Aggregate Community Selection , abbreviated CCA , also known as Energy Options Community ( CCE ), city cluster , government aggregation , electrical aggregation , and community aggregation , is an alternative to the utility's energy supply system in which the local entity in The United States collects the purchasing power of individual customers within a prescribed jurisdiction to secure alternative energy supply contracts. The CCA selects power generation sources on behalf of consumers. By collecting purchasing power, they are able to create large contracts with generators, something that each buyer may not be able to do. The main goal of the CCA is to lower costs for consumers or to enable consumers to control their energy mix, especially by offering a "greener" generation portfolio than local utilities. Currently CCAS is possible in the United States states of Massachusetts, Ohio, California, Illinois, New Jersey, New York and Rhode Island, and serves almost 5% of Americans in more than 1300 municipalities by 2014.
Video Community Choice Aggregation
How CCA Functions in Electrical Distribution
The CCA is a local, not-for-profit public agency, which takes the decision-making role about energy sources for power generation. Once established, CCA becomes the default service provider for the power mix delivered to customers. In the CCA service area, the incumbent utility continues to own and maintain its transmission and distribution, measurement, and billing infrastructure. In some countries, the CCA can be considered the de facto public utility of a new form that combines regional energy demand and negotiates with competitive suppliers and developers, rather than traditional utility business models based on monopolizing energy supplies.
Maps Community Choice Aggregation
Significance
The CCA has set a number of national green and climate protection records while reducing electricity bills, a rare combination that has won the National Renewable Energy Laboratory (NREL) and Environmental Protection Agency (EPA) recognition to achieve a significantly higher portfolio of renewable energy while keeping interest rates which is competitive with conventional fossils and nuclear-based power. Some major US population centers under CCA have shifted to energy portfolios that are greener than local utilities or other direct access providers, but do not charge a premium above the utility level or direct access. Therefore CCA has become a prominent leader in green power innovation, receiving a "green power leadership award" from the US Environmental Protection Agency for achievement in renewable energy (MCE Clean Energy; Oak Park, IL, Cincinnati, OH). Newer CCAs in California such as Sonoma Clean Power and CleanPowerSF San Francisco are increasingly focusing on the use of policies as a platform for financing and integrating the transition to local renewable energy sources rather than network power.
Basic Policy for CCA
In the US, CCAs are allowed in eight states: Massachusetts, Ohio, California, Illinois, New Jersey, New York and Rhode Island, but only present in the first seven. States must first pass laws enabling the establishment of CCAs before aggregate can take shape. Currently, only countries with electrical deregulation have passed the law. It is a natural progression as electrical deregulation separates the power generation function from transmission and distribution that allows consumers to choose their electrical generators. This separation then allows the CCA to select a mixture of power plants on behalf of consumers without having to build infrastructure to move electricity. However, only 17 states and the District of Columbia have deregulated the market. The remaining 33 states are considered regulated, where utilities maintain a monopoly on generation, transmission, and distribution of electric power.
Initial days
In Massachusetts, where the country's first CCA bill (Senate 447, Montigny) was first drafted by the Massachusetts senate energy committee committee Paul Douglas Fenn in 1995 and enacted in 1997, the cities of Cape Cod and Martha's Vineyard formed the Cape Light Compact and succeeded lobbying. for approval of CCA seminal legislation. Two of the founders of Light Light Cape, Falmouth Selectman Matthew Patrick and Barnstable County Commissioner Rob O'Leary, who were later elected to the Massachusetts House of Representatives and the Senate respectively. Between 1995 and 2000, Fenn formed the American Local Electricity Project and worked with Patrick to draft and enact similar laws in Ohio, New Jersey, and other states.
Former FERC Commissioner Nora Brownell has called the Community Choice Aggregate "the only major exception to the failure of electrical deregulation in the US" With every CCA being formed still operating and charging less per kilowatt hour than its Utility-Owned Investor, the CCA has proven to be reliable and able to provide a greener power at a competitive price. The Ohio Office of the Consumer Council has said that the CCA is "the biggest success story" in the Ohio competition market, and the new law to reorganize utility rates in Ohio will preserve CCA even if other forms of competition are eliminated. In Massachusetts, the success of Cape Light Compact has led to the formation of new CCAs used in cities like Marlborough, Massachusetts.
Massachusetts
The country's first CCA, Cape Light Compact, currently serves 200,000 customers, runs an aggressive and transparent energy efficiency program and installs solar installations at Cape Cod schools, fire stations and libraries.
Many other cities and cities are now forming CCAs or are working to complete the initial process.
Ohio
In Ohio, the country's largest CCA was established shortly after 1999 when the state legislature adopted the CCA law - the Northeast Ohio Community Energy Council (NOPEC), consisting of about 500,000 customers in 138 cities and towns in eight districts, obtaining power supply contracts that divert the supply of coal-fired power from coal and nuclear power to natural gas mixtures and a small percentage of electrically powered electricity, announces a 70% reduction in air pollution in the region's power mix. The contract also includes solar photovoltaic demonstration projects in each of the eight districts. The NOPEC contract process is led by Scott Ridley, an energy consultant who has worked with Fenn to develop Community Choice Aggregation in Massachusetts and become consultant to Cape Light Compact.
California
Overview
In 2002, the California State Legislature passed the Bill of 117 Assembly, which allowed the CCA. The bill allows CCA, and mandates that customers are automatically registered with their local CCAs, with the option to opt out. The law also clarifies that, in California, the CCA is based on a legal definition rather than a utility, and is legally defined in California law as a provider of electrical services. [2]
In the early days of the California energy crisis, Paul Fenn, director of the Massachusetts Senate Energy Committee who conducted legal research and drafting the original CCA law, established Local Power Inc. and drafted a new CCA law for California. In a campaign organized by Local Power, the City and County of San Francisco led Oakland, Berkeley, Marin County, and a group of Los Angeles municipalities in adopting a resolution calling for state CCA law in response to the failure of the deregulated power market in California. The Fenn bill was sponsored by then Member of the Assembly Carole Migden (D-San Francisco) in 2001, and the bill became law (AB117) in September, 2002.
The formation of CCAs in California was delayed by early political opposition by state-owned utility investors. As of June 2010, Pacific Gas & amp; Electric sponsors a proposition, Proposition 16, to complicate local entities to form a municipal utility or CCA by requiring two-thirds of the votes of voters rather than a simple majority, for public agencies to enter the retail strength business. Although PG & E contributed more than $ 46 million in efforts to pass the initiative (the Prop 16 opponents, led by Local Power Inc. and The Utility Reform Network, had access to less than $ 100,000), Proposition 16 was defeated.
San Francisco adopted the CCA Ordinance compiled by Fenn (86-04, Tom Ammiano) in 2004, created the CCA program to build 360 Megawatts (MW) of solar generation, distributed green, wind generation, and energy efficiency and demand response to serve San Appraiser Francisco uses solar bonds. In particular, the regulation incorporating the CCA power purchase authority with the income obligation authority was also developed by Fenn to expand the strength of the CCA, known as the H Bond Authority (San Francisco Charter Section 9,107.8, Ammiano), to enable CCA to finance new green power infrastructure, worth about $ 1 Billion. In 2007, City adopted a detailed CCA Plan that was also written primarily by Fenn (Ordinance 447-07, Ammiano and Mirkarimi), which makes up 51% of the Renewable Portfolio Standard in 2017 for San Francisco. Over the next decade, Sonoma and San Francisco worked with the company Fenn, Local Power Inc. on program design that focuses on achieving the localization of energy through renewable energy and energy efficiency.
Inspired by Climate Protection efforts, the CCA has spread to cities throughout the Bay Area and the state. In 2007, 40 California local governments were in the process of exploring the CCA, almost all of them trying to double, three or four times the green power (Renewable Portfolio Standard, or "RPS") of the three Utilities Owned by Investors.
In April 2014, Assemblymember Steve Bradford (D-Gardena) introduced the law (AB 2145) which would sharply limit the ability of CCAs to register customers. CCA supporters and a broad coalition of local governments, businesses and environmental organizations rose in opposition and defeated AB 2145. AB 2145 was passed in the California Assembly but died in the Senate on August 30, 2014 when the Senate legislative session ended without it coming to vote. Regulators hold hearings in 2017.
Marin Clean Energy
Marin County launched California's first CCA program, Marin Clean Energy, on May 7, 2010, offering 50% -100% renewable energy at competitive prices. Marin Clean Energy (MCE) now serves about 255,000 customers in Marin County, Napa County and the cities of Benicia, El Cerrito, Lafayette, San Pablo, Richmond, American Canyon, Calistoga, Lafayette, Napa, St. Helena, Walnut Creek, Yountville, Concord, Danville, Martinez, Moraga, Oakley, Pinole, Pittsburg and San Ramon.
As the first CCA program in California, MCE charted a course for a highly innovative new approach to power services in the Bay Area. The organization's mission is to reduce greenhouse gas emissions related to energy by expanding access to affordable renewable energy and energy programs while creating local economic and labor benefits.
Sonoma Clean Power
The Sonoma Climate Protection Center officially introduced the idea to pursue the CCA in Sonoma County in the 2008 Community Climate Action Plan. In 2011, the Sonoma County Water Agency funded the production of a feasibility study to study the question. The feasibility study is profitable and after many public reviews and the establishment of a Joint Power Authority to manage the agency, Sonoma Clean Power launched the service on May 1, 2014, offering a greener and more locally sourced power, at a lower cost than PG & amp ; E. The county and eight eligible towns in the county have finally joined. These include Cloverdale, Cotati, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, Sonoma, and Windsor.
In 2016 Mendocino County chooses to join Sonoma Clean Power and the Sonoma Clean Power board chooses to accept Mendocino County and Fort Bragg, Willits, and Point Arena cities into the Powers Joint Authority. Silicon Valley Clean Energy
Silicon Valley Clean Energy (SVCE) launches its operations on April 3, 2017 by providing 100% of GHG free electricity to 12 Silicon Valley communities, including Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale, and Counties unrelated to Santa Clara. https://www.svcleanenergy.org/about-us
Lancaster Choice Energy
Lancaster Choice Energy (LCE) began providing renewable strength to city accounts in May 2015 with extensive public registration beginning in October. So far the city of Lancaster, California has offset nearly 70% of its peak load (147 Megawatts) with renewable energy sources. Lancaster aims to become the first net-zero city in the US, Lancaster is determined to produce more clean energy than it consumes, along with several private sector partners. The city has set new rules for building more efficient and sustainable structures.
By the end of its first year of operation in 2016, Lancaster Choice Energy has 55,000 accounts in Lancaster City. LCE customers receive at least 36% of renewable energy through standard Clear Choice products, with many choosing up to 100% Renewable Smart Options. In addition, the first LCE solar energy plant is now alive. Built by sPower, this factory provides 10 MW of power produced in Lancaster directly to Lancaster residents and enough to power about 1,800 homes.
Semenanjung Clean Energy
The Peninsula Clean Energy (PCE) (https://www.peninsulacleanenergy.com/) was formed in February 2016 by the unanimous vote of County San Mateo and all 20 towns and cities incorporated in the County. It starts supplying power to customers in Autumn 2016 and is currently the largest community-driven energy program in California.
In June 2017, it offers its customers a cleaner starting product (at least 50% renewable and 75% greenhouse gas free) and at a lower cost than existing utilities, PG & E. In June 2017, the company also offers its customers 100% renewable products that are significantly cheaper than PG & amp; E 100%.
East Bay Community Energy
East Bay Community Energy, also abbreviated EBCE, ebce.org, was formed in October 2016 by Alameda County and the cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Oakland, Piedmont, San Leandro and Union City. East Bay Community Energy plans to begin providing electricity in June 2018 for commercial and municipal customers and November 2018 for residential customers.
Until April 2018, EBCE plans to offer customers two energy services. Their Bright Choice service intends to use clean energy resources at approximately the same amount as Pacific Gas and Electric Company (PG & E) but it costs less. Their Brilliant 100 option service is greener and uses more renewable energy than PG & amp; E at the same price. The third service is planned to be launched in November 2018 and hopes to use 100 & amp; renewable energy and offered at cost just above the PG & E level.
California Community Choice Association
In 2016, six existing Community Choice institutions: MCE Clean Energy, Sonoma Clean Power, Lancaster Choice Energy, CleanPowerSF, Peninsula Clean Energy, and Silicon Valley Clean Energy formed the 501 (c) (6) nonprofit trade association, the California Community of Choice Association , Cal-CCA. Cal-CCA held its first meeting in San Francisco on October 20, 2016.
According to Clean Power Exchange, a project from the Climate Protection Center that tracks the expansion of the Community Choices in California, at the close of 2016, 26 of 58 counties in California have CCA operations, are on schedule to launch the service, or at some stage of prior evaluation. More than 300 cities are equally involved in operational or emerging CCAs.
San Jose Clean Energy
On May 16, 2017 the San Jose City Council approved the creation of San Jose Clean Energy, making San Jose the largest city in California to adopt the CCA.
Power Community Monterey Bay
Monterey Bay Community Power (MBCP) obtains carbon-free electricity for Monterey, San Benito and Santa Cruz County, including all cities except Del Rey Oaks and King City who choose not to participate. MBCP began serving commercial customers in March 2018, with housing services starting July 2018. MBCP matches PG & amp; E and by default offer a 3% rebate on generating costs. https://www.mbcommunitypower.org/
Emerging CCAs in California
Several cities across the state of California are considering implementing the Community Choices aggregation program across their districts, and many will begin rolling out their programs by 2018. California has many anticipated cities to launch CCAs by 2018, including Los Angeles County, Placer, and Alameda County. There are also other cities exploring and in the CCA deployment process, these include San Diego County, Fresno County and San Luis Obispo County.
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Illinois
The state of Illinois adopted the CCA law in 2009, which has led to an increase in communities that provide electricity services to more than 2/3 of the country's population by 2014, including the city of Chicago, whose mayor Rahm Emanuel is focusing his program on reducing coal electricity production and increase renewable energy.
As of October 2013, 671 cities and cities of Illinois (representing 80% of the state residential electricity market) have used the CCA.
By the end of 2013, 91 local governments in Illinois (representing 1.7 million state residents) used state CCA laws in 2009 to purchase 100% of renewable electricity for their communities.
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New Jersey
New Jersey adopted the CCA law in 2003, but did not see the formation of active aggregation until 2013, when Bergen County, Passaic County, and fifteen other cities and districts started the CCA program, focusing on reducing utility bills and in some cases greening power they supply, or both.
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New York
The New York State Public Service Commission (PSC) has identified the CCA as consistent with the stated goals of the "REV reform" regulatory reforms, and has stated that local energy planning helps cities benefit from distributed energy resources made possible by REV.. The CCA law was filed in the New York State Assembly in February 2014, followed by Governor Andrew Cuomo's directive to direct the PSC to implement the CCA directly under its own authority in December 2014.
In December 2014, the nonprofit organization Sustainable Westchester petitioned the PSC on behalf of member municipalities to implement the CCA demonstration program in Westchester County. The PSC granted the Order on February 26, 2015 authorizing Sustainable Westchester to issue RFPs and award contracts for the supply of electricity and natural gas to residents and small businesses in the county municipality that issued a resolution to join the CCA: "The Sustainable Pilot Westchester is expected to provide valuable experience on the design and results of the CCA which, in addition to many comments in the process, will assist the Commission in making its determination to apply the CCA across the state. "
The program was launched in 2015, becoming the first operational CCA in New York State. Similar local CCA organizing efforts are under way in Ulster County, Sullivan County, Hudson Highlands, and other communities.
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Rhode Island
The Utility Restructuring Act of 1996 deregulated the utility market in Rhode Island, allowing consumers to choose their power generation and CCA suppliers to form. Although this action is allowed for CCA creation, there are currently no small business or residential CCAs available for private consumers to join. The only CCA option is for city facilities.
Rhode Island Energy Aggregation Program (REAP)
The Reap Program "is operated by Rhode Island League of Cities & Towns and serves 36 out of 39 municipalities in Rhode Island and four school districts". The Reap program facilitates the purchase of electricity by city entities by making requests for proposals, reviewing bids from approved electricity generators, and choosing companies that they believe will be the ideal provider for each municipality. The program reported in 2012 has reached a cost savings of 20-30% of standard offerings.
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Advantages and Disadvantages
There are advantages and disadvantages associated with applying Aggregation of Community Choices in different locations. CCA provides benefits such as providing customer choice, reducing energy costs, renewable energy, and environmental benefits.
By providing customer choice, customers have the ability to register with the CCA or maintain their current utility provider. Subscribers are automatically enrolled in the program but they may choose not to opt in. CCA reduces energy costs, lowers tariffs for customers. It also increases the use of affordable renewable energy, provided through wind, solar, and geothermal steam. It provides environmental benefits to communities as it reduces natural gas consumption and greenhouse gas emissions.
There are also disadvantages associated with implementing the CCA. Potential issues related to implementation include political and financial constraints. The CCA can face groups that lobby for its implementation, setbacks from IOU, outgoing costs, and even losses associated with opt-out options.
At the political level, local government can be opposed by groups and organizations. An example is when IOU Pacific Gas and Electric Company opposed the making of the CCA by supporting California Proposition 16 in 2010, which would make it difficult for California to apply CCAs across the state. Other utility providers who act are San Diego Gas & amp; Electricity that seeks to stop local governments from implementing the Community's chosen aggregation program. SDG & amp; E created a separate entity, Sempra Energy, which would allow them to lobby against the CCA in San Diego County.
Other issues that can arise from the development of community-based aggregation include the development of outgoing costs, particularly in the state of California. This is a problem for CCAs in the state of California because it allows the Investor's (IOU) utility to raise prices through the Indiform Charging Adjustment (PCIA), making it more expensive for customers to join the CCA program as it will cost customers when they choose to quit use the service pack provided by their utility provider and start using the CCA program. The main issues that are rolling out of PCIA are program transparency, agency liability, and proper assessment of costs associated with outgoing costs. Outgoing fees are given to CCA users to compensate for the fees that will apply to those remaining with IOU services.
Costs such as exit fees and tariff increases can be detrimental because CCAs can raise prices for customers. Level managers and local officials can set the CCA price that can be detrimental if local government acts on their own behalf or if local governments have no knowledge to make decisions about CCAs and prices in their area. Option to opt-out can be a benefit to customer choice but can also be a risk to the CCA program because if there are many customers opting out of service, this can lead to financial instability among CCAs.
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References
src: www.cooldavis.org
External links
- CEC Community Selection Pilot Project
- The truth article published in 2013
Source of the article : Wikipedia
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