By Robert Haugh

At tonight’s Santa Clara City Council meeting, Silicon Valley Power is proposing a 10 percent rate increase to all customers, effective January 1, 2024, if approved by the Council.

According to City staff, the rate increases are “necessary to complete maintenance and operations of the electric system and cover the rising costs of producing, purchasing and transmitting power as well as equipment and material costs, which has increased by double and triple digits.”

Electric system improvements include replacing old power poles, crossarms and transformers to prevent outages and maintain high-quality service. The rate increase and system improvements will help ensure a reliable power system for Santa Clara in the future.

According to City staff, Silicon Valley Power’s electricity rates remain among the lowest for California utilities serving more than 10,000 customers.

The average monthly increase to residential customers will be between $4.46 and $15.21 per month, with “average” rate users increasing by $6.45 per month. A middle-of-the-line Industrial customer would see an increase of $30,168 per month. The Largest increase to Industrial users would be $506,272 per month.

Neighboring Cities pay as much as 40 percent more for electric power than what residents and businesses in the Mission City pay. 

PG&E customers will see a rate increase of 13 percent to their customers on January 1, 2024. 

Standard and Poors (S&P) Global Ratings recently raised its long-term rating for Silicon Valley Power (SVP) from A+ Positive Outlook to AA- Stable Outlook. The S&P ratings note “SVP’s prudent financial practices resulting in strong cover of fixed costs for the utility, robust liquidity, and manageable debt. The rating action also reflects highly competitive rates that contribute to retaining and attracting electric load.”

The S&P rating also noted that SVP has “highly competitive rates with a weighted average rate of 70% of the state average,” as well as diversity in power supply including owned generation, power purchase agreements, and market purchases; and appropriate actions to support healthy governance including five-year financial forecasts, capital improvement plans, and risk management policy guiding SVP’s hedging practice.”

Silicon Valley Power, the City’s 125-year-old electric utility offers financial-assistance and energy efficiency programs for customers. Visit SiliconValleyPower.com/Residents or call 408-244-SAVE (7283) for information.