Residential customers within the Clean Energy Alliance service territory face a complex matrix of energy choices as rates shift. Analyzing the tariff structures of San Diego Gas & Electric (NYSE: SRE) and the Clean Energy Alliance reveals how generation mixes, delivery charges, and power charge indifference adjustments shape the average monthly bill for TOU-DR1 ratepayers.
The Bottom Line
- Baseline Cost Variance: Total electricity costs for a typical residential customer consuming 346 kilowatt-hours monthly range from $0.45903 per kWh under the CEA Clean Impact plan up to $0.50524 per kWh under the CEA Green Impact 100% Renewable tier.
- Fixed Delivery Burden: San Diego Gas & Electric levies a standardized delivery rate of $0.29307 to $0.29312 per kWh across all tiers, representing the lions share of the average $158.82 to $174.81 monthly bill.
- Regulatory Adjustments: The Power Charge Indifference Adjustment drops significantly from $0.04772 per kWh for standard SDG&E bundled service down to $0.02613 per kWh for CEA alternative procurement tiers.
Unpacking the Rate Architecture: Generation Versus Delivery
For a typical residential customer consuming 346 kilowatt-hours monthly on a TOU-DR1 rate plan, understanding the monthly statement requires separating generation costs from delivery logistics. Published rates as of August 1, 2026, show that San Diego Gas & Electric standard bundled service yields a total electricity cost of $0.47403 per kWh, translating to an average monthly bill of $164.01.
Here is the math: the generation rate—the cost of procuring power—sits at $0.12968 per kWh for SDG&E. Meanwhile, the delivery rate is fixed at $0.29307 per kWh. But the balance sheet tells a different story when examining alternative providers like the Clean Energy Alliance, where generation costs scale upward alongside renewable energy percentages.
The Clean Energy Alliance offers three distinct tiers that alter the generation price point. The CEA Clean Impact plan features a 50% renewable portfolio with a generation rate of $0.13621 per kWh and an SDG&E delivery rate of $0.29312 per kWh. Factoring in franchise fees and the Power Charge Indifference Adjustment, the total cost lands at $0.45903 per kWh, resulting in an average monthly bill of $158.82.
As consumers scale up their environmental commitments, the financial delta widens. The CEA Clean Impact Plus tier provides 55% renewable and 75% carbon-free power at a generation rate of $0.17592 per kWh. Coupled with delivery fees, the total electricity cost rises to $0.49874 per kWh, bringing the average monthly bill to $172.56.
The Premium for 100% Renewable Power
At the apex of the pricing structure sits the CEA Green Impact tier, which delivers 100% renewable energy. Here, the generation rate climbs to $0.18243 per kWh. When combined with the uniform SDG&E delivery rate of $0.29312 per kWh, the Power Charge Indifference Adjustment of $0.02613 per kWh, and a franchise fee of $0.00356 per/%, the total electricity cost reaches $0.50524 per kWh.
For a household using 346 kWh per month, this equates to an average monthly expenditure of $174.81.
| Metric | SDG&E (Standard) | CEA Clean Impact | CEA Clean Impact Plus | CEA Green Impact |
|---|---|---|---|---|
| Renewable / Carbon-Free Mix | 41% Renewable | 50% Renewable | 55% Renewable / 75% Carbon-Free | 100% Renewable |
| Generation Rate ($/kWh) | $0.12968 | $0.13621 | $0.17592 | $0.18243 |
| SDG&E Delivery Rate ($/kWh) | $0.29307 | $0.29312 | $0.29312 | $0.29312 |
| SDG&E PCIA ($/kWh) | $0.04772 | $0.02613 | $0.02613 | $0.02613 |
| Franchise Fees ($/%) | $0.00356 | $0.00356 | $0.00356 | $0.00356 |
| Total Electricity Cost ($/kWh) | $0.47403 | $0.45903 | $0.49874 | $0.50524 |
| Average Monthly Bill ($) | $164.01 | $158.82 | $172.56 | $174.81 |
Decoding the Power Charge Indifference Adjustment
Navigating these choices requires examining the Power Charge Indifference Adjustment, commonly known as the PCIA. This regulatory charge ensures that customers who depart SDG&E to purchase electricity from alternative providers like the Clean Energy Alliance still cover their share of above-market costs for generation resources previously procured on their behalf.
The financial data highlights this mechanism clearly. For standard SDG&E bundled customers, the PCIA is embedded within the generation rate at $0.04772 per kWh. For customers enrolled in any of the three Clean Energy Alliance tiers, the separate PCIA line item drops to $0.02613 per kWh.
Resource Mix Diversification and Market Realities
Behind the tariff schedules lies a divergence in power generation portfolios. According to data reporting under the California Energy Commission’s Power Source Disclosure Program, SDG&E relies on a mix featuring 41.4% eligible renewables—broken down into 24% solar, 16% wind, and 1% biomass—alongside 59% natural gas and 0% unspecified power sources.
In contrast, the Clean Energy Alliance structures its portfolios differently. The CEA Clean Impact plan utilizes 50% eligible renewables (all solar) and 50% unspecified power sources, which refer to electricity not traceable to a specific generating facility. The CEA Clean Impact Plus tier incorporates 38% solar, 17% wind, 12% nuclear, and 11% large hydroelectric, leaving 21% to unspecified sources. Finally, the CEA Green Impact tier balances its 100% renewable commitment evenly between 50% solar and 50% wind.
For ratepayers evaluating these metrics, the decision ultimately rests on balancing monthly expenditure against environmental portfolio preferences.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
