The city of San Diego intends to become an alternative energy provider to meet its goal of getting 100 percent of its energy from renewable sources by 2035.

Mayor Kevin Faulconer announced the formation of a Community Choice Aggregation program, or CCA, on Oct. 25. Customers could begin receiving service through the CCA program by 2021.

The new entity would create “healthy competition” and lower energy costs by 5 percent or more, the mayor’s office said.

San Diego’s utility, San Diego Gas and Electric Co., said it “does not anticipate any material impact to its financial results from the city’s decision to adopt a CCA program and implement it in the next few years.” The utility is part of Sempra Energy (NYSE: SRE).

In a statement released after the mayor’s news conference, SDG&E said it “respects the city of San Diego’s right to create a procurement program that best fits its needs. SDG&E has a long history of partnership with the city, and is committed to continuing a productive, cooperative relationship. As the city charts this new course for purchasing electricity, SDG&E will help enable the transition.”

The city plans to form a joint powers agency to take over responsibility for purchasing power for city residents — and perhaps for other jurisdictions in San Diego County. The San Diego City Council could pass an initial resolution of intent as soon as December and take action to form a joint powers agency as early as next summer, Faulconer’s office said.