Channel Islands Energy Choice is a vision for a Community
Choice Energy program for Ventura County and beyond. It is conceived and promoted
by a new citizens group called Friends of Channel Islands Energy Choice. Formally known as Community Choice Aggregation
(CCA) under California law and more
commonly called Community Choice Energy (CCE), these programs allow participating cities and counties to create an energy
district. It can then supply greener electricity at a lower cost while SoCal
Edison continues to run the grid. CCEs
operate in Marin, Sonoma, and Napa counties, and in Lancaster.
Community Choice makes possible:
The State of California allows formation of Community Choice as the area's default energy provider. CCEs are run like a business that competes for energy procurement with the investor-owned utility. It is locally accountable through a board of directors. Community Choice secures the contracts for electricity and sets the rates, while the utility continues to be responsible for electricity delivery and billing. The CCE generates revenue to cover its costs; it does not use taxes for funding.
Basic Features of Community Choice Energy:
Marin Clean Energy has more than doubled the renewable electricity compared to the investor owned utility while offering a lower rate than the incumbent utility. Sonoma Clean Power also offers lower rates— or to opt up to have 100% renewable energy. The community determines what energy mix best fits its resources and serves its needs. The revenues taken out of the community by the current utility (estimated at 10%) can now be kept in the community to reduce rates (Lancaster ratepayers pay 3% less), repay modest start-up costs, build an operations cushion, and create new energy efficiency and generation programs with a seven-fold local economic multiplier.
Rates can be comparable to the utility, higher in renewables, and accumulate revenues for these reasons:
Energy Security: Because fossil fuel energy is increasingly unstable, expensive and polluting, cities must plan more locally renewable energy generation for a secure and sustainable energy future. The renewable energy market is poised to provide far more than California’s needs and the demand for clean energy from the Governor’s call for 50% renewable by 2020 will stimulate a mix of solutions to offer the CCEs.
Greenhouse Gas Reductions: With its responsiveness to local environmental and economic goals set by transparent local governance, CCEs allow for rapid switch to cleaner power supply and integrate energy for greatest efficiency. With a substantial localized revenue stream, CCEs open new investment opportunities to build generation assets and market opportunities, such as EV charging stations, commercial battery storage, and other energy related technology, with a localized revenue stream.
Developments in California: The following counties are among those in progress to form aggregations: Alameda, Los Angeles, Monterey, San Benito, San Francisco, San Mateo, and Santa Cruz. Ventura and Santa Barbara Counties may cooperate on a technical study and cities in both counties are learning about CCE and deciding whether to participate. To learn more and participate in the vision of Friends of Channel Islands Energy Choice, visit our website and sign the pledge of support.
Community Choice makes possible:
- Competition & Consumer Choice
- Long Term Electrical Rate Stability
- Local Control & Accountability
- Local Jobs & a Strong Economy
- Clean Energy & Local Self-Reliance
The State of California allows formation of Community Choice as the area's default energy provider. CCEs are run like a business that competes for energy procurement with the investor-owned utility. It is locally accountable through a board of directors. Community Choice secures the contracts for electricity and sets the rates, while the utility continues to be responsible for electricity delivery and billing. The CCE generates revenue to cover its costs; it does not use taxes for funding.
Basic Features of Community Choice Energy:
- Local governments participate by agreeing on a
lead agency, passing a resolution, and participating as needed to loan the lead
agency funds to do a technical study.
- The energy district can organize a
multi-jurisdictional Joint Powers Authority, a single city/Enterprise Fund, or
contract for a commercial managed service. The technical study will examine the
pros and cons of each approach for the participating cities and counties.
- SoCal Edison has pledged to assist and was
helpful in the Lancaster planning and launch.
- The CCE electric generation charges, and an exit
fee, appear as new line items on the customer bill; all other charges on the
Edison bill to customers remain the same.
- Customers receive a minimum of 4 enrollment
notices over 120 days and can return to the investor-owned utility at any time;
however, CCE becomes the default electric utility.
- Public Utilities Commission certifies plan and
oversees to assure stable electricity supply.
Marin Clean Energy has more than doubled the renewable electricity compared to the investor owned utility while offering a lower rate than the incumbent utility. Sonoma Clean Power also offers lower rates— or to opt up to have 100% renewable energy. The community determines what energy mix best fits its resources and serves its needs. The revenues taken out of the community by the current utility (estimated at 10%) can now be kept in the community to reduce rates (Lancaster ratepayers pay 3% less), repay modest start-up costs, build an operations cushion, and create new energy efficiency and generation programs with a seven-fold local economic multiplier.
Rates can be comparable to the utility, higher in renewables, and accumulate revenues for these reasons:
- Non-profit status, not taxed, lower borrowing
costs.
- More favorable rate of return (average 10%
compared to average 7.9%)
- Lower overhead (MCE 2014 overhead was 9% of
operating expenses).
- Energy procurement from contracts rather than
resource ownership.
Energy Security: Because fossil fuel energy is increasingly unstable, expensive and polluting, cities must plan more locally renewable energy generation for a secure and sustainable energy future. The renewable energy market is poised to provide far more than California’s needs and the demand for clean energy from the Governor’s call for 50% renewable by 2020 will stimulate a mix of solutions to offer the CCEs.
Greenhouse Gas Reductions: With its responsiveness to local environmental and economic goals set by transparent local governance, CCEs allow for rapid switch to cleaner power supply and integrate energy for greatest efficiency. With a substantial localized revenue stream, CCEs open new investment opportunities to build generation assets and market opportunities, such as EV charging stations, commercial battery storage, and other energy related technology, with a localized revenue stream.
Developments in California: The following counties are among those in progress to form aggregations: Alameda, Los Angeles, Monterey, San Benito, San Francisco, San Mateo, and Santa Cruz. Ventura and Santa Barbara Counties may cooperate on a technical study and cities in both counties are learning about CCE and deciding whether to participate. To learn more and participate in the vision of Friends of Channel Islands Energy Choice, visit our website and sign the pledge of support.