The San Jose City Council intends to loosen regulations for San Jose Clean Energy, which provides renewable power to roughly 350,000 customers.
The San Jose Spotlight reported that the council voted unanimously to remove the cap on rate hikes for the energy provider, previously only allowing a maximum of two increases per annum.
Residents will now receive only 15 days’ notice ahead of a rate change hearing, which is less than the previous 30-45 days.
Councilmembers also decided to lessen rules, allowing San Jose Clean Energy to buy more power and enter short-term contracts without approval from the council. Contracts shorter than 10 years fall under the domain of city administrators, while anything longer requires approval from the City Council.
Zach Struyk, the Assistant Director of San Jose Clean Energy claims “the utility doesn’t intend to raise rates multiple times a year, but the flexibility to do so, and to do it quicker, allows for financial stability.”