San Diego Community Power, the not-for-profit agency that resells clean electricity, said Monday its board approved new rates that will undercut San Diego Gas & Electric by 3%.
The three-year-old joint-powers agency said that the new rates will help customers save money while also supporting a goal of achieving 180 days cash on hand by October to qualify for a credit rating.
The new rates will take effect on Feb. 1. They apply only to electricity as SDG&E continues to be the only supplier of natural gas. Savings would amount to several dollars a month for the average customer.
“San Diego Community Power’s mission is to provide the lowest rates possible for its customers while maintaining a strong financial foundation,” said Board Chair Joe LaCava, who is a San Diego City Councilmember.
“The approved rates continue to give San Diegans a less expensive option for electricity today while investing in this young organization’s reserves for rate and operational stability tomorrow,” LaCava said.
San Diego Community Power buys electricity from solar, wind and battery sources and distributes it over existing power lines, with SDG&E providing meter reading, billing, and line maintenance for customers. Currently 55% of the power sold is from renewable sources, compared to 45% for SDG&E.
The agency serves San Diego, Chula Vista, Encinitas, La Mesa, Imperial Beach and will soon expand to National City and unincorporated parts of San Diego County.
The agency said that it can achieve lower rates because its not-for-profit model eliminates the need to compensate shareholders.