2026 POWER CONTENT
AND RATES
Lori Mitchell, Director
Zach Struyk, Assistant Director
City Council
February 10, 2026
STAFF RECOMMENDATION
1 Adopt a resolution:
• Maintaining the renewable energy content of GreenSource at 62% renewable and set rates according to the rate schedule in Attachment A, effective March 1, 2026;
• Continuing to set the rate for TotalGreen to $0.01 per kilowatt-hour above GreenSource for all rate schedules according to the rate schedule in Attachment B, effective March 1, 2026 and maintain the renewable energy content of TotalGreen at 100% renewable; and
• Maintaining the renewable energy content of SJ Cares at 62% renewable and set rates at a 10% discount to GreenSource rates, according to the rate schedule in Attachment C, effective March 1, 2026.
Lori Mitchell, Director
Zach Struyk, Assistant Director
2026 GreenSource generation charges
including PG&E costs:
• 18% lower (and 27% lower since
2024)
• Customers will pay $92 million less for
SJCE generation service
• GreenSource rates will be 3% lower
than PG&E
• Reduce operating reserves by $108M
• Through long-term planning, SJCE
shields customers from PG&E's PCIA
volatility.
RECOMMENDATION SUMMARY
$
2 DESIGNING RATES IN COMPETITIVE MARKET
3 *PG&E
Rates
Recover
costs by
customer
class
Recover
costs
system-
wide
• Complete cost-of-service study to
ensure all costs are recovered and
financial goals can be met
• Review current rates to determine if
they recover costs
• Consider all competitive service
options (i.e., compare to PG&E)
• Design competitive rates
*PG&E rates are not necessarily representative of SJCE’s cost to serve.
PCIA= LEGACY ABOVE MARKET COSTS
4 • PCIA costs come from long-term utility contracts
and assets from decades ago
• PCIA calculations change year to year, little
transparency, and hard to predict
• CCAs are advocating for PCIA solutions that
increase transparency, reduce costs and increase
stability for all ratepayers
PORTFOLIO
COSTS
PORTFOLIO
VALUE
STRANDED
COSTS
PCIA CALCULATIONS =
Stranded "Above Market" Costs
Source: https://cal-cca.org/pcia/
In 2026,
customers will pay
$132 million to
PG&E.
The 2026 PCIA is
470% higher than
2025
PCIA COSTLY AND UNPREDICTABLE
SJCE actively offsets PCIA costs to keep customer rates lower 5 6
Customers will pay $5 million less than PG&E and
$92 million less than 2025.
2026 RATES WILL BE LOWER THAN PG&E
7 SJCE accessing $108M in reserves to lessen impact of 470% increase in PCIA fees collected by PG&E 2026 EXPECTED FINANCIALS
8 POWER CONTENT & CUSTOMER PROGRAMS
• CY2026 Estimated GreenSource Power Content
• 62% renewable, 89% carbon free
• PG&E 23% renewable in latest filing
• Customer Energy Programs
• Staff recommending $13.5M budget in FY2026-2027
at T&E Committee and Council in spring 2026
• Rebates for EVs, Heat Pumps, batteries; electricity bill relief • 5-year refresh of programs roadmap to T&E and City
Council in spring 2026
• Financial stability
• SJCE will have $50M-$60M in reserves above 180-
day target at end of 2026 to help manage future
volatility
STAFF RECOMMENDATION
9 Adopt a resolution:
• Maintaining the renewable energy content of GreenSource at 62% renewable and set rates according to the rate schedule in Attachment A, effective March 1, 2026;
• Continuing to set the rate for TotalGreen to $0.01 per kilowatt-hour above GreenSource for all rate schedules according to the rate schedule in Attachment B, effective March 1, 2026 and maintain the renewable energy content of TotalGreen at 100% renewable; and
• Maintaining the renewable energy content of SJ Cares at 62% renewable and set rates at a 10% discount to GreenSource rates, according to the rate schedule in Attachment C, effective March 1, 2026.
Lori Mitchell, Director
Zach Struyk, Assistant Director