Frequently Asked Questions
BASICS
Desert Community Energy, or DCE, offers customers a choice of electricity providers and the type of electricity they use. DCE was formed under a Joint Powers Authority (JPA) by the cities of Palm Springs and Palm Desert and is a community choice aggregator (CCA) as certified by the California Public Utilities Commission. Its purpose is to provide residents and businesses with cleaner, competitively priced electricity while retaining local control, reinvesting revenues and encouraging local job creation, and helping participating cities meet their climate action goals.
Community Choice Energy (CCE) is a statewide local energy program that allows cities and counties to pool (or aggregate) the electricity demand of participating communities to increase local control over electric power sources and generation rates. Often called Community Choice Aggregation, a CCA buys and/or develops power resources on behalf of the electricity customers in its jurisdiction in order to control costs, offer more renewable energy options, and reduce greenhouse gas (GHG) emissions. Southern California Edison, the local investor-owned utility, continues to offer all other electricity-related services to DCE customers such as billing, electricity delivery, and repairs.
Briefly stated, DCE purchases cleaner electricity on behalf of its customers and feeds it into the grid; SCE delivers it, maintains the grid, services accounts, and provides customer service and billing. Electric generation revenues of the program remain in DCE’s control for reinvestment back into the community. Unlike SCE, DCE does not have shareholders to pay.
SCE customers who are within DCE’s service territory are automatically enrolled into DCE due to California’s Community Choice law, Assembly Bill 117, which permits Community Choice Aggregation (CCA) programs such as DCE to become the default provider of electric generation for customers within the community’s service area. According to state law, CCAs operate as an “opt-out” program. This means that customers within the jurisdiction are automatically enrolled unless they opt-out of the program. If you are interested in additional information regarding AB 117, please click here.
Residential, commercial, and municipal electricity customers are automatically enrolled in DCE when the program launches in their city, bypassing the inconvenience of an application process. Customers always have the choice of opting out and remaining with SCE’s bundled electric service. DCE service launched in Palm Springs in April 2020.
No, DCE works in partnership with SCE. DCE purchases your electricity while SCE continues to deliver that power, maintain the poles and wires, maintain the grid and handle billing and repairs. There are no duplicated charges and customers pay their bills through SCE as they always have.
There are more than two dozen CCA programs currently operating throughout the state. These CCAs focus on benefits such as:
- Introducing competition into the energy market, which helps drive costs down, diversify power choices, and stimulate new investments in renewable energy and technology.
- Offering local control, providing customers and municipalities with a choice regarding their electricity supply.
- Investing revenues locally, creating jobs and encouraging local energy investments.
- Increasing the amount of electricity from non-polluting renewable and carbon-free sources including wind, solar and geothermal energy. In the Coachella Valley, a CCA offers a way to advance local renewable energy resources and help meet statewide goals for greenhouse gas reduction.
- Offering a “default” option that is cheaper than the incumbent utility, as well as a voluntary, 100% renewable or 100% carbon-free energy option, usually offered at an additional cost.
First, there’s the potential for customer bill savings and revenues that are reinvested into our own communities, rather than paying SCE shareholders. In addition, DCE can accelerate the development of local renewable energy projects and facilitate other energy innovations such as community solar, energy efficiency retrofits, battery storage and electric vehicle charging stations, to name just a few. This translates into the potential for new local services and community benefits as well as significant job creation, both locally and regionally. It should be noted that renewable energy facilities are creating many more jobs today than traditional natural gas and coal plants.
There are more than two dozen CCA programs currently operating in California. CCAs started in Northern California but many Southern California cities and counties are now CCA members. CCA programs throughout the state are also procuring and co-developing in-state and local renewable resources and offering specialized energy programs designed for their local communities.
No. DCE and SCE work together to ensure the account transition is seamless to all ratepayers.
Mobile Home and Manufactured Home parks can participate in DCE, just like any other resident, as long as the residents in that community have an account with SCE. If the community is master metered with no sub meters, it would be up to the master meter’s account holder to determine if they opt-down or opt-out of DCE.
ENERGY
Desert Community Energy’s premium product, Carbon Free, is 100% carbon-free and includes energy obtained from local renewable sources. Our economy product, Desert Saver, meets California’s renewable energy requirements and is offered at a savings over Southern California Edison (SCE)’s standard service. More information about DCE’s power sources is available here.
Carbon-free, or “clean” energy, creates little or no greenhouse gas emissions. In contrast, fossil fuels (such as oil, natural gas, and coal) produce a significant amount of greenhouse gases, including carbon dioxide and methane. Examples of carbon-free energy include solar, wind, hydropower, and nuclear power.
DCE’s economy product, Desert Saver, is a savings over SCE’s base rate plan and meets California’s renewable energy requirements. DCE’s premium product, Carbon Free, is 100% carbon-free and includes energy obtained from local renewable sources.
DCE customers can choose to purchase electricity resources that are cleaner and carbon-free, compared with electricity that currently contains high percentages of non-renewable fossil fuels. The production and burning of fossil fuel-based energy sources, such as oil, coal, and natural gas, releases large amounts of greenhouse gases and other air pollutants into the atmosphere. These greenhouse gas emissions are a leading cause of climate change and unhealthy air quality. By substantially changing the type of energy fed into the grid on behalf of its customers, DCE makes a significant and rapid impact on reducing greenhouse gas emissions and improving environmental quality, as other CCAs are also doing in the state.
Desert Community Energy is committed to securing renewable and carbon-free energy sources as part of a portfolio of resources to serve our customers. Renewable energy is carbon-free energy that comes from resources that are naturally replenished such as solar, wind, and geothermal. Energy produced by large hydroelectric generating plants is also carbon-free but is not formally designated by the State of California as renewable energy.
Desert Community Energy has contracted with a non-profit industry specialist to build its generation portfolio and to negotiate short- and long-term contracts with a variety of power suppliers to meet the energy needs of our community. Generation is sourced from projects located in California, as well as other points in the western grid. In 2020/2021, DCE executed its first Power Purchase Agreements (PPAs), three for local wind energy, and one for solar plus battery storage, which will provide long-term benefits to DCE customers. In 2022, DCE executed a PPA for a geothermal project. DCE continues to add additional renewable generation sourced locally to meet the needs of our customers. The exact proportion of each will vary with time, based on demand and availability.
DCE provides detailed information to its customers about its power supply resources in its annual Power Content Label. The Power Content Labels for DCE’s Desert Saver and Carbon Free products are available on our Key Documents page.
It turns out, all electricity is clean. It’s the generating sources that can pollute.
Whether electricity was made from natural gas or solar, by the time the electricity is in your wires, it is all the same. There is no need (or way) to track which electricity you use. Instead, we track which generators put electricity on to the grid for you, because that is where the impacts are.
With Desert Community Energy, we get to choose how our electricity is created, and some sources, like solar, wind, and hydro, are much cleaner than others.
The Inflation Reduction Act of 2022 offers numerous tax credits and deductions that encourage homeowners, home builders, and commercial building owners to implement energy efficiency measures that reduce energy cost and demand.
Homeowners: New federal income tax credits valued up to $3,200 annually are available to lower the cost of home energy efficient upgrades. Eligible improvements include the installation of heat pumps, heat pump water heaters, insulation, doors and windows, electrical panel upgrades, home energy audits, among others. Also available to homeowners is the modified and extended Residential Clean Energy credit, which provides a 30% income tax credit for clean energy equipment, such as rooftop solar and battery storage. This tax credit is currently scheduled to remain at 30% through 2032, then drops to 26% in 2033.
For home improvements made in 2022, the federal tax credits for energy efficiency were extended as part of the Inflation Reduction Act of 2022. If you made any eligible home improvements to your primary residence after December 31, 2021, you may be eligible to claim them on your taxes when you file for 2022.
Home Builders: The Inflation Reduction Act of 2022 extends tax credits for Energy Efficient New Homes. This tax credit has also been extended through 2032. Note: For homes and units acquired on or after January 1, 2023, tax credits for home builders are tied to ENERGY STAR certification for single-family, manufactured, and multifamily homes.
Commercial Building Owners: The Inflation Reduction Act of 2022 extends and expands the energy efficient commercial buildings deduction that was made permanent in 2021. Buildings that increase their energy efficiency by at least 25% will be able to claim this deduction, with bonuses for higher efficiency improvements.
For more information, click here.
Via the Technology and Equipment for Clean Heating (TECH) Initiative under the auspices of the California Public Utilities Commission, single family incentives of $1,000 are now available for new heat pump HVAC systems, with up to two incentivized systems per home for a total of $2,000. In addition, rebates are available for heat pump water heaters. For more information about these incentive programs, click here.
This page will be updated with further information on California state rebates to be announced soon!
DCE has partnered with OhmConnect’s Demand Response program. For additional information on OhmConnect, please click here. DCE customers are also eligible to participate in SCE’s Demand Response programs. SCE’s Demand Response program options for residential customers including a program comparison are available on SCE’s website here and for commercial customers here.
Please note that you cannot be enrolled in more than one Demand Response program at once.
TIMING
Desert Community Energy began service in Palm Springs in April 2020.
There is NO change in your service and NO service interruption. Your electricity account remains with Southern California Edison (SCE). If you’ve been participating in any of SCE’s special programs, you will remain enrolled in them without change.
The operational CCA programs across California already have a reserve fund built up that can be utilized to manage market shifts.
Desert Community Energy will mail a notice to all new customers. We will also continue to keep customers updated through social media and this website, and our Community Advisory Committee works with us on additional outreach and education. Customers may also call the toll-free number (855-357-9240) or email us at CustomerService@DesertCommunityEnergy.org.
RATES & BILLING
The DCE Board of Directors sets electric generation rates for its customers after they are carefully developed, discussed, evaluated, and approved at public meetings. Because publicly managed CCAs are not-for-profit agencies, they can maintain lower costs because they don’t pay shareholder dividends, investor returns, high corporate salaries, or income taxes like commercial services or investor-owned utilities. To help customers with an easy rate comparison, DCE follows the rate classes used by Southern California Edison.
DCE’s economy product is Desert Saver and is a savings over SCE’s base rate plan. DCE’s Carbon Free product is 100% carbon-free, is offered at a small premium above SCE's base plan and is the best option for the environment. These rates are re-evaluated by the DCE Board of Directors.
Customers who receive a special rate from Southern California Edison are transferred to DCE service with no changes to their special or optional rates, in most cases. Their accounts automatically remain with these programs (e.g., CARE, Family Electric Rate Assistance (FERA)) and they do not have to reapply.
One of the biggest benefits of DCE is that its default product is 100% Carbon Free, which has significant environmental benefits, but does cost more than Southern California Edison’s standard product.
DCE’s rates are set with the average annual total over SCE’s base plan in mind. Rates are adjusted to continue to provide the lowest possible premium for 100% carbon-free energy, keep DCE’s finances stable, and meet the needs of the community as we continue to plan for future needs, such as incentive programs and investments in local renewable energy projects that will create jobs and stimulate our economy.
Our 100% Carbon Free plan remains a small premium above SCE’s base plan and offers tremendous environmental benefits for our community.
- No single action by the City of Palm Springs could reduce greenhouse emissions as much as switching to Carbon Free electricity.
- DCE’s Carbon Free customers have reduced greenhouse gases by 105,388 metric tons in 2021. That’s the equivalent of taking 22,000+ cars off the road!
DCE’s 100% Carbon Free premium plan pricing will continue to be evaluated as SCE’s rates shift. As DCE signs more long-term renewable energy power purchase agreements, these costs will stabilize.
DCE will continue to have the lowest priced power with its Desert Saver plan that will offer customers savings over SCE. Customers can easily opt-down to Desert Saver and pay less than you would with SCE (click here to opt-down).
No. You’ll receive a single bill from SCE, which will include an electricity generation charge from DCE, along with a credit for the generation SCE is no longer providing. There are no duplicate charges. SCE continues charging for delivery, transmission, maintenance, and customer service as they always have.
DCE is always happy to discuss billing questions. We’re also making it convenient to do a real-time evaluation with our interactive bill comparison tool on the Billing & Rates page of the DCE website that allows residential and commercial customers to compare their choices at DCE – both the Carbon Free and the Desert Saver plans – and compare those options with the rates at Southern California Edison.
There are no hidden costs or fees, and no duplicate costs for DCE customers. When you are enrolled, the electric generation fee you had previously paid to Southern California Edison is instead charged by DCE. By law, SCE’s other services to you must remain the same as for all other bundled customers.
It is important to note that customers who switch from Southern California Edison to DCE will have a Power Charge Indifference Adjustment (PCIA) fee, sometimes referred to as an “exit fee” on their bill. The PCIA charge (or credit) is included in our rates and cost comparisons with Southern California Edison.
The PCIA, sometimes referred to as an “exit fee”, is a cost charged to all Southern California Edison (SCE) customers that switch to a CCA such as Desert Community Energy. It represents the costs SCE bears for the power that has been purchased on your behalf in contracts that into future years. The PCIA charge varies and is based on the amount of kilowatt hours (kWh) used. The PCIA can also be a credit, depending on SCE’s power costs. When you are a DCE customer, the PCIA fee is listed as a separate line item on your bill. The PCIA and other surcharges are always included in our rates cost comparisons with SCE.
There are other various non-bypassable departing load charges and what are referred to as “public purpose” charges that all customers must pay. These include the Department of Water Resources (DWR) bond charge, Competition Transition Charge (CTC), Cost Allocation Mechanism (CAM) Charge, Nuclear Decommissioning (ND) Charge, and Public Purpose Program (PPP) Charge.
Visit our Understanding Your Bill page to learn more.
The Generation Municipal Surcharge (GMS) is a recurring surcharge applied to all DCE customers and is comprised of franchise fees collected by Southern California Edison. DCE includes the GMS and PCIA fees in its advertised rates and cost comparisons with SCE. Visit our Understanding Your Bill page to learn more.
The Utility User Tax (UUT) is a 5% tax imposed by the City of Palm Springs on the delivery and generation of your electricity bill. SCE and DCE collect the UUT and pay it directly to the City on a monthly basis. The UUT is pre-existent charge that was approved by Palm Springs voters. Visit our Understanding Your Bill page to learn more.
No. By law, SCE must provide the same rates and level of service for all customers in their service area, whether they receive electricity generation from DCE or not.
If you have questions about the DCE portion of your bill, you can always visit our website at DesertCommunityEnergy.org, or call us at (855) 357-9240 (toll free). If your question is about Southern California Edison’s services, please call SCE at (800) 655-4555.
Programs such as CARE (California Alternative Rates for Energy), FERA (Family Electric Rate Assistance) and Medical Baseline Allowance are available to Desert Community Energy customers through Southern California Edison (SCE). If you currently participate in CARE, FERA, or similar financial assistance programs, your status will not change when you're enrolled in Desert Community Energy. Customers on our Carbon Free plan can also save by opting down to the Desert Saver plan by clicking here or calling customer service at (855) 357-9240 Monday through Friday between 8 A.M. and 5 P.M. PST.
DCE customers not currently participating in one of these financial assistance programs may apply through Southern California Edison (SCE) by visiting our Financial Assistance page here.
SCE has a special application (DMS application) for customers living in a master metered community where they have a submeter and pay their bill to the owner of the development/mobile home park. The application contains a section for the manager/landlord information. The landlord is responsible to ensure the discount is passed through to the customer. This application needs to be submitted/processed manually; SCE does not currently support online enrollment.
Below are links where you can find information on sub metered tenants and download the application for sub metered accounts.
https://www.sce.com/tl/residential/assistance/care-fera (look for “sub metered tenants” section around the bottom of the page)
https://www.sce.com/sites/default/files/inline-files/14-783%20Rev%20619_SubMetered%20Tenants_0.pdf (separate DMS application containing landlord information)
Customers living in a master metered community where they don’t have a submeter and pay their bill to the owner of the development/mobile home park, per the tariff, these DM accounts (master no-sub) are not eligible for CARE. One of the main reasons DM accounts are not eligible for CARE is that there is no way to separate a CARE customer’s usage, from non-CARE, without submeters.
ENROLL / OPT OUT
Community Choice Aggregation programs are authorized by California Assembly Bill 117, which requires automatic customer enrollment with an option for customers to opt-out. This alleviates a burdensome enrollment process for all customers in the CCA’s service area. Customers have a choice to return to Southern California Edison’s bundled service, if they prefer, with a single phone call or click online. The choice is yours.
There is no fee for opting out of DCE, either before service begins or within the first 60 days of service. Desert Community Energy does not charge a fee to opt-out at any time.
Palm Springs residents and businesses that are enrolled in Desert Community Energy (DCE) for their electricity generation can choose to opt-out and return to SCE bundled service. If you plan to opt-out of DCE, you will be given two options.
Option #1: Opt-out immediately and go back to SCE, where you will be placed into SCE’s Transitional Bundled Service (TBS) which may be higher than what you currently pay with DCE.
Option #2: Stay with DCE for at least 6 months until you are placed back into SCE’s regular bundled rates, bypassing SCE’s TBS rates. If you choose Option #1, SCE will require you to remain on the TBS rates for 6 months, and your service will not be eligible to return to Direct Access service or CCA service until a 12-month commitment has been fulfilled. To learn more and to opt-out, visit www.DesertCommunityEnergy.org/your-options/opt-out/ or call our customer service center at (855) 357-9240 M-F 8am-5pm PST.
If you would like to review current TBS rate schedules, you can visit SCE’s website here.
Accounts will be transferred on the day the electric meter is read and cannot be transferred during the middle of a billing cycle. Opt-out requests received at least 5 days prior to a ratepayer’s meter read date will be processed for that meter read date; all other opt-out requests will be processed on the next meter read date. Customers who opt-out or otherwise stop receiving service from DCE will be charged for all electricity used before ending DCE electric service.
Customers have 3 businesses days to rescind their opt-out. After 3 business days from opting out of DCE, you are locked into SCE’s TBS rates.
To opt-out or opt-down, please call (855) 357-9240, or visit the Your Options section of our website. Have your electric bill handy so that we can help you.
With DCE, you can opt-down to Desert Saver, or opt-up to 100% Carbon Free as many times as you would like. The choice is yours. There are no limitations, nor will any fees be charged. Your opt action will take place as of your next meter read date.
SOLAR OPTION PROGRAMS / NEM / SOLAR BILLING PLAN
DCE customers with solar panels installed or a solar application submitted prior to April 15, 2023, can participate in our Net Energy Metering (NEM) Programs that correspond to SCE’s NEM 1.0 and NEM 2.0 programs, which offers the same rates for your excess energy production as SCE for net surplus generation. Intra-month generation is valued at DCE’s applicable rate. If you are already a NEM customer with SCE, you don’t have to do anything. Your account will automatically be enrolled in DCE’s NEM equivalent program.
Solar applications submitted as of April 15, 2023, are eligible for SCE’s Solar Billing Plan, which is also known as the Net Billing Tariff, or NBT. This program is an update from the previous NEM program, and the rate at which both residential and commercial solar customers are compensated for the excess energy exported to the grid has changed. Please see SCE’s Solar Billing Plan updates here.
Please note, although SCE’s solar program changed from NEM 2.0 to the Solar Billing Plan in April 2023, its billing system for the new rates was not implemented until December 2023. In the interim, customers enrolled in SCE’s Solar Billing Plan were billed under the previous Net Energy Metering rates. This also applies to DCE generation charges within DCE’s Solar Option Program, the equivalent to SCE’s Solar Billing Plan.
DCE’s solar programs are the respective equivalent to NEM 1.0, NEM 2.0, and Solar Billing Plan explained above. As part of DCE’s solar programs, you are billed annually for your energy charges because they can be offset by energy credits over your 12-month billing period. At the close of each month, we’ll tally the amount of grid energy you’ve consumed and contributed. If you have contributed more energy than you have used, you’ll see a credit on your bill for that month’s energy charges. If you have used more energy than you have contributed, you will see a charge for that month’s energy charges. Each May, on your meter read date, the kilowatt usage is evaluated in a true-up. If you used more power than your system generated, you will see a charge for the net amount. If you produced more energy than you used, you will either see a credit toward future use or receive a compensation check if the value of your excess production totals $100 or more.
You will be automatically enrolled in DCE's Carbon Free plan for energy drawn from the grid. DCE’s Carbon Free plan is available at a small premium to SCE’s base rate. With Carbon Free, you are making a difference by helping fight climate change. If you would like to reduce the overall cost of your electricity, you can choose to opt-down to our Desert Saver plan that is less than SCE's base rate. Customers who switch to our Desert Saver pay less on their electricity generation when compared to Southern California Edison (SCE).
The California Public Utilities Commission (CPUC) approved the Net Billing Tariff — also known as the Solar Billing Plan for SCE customers — on December 15, 2022. The Solar Billing Plan established by CPUC’s approval became effective on April 15, 2023.
The CPUC’s approval of the Solar Billing Plan brings major changes to previous Net Energy Metering policies. This program is an update from the previous NEM 2.0 program, and the rate at which both residential and commercial solar customers are compensated for the excess energy exported to the grid has changed.
The key takeaway is the amount a ratepayer is credited per kWh for feeding electricity to the grid will be reduced by about 75% when compared to the previous NEM 2.0 program. While solar projects still have value under the Solar Billing Plan, they likely need to be sized or configured differently or possibly in combination with battery storage. Please see SCE’s Solar Billing Plan updates here.
Note: There is no impact to existing NEM customers enrolled under NEM 1.0 or NEM 2.0. These customers will move to new billing rates under the Solar Billing Plan 20 years after their interconnection (also known as Permission to Operate, or PTO) date.
New solar projects implemented under SCE’s Solar Billing Plan were initially billed under NEM 2.0 rates until SCE updated its billing system to reflect the new rates. The CPUC gave SCE and the other investor-owned utilities time to update their billing systems accordingly, and in the meantime, customers enrolled in the Solar Billing Plan were required to be billed under the previous Net Energy Metering (NEM) 2.0 rates. This also applies to DCE generation charges within DCE’s Solar Option Program, the equivalent to SCE’s Solar Billing Plan.
Following SCE’s implementation of billing for the Solar Billing Plan, customers enrolled in the Solar Billing Plan and DCE’s Solar Option Program will be charged for energy imported from the electric grid at the current DCE rate you are enrolled in and will receive bill credits at a set price per unit (kilowatt-hour) of electricity exported, based on the electricity’s value to the electric grid in each hour of the day. The price will usually be lower than what you pay for a kilowatt-hour of electricity.
Yes. DCE believes in a greener future and supports customers who already have or wish to have solar installed on their homes or businesses. DCE customers with solar panels or other eligible generating systems can participate in our solar programs parallel to SCE’s programs and receive bill credits and even cash back when their systems produce more energy than they use over a 12-month period. DCE will purchase the excess energy you produce at the same rate as SCE, according to the rates established by each program.
If you are already a Net Energy Metering (NEM) customer with SCE and are eligible for SCE’s NEM 1.0 or NEM 2.0 programs, you do not have to do anything. Your account will be automatically enrolled in DCE’s Net Energy Metering (NEM) programs. There is no impact to customers NEM 1.0 and 2.0 grandfathering status by enrolling in DCE service. If you are a Solar Billing Plan customer with SCE, your account will be automatically enrolled in DCE’s Solar Option Program when you enroll in DCE.
As part of DCE’s solar programs, your system’s energy production will be monitored monthly. If you produce excess energy, you will receive a credit on your bill that can be applied to charges in future months. If you use more energy than your system produces each month, you will be charged for the energy you draw from the grid. You will be automatically enrolled in DCE's Carbon Free plan for energy drawn from the grid.
DCE’s Carbon Free plan is available at a small premium to SCE’s base rate. If a reduction in carbon emissions is not your priority, and you would like to prioritize reducing the overall cost of your electricity, you can choose to opt-down to our Desert Saver plan that is less than SCE's base rate. Customers who switch to our Desert Saver pay less on their electricity generation when compared with SCE.
Yes, you are still able to offset your charges with excess generated energy. At the end of your relevant period (the month of May for most DCE solar customers), you will either receive a check or a bill. If you are a net consumer for that year, you will only receive one bill for energy consumption annually. If you are a net generator, DCE will compensate you for your Net Surplus Generation at the same rate as SCE. This allows you a full 12 months to net out any generation charges.
The City of Palm Springs has prioritized reducing greenhouse (GHG) emissions and chosen to have DCE automatically enroll every customer into DCE’s Carbon Free plan. You can stay green and make a bigger impact on the environment by remaining in DCE’s Carbon Free plan that is available at a small premium to SCE’s base rate. You also have the choice to purchase energy at a lower cost than what you now pay SCE with our Desert Saver plan. To opt-down to Desert Saver, visit DesertCommunityEnergy.org or call toll free (855) 357-9240 Monday through Friday between 8 A.M. and 5 P.M. PST. It only takes a few minutes to opt-down and save!
Net Surplus Energy is defined as any generation, measured in kWh, that exceeds total customer energy usage during the Relevant Period. DCE will also determine whether each customer has produced Net Surplus Energy over the course of the Relevant Period. If a customer has produced Net Surplus Energy, then DCE will credit such customer an amount not to exceed $10,000 that is equal to the current Net Surplus Compensation rate per kWh multiplied by the quantity of Net Surplus Energy produced by the customer during the Relevant Period. DCE’s Net Surplus Compensation Rate (NSCR) is the same as SCE’s and may only be adjusted by the DCE Board when rates are set. Customers will be able to provide input at DCE Board meetings.
A Relevant Period refers to the 12-month billing period, in which solar credits and charges are tracked. Desert Community Energy will reconcile all credits and charges for each customer on an annual basis each May, rather than on a unique date for each customer.
Solar Option Program and NEM customers with DCE will receive two annual true-up statements, or settlement bills. All your bills are sent by SCE. One true-up bill will be for the charges from SCE for delivery of energy to your home based on the date your solar panels were connected to the grid. For example: if you connected your panels to the grid in September, you should be billed for delivery of energy to your home in September of each following year.
You will also receive another true-up bill for the generation of the actual power you used above and beyond what your solar panels produced. Your DCE true-up date will be your May billing date when your net charges and credits for electric generation will be settled. For most customers, this true-up of generation charges will be reflected on your June bill.
During the monthly billing cycle in May of each year, DCE will send a payment by check via U.S. Mail to any current customer who has a combined DCE solar generation credit and Net Surplus Compensation value of $100 or more, as determined during the annual true-up process, that exceeds any outstanding charges. The check will be sent to the customer’s mailing address on file at the time of mailing for the credit balance on their account. If customers do not have a combined solar generation credit and Net Surplus Compensation value exceeding $100, this credit balance will be carried forward to offset future DCE charges.
All DCE Solar Option Program and NEM accounts will be reset to zero kilowatt hours annually as of the customer’s May monthly billing cycle and the only solar generation credits that will be carried forward on the customer’s account will be the combined solar generation credit and Net Surplus Compensation credit balances less than $100.
No. NEM 1.0 and NEM 2.0 customers are grandfathered into their current programs with SCE or DCE for 20 years following their Permission to Operate (PTO) date from SCE. Once your 20 years have passed, you will automatically be enrolled in the most current program, which as of April 15, 2023, is SCE’s Solar Billing Plan or DCE’s parallel Solar Option Program.
DCE’s solar programs are currently the same as SCE’s NEM 1.0, NEM 2.0, and Solar Billing Plan. DCE is paying you the exact same amount that SCE is paying for the power produced by your solar panels, depending on your program. DCE settles balances (charges and credits) for generation monthly, and in May, performs the annual true-up process of all its solar customer accounts. During this time, SCE will continue to calculate charges for delivery, transmission, and other services annually for those customers with an annual billing option. DCE solar credits cannot be applied to any SCE charges.
No. The term for NEM 1.0 or NEM 2.0 stays with the solar system. For example, if you purchase a home in 2023 with an existing solar system with a Permission to Operate (PTO) date of July 1, 2017, that system will remain under NEM 2.0 until July 1, 2037. However, if you purchase a home or business with a solar system already enrolled in SCE’s Solar Billing Plan, your system will remain on the Solar Billing Plan and DCE’s parallel Solar Option Program.
If you are looking to install rooftop solar on your home or business after April 15, 2023, the solar installer you choose will assist you with enrolling in the SBP. Customers enrolled in SCE’s SBP will be moved onto one of SCE’s three Time-Of-Use (TOU) Rate Plans, based on which plan suits the customer’s energy needs best. With SCE’s Solar Billing Plan, the Time-Of-Use (TOU) rate plans offer lower prices while the sun is shining, and solar power is contributing to the grid. As is the case for NEM customers, customers enrolled in SCE’s SBP will automatically be enrolled in DCE’s parallel Solar Option Program. The TOU rate plan selected for SCE will also apply to DCE generation charges.
You will receive an Energy Export Credit (EEC) when your utility buys your excess solar energy generation. When your solar generating system produces more energy than you need, your utility buys that surplus energy from you, and it appears as credit per kilowatt hour (kWh) on your bill. The value of this credit is based on an estimate of the hourly wholesale rate for electricity. Hourly rates change depending on the time of day, month, and whether it is a weekday or weekend.
SCE or DCE will make an Energy Export Credit (EEC) adjustment to your annual true-up statement on two occasions: (1) if you receive duplicate EECs from your utility by mistake during your SBP annual cycle, or (2) to avoid double compensation between monthly billing cycles and Net Surplus Compensation (NSC) payouts. If applicable, this charge will appear as two separate line items: one for delivery and one for generation portions of the bill.
You can receive an additional Energy Export Bonus Credit (EEBC) if you are a residential customer who enrolls in DCE's Solar Option Program or SCE's Solar Billing Plan before 2028 for the first nine years. Qualifying low-income customers may be eligible to receive a higher credit amount. The value of the EEBC is based on the year you receive PTO (permission to operate your solar system) and will remain the same for nine years. This credit is paid by your utility.
We consulted with local solar experts and discovered that the end of May is typically the time that most customers have saved up the most solar credits through the spring before using them to offset the higher usage in summer months. Therefore, the end of May represents the time period when your balance should be the lowest.
Enrollment into DCE’s NEM programs will not affect NEM 1.0 or 2.0 customers’ status. Desert Community Energy will honor SCE’s NEM 1.0 and 2.0 status for those customers already grandfathered in at that status, and the Time-Of-Use (TOU) periods you have with SCE will remain the same.
If you increase your solar system size after April 15, 2023, that will require a new application for expansion, and if the expansion is greater than 10%, you will move from your current NEM 1.0 or NEM 2.0 status to SCE’s most current Solar Billing Plan (SBP). No extra metering requirements would be needed.
If you add a battery to your existing solar system, your solar contractor should submit the appropriate application. If you are a current NEM 1.0 or NEM 2.0 ratepayer, adding a battery storage device will not affect your status. The same rule applies for customers on the Solar Billing Plan (SBP). You should also send an email to SCE’s NEM Interconnection Department (Customer.Generation@sce.com), include your solar contractor’s email, and provide the original project number and address.
The Federal Income Tax Credit (ITC) is available for most residential and commercial rooftop solar installations. Currently, the ITC is set at 30% through 2032.
If you live in a designated area for Tribal Land, fire hazard zones, or disadvantaged communities, you may qualify for additional rebates or benefits. Ask your solar installer to see if you qualify.
Your licensed solar company should be able to help you start the process to convert to solar. Once you’ve completed the SCE Solar Billing Plan enrollment process, you will automatically be enrolled in DCE’s parallel Solar Option Program if you are an eligible DCE customer.
For additional questions about solar, getting started with solar, and your service, please visit our solar page or please feel free to call us at (855) 357-9240 Monday through Friday between 8 A.M. and 5 P.M. PST, or reach us by email at customerservice@desertcommunityenergy.org. We are happy to help.
GOVERNANCE
DCE is a Joint Powers Authority (JPA) governed by a Board of Directors consisting of one locally elected or appointed representative from each of the participating cities: Palm Springs and Palm Desert. The Board schedules regular meetings that are open to the public, ensuring transparency and encouraging community involvement. Formation of a CCA through a JPA does not require contributions from participating member agencies. The assets and liabilities of the CCA program remain separate from those of the participating agencies’ general fund. DCE is administered by a small staff and consultants with relevant energy and utility experience.
A CCA is a revenue-supported, not-for-profit public agency created to ensure that any financial benefits directly serve its community members. Once launched, a CCA is completely funded by program revenues — not taxpayer dollars. Start-up costs may be financed by member agencies, banks or other lenders; these costs are repaid once revenues from the sale of electricity accumulate. Surplus funds generated by the CCA may be reinvested back into the community in the form of lower rates, customer incentives, and/or new energy projects and programs that serve the entire customer base.
No. DCE is financed solely by the revenues it receives from customers. The program is self-funded and does not use any tax dollars.
DCE is a public-private partnership that takes advantage of the opportunities offered by both the private and public sectors. Private sector companies with CCA and power market expertise are part of the team, carrying out many of the functions associated with a CCA program.
A CCA is more a matter of public control over critical resources, like roads, that sustain our communities, and a way to maximize unique and cost-effective financial opportunities to benefit local communities. In fact, public utilities have a long track record of providing power supply services at a lower cost than their private sector counterparts.