CARLSBAD — Clean Energy Alliance customers experiencing cost burdens from rising utility bills now have options for rate relief under a new program approved last week.
As of Feb. 1, residential and commercial customers can opt down to CEA’s base plan to achieve rate parity with SDG&E. This option will be available through the end of the year.
CEA board members unanimously approved the program at their Jan. 29 meeting. Discussions about rate relief began late last year amid rising utility rates throughout California and the country.
“I think this is a very challenging time,” said CEA Board Member and San Marcos City Councilwoman María Nuñez. “I continue to receive really a lot of concern from residents, and how difficult it is for them to try to pay for their necessities, high rent, and their utilities.”
CEA has three service tiers, and new customers are automatically enrolled in the second tier, known as Clean Impact Plus, which includes 50% renewable energy and 75% carbon-free energy. Over 90% of CEA’s approximately 275,000 customers are enrolled in Clean Impact Plus.
The rate relief program allows customers to opt down to Clean Impact, which offers 50% renewable energy and guarantees a monthly bill that is equal to or lower than SDG&E’s for their vintage (the year they began CEA service).
Current projections for 2026 indicate that Clean Impact Plus residential customers will pay between $11.54 and $14.34 more on their monthly bills than SDG&E customers. Under the rate relief program, customers will save up to $2.80 compared to SDG&E.
CEA also explored the opt-down option for agricultural customers but found they would still pay a premium compared to SDG&E. Instead, CEA is implementing a 6.9% overall rate reduction for agricultural customers to reduce costs.
Because CEA has fewer than 300 agricultural accounts, the rate reduction will not have a significant impact on the agency’s budget, CEO Greg Wade said.
One of the main causes of rising rates is an increase in the Power Charge Indifference Adjustment, or PCIA, which reflects the difference between the actual costs SDG&E pays for energy resources and their current market value.
PCIA rates have been rising due to a decline in the market value of utility portfolios.
According to Tim Lindl of Keyes and Fox LLP, which advises CEA, there are also other market forces at play that are beyond CEA’s control.
One factor contributing to rising rates is the California Public Utilities Commission’s recent change to the calculation of the market price benchmark, which determines the market value of electrical capacity.
The California Community Choice Association, which represents CEA and other community choice aggregates, is fighting back against these calculations, arguing that they unfairly shift more of the cost burden for energy from investor-owned utility customers to those enrolled in community choice aggregates.
The association has also accused the CPUC of illegal retroactive ratemaking by applying the new calculation not only to 2026 rates but also to 2025 rates.
“Clean Energy Alliance along with San Diego Community Power filed an application for rehearing of the ERRA (Energy Resource Recovery Account) forecast decision, arguing that this year’s rates are also the result of impermissible retroactive rate making,” Lindl said.
Wade said CEA will be able to maintain a “very solid position” financially, even with the loss of money under the rate relief program. If around 30,000 residential customers opted down, that would cost CEA around $5.1 million, he said.
The rate relief program will also have a slight, albeit diminutive, impact on CEA’s number of days’ liquidity on hand, which the agency is trying to increase to achieve an investment-grade credit rating.
Marketing for the program will require a somewhat counterintuitive approach, as CEA usually encourages customers to opt for a higher plan to reduce greenhouse gas emissions. Wade said they will provide communication tools via social media as well as materials shared with board members and stakeholders.
“We plan to engage in social media outreach targeted to communities of concern, those that historically struggle with costs, including these increasing energy costs across the board,” Wade said.
CEA also implemented a bill calculator tool on its website so residents can compare their rates and look at credit offerings.
Board members said they are pleased with the program and the fact that they can help community members.
“We’ve been able to develop a rate relief program that addresses the most vulnerable members of our service territory while also maintaining a strong financial position,” said CEA Board Chair and Vista City Councilmember Katie Melendez.
For more information about the rate relief program, customers can visit thecleanenergyalliance.org or call CEA’s customer service line.
CEA is a community choice aggregate formed in 2019 that provides alternative energy resources to the North County cities of Carlsbad, Del Mar, Solana Beach, Escondido, San Marcos, Vista, and Oceanside.
