SVCE sunsets E‑Elect 1, adopts E‑Elect 2 pilot with $3.5M budget to steer electrification load

Silicon Valley Clean Energy’s board adopted a resolution to end the current E‑Elect 1 electrification discount pilot effective July 1, 2025, and to establish an updated E‑Elect 2 pilot program with $3,500,000 of dedicated funding to run through the next five years. The board approved the action by roll call vote.

Staff summarized lessons from E‑Elect 1 — a two‑and‑a‑half year pilot initially funded at $9.5 million — and said roughly 85 percent of that earlier budget remains (about $8,000,000). Staff said E‑Elect 1 delivered average customer savings of about $15 per month for enrolled customers but that 80 percent of enrollees qualified by owning an EV; staff said the program did not enroll as many heat‑pump households as intended and that automatic enrollment limited SVCE’s ability to engage and educate participants.

E‑Elect 2 will require participating customers to qualify with both a heat‑pump space HVAC and a heat‑pump water heater; staff said this design is intended to target households that can shift loads meaningfully into daytime hours. The new pilot will concentrate discounts in a new “super off‑peak” period from 9 a.m. to 3 p.m., when grid solar production is typically highest. Staff said the proposed generation discounts in E‑Elect 2 are concentrated as follows (generation portion, relative to PG&E): super off‑peak 60 percent discount, off‑peak 30 percent discount, and peak 10 percent discount; staff emphasized the program uses a “carrot” approach and is not intended to penalize customers who cannot shift load.

Staff outlined customer journeys showing potential annual savings ranging from roughly $250 for a customer who adopts heat pumps but makes no deliberate changes, to higher savings ($450–$650) for customers who actively shift load under the E‑Elect 2 design. Staff proposed a target launch date of January 2026 and projected E‑Elect 2 would enroll about 5,000 customers across the five‑year pilot period. The remaining funds from E‑Elect 1 not committed to E‑Elect 2 will return to SVCE’s unallocated decarbonization budget and require board approval before reallocation.

Public commenters urged the board not to sunset E‑Elect 1 before E‑Elect 2 can receive customers, noting some existing E‑Elect 1 customers (certain early enrollees) may need more time to meet E‑Elect 2 eligibility. Board members asked staff to notify customers in advance of the transition; staff confirmed customers will be notified and that customers can revert to default rates if they choose. The motion passed by roll call vote.