Frequently Asked Questions

BASICS

What is Desert Community Energy?

Desert Community Energy, or DCE, offers ratepayers a choice in electricity providers and in the type of electricity they use. DCE was formed by the cities of Palm Springs, Palm Desert and Cathedral City 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 jobs, and helping participating cities to meet their climate action goals.

What is Community Choice Energy?

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, will continue to offer all other electricity-related services to DCE customers.

How does DCE work?

Who can participate in DCE and when will it start?

Residential, commercial and municipal electricity customers in Palm Springs, Cathedral City and Palm Desert will all be automatically enrolled in DCE, bypassing the inconvenience of an application process. Originally intended to launch in August 2018, DCE has changed it’s schedule and will announce it’s launch once energy market conditions have normalized and allow the program to deliver maximum benefits to our customers.

Does DCE replace Southern California Edison?

Why are so many local governments considering CCA?

There are a number of CCA programs currently operating throughout the state, and dozens of others in formation. Each focuses on benefits such as these:

CCAs introduce competition into the energy market, which helps drive costs down, diversify power choices and stimulate new investments in renewable energy and technology.
CCAs offer local control, providing customers and municipalities a choice regarding their electricity supply.
Revenues from CCA programs can be invested locally, creating jobs and encouraging local energy investments.
Consumers can increase 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.
Existing CCAs offer a “default” option that is both cleaner and cheaper than the incumbent utility, as well as a voluntary, 100% renewable or 100% carbon-free energy option, usually offered at an additional cost.

How will DCE benefit the local economy and our local renewable energy opportunities?

First, there’s the potential for customer rate 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 are traditional natural gas and coal plants.

Has this been done in other areas and what are the results?

There are eleven CCA programs operating in California (as of April 2018) and more on the way. CCAs started in Northern California but many Southern California cities and counties are now at various stages of CCA implementation. The State of California estimates that at least 80% of IOU customers will be served by other power providers like CCAs in the next five to ten years. 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.

Does the launch of DCE require an interruption in electricity service?

ENERGY

How much renewable or carbon-free energy does DCE provide?

Desert Community Energy’s standard product, Desert Saver, to which all customers will automatically be transitioned, is 35% renewable and 50% carbon-free, and will cost 3% less than Southern California Edison’s standard service. Our premium product, Carbon Free, is 35% renewable and 100% carbon-free and costs the same as SCE’s premium service—which is only 32% renewable and 44% carbon-free.

What is the difference between renewable and carbon-free electricity?

Carbon-free, or “clean” energy, creates little or no greenhouse gas emissions. In contrast, fossil fuels (such as oil, natural gas, oil 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 has gone one step further and opted to exclude all nuclear power from its purchasing.

What’s the difference between the two products offered by DCE?

What are the environmental advantages of DCE?

DCE ratepayers can choose to purchase electricity resources that are cleaner and carbon-free, compared to 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 will make a significant and rapid impact on reducing greenhouse gas emissions and improving environmental quality, as existing CCAs have already been doing in the state.

Where does DCE get its electricity?

Desert Community Energy has contracted with a non-profit industry specialist called The Energy Authority to negotiate long- and short-term power contracts with energy producers based on the specific power supply goals of DCE’s Board. The Energy Authority has extensive experience in this capacity, having successfully assisted other operational CCAs in the state and public power agencies throughout the U.S. Desert Community Energy is also looking at ways to partner with Imperial Irrigation District.

TIMING

When will DCE launch?

The goal of DCE is to provide the cleanest electricity at the lowest cost to you, while retaining local control and reinvesting in the economic health of our communities. DCE initially planned to launch in August 2018. But in mid-July, natural gas prices spiked in Southern California, changing energy market conditions. And Southern California Edison has predicted a decrease in its rates for 2019. Under these conditions, the DCE Board could not guarantee lower rates than Southern California Edison, so the launch date was delayed.

DCE will be keeping a close eye on market prices and Edison’s actual rates to determine when best to launch the program to maximize benefits to our customers and offer you a choice in electricity providers.

Why didn’t DCE anticipate the current change in market conditions?

Will this interrupt my service?

There will be NO change in your service and NO service interruption. Your electricity account will remain with Southern California Edison (SCE). Even if you’ve already opted up or opted out, there’s no need to do a thing. All electricity accounts in Cathedral City, Palm Desert, and Palm Springs will continue with Southern California Edison. If you’ve been participating in any of SCE’s special programs, you will remain enrolled in them without change.

Why can other Community Choice Energy/Aggregation (CCA) programs like DCE keep going?

Will DCE still offer their “Desert Saver” and “Carbon Free” plans?

What happens to my account if I opted-up to DCE’s Carbon Free plan?

How can I stay updated on the DCE schedule change?

RATES & BILLING

How does DCE set its rates?

The DCE Board of Directors will set electric generation rates for its customers after they are carefully developed, discussed, evaluated and approved at public meetings. To date, existing CCAs in California offer competitive electric generation rates, currently ranging from 2%-6% lower than investor-owned utility (IOU) rates, depending on the customer class and service option each customer chooses. The DCE Board will adjust once per year at an open public meeting—less frequently than most IOUs—offering a greater measure of rate stability compared to IOUs. Because publicly managed CCAs are not-for-profit agencies, they don’t pay shareholder dividends, investor returns, high corporate salaries or income taxes like commercial services or investor-owned utilities, all of which lowers costs even further. Initial studies estimate that a CCA program could save ratepayers millions of dollars over the next 20 years.

How do DCE’s rates compare to SCE’s?

How does DCE affect SCE’s special rate customers?

Will I get two bills for electricity service if I’m a DCE customer?

Are there any hidden fees for DCE customers? Is there any risk involved?

What is the Power Charge Indifference Adjustment (PCIA) and why is it listed on my bill?

The PCIA, though sometimes referred to as an Exit Fee, is actually a cost paid by all SCE customers. But when you become a DCE customer, that fee is called out as a separate line-item on your bill. It represents the costs SCE bears for power that has been purchased on your behalf in contracts that extend into future years. The PCIA rate varies by customer class, and is based on the amount of kilowatt hours (kWh) you use. Even when including the PCIA into DCE’s costs, our customers will still see a 3% savings.

Will Southern California Edison raise its service fees on DCE customers above those of customers who opt out?

Who do I call with questions about my bill?

ENROLL / OPT OUT

Why am I automatically enrolled in the CCA program?

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 up to you.

Is there a fee for opting out of DCE?

What are the choices for customers to opt out or to opt in again at a later date if they change their minds?

While customers in the service area are automatically included, eliminating an application process, they have a choice to stay with DCE or to opt out and return to bundled service with SCE. A new CCA is required to send a total of four notices to customers: two notices within 60 days prior to commencement of CCA service, and two notices during the 60-day period following commencement of CCA service. Customers who opt out before or within the first 60 days of DCE service may return at any time. Customers who opt out after the first 60 days of service will be prohibited by Southern California Edison from returning for one year, after which they may return to DCE.

SOLAR / NEM

If I have solar panels on my home or business, or install them later, how will I be affected by DCE?

DCE customers with solar panels can participate in our Net Energy Metering (NEM) program, which offers you the same rates for your excess energy production as SCE. If you are already a net energy metering customer with SCE, you don’t have to do anything. Your account will be automatically enrolled in Desert Community Energy’s Net Energy Metering program. But when you need to purchase electricity, you’ll pay 3% less with DCE.

As part of DCE’s NEM program, your system’s energy production will be monitored on a monthly basis. If you produce more energy than you consume, 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 in a given month, you will be charged for the energy you draw from the grid—at lower rates than you currently pay SCE. Customers won’t pay any charges due until the end of the 12-month relevant period allowing you to net out any generation charges. You also have the option of Opting Up to our Carbon Free service to receive 100% carbon-neutral electricity for the same price you currently pay SCE.

GOVERNANCE

Who governs and administers Desert Community Energy?

DCE is governed by a Joint Powers Association (JPA) with a Board of Directors comprised of one local elected representative from each of the participating city councils. The Board schedules regular meetings that are open to the public, ensuring transparency and encouraging community involvement. Formation of a CCA through a Joint Powers Authority 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 will be administered by a small staff with relevant energy and utility experience.

How is a CCA financed?

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.

Are tax dollars being used to support this CCA program?

Does creation of a CCA require creation of a new bureaucracy? Isn’t the private sector better at managing the complexity of today’s electricity markets than the public sector?

The POWER of choice

The POWER of choice

Frequently Asked Questions