Frequently Asked Questions

BASICS

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 job creation, 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 such as billing, electricity delivery, and repairs.

How does DCE work?

Briefly stated, DCE will purchase cleaner electricity on behalf of its customers and feed it into the grid; Southern California Edison (SCE) will deliver it, maintain the grid, service accounts, and provide customer service and billing. Electric generation revenues of the program will remain in DCE’s control for reinvestment back into the community. Unlike SCE, DCE does not have shareholders to pay.

Who can participate in DCE and when will it start?

Residential, commercial and municipal electricity customers in Palm Springs, Palm Desert and Cathedral City will be automatically enrolled in DCE when the program launches in their area, 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 will launch in Palm Springs in April of 2020. Palm Desert and Cathedral City are considering a 2021 launch.

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. 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 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.

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 traditional natural gas and coal plants.

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

There are many CCA programs currently operating in California 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 Invester Owned Utility 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 premium product, Carbon Free, is 50% renewable and 100% carbon-free. Our standard product, Desert Saver, is 35% renewable, and will be offered at competitive rates with Southern California Edison’s standard service.

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.

Renewable energy comes from sources that are naturally replenished, such as sunlight, wind, water and geothermal heat. Unlike fossil fuels that cannot be replaced, renewable energy regenerates naturally. Renewable energy sources are more environmentally friendly and do not generate environmental pollutants, so they are also considered “clean” or “green” energy.

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 to negotiate long- and short-term power contracts with energy producers based on the specific power supply goals of DCE’s Board. They have extensive experience in this capacity, having worked with 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?

Desert Community Energy will launch service in Palm Springs in April 2020. Palm Desert and Cathedral City are considering launching service in 2021.

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?

Desert Community Energy will mail two notices to all customers prior to launching service as required by law, and two notices after service has launched. We will also continue to keep customers updated through social media and this website, and our new Community Advisory Committee will work with us on additional outreach and education. Customers may also call the toll-free number (855-357-9240) or email us at info@desertcommunityenergy.org.

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. The DCE Board will adjust rates 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 are able to 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 plans to follow the rate classes used by Southern California Edison.

How do DCE rates compare to SCE?

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, sometimes referred to as an 'exit fee', is a cost charged to all SCE customers. 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 and is based on the amount of kilowatt hours (kWh) used.

When you become a DCE customer, this charge is listed as a separate line item on your bill.

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 yours.

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 are automatically enrolled, eliminating an application process, they have a choice to stay with DCE or to opt out and return to bundled service with SCE. DCE will 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 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. As part of DCE’s NEM program, 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 in a given month, you will be charged for the energy you draw from the grid. In Palm Springs, you also have the option of our Carbon Free plan to receive 100% carbon-neutral electricity and further reduce your carbon footprint.

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 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 will be administered by a small staff and consultants 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?

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.

The POWER of choice.

The POWER of choice.

Frequently Asked Questions