Tuesday, October 25, 2016

What is a Solar Utility CCA or Community Collective Aggregation?


A solar Community Collective Aggregation (CCA) is an optional buying group organized by a municipality or a group of municipalities to benefit electric customers. (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.

  • Came out of the Utility Deregulation Act of 1997 to enhance the competitive market
  • A CCA would enter into an electricity supply contract for all customers who remain on default service within a given municipality. 
  • Customers can participate in the long-term fixed rates
  • Customers are automatically enrolled, unless they opt-out

Benefits of Community Choice Aggregation

  • Solar & Wind - more options to generate power using renewable energy and distributing power on the grid 
  • Choice - No longer "stuck" with utility default rates
  • Stability - Municipality can seek long-term rates to avoid market volatility 
  • Savings - CCA obtained rates are generally below to substantially below average default rates. 
  • Economic Development - Stable and lower utility rates provide a competitive advantage for businesses choosing locations 
  • Pro-Consumer - Contract terms and conditions are designed to protect consumer rights
  • No Penalties for Consumers - Opt-out anytime and go back to default service or choose another provider
  • Environment - less fossil fuels used by traditional coal, gas and nuclear power plants.  

Currently, there are only 4 CCA utilities in California and there will be 22 in the State by the end of 2017. Look to Silcon Valley for some leadership ideas for other municipalities looking to do the same.

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