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Community Choice Aggregation


Community Choice Aggregation

Community choice aggregation (CCA) is a state policy that enables local governments to aggregate electricity demand within their jurisdictions in order to procure alternative energy supplies while maintaining the existing electricity provider for transmission and distribution services. Many states passed CCA laws as part of electric restructuring legislation in the late 1990s and early 2000s. States that have passed CCA laws include California (2002), Illinois (2009), Massachusetts (1997), New Jersey (2003), Ohio (1999), and Rhode Island (1997). There are many reasons that a community may choose to develop a CCA, including the option to purchase more green power, reduce electricity cost, and provide power from more local sources.

CCAs that are currently providing a green power product include:

Location Program Name Renewable Offer Start Date Premium
Communities in Illinois Municipal Aggregation (Click on the community name to see supply options; not all communities offer green power) Typically 100% green power option 2010-2014 varies
Sonoma County, CA Sonoma Clean Power 33% or 100% green power 2014 33% product has 4-5% savings; 100% product is 3.5¢/kWh premium over 33% product
Lowell, MA Community Choice Power Supply Program 100% green power 2014 8-10% savings
Cleveland, OH Municipal Aggregation Program 100% green power 2013 21% savings
Lancaster, MA Municipal Aggregation Program Local PV incorporated into product mix 2013 ~10% savings
Marin County, CA Marin Energy 50% or 100% green power 2010 100% is 1¢/kWh extra

Most CCAs are "opt-out" entities, meaning that the customer is by default part of the aggregation unless the customer opts-out. This opt-out arrangement has given community aggregation entities much higher participation rates than utility green power programs. The lowest participation rate for opt-out programs that offer a renewable energy component is around 75%20 compared to the highest participation rates in the low twenties for the most successful opt-in utility green power programs.

Other communities have initiated CCAs that do not include green power options:

Resources

Local Energy Aggregation Network (LEAN Energy U.S.).

Heeter, J., K. Belyeu, and K. Kuskova-Burns, 2014. Status and Trends in the U.S. Voluntary Green Power Market (2013 Data). NREL Report No. TP-6A20-63052. November.

Heeter, J. and J. McLaren, 2012. Innovations in Voluntary Renewable Energy Procurement: Methods for Expanding Access and Lowering Cost for Communities, Governments, and Businesses. NREL/TP-6A20-54991. Golden, CO: National Renewable Energy Laboratory. September.

Marshall, S.E., 2010. Forming a National Community Choice Aggregation Network: Feasibility, Findings and Recommendations.

Local Power Inc., 2009. Community Choice: Lessons Learned & Best Practices. Prepared for the San Francisco Public Utilities Commission.

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