Community Choice Energy in California can sometimes feel confusing. Between electricity bills, energy markets, and public conversations about utility costs, many customers wonder: How does MCE work, and how is it different from PG&E?
MCE is a not-for-profit public electricity provider serving communities across the Bay Area, including Contra Costa County. Understanding how community choice energy works can help customers make informed decisions about their electricity and renewable energy options.
Let’s break down some common misconceptions about MCE and explain how your local clean energy provider works for you.
Fact: MCE Provides Electricity — PG&E Still Delivers It
One of the most common questions customers ask is about the relationship between MCE and PG&E.
MCE provides electricity generation service, meaning we are responsible for the source of electricity that powers homes and businesses. PG&E continues to maintain the power lines, deliver electricity, provide gas services, and handle billing.
This means:
- PG&E maintains the poles, wires, and infrastructure
- Customers still receive one bill
- The bill separates generation (MCE) and delivery (PG&E) charges.
- MCE is not an additional charge on the bill but instead, a replacement charge for PG&E’s generation service.
Before community choice energy programs existed in California, customers had no choice in where their electricity was generated. Today, customers can choose between PG&E or MCE’s cleaner energy options.
Fiction: MCE Is Funded by Tax Dollars
A common misconception is that MCE is funded by taxpayers.
MCE is a not-for-profit public agency funded entirely by electricity customers, not tax dollars. Revenue collected from electricity service goes toward:
- Purchasing power
- Operating the agency
- Funding local energy programs
Unlike investor-owned utilities, MCE does not have shareholders. Any revenue is reinvested directly into the communities we serve.
Fact: Local Elected Officials Govern MCE
MCE is governed by a Board of Directors made up of locally elected officials from the cities and counties we serve. Board meetings are public, recorded, and open for community participation.
Customers can attend meetings, provide public comment, or engage through their local city council representatives.
This structure ensures that energy decisions are made locally and transparently, with oversight from community leaders.
Fiction: MCE Controls Your Entire Electricity Bill
Electric bills include several components that are outside MCE’s control.
A large portion of most electricity bills comes from PG&E transmission and distribution charges, which cover maintaining the electric grid (the lines and wires).
Another cost that affects many community choice customers is the Power Charge Indifference Adjustment (PCIA). This is a state-regulated fee charged by PG&E to customers who receive electricity generation from another provider like MCE.
The PCIA allows PG&E to recover costs from energy contracts signed before customers switched providers. Because the fee is set by regulators, it can affect total electricity bills even when MCE’s generation rates remain competitive.
Customers can always view a current cost comparison between MCE and PG&E at mceCleanEnergy.org/ compare-rates-and-options.
Fact: MCE Offers More Renewable Energy Choices
Many customers choose MCE because of access to cleaner electricity and renewable energy options. MCE offers two primary service options:
| Light Green | Deep Green |
|---|---|
|
60% renewable energy |
100% energía renovable |
Both options provide significantly more renewable electricity than PG&E’s 23% renewable service, helping communities reduce greenhouse gas emissions and support California’s clean energy goals.
Customers can choose the option that best aligns with their values, energy goals, and budget.
Fiction: Community Choice Energy Only Provides Power
Community choice programs like MCE do much more than provide electricity.
Across its service area, MCE has invested millions of dollars in programs that help customers lower energy costs and adopt clean technology, including:
- $15 million in direct bill relief
- Over $35 million in rebates for electric vehicles, EV charging, and energy efficiency upgrades
- $9 million in State funding to assist customers facing energy debt
- Partnerships with municipalities, local nonprofits, and community organizations
These programs help residents and businesses save energy, reduce costs, and transition to cleaner technologies.
Fact: Energy Markets and State Policies Influence Electricity Rates
Electricity prices in California are influenced by several factors beyond any single energy provider’s control.
Energy providers must comply with state regulations requiring:
- Long-term power purchasing contracts
- Renewable energy targets
- Resource adequacy requirements to maintain grid reliability
Energy markets can also fluctuate significantly. Renewable power contracts, for example, have ranged from $15 to over $100 per megawatt-hour in recent years.
To help protect customers from sudden price spikes, MCE purchases electricity through a mix of short-term and long-term contracts designed to provide stability over time.
The Bottom Line: Community Choice Energy Gives Customers More Options
MCE was created by local communities to provide more choice in electricity service and access to cleaner energy.
Today, MCE serves hundreds of thousands of customers by providing:
- Cleaner electricity options
- Local oversight and transparent governance
- Community reinvestment
- Customer programs that help lower energy costs
California’s energy system can be complex, but the mission behind community choice energy is simple: provide reliable electricity, expand renewable energy access, and put communities — not shareholders — at the center of the energy system.
To learn more about how MCE works or how to read your electricity bill, visit mceEnergíaLimpia.org.
