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Smarter Energy Planning Can Protect Customers and
Support California’s Growth
California is preparing for significant growth in electricity demand, including from large energy users such as data centers. That growth is real, but the timing and scale remain uncertain, and how we plan for it matters for customer affordability.
In San José Clean Energy’s 2026 Integrated Resource Plan, we urged state regulators to take a more flexible, locally informed approach to forecasting and procurement. The planning forecast created and used by the state nearly doubles SJCE’s expected electricity demand by 2028. Our own analysis, using local development information, permitting activity, project timelines, and customer-specific data, shows substantially less near-term demand.
The distinction is important. If energy providers are required to procure too much power too early, customers could end up paying for resources before they are needed.
We are also advocating for California to better recognize the value of local energy resources, including rooftop solar, batteries, electric vehicles, demand response, and virtual power plants. These resources can support reliability, reduce future procurement needs, and help keep costs down.
Local governments and communities have valuable information and resources that can help the state plan more accurately. By incorporating both into long-term planning, California can support economic growth while advancing reliability, climate progress, and affordability. Read our full article on why California needs a smarter procurement framework for the next phase of our clean energy transition.
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