are now doing.
Companies that generate electricity are required by state law to identify their resources and file a detailed report on the content of their generated power. SDCP is also required to submit this information to state regulators to ensure compliance with the law. These reporting requirements allow us to be sure that our power procurement strategy supports clean and renewable energy. Moving forward, SDCP plans to procure steadily increasing amounts of renewable energy, including locally-generated power that develops our economy and provides jobs in our communities.
Find more answers to common questions at https://sdcommunitypower.org/faq/
Total California CCA Long-Term Renewable Power Contract Commitments
Encinitas’s participation in SDCP will have far reaching benefits in the fight against climate change, with a projected GHG emissions reduction of 21,000 MTCO2e by 2030. This is a significant step forward into a future greater local, equitable, and resilient energy choices for all Encinitans!
Visit SDCP’s website here to learn more and pass along the good news to your Encinitas family and friends!