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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. For 2013, approximately 2.4 million customers participating in CCAs that source renewable energy, totaling more than 9 million MWh of renewable energy.
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.).
O’Shaughnessy, E., J. Heeter, C. Liu, and E. Nobler, 2015. Status and Trends in the U.S. Voluntary Green Power Market (2014 Data). NREL/TP-6A20-65252. October.
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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