CCA-PTP-10-16
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Transcript of CCA-PTP-10-16
(Compiled, written, annotated, and edited by Christopher Gee,
VP, Panel the Planet, Inc. [email protected])
Community Choice Aggregation (CCA), is a system (neither a company nor an
organization) adopted into law in the state of California, which allows cities and
counties to aggregate the buying power of individual customers within a defined
jurisdiction in order to secure alternative energy supply contracts on a community-wide
basis, but allowing consumers not wishing to participate to opt out.
CCAs now serve nearly five percent of Americans in over 1300 municipalities as of
2014. CCA's are de facto public utilities of a new form that aggregate regional energy
demand and negotiate with competitive suppliers and developers, rather than the
traditional utility business model based on monopolizing energy supply.
CCAs can provide cleaner energy, often from locally-supplied alternative sources (e.g.
solar, wind), at a significantly lower or very competitive cost to monopoly utilities as in
the Sonoma Clean Power (SCP) vs. Pacific Gas & Electric (PG&E) example below:
Community Choice Aggregation: California Overview
In 2002, California State Legislature passed Assembly Bill 117, enabling Community
Choice Aggregation (CCA).Not only did Assembly Bill 117 enable California to join the
small but growing number of states allowing CCAs, it mandated that customers be
automatically enrolled in their local CCA, with an option to opt out. Inspired by Climate
Protection efforts, CCA has spread to cities throughout the Bay Area and the state.
In 2007, forty California local governments were in the process of exploring CCA,
virtually all of them seeking to double, triple or quadruple the green power levels
(Renewable Portfolio Standard, or "RPS) of the state's three Investor-Owned Utilities.
Sonoma Clean Power
Sonoma County created a countywide CCA, Sonoma Clean Power (SCP), under the
CCA law in 2013, offering power that is both greener and more locally sourced, and also
to be offered at a lower cost than incumbent utility PG&E. It includes the County of
Sonoma, Windsor, Cotati, Sebastopol, and the City of Sonoma. Cloverdale, Rohnert
Park, and Petaluma initially decided not to join but joined later. Geof Syphers, one of the
consultants who wrote the feasibility study and financial analysis, was named CEO on
July 2, 2013. SCP started providing power on May 1, 2014. SCP Commercial rates
“Clean Start” option is an impressive $22 less per month than PG&E while still obtaining
36% of its power from renewable resources while PG&E is 27% only for renewable in
Fig. 1 above.
Marin Clean Energy
Marin County made history when it launched California's first CCA program, Marin
Clean Energy, offering 50-100% renewable energy to its customers at competitive rates
on May 7, 2010. Marin Clean Energy (MCE) now serves approximately 175,000
customers in Marin County, unincorporated Napa County and the cities of Benicia, El
Cerrito, San Pablo, and Richmond.
Community Choice Aggregation: California Overview
MCE is helping to strengthen and democratize California's energy economy. As
California's first CCA program, MCE is charting the course for a new, highly innovative
approach to electricity service in the Bay Area. The organization's mission is to reduce
energy-related greenhouse gas emissions by expanding access to affordable,
renewable energy and energy efficiency programs while creating local economic and
workforce benefits.
Community Choice Aggregation: California Overview
Leading with Green Energy
CCAs are capable of surpassing the known benchmarks of greener and cheaper power
for the communities they serve. Both Sonoma Clean Power and Marin Clean Energy
have provided much cleaner energy and competitive, often cheaper, rates than their
investor-owned private competitor, Pacific Gas & Electric, for every year they have
been in operation.
Lancaster Choice Energy (LCE) is projected to do the same in their first year of service
with “Clear Choice” option already coming in lower than SCE:
Community Choice Aggregation: California Overview