Frequently Asked Questions

Valley Clean Energy (VCE) is bringing cleaner energy at competitive rates to residents and businesses in Woodland, Davis, and unincorporated Yolo County. As a locally based energy provider and PG&E alternative, VCE is accountable to the communities it serves, not to shareholders. VCE business – such as rate setting and approval of energy contracts – is conducted at local, public meetings. Board members are elected officials from the City of Davis, City of Woodland and Yolo County.

Valley Clean Energy purchases power with higher renewable and lower greenhouse gas (GHG) content than is offered by PG&E. Other than receiving cleaner electricity at competitive prices, all other aspects of your electricity service remain the same. PG&E will continue to deliver the electricity from the grid to your home or business, maintain the power lines, read your meter, and send you a single, consolidated bill, as required by state law. If you want to stay with PG&E for your electricity, you can opt-out of Valley Clean Energy.

No. VCE procures cleaner electricity for our customers, and PG&E delivers that electricity to your home or business. PG&E also continues to handle the billing, turn on and off power when you move, maintain the power lines, and resolve outages. Those who prefer to have PG&E continue to buy their electricity can choose that option.

Not anymore. During the past 30 years the costs of fossil fuels have been rising, although natural gas and oil prices have come down recently. During the same time, the cost of renewable sources has dropped dramatically. In fact, in California, renewable energy is often cheaper than fossil fuel because after initial construction costs, wind and sun are free. And new resources such as tidal energy are now being developed to deliver energy at competitive rates.

The majority of our energy will be produced from clean energy sources such as hydro, solar and wind. The current power portfolio was approved by the VCE Board of Directors in early 2018. Our intent is to purchase as much electricity as possible from clean energy sources located in California at prices that remain competitive with PG&E.

Cities and counties throughout California are already moving forward with similar programs. There are currently twelve operational CCEs in California, and that number is estimated to grow to 20 agencies by 2020, with a combined service area population of 18 million. According to a 2017 report from the Center for Climate Protection, CCEs will reduce at least 5 million metric tons GHG emissions cumulatively compared to the Investor-Owned Utilities (IOUs), and CCE customers will save $188 million more per year by the end of 2020 compared with what customers would have spent if they stayed with the incumbent utilities.

In the Bay Area, MCE Clean Energy has already invested over $500 million in California-based and local renewable energy projects that have created over 2,400 construction and vendor jobs, with more coming soon. Sonoma Clean Power has found that developing local renewable energy projects within Sonoma County will result in lower rates by 2020, compared with buying electricity elsewhere.

The vast majority of PG&E employees provide transmission and distribution system maintenance and upgrades for electricity lines, billing and customer service—all of which PG&E will continue to provide. There have not been any noticeable job losses in communities that have a second electricity provider. In fact new jobs have been created constructing and operating local energy generation facilities.

VCE will be available to all PG&E customers in Woodland, Davis, and unincorporated Yolo County in June 2018.

VCE will replace PG&E as the default electricity provider in Woodland, Davis, and the unincorporated areas of Yolo County. Anyone with a PG&E electric account in these areas will automatically be enrolled in VCE.

Historically, PG&E has been the default power provider to customers in Yolo County and customers were automatically enrolled in PG&E because there was no alternative service to choose from. Now there is a choice.

When state legislators passed California’s Community Choice Aggregation (CCA) law in 2002, the default status of investor-owned utilities was transferred to the local community choice aggregator (CCA) when available. The original CCA legislation mandates that customers residing in the service area are automatically enrolled, unless they chose not to participate by opting out.

The benefits offered by Community Choice programs like VCE include local control and cleaner electricity, which results in more competition, competitive rates, and better options for customers. As we roll out our service to residents and businesses in Woodland, Davis and Yolo County, you are automatically enrolled in Valley Clean Energy.

By law, customers may opt-out of VCE at any time. This means that unless you opt out, you will automatically be enrolled in the program when service begins. You will receive a minimum of four notices to help you customize your service and provide directions on opting out, if you so choose. You can use our online form or call our customer service line at 855-699-VCEA (8232) to opt out.

Customers who opt out within the first 60 days of VCE service may return to VCE at any time. Based on state law, customers who opt out after the first 60 days of service with VCE must wait one year before returning to VCE.

What makes Community Choice programs so powerful is that they support clean energy market competition by buying electricity through a competitive process that encourages private energy companies to compete to provide clean, renewable power. Because there are no shareholder investors expecting dividends, Community Choice programs like VCE can reinvest net revenue and keep rates competitive.

VCE electricity rates are set through a transparent public process. Members of the public are encouraged to participate in publicly noticed hearings for each step of the process.

If you receive a low-income discount on your electricity bill through PG&E’s CARE, FERA or Medical Baseline Allowance programs, that discount will continue to apply as a VCE customer.

Yes, VCE carries over the EV-A and EV-B rates. The only difference will be that you’ll save 2.5% on the generation portion of your bill compared to PG&E.

No, you will continue to receive one monthly bill from PG&E. The general look, appearance and setup of your bill will not change, although VCE electricity supply charges will replace PG&E electricity supply charges. There are three main components to your electricity service: generation, transmission and distribution. Currently, PG&E rolls all three components of your service into one line item called “Current Electric Charges” under the “Account Summary” on the first page of your bill. VCE will assume responsibility for the generation portion of your service. As a VCE customer, you will see separate lines under the “Account Summary” on your PG&E bill for VCE generation charges and PG&E’s electric delivery charges. You will also see a new page in each bill detailing your VCE electric generation charges. Please see our sample bill to see an example of what this will look like when you start receiving VCE service.

That’s the Power Charge Indifference Adjustment or PCIA, sometimes called an “exit fee.” The PCIA is intended to ensure that customers who switch to Valley Clean Energy pay for energy that was acquired by PG&E to serve them prior to their switch. It will appear on your bill as a separate line item. What’s most important to know is that VCE’s rates—even with the PCIA charge included—will still be competitive with PG&E’s rates.

No. PG&E must provide the same transmission and distribution rates for all customers in their service area whether or not they receive electricity from PG&E or a CCA such as VCE.

The VCE Board of Directors set its electricity rates in an open and public process. VCE is committed to working with commercial, agricultural, and industrial customers going forward to determine how the rates will work for their businesses. Business owners are encouraged participate in VCE’s public meetings to provide input on the current and future rate structures.

For more information, download our customer guides: Agricultural | Business

Owners of multiple accounts can choose to opt up or opt out your individual accounts. Enrollment is by account, so you’ll be able to see all your accounts and decide what it best for each one.

Any existing direct access arrangements or special PG&E rates will not be automatically enrolled in VCE’s program. However, those customers can choose to become VCE customers. Special direct access termination provisions may apply.

State law allows cities and counties to pool the electricity demand of their residents and businesses for the purpose of buying electricity on behalf of those customers. These programs are called Community Choice Aggregation programs.

VCEA, a joint powers authority formed in 2016, is a locally controlled, not for profit public agency covering the unincorporated areas of Yolo County and the Cities of Woodland and Davis. It provides residents and businesses in those communities with an option to have more of their electricity supplied from clean, renewable sources—such as solar and wind—at competitive rates.

When customers choose VCE, they help empower local control of electricity procurement decisions, reduce the carbon footprint associated with their electricity service, and help support growth of local renewables. Rather than paying profits to shareholders, VCE’s net revenue (after buying power and administrative expenses), can be used to help stabilize electricity prices, provide larger incentives for more solar installations, support energy efficiency programs, develop more local renewable energy sources in and near Yolo County, and invest in innovative clean technologies and energy-related job training—all while keeping electricity rates competitive with investor-owned utilities.

In 2002, Assembly Bill 117 was enacted into law to establish Community Choice Aggregation opportunities in California. It allows a city or county (or groups of cities or counties) to become the default electric supplier in its jurisdiction(s). By doing so, it offers an opportunity for Californians to locally influence the sources of their electricity. Marin Clean Energy was California’s first Community Choice Aggregation program, followed by Sonoma Clean Power and subsequently Lancaster Choice Energy.

The primary risks to VCE are customer opt-outs, energy price fluctuations and changing state regulations. A successful Community Choice program requires that a significant majority of residential and commercial customers obtain their electricity from the program. This is one reason why Community Choice programs strive to maintain competitive pricing, while lowering greenhouse gas emissions compared to what you can get from the local utility. Community Choice programs, like VCE, also emphasize customer service, public engagement and transparency.

California’s energy markets have been stable for several years and prices for electricity from both renewable and conventional energy sources are relatively low. A diverse portfolio that includes a mix of long-term and short-term contracts and direct investments in power projects hedges risks.

A statewide association of CCA programs has been formed to represent the interests of CCA program providers and their customers on the regulatory side. It has been estimated that 50% of the electricity in California will be provided through Community Choice programs within the next decade. As more local programs are developed, they will have an even stronger presence in ongoing regulatory proceedings.

As discussed elsewhere, VCE is regulated by its Board of Directors. In addition, as required by state law, VCE submitted its Implementation Plan to the California Public Utilities Commission (CPUC).The plan discusses rate design, how we will buy electricity, and how we will carry out all the functions the CPUC requires. Before launch, VCE negotiated the purchase price of electricity on the open market and adheres to all CPUC rules and tariffs that apply to Community Choice Aggregation programs.

At its August 31, 2017 meeting, the VCEA Board voted unanimously to contract with the Sacramento Municipal Utility District (SMUD), to provide technical and energy services, data management/call center services, wholesale energy services, credit support services, and up to five years of CCA business operations support. This business relationship between VCE and SMUD puts VCE on track to launch customer service in summer of 2018.

SMUD offered its services to VCE to help a neighboring organization that has closely aligned values, including local decision making, product choice, affordable rates, greenhouse gas reduction, energy efficiency and a not-for-profit, public power business model. SMUD has been doing the kind of work VCE requires for over 70 years. It has the operational and technical expertise to offer VCE flexible, efficient solutions that will help it hit the ground running and be successful over the long term.

No, this is a business relationship with VCEA contracting for services that SMUD will provide.

SMUD is the sixth-largest community-owned electric service provider in the nation. SMUD serves approximately 624,000 customers and a population of about 1.5 million people with a 2,000-plus strong workforce and an annual budget of about $1.6 billion.

SMUD is governed by a 7-member, publicly elected Board of Directors.

SMUD’s service territory is approximately 900 square miles and includes all of Sacramento County, as well as small adjoining portions of Placer County.

SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies, and for its sustainable solutions for healthier communities. In J.D. Power surveys SMUD has been ranked number one in overall residential customer satisfaction in California for 15 consecutive years and number one in overall commercial customer satisfaction in California for 11 of the last 12 years.

SMUD was the first large utility in California to have 20 percent of its power supply come from resources classified as renewable by the state. That figure is now approaching 30 percent and SMUD expects to be at approximately 41 percent by 2020. SMUD’s current power supply portfolio is more than 50 percent carbon free.

VCE provides power generation services to meet the needs of its customers, and PG&E is responsible for providing transmission and distribution services to VCE customers (delivering power), as well as billing services. VCE customers receive a consolidated bill issued by PG&E that includes charges from both parties; PG&E collects and forwards VCE’s portion of revenues.PG&E is legally required to continue as the billing agent for VCE.

This is not the first time this has happened. When PG&E filed for bankruptcy protection in 2001, the utility continued operations and customer electricity service was not affected. If PG&E seeks bankruptcy protection again, the utility is expected to continue operations and keep the lights on.

No—VCE continues to serve customers with electricity supply as usual and continues to work with PG&E staff to ensure reliable and continuous service.

The need for additional fees to pay for PG&E’s wildfire liabilities is determined by the California Public Utilities Commission, and/or the California Legislature and bankruptcy court.

The CPUC is investigating PG&E’s current corporate governance, management, and structure to determine the best path forward for PG&E/CCA customers to receive safe energy service. VCE will continue to follow the CPUCproceeding. Something must change, and VCE and the other 11 CCAs in PG&E’s service territory can be part of the solution.