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Board-adopted 2026 rates aim to balance customer discounts and reserves amid PCIA volatility
Summary
San Diego Community Power staff presented the board-adopted 2026 rate adjustment, adopting a staff-recommended "balance" scenario described as a "Goldilocks" approach that provides discounts while protecting financial reserves against PCIA swings; staff will return with a rate-stabilization policy and monitor reserve targets.
Aaron (rates staff) updated the Community Advisory Committee on the 2026 rates that the board adopted on Jan. 15. He said staff presented three scenarios and the board selected a balanced option that seeks to maximize customer affordability while maintaining financial reserves and resilience against PCIA and market-price volatility.
Aaron described the mechanics: Community Power models operating costs, power procurement, PCIA exposure and franchise fees to set generation discounts relative to SDG&E. The adopted scenario keeps PowerBase as the most affordable option (targeting a roughly 10% generation discount versus SDG&E for that product) while avoiding deeper discounts that would jeopardize reserves under market stress. Staff showed a stress test in which an adverse PCIA swing could reduce cash-on-hand to a hypothetical 99 days versus the target reserve range of roughly 180—370 days.
The board also lowered the participation-trigger review for PowerBase from 10% to 5% of total load (PowerBase was at ~1.5% at the time of presentation), and staff will run a targeted marketing campaign to reach eligible residential customers. Aaron reiterated that staff are developing a rate-stabilization policy and will return to the board with details.
Committee members asked about current cash-on-hand and whether SDG&E midyear rate changes would affect Community Power—s adopted rates; staff replied that they will review SDG&E filings and adjust analysis as needed but do not plan immediate rate changes for Community Power during the year.
