San José is exploring the launch of its own public utility. City Council unanimously approved the creation of San José Power in 2023. The decision allows the Energy Department to explore tapping into two high voltage transmission lines set to run through the city in 2028. A public utility could save some new customers as much as 25% and attract businesses. More research and analysis will be done before the City makes its first financial decision on the project in 2025. The earliest the municipality would start powering customers in select areas would be 2028.

Frequently Asked Questions

Is San José Clean Energy going away now?

No, SJCE will continue to serve the vast majority of San José residents and businesses.

Who will San José Power serve?

The new powerlines run through North San José. The utility could serve large-scale accounts including city facilities like the San José Mineta Airport, and new development in North San José and Diridon Station. More analysis will be done before any decisions are made.

Will San José Power take over PG&E services?

No. San José Power will only be responsible for new accounts in a select area of the city, providing both generation and delivery. PG&E will continue to be responsible for delivery for SJCE customers.

How are San José Clean Energy and San José Power different?

Both entities are run by the City’s Energy Department.

San José Clean Energy is a CCA or Community Choice Aggregator. That means we supply renewable energy for San José customers, but PG&E is responsible for transmission.

San José Power would be responsible for buying energy AND delivering it to select new accounts.

How will San José Power promote economic development?

San José Power could help connect projects to the grid faster, avoiding costly delays. A recent study found that San José could offer lower rates for transmission and distribution compared to PG&E. Lower rates could help attract new development in our city.

The municipality could also lead to job creation, including union labor. Local businesses and contractors may also participate in the development, maintenance, and expansion of San José Power infrastructure, meaning more opportunities for union labor.

How will San José Power help prepare the city for disaster?

Public utilities have a better track record for addressing power outages quickly because their operations are local. San José Power could also create innovative microgrids (or on-site renewable energy generation and storage sites) that help keep the lights on for important facilities like hospitals and emergency operation centers.

For more information, please contact sjce@sanjoseca.gov.