Power

Department Mission

It is the mission of Santa Clara City Power to provide safe, reliable, and environmentally responsible electric power to the citizens of Santa Clara through exceptional customer service and operational excellence. As a municipal utility owned and governed by the City Council, our dedicated team of six full-time professionals delivers affordable, dependable energy to approximately 3,300 residential and commercial customers throughout our service area. We maintain 24-hour dispatch service for maintenance and emergency repairs while coordinating seamlessly with city departments to ensure timely new service connections. Our commitment to excellence is recognized through our Gold-level Reliable Public Power Provider (RP3)® designation from the American Public Power Association. Santa Clara City Power operates a diverse and sustainable energy portfolio featuring internal generation capacity of 4 generators producing 9 MW, complemented by wholesale sources including coal, hydro, wind, solar, waste heat recovery, and natural gas, all supported by statewide transmission network partnerships and our proud membership in Utah Associated Municipal Power Systems (UAMPS). As your community-owned electric utility, we combine local accountability with professional expertise to power our city’s growth while maintaining our unwavering commitment to safety, reliability, and environmental responsibility.

Meet the Director: Gary Hall

TitleCategoriesLinkhf:doc_categories
Solar Net Metering ExplainedPowerpower
Capital Facility Plan, Impact Fee Facility Plan & Impact Fee StudyPowerpower
Electrical Connection Fees & Line Extension PolicyPowerpower

Power Cost Adjustment

What is the Power Cost Adjustment item on my utility bill?

On your utility bill, you will now notice a separate line item- “Power Cost Adjustment”. The City Council recently approved the PCA as a tool that has been implemented to protect both the customer and the city from fluctuating power supply costs. If power supply costs increase or decrease, the customer’s bill will be adjusted accordingly. This adjustment is listed as a separate line item on each City of Santa Clara utility bill. The adjustment will be based on a rolling six-month average and implemented monthly.

Why do we need the Power Cost Adjustment?

In recent years, power supply costs have fluctuated very rapidly and unpredictably. Because of this, it is critical that the city makes sure costs are recovered. The city does not make any revenue from the PCA, it is a pass-through cost. It is important to realize that the PCA changes from month to month, and this is not due to a change in our electric rates, but due to the changing costs of the power supply. Without the implementation of the PCA, rates would need to be changed constantly to reflect the actual cost of power.

How is the Power Cost Adjustment calculated?

The PCA is calculated using the most recent six months of actual power costs and applied to each customer following utility billed energy (kWh) or a two-month delay from when the cost occurred to when billed. The PCA will apply to all Santa Clara electric rate schedules, except non-metered and special contract rates. 

Fort Clara Power Generation Station

What is the Fort Clara Power Generation Station?

Santa Clara Power generates electricity internally at our Fort Clara Power Station. Established in 2006, this 10,800-square-foot facility initially operated with two two-megawatt generators. Since 2022, we have expanded our capacity with the installation of two more generators, bringing the total count to four and increasing our total capacity to nine megawatts. Utilizing natural gas to power these generators enables us to maintain cost-effectiveness while keeping emission levels low. With ample space available, our facility has the potential for further expansion to accommodate two more generators for a total of six, ensuring our ability to meet the evolving energy demands of our community. The power station is financed through a 20-year term tax-exempt bond and impact fees. There will be no increase in power rates to cover the construction or operational costs of the facility.

Why do we have generators?

Peak-Time Power Assurance: The primary purpose of our generators is to ensure adequate power supply and mitigating costs during peak periods, particularly in the summer months. As demand for power surges during hot weather, both residential and commercial customers rely heavily on air conditioning systems, resulting in increased electricity consumption.

Emergencies/City-wide Blackout: The generation station serves as lifeline during emergencies, including city-wide blackouts. In such situations, our generators can provide essential power, maintaining crucial services like emergency operations at healthcare facilities. This ensures the safety and well-being of our community, even in the face of unforeseen events.

Cost-Efficiency and Revenue Generation: Investing in our generation station not only results in

significant cost savings by reducing dependence on costly power purchases from the open market but also presents an opportunity for revenue generation through surplus power sales. This strategic approach enables us to provide sustainable and affordable energy solutions to our valued customers.

My power is out, doesn’t the city have backup generators?

The generators are not utilized as backups for typical outages. The process of activating them isn’t as straightforward as flipping a switch. We need to isolate ourselves from the grid before powering them up, which is time-consuming. If the outage duration is shorter than the time required to activate the generators, it’s more efficient to wait for power restoration. Additionally, reconnecting to the grid after power is restored involves causing a secondary outage while we shut down the generators, then reconnect to the grid. This process of disconnecting from the grid, starting the generators, shutting the generators down once power is restored, and re-connecting to the grid takes approximately 4-5 hours. One thing to remember is that we only have about 9 megawatts of generation and our peak load in the summer is 20 megawatts. We can only provide power to parts of the city at a time during the summer. We would try to keep the commercial areas energized as much as possible and then in the residential areas we would need to have rolling blackouts. Meaning we could energize certain sections of the city for one hour at a time and then rotate to another section of the city. Additionally, during this process of adding load to the generators, we must be careful not to add too much at a time or it may trip them offline, and we have to start the process over again. With all these factors to consider, if the grid outage is expected to be less than 5 hours, it is not worth starting the generators.

Solar Power & Net Metering

What is Net Metering and how does it work?

The customer uses energy produced from their solar panels – Your home first draws electricity directly from your solar system to power your lights, appliances, and other electrical needs.

If they produce more energy than what the home needs, the excess energy is fed into the utility – When your solar panels generate more electricity than you’re using, that surplus power automatically flows back into Santa Clara City’s electrical grid through your meter connection.

Santa Clara City provides power to the customer when needed – During times when your solar panels aren’t producing enough energy (such as at night, during cloudy weather, or when your usage is high), the city supplies the additional electricity you need from the grid.

The customer is billed off the net usage – At the end of each billing period, you’re charged based on the difference between what you used from the city and the energy you fed into the utility. This “net” calculation can significantly reduce or even eliminate your monthly electricity bill.

What is the Solar Reliability Charge and how is it calculated?

The Solar Reliability Charge (SRC) is a monthly fee applied to solar customers based on the kilowatt (kW) capacity of their installed solar system. This charge is currently set at $2.05 per kilowatt of installed solar capacity.

Why it exists:

  • An Avoided Cost Study completed in December 2015 determined that there is a cost to Santa Clara Utility for serving solar customers
  • The study found that Santa Clara needs to collect $4.05 per kilowatt installed to cover distribution system costs
  • City staff and council reduced this charge to $2.05 per kilowatt to make solar installation more economically feasible for customers

How it’s calculated:

  • The charge reflects the cost of providing full electrical service to meet the complete demand of net-metered customers
  • It’s based on your system’s capacity (kW), not actual energy production
  • For example, a 5 kW solar system would incur a monthly SRC of $10.25 (5 kW × $2.05)

This charge ensures that solar customers contribute fairly to maintaining the electrical grid infrastructure they depend on while still making solar economically attractive.

How does Santa Clara’s solar billing structure work?

Santa Clara’s solar billing includes three main components that apply to all solar customers:

1. Base Rate (Customer Service Charge):

  • Solar customers pay the same customer service charge as other customers in their rate class
  • This covers basic service costs regardless of energy usage

2. Net Energy Usage – Two Scenarios:

  • If you use more energy than you produce: You’re billed for the net kWh usage at the same rates as other customers in your rate class
  • If you produce more energy than you use: You receive credit for excess energy at the Renewable Power Rate of $0.04 per kWh (4 cents per kilowatt-hour)

3. Solar Reliability Charge:

  • Monthly charge of $2.05 per kilowatt of installed solar system capacity
  • Applied regardless of actual energy production or usage
  • Covers the utility’s cost of providing full electrical service to solar customers

Example Monthly Bill: For a customer with a 6 kW solar system who used 50 kWh net energy:

  • Base Rate: (varies by rate class)
  • Net Usage: 50 kWh × applicable rate
  • Solar Reliability Charge: 6 kW × $2.05 = $12.30

This structure ensures fair cost recovery while providing substantial savings opportunities for solar customers.

%
Reliability Rate
Customers Served
Mi
Power Lines Maintained

City Hall Hours

Justice Court Hours

After Hours Emergency