SAW:BCK:DJF
11/17/2025
T-31685.002.001.001 / 2262428 1
Council Agenda: 12-02-2025
Item No.: 6.3
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING THE ENERGY DEPARTMENT TO
ISSUE BILL CREDITS TO SAN JOSE CLEAN ENERGY
CUSTOMERS IN AN AMOUNT NOT TO EXCEED $25
MILLION
WHEREAS, in 2025, energy market prices were lower than forecasted due in part to a mild summer, resulting in San José Clean Energy (SJCE) accumulating substantial operating reserves; and
WHEREAS, at the same time, the Power Charge Indifference Adjustment (PCIA) — a state-mandated fee collected by Pacific Gas & Electric Company (PG&E) that impacts customer bills — is expected to increase significantly beginning January 1, 2026; and
WHEREAS, to ease the transition for customers and return excess reserves in a timely and equitable manner, staff recommends issuing bill credits totaling approximately $25 million and
WHEREAS, under the proposal, all SJCE customers—excluding net energy metering customers who are net energy generators over the course of 12 months—would receive a bill credit; and
WHEREAS, residential customers will receive a flat credit of $40 each, totaling approximately $12.5 million; and
WHEREAS, non-residential customers will receive credits distributed proportionally based on usage, segmented across three customer classes (small, medium, and large commercial), totaling approximately $12.5 million; and
SAW:BCK:DJF
11/17/2025
T-31685.002.001.001 / 2262428 2
Council Agenda: 12-02-2025
Item No.: 6.3
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the $40 credit represents approximately 70% of an average residential customer’s current monthly SJCE generation charges; and
WHEREAS, credits will be automatically applied to January 2026 bills, and SJCE’s Rate Stabilization Reserve will be used to fund the credits;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
The Energy Department is authorized to issue bill credits to San José Clean Energy customers in an amount not to exceed $25 million.
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SAW:BCK:DJF
11/17/2025
T-31685.002.001.001 / 2262428 3
Council Agenda: 12-02-2025
Item No.: 6.3
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, MMC
Cit
y Clerk