San José Cuts Power Bills 4%, Saves Residents $50 Million

Families in San José are about to see something rare: an electricity bill that actually goes down.

Starting March 1, over 350,000 homes and businesses will save 4% on their power bills through San José Clean Energy, the city's renewable electricity program. That adds up to about $7 monthly for the average household and more than $50 million in savings across the community this year.

The rate cut comes while California struggles with the second-highest energy costs in the nation. Many residents have watched their bills climb year after year, making this reduction especially welcome news for family budgets.

San José Clean Energy supplies power to almost a million residents through a community choice program. Instead of the traditional utility model, the city buys renewable electricity directly and passes savings to customers.

The program maintains 62% renewable energy in its standard service, exceeding state requirements. That means residents get cleaner power while paying less than they did in 2025.

Mayor Matt Mahan, who advocated for the program as a resident before taking office, said the results prove a point. "San José is showing we can lower costs for families and businesses while advancing our climate goals," he said.

The rate reduction went through a transparent public process including City Council review and public meetings. City Manager Jennifer Maguire emphasized that affordability remains central to the program's mission while maintaining reliable service.

The Ripple Effect

This success challenges a common assumption that going green means paying more. San José demonstrates that communities can take control of their energy future without forcing residents to choose between their values and their wallets.

As a not-for-profit program governed by elected officials, San José Clean Energy answers directly to residents rather than shareholders. That structure allows the city to prioritize customer affordability alongside environmental goals.

The savings arrive as households nationwide face rising costs for groceries, housing, and other essentials. An extra $7 monthly might seem modest, but for many families, every bit of relief helps.

More than 350,000 customer accounts will benefit automatically when the new rates take effect. No paperwork, no applications, just lower bills and cleaner air.