The City of Carlsbad recently completed its first year of service with the Clean Energy Alliance, a greener energy alternative that has been providing local residents and businesses with cleaner power at competitive rates since May 2021.
The cities of Carlsbad, Del Mar and Solana Beach were the first to join when the alliance was formed in November 2019. Under the program, SDG&E still delivers the energy, but the alliance purchases the power first and builds in renewable energy sources to provide a minimum 50% renewable energy supply for customers.
Households and businesses in Carlsbad are automatically enrolled but can choose to opt out. In its first year, the alliance has seen:
- 92.2% participation among 60,000 eligible households, who can choose from three power-supply options:50% renewable energy; 75% carbon free or 100% renewable energy. (Most customers are enrolled in the 75% carbon-free plan.
- Greenhouse gas emissions have been reduced by more than 50%, compared to the energy mix delivered by the previous supplier, SDG&E
- Customers have saved nearly $2 million on their energy bills
- Four more cities – Escondido, San Marcos, Vista and Oceanside – have joined the alliance and will start receiving service over the next two years
- By 2024, the alliance will be the 10th largest community choice aggregation service in California, with 270,000 accounts
The alliance is just one way the City of Carlsbad is working to reduce greenhouse gas emissions as part of its Climate Action Plan. Since the plan was adopted in 2015, the city has implemented several new environmental programs, updated city laws and taken other steps to surpass the plan’s 2020 target, which was to reduce greenhouse gases 4 percent below 2012 levels.
The city is now working toward the next target: to reduce greenhouse gases to 52% under 2012 levels by 2035.
The alliance is a Joint Powers Authority among all the member cities, which means it’s locally controlled and supported by ratepayers, with no taxpayer subsidies. It’s funded by program revenues and reserves, which can be redirected back into the community for various energy related programs.
Rates
Energy rates for the alliance were set in January 2022 and adjusted in February 2022, meeting the goal of a 2% cost savings over SDG&E.
SDG&E adjusted its rates in June and, as a result, some alliance customers are temporarily paying about $1.44 per month more than they would under SDG&E. However, the SDG&E rates are projected to rise again in January and the alliance’s 2% cost savings should return.
More information
Clean Energy Alliance
Climate Action Plan
Climate Action Plan webpage
