San Jose Climate Advisory Commission supports municipal utility for affordable clean energy

In a special meeting held on March 21, 2025, the San Jose City Council focused on the exploration of a municipal electric utility, a significant step towards enhancing the city’s energy infrastructure. The meeting was marked by public comments that underscored the importance of establishing a local utility to improve energy affordability and reliability for residents and businesses.

The Climate Advisory Commission presented a letter supporting the city’s long-term goals of creating a clean energy infrastructure. They highlighted that a municipal utility could potentially offer electricity rates 14 to 26% lower than those currently provided by Pacific Gas and Electric (PG&E). This reduction in rates is particularly relevant given PG&E's reported profits exceeding $2 billion last year, raising concerns about the affordability of energy for local consumers.

Public speakers emphasized that the establishment of a municipal utility, referred to as San Jose Power, would not only enhance economic development but also ensure that the city can better control its energy resources. They cautioned, however, that if the city opts to allow PG&E to continue distributing electricity, it must implement strict monitoring and performance obligations to safeguard the interests of San Jose residents.

The discussions also touched on the need for clear agreements with PG&E regarding the terms under which San Jose could take over the distribution of electricity, particularly in cases of noncompliance. This clarity is essential to ensure that the city can effectively manage its energy future and protect its residents from potential pitfalls associated with relying on an external provider.

As the meeting concluded, the council members were urged to consider the implications of their decisions carefully. The exploration of a municipal electric utility represents a pivotal moment for San Jose, with the potential to reshape the city’s energy landscape and provide more affordable options for its residents. The next steps will involve further discussions and actions to solidify the city’s approach to energy management and utility services.