KING CITY — King City Community Power, a local electric energy service, is set to launch next week with the City of King now becoming the default electric power provider for the community in partnership with Pacific Gas and Electric (PG&E), which will continue to transmit and bill for the power.
Under the Community Choice Aggregation (CCA) program created by state legislation, King City Community Power will supply electricity to local residences and businesses, while PG&E will deliver the energy over the company’s existing power lines and wires.
“PG&E will continue to transmit and bill for the power,” said City Manager Steve Adams. “Therefore, services to customers will remain identical to what they are receiving now. The only difference is that the City will be the agency purchasing and selling the electric power.”
According to Adams, King City is one of the first small cities in California to establish a CCA program. He said the City Council decided to pursue the City’s own electric energy service to “ensure the revenues are used to meet needs of the local community.”
Beginning Monday, July 2, all PG&E customers in King City will be automatically transferred to King City Community Power without interruption in service, unless they have chosen to opt out of the program. If a customer chooses to opt out, they will continue to receive their power directly from PG&E.
Notices have been mailed to all customers with directions on how to opt out.
“They are provided that option if that is their preference,” Adams said about opting out of the local program. “Service should not really change either way because PG&E remains the agency that transmits the power under either program.”
King City Community Power customers, however, will receive lower rates as well as help fund such local benefits as new solar streetlights, free solar projects for homes owned by low-income families and increased use of clean energy. The City is also studying the potential of constructing a solar power plant or wind turbines.
Adams said King City Community Power’s initial rates will average a half percent below PG&E’s current rates, but the City plans to further reduce rates “once some of the start-up costs are paid after the first year.”
“The program is designed to help reduce costs for local residents, address local community needs and improve the environment,” he said.
King City Council will oversee the local energy service, including setting the rates charged for electricity and directing the special programs. The City has contracted with Pilot Power Group to operate the program.
PG&E will continue to provide all gas-related services, the wires used to deliver King City Community Power electricity, meter reading, outage response services, discounts and energy-efficiency rebate programs for customers.
For more information about King City Community Power, visit the website www.kingcitycommunitypower.org or call 1-833-888-KING (5464).
