Starting a New CCA
Model Practices
Community Choice Aggregation (CCA) gives residents and businesses an opportunity to purchase electricity from local government agencies, and gives local governments the authority to manage energy resources on behalf of their communities and customers. CCAs can provide many environmental, social, and economic benefits to California communities. Central to the concept of CCA is local choice. It gives the communities themselves the power to make choices about energy resource portfolios and investments, both within and from outside their local service area. It also empowers communities to reinvest locally with programs that address economic, social, and environmental justice goals.
Model Practices Guide
The Model Practices Guide is intended to act as a framework for community choice energy providers to best support their operations while considering scale, local interests, and other unique circumstances. The guide will:
- Help ensure that Community Choice Aggregators (CCAs) are consistently well-managed, financially secure, operating professionally, and effectively governed by boards of elected or appointed officials;
- Facilitate a more deliberate exchange among Members of model practices for governance and operation;
- Enable CCAs to jointly anticipate and address challenges arising in regulatory and legislative venues and within the CCA community; and
- Communicate model practices to customers, governing boards, policymakers, financial institutions, the CCA community, and the public.
Read the full guide here.
Start-Up Documents
Fact Sheets
Reports
Learning From One Another
New CCAs can mitigate risk and ensure best practices by learning from the experiences of operational CCA programs and organizations. Communities investigating whether to create a CCA may be able to avoid problems and identify opportunities by understanding the business strategies and lessons learned from existing CCA programs in the State.
Operational Models of CCAs:
Joint Powers Authority – A JPA is an independent, public agency that operates a CCA on behalf its member municipalities. JPAs are a common legal structure in California for the administration of cooperative multi-jurisdictional programs. MCE, Peninsula Clean Energy, Silicon Valley Clean Energy, and Sonoma Clean Power are examples of CCAs that operate with the JPA model.
Single Jurisdiction – A city or county individually establishes and operates a CCA as an enterprise fund within the municipality. This model has the same benefits of the JPA model, but differs in that the City (or County) retains full program autonomy and all revenue. San Francisco and San Jose are examples of cities that have implemented CCA under the single jurisdiction model.
Hybrid JPA – Under a hybrid JPA, communities can contract for the services they need to operate a CCA by joining an existing joint-powers authority as an associate member. CalChoice is an example of a JPA, formed by the cities of Lancaster and San Jacinto, that offers a range of CCA services to cities that join as associate members. According to CalChoice, the hybrid JPA assists with CCA implementation, operation, and administration, while allowing jurisdictions to maintain local control over CCA programs.
Commercial Vendor Package – Under this model a private company manages the CCA on behalf of local government(s). King City Community Power is the only operational CCA program in California that has implemented CCA under this model.
Key Take-Aways
- Control and allocation of ratepayer revenues and building program reserves
- Level of autonomy and operational decision-making
- Long-term costs and benefits of each approach
- Opportunities for long-term procurement to balance/hedge short-term procurement
- Responsiveness to local environmental, social and economic goals
- Funding opportunities for local energy programs and new power generation
- Creating economic opportunities through local jobs, GHG reductions, local renewable developments, supplier diversity, and environmental justice initiatives
- The risk profile, management team, and track record of each model
Joining an Existing CCA
For some areas, it makes more sense to join a CCA already in operation than to go through the intense process associated with building a CCA from scratch. Several cities have found success partnering with existing Community Choice programs. Contact local CCAs in your area to find out more.
Other Resources
Attending an industry event is a great way to learn more about establishing and operating a CCA. These include CalCCA’s own events, such as the CalCCA Annual Meeting.
Emerging CCA FAQs
Look here for answers to common questions asked by inquiring and emerging CCAs. For more general FAQs about Community Choice Aggregation, follow the link below.
What are the advantages of forming a CCA?
Advocates of consumer choice, renewable energy, and local decision-making often refer to CCAs as “energy democracy.” With CCAs, local governments can provide their constituents with a choice of what energy resource they wish to support through their energy purchases. This can directly result in the reduction of GHG emissions and a reduction of monthly energy rates for customers.
Who can establish a CCA in California?
Any city, county, or combination thereof in California is eligible to form a CCA if located in an Investor Owned Utility (IOU) territory. Cities and counties that are part of a Publicly Owned Utility (POU) or served by a special district are not eligible as they are already governed by a local board.
What are some of the steps for forming a CCA?
- Declaration to Pursue — this is an official declaration sent to the service area IOU and the California Public Utilities Commission (CPUC).
- Ordinance — each city and/or county to be a member of the CCA must past a local ordinance or resolution to make membership official and to pursue the formation of the legal entity.
- Establishing a Legal Entity — depending on the desired model, the city or county needs to legally form a JPA or establish a division within the local city or county government to administer the CCA program.
- Feasibility Study — a feasibility study is not required by law but can assist a community in understanding its electricity needs and what energy resources and rates to consider.
- Implementation Plan — An Implementation Plan must be filed with and certified by the California Public Utilities Commission (CPUC) prior to launching service.
- Other Steps Include — Entering into a service agreement with the local Investor Owned Utility (IOU), securing energy supply, data management services and electricity scheduling services, and noticing customers according to the statutory noticing requirements.
How long does it take to form a CCA?
CCAs have varying timelines for formation given attributes unique to their areas. Locations considering CCA should plan for a timeline of 1-3 years depending on the degree of support and interest within the community.
How do CCAs partner with Investor Owned Utilities (IOUs)?
CCAs provide electric generation, which is the source of power, but IOUs, such as Pacific Gas & Electric and Southern California Edison, continue to provide electric delivery and billing services just as they always have. IOUs still own and read the electric meter, send monthly bills, and provide the same maintenance and other repair services they always have.
