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SBC staff recommend 3.6¢ premium and acceptance of prior nuclear allocations to avoid multimillion-dollar deficit
Summary
Staff for the city’s community-choice energy program told the Sustainability Committee on Feb. 6 that Edison rate reductions combined with fixed procurement contracts would create a projected $14 million FY26 deficit and recommended a combined package of cost cuts, limited reserve use and a 3.6¢ per kWh premium for the 100% green product.
Staff for the city’s community-choice energy program presented a package of rate and procurement recommendations at the Feb. 6, 2025 Sustainability Committee meeting to prevent a projected FY26 budget shortfall.
The most newsworthy item: staff recommended a 3.6¢ per kilowatt-hour premium on the city’s 100 percent green product and recommended accepting previously procured carbon-free allocations (including nuclear credits) that the program’s customers are already paying for through the PCIA charge to avoid a projected $14 million deficit in fiscal 2026.
Staff briefed the committee that Southern California Edison reduced its rates in October 2024 and again in January 2025, reducing the revenue baseline for the city’s community-choice program while staff remain under fixed-cost contracts. "It keeps generation rates static to today. So bills do not increase by 3.6¢ per kilowatt hour," a staff presenter said, describing the staff proposal to stabilize generation revenue by setting the 100% green premium at 3.6¢.
Staff said the…
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