At its Jan. 29 meeting, the Clean Energy Alliance (CEA) Board of Directors approved rate relief measures to allow customers to decrease their energy costs. The measures will mitigate significant increases in state-mandated charges for CEA’s customers, ensuring customers can continue to pay competitive rates compared to the local investor-owned utility, San Diego Gas & Electric (SDG&E).

CEA approved two resolutions providing approximately $10.6 million in available rate relief. The action comes in response to substantial increases in SDG&E’s Power Charge Indifference Adjustment (PCIA) rates for 2026, which threatened to increase costs for CEA customers across seven member cities.

“Our team is committed to keeping electricity affordable and offering customer choice while maintaining our mission to deliver clean energy,” said CEA Chief Executive Officer Greg Wade. “Together with our Board of Directors, we are acting decisively, ensuring our customers can benefit from competitive rates while maintaining the value of local control over their energy choices.”

For residential and commercial customers on CEA’s Clean Impact plan, the approved rate relief credits will provide an immediate bill reduction through Dec. 31, 2026. Residential customers will receive a credit of $0.03871 per kilowatt-hour, while non-residential customers will receive a credit of $0.02657 per kilowatt-hour. These credits are designed to achieve rate parity with SDG&E for customers on CEA’s Clean Impact power supply option, with most customer groups seeing their bills match or fall below SDG&E rates.

An additional agriculture rate reduction of 6.9% will decrease costs for all agricultural customers on the Clean Impact plan, addressing the unique needs of farming operations in CEA’s service territory. The reduction ensures agricultural customers also achieve competitive rates compared to SDG&E.

The PCIA is a state-mandated charge that compensates investor-owned utilities like SDG&E for long-term energy contracts when customers switch to community choice providers like CEA. While CEA has no control over PCIA rates, the locally controlled utility’s strong financial position has allowed it to absorb these increases and continue to effectively serve its community.

“Even with these relief measures in place, CEA will maintain a healthy financial outlook,” added Wade. “Our careful financial management means we can support our customers during challenging rate environments while continuing to invest in our local clean energy projects and programs.”

The rate relief measures take effect Feb. 1, 2026, and will remain in place through the end of the year.

To help customers make informed decisions about their electricity choices, CEA also recently launched a new Bill Comparison Calculator, a digital resource designed to help customers better understand their energy bills based on their household needs, priorities and budgets. The calculator provides a clear, side-by-side comparison of CEA’s three energy options and San Diego Gas & Electric (SDG&E), giving customers greater visibility into how electricity supply costs are calculated and how different service options may affect their monthly bill.

For more information about CEA’s rates and programs, visit TheCleanEnergyAlliance.org or contact info@thecleanenergyalliance.org.

About Clean Energy Alliance

Clean Energy Alliance (CEA) is a locally controlled, not-for-profit power provider serving over 255,000 customer accounts in the cities of Carlsbad, Del Mar, Escondido, Oceanside, San Marcos, Solana Beach and Vista, with a focus on clean energy, sustainability, competitive rates and community reinvestment. CEA follows a community choice aggregation (CCA) model that allows local governments to purchase power to meet their community’s electricity needs, offering an alternative to investor-owned utilities’ bundled rate service.

Frequently Asked Questions

SDG&E’s 2026 PCIA rates increased dramatically: between 3.5 and 5.4 cents per kilowatt-hour depending on when your city joined CEA. Without action, most CEA customers would pay more than SDG&E customers. CEA is using rate relief credits to ensure our customers maintain competitive rates and continue benefiting from local energy choice.

Residential customers enrolled in Clean Impact service will receive a credit of about $0.039 or 3.9 cents per kWh, achieving parity or savings compared to SDG&E. Small commercial customers on Clean Impact can save $6 to $8 per month compared to SDG&E. Medium and large commercial customers can save $240 to $485 per month depending on the year their city joined CEA. Agricultural customers will see a 6.9% rate reduction across all agricultural schedules.

Changes will be in effect starting on February 1 and anticipated to end on December 31. CEA will reassess rates before the end of the year based on 2027 rate forecasts.

Credits and agricultural rate reductions are applied automatically for Clean Impact customers. If you are currently enrolled in Clean Impact Plus or Green Impact, you can consider opting down to Clean Impact to maximize your savings. Customers can compare options using the Bill Comparison Calculator at TheCleanEnergyAlliance.org/Bill-Comparison-Calculator/.

The Power Charge Indifference Adjustment (PCIA) is a state-mandated fee that compensates SDG&E for long-term energy contracts when customers switch to community choice providers like CEA. The California Public Utilities Commission sets these rates annually, and they increased substantially for 2026. CEA has no control over PCIA rates, but we’re working to protect our customers from the impacts. Learn more about the PCIA in our general FAQ section.

Yes. CEA has practiced careful financial management since our founding, building reserves for these types of situations. Even with $10.6 million in rate relief, we project $40 million positive net position through June 2026, 84 days of liquidity on hand and $92.8 million net position by December 2026.

No. We have structured this relief to protect both our customers and our clean energy mission. CEA will continue advancing local renewable projects, including our Solar Plus Business program with Luminia, and developing new customer programs and incentives.

Clean Impact provides 50% renewable energy and is competitive with SDG&E rates, especially with the new rate relief credit. Clean Impact Plus is our default option with 50% renewable/75% carbon-free energy content. With the new rate relief credits, the average customer on Clean Impact will achieve parity or savings compared to SDG&E.

We do not know yet. PCIA rates are set annually by the California Public Utilities Commission. CEA will continue monitoring rate forecasts and taking action as needed to maintain competitive rates for our customers.

That depends on your priorities and budget. Use our Bill Comparison Calculator to see exactly how each option affects your bill. If cost is your primary concern, Clean Impact with the rate relief credit will likely be your most valuable option. If maximizing your impact on the environment with higher renewable energy content is your highest priority, Clean Impact Plus or Green Impact may be worth the small premium.