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Community Choice Aggregation

What is Community Choice Aggregation

Community Choice Aggregation (CCA) gives electricity customers an alternative to the traditional utility energy supply system. CCA is also called Community Choice Energy (CCE), governmental aggregation, municipal aggregation, electricity aggregation, and community aggregation. CCA works by allowing individual communities in the United States to combine the purchasing power of individual customers within a specific area in order to procure their own electricity supply.

 

Where is Community Choice Aggregation Possible

The states where Community Choice Aggregation is currently available are California, Illinois, Massachusetts, New Jersey, New York, Ohio, and Rhode Island. The power supply source is chosen by the CCA, on behalf of the community they are representing. The CCA’s goal is lower costs for consumers and also to allow the customers to have more control of where their energy is sourced. This is done by offering a more “green” energy supply that what the local utilities can provide. By implementing electricity aggregation, the communities are can negotiate large contracts with suppliers which isn’t usually possible for individual customers.

 

The Significance of Community Choice Aggregation

CCA’s have helped to set climate protection and “green” power records, while also reducing energy costs. This has given CCAs recognition for helping communities achieve higher renewable energy portfolios and also keeping electricity rates that are competitive with the local utilities. Some major U.S. cities working under community choice aggregation have switched to energy sources that are much greener than the local utilities, or other direct energy providers, but are paying no more for their electricity.

The CCAs are locally based, non-profit, public agencies that help take on the role of decision maker to source energy for electricity generation. Once the Community Choice Aggregation is established, they become the service provider for the energy mix that is delivered to their customers. The utility company still owns and maintains the transmission and distribution, metering and billing of energy services.