Community Choice Aggregation

Community Choice Aggregation, abbreviated CCA, is a system adopted into law in the United States states of Massachusetts, New York, Ohio, California, New Jersey, Rhode Island, and Illinois, which allows cities, counties, and some special districts, to aggregate the buying power of individual customers within a defined jurisdiction in order to secure alternative energy supply contracts on a community-wide basis, but allowing consumers not wishing to participate to opt out. Also known as Community Choice Energy (CCE), municipal aggregation, governmental aggregation, electricity aggregation, and community aggregation, CCAs now serve nearly 5% of Americans in over 1300 municipalities as of 2014.

CCAs are local, not-for-profit, public agencies that take on the decision-making role about sources of energy for electricity generation. Once established, CCAs become the default service provider for the power mix delivered to customers. In a CCA service territory, the incumbent utility continues to own and maintain the transmission and distribution infrastructure, metering, and billing. In some states, CCAs may be considered de facto public utilities of a new form that aggregate regional energy demand and negotiate with competitive suppliers and developers, rather than the traditional utility business model based on monopolizing energy supply. In California, CCAs are by legal definition not utilities, and are legally defined in California law as electric service providers.

CCAs have set a number of national green power and climate protection records while reducing power bills, a rare combination that has won National Renewable Energy Laboratory (NREL) and Environmental Protection Agency (EPA) recognition for achieving significantly higher renewable energy portfolios while maintaining rates that are competitive with conventional fossil and nuclear-based utility power. Several major U.S. population centers under CCA have switched to energy portfolios that are an order of magnitude greener than local utilities or other direct access providers, but charge no premium above utility or direct access rates. CCAs are therefore already conspicuous leaders in green power innovation, receiving U.S. Environmental Protection Agency’s “green power leadership awards” for achievements in renewable energy (MCE Clean Energy; Oak Park, IL, Cincinnati, OH). Newer CCAs in California like Sonoma Clean Power and San Francisco's CleanPowerSF are increasingly focused on using the policy as a platform for financing and integrating a transition to local renewable energy sources rather than grid power.

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