This document discusses community choice aggregation (CCA) as an alternative to investor-owned utilities for electricity provision. CCA allows local governments to purchase or generate power for residents and businesses in their jurisdiction. Benefits include community control over rates and energy sources as well as potential local economic growth. However, risks include higher rates if mismanaged or costs from leaving existing utilities. Examples provided demonstrate savings CCA programs have achieved in other areas of California and the United States.

1. Community Choice
Aggregation coming to the San
Diego area
KYLE KNOEBEL
BAKER ELECTRIC
KKNOEBEL@BAKER-ELECTRIC.COM
(760) 690-5048
Can it compete with
some of the largest
Investor Owned Utilities in
the world?

2. Investor Owned Utility (IOU)
 IOUs have provided electrical service, including transmission and
generation, for over a century.
 In California, the IOUs are private companies that are semi-regulated by
the CPUC.
 IOUs in California already give limited choices for some customer classes.
 Publicly owned utilities generally see electric rates 15-20% lower than IOUs.

3. Community
Choice
Aggregation
(CCA)
Benefits
 Community Choice Aggregation (CCA) is a program that permits cities,
counties, and other authorized entities, called Community Choice Aggregators
to purchase and/or generate electricity for residents and businesses located
within the boundaries of their jurisdiction.” – SDGE
 Communities can control energy rates and methods of production.
 Communities can spur local economic growth by providing jobs through the
construction of local electricity generating facilities, employment within the
CCA organization, incentivizing new businesses to move into the community
through lower electric rates, etc.
 CCAs qualify local, governmental sources of financing for energy-generation
projects, according to a study of CCAs by the California Energy Commission.
Community Choice Aggregation (CCA)

4. Community Choice Aggregation (CCA)
What are the risks?
 A mismanaged CCA could experience higher rates than the IOU. Creating
and operating a CCA is complex, and some communities may not want to
dedicate the resources to changing their energy infrastructure. In turn, the
IOU model has provided stability for over a century.
 For CCAs in California, there will be a Cost Responsibility Surcharge. When
a community leaves an IOU, the utility has to make up for the lost revenue.
Instead of charging their remaining customers more, the CPUC requires
that each CCA pays a surcharge.
 San Diego County refused to even study a county-wide CCA due to the
risks

5. Examples of CCAs
 Solana Beach, CA decided form a CCA this year
 NOPEC – The largest CCA in the country with 200 communities over 13
counties. “For 15 years, we have saved our communities and members more
than $218 million dollars and have provided more than $16 million in NOPEC
community energy efficiency grants.”
 Cape Light Compact – Operates 21 towns and 2 counties on Cape Cod and
Martha’s Vineyard. The compact’s energy efficiency program has won
“several national and state awards and saved the region more than $485
million.”
 Rhode Island Energy Aggregation Program – Represent 36 cities and towns,
saving them over $38 million since 1999. The program has provided cost
“savings of 20% to 30% effective in January.”

6. Thank You!
 Interested in learning about Baker Electric’s commercial solar projects?
 Want to know more about how Baker Electric has helped businesses
throughout southern California reduce energy charges? Contact me:
(760) 690-5048
kknoebel@baker-electric.com