City of San Diego predicts community choice energy can beat SDG&E rates by 5% on customers’ bills

The city of San Diego has run the numbers and concludes adopting a community choice energy program will not only offer rates about 5 percent lower than San Diego Gas & Electric but will be a money-maker that can generate an estimated average of $110 million per year.

But questions about a critical fee that community choice aggregation, or CCA, customers must pay each month and recent developments involving higher energy rates affecting a CCA in Ventura and Los Angeles counties have raised caution flags in some circles.

The city’s figures come from a business plan prepared by MRW & Associates, a consultancy group based in Oakland founded by the former chairman of the California Energy Commission. The study said it used conservative assumptions and concluded community choice aggregation, or CCA, in the San Diego area will deliver total net income of about $1.75 billion from 2020 to 2035.

“This is a business plan; this is not a crystal ball,” said Cody Hooven, chief sustainability officer for the city of San Diego. But should the area adopt a CCA, the $110 million per year average is solid, Hooven said, going “above and beyond the funding reserves” and “paying off all of the bills the CCA generates.”

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City of San Diego predicts community choice energy can beat SDG&E rates by 5% on customers’ bills, by Rob Nikolewski, The San Diego Union-Tribune, June 30, 2019.

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