Answers to Questions Frequently Asked
About Community Choice Energy
What is the legal authority for CCE? Community Choice Aggregation program (CCA) was established in California by State law, Assembly Bill 117 in 2002. CCA is also known as Community Choice Energy (CCE)
Will my taxes go up? No. CCEs operate on existing revenue of the money electricity customers are already paying in electricity bills for the electricity generation portion of the bill. CCEs are non-profit entities similar to Ventura County Regional Sanitation District, which operate from revenues from their services (no taxpayer support).
Is a CCE a big government project with a new bureaucracy? A CCE governing board is made up of existing elected officials, and staffing is usually very low. Similar agencies in Ohio and Massachusetts that serve several hundred thousand customers each have fewer than five employees. The electricity purchasing district can organize as a multi-jurisdictional Joint Powers Authority, or a single city/Enterprise Fund, or can contract for a commercial managed service. SoCal Edison assisted in establishing the Enterprise Fund for Lancaster because their role in delivering the electricity is easier when the agency is properly set up.
Who maintains the wires and poles that transmit electricity? SCE would continue to maintain the transmission and distribution power lines and handle billing and customer service. The CCE is involved only with buying electricity from those who generate it.
Is buying and selling electricity all that a CCE can do? CCEs can also have the ability to finance renewable energy projects using customer revenue to build and generate local power from sources such as wind, solar, and biomass. CCEs also have the ability to administer energy efficiency programs funded by existing fees on electric bills.
What would change on my utility bill? There are two main aspects to providing electrical power: (1) generation and (2) transmission/distribution (the wires). SCE would continue to bill for the wires, while the generation line item would go to the CCE—replacing a line item that now goes to SCE. There would also be an exit fee, set by the California Public Utility Commission, to offset the cost of power SCE already purchased for customers. (Marin, Sonoma, and Lancaster have been able to offer lower rates than PG&E and SCE, even with the exit fee.)
Would I have to participate in the CCE? No. Customers receive a minimum of 4 opt-out notices over 120 days and can return to SCE at any time.
How does a CCE set rates? Rates are set in open public meetings by the CCE. Here is what Jospeh P. Como, Acting Director of the Division of Ratepayer Advocates at the California Public Utilities Commission, said about keeping rates low (see Petaluma360.com):
Who is responsible for maintaining a stable electrical supply? The California Independent System Operator (CAISO) remains responsible for reliability of the electrical supply. CAISO independently operates California’s wholesale power grid and is responsible for maintaining reliability and directing flow in the transmission system. CAISO operates the flow of electricity in the service territories of California's three main investor-owned utilities (Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric) and several municipal utilities (see http://www.tanc.us/chap6_picture.html).
What are the sources of renewable energy? Renewable energy can be purchased from any source and investments in new generation can be made anywhere. They do not have to be within the County. Performance criteria in energy contracts follow a Resource Plan developed by the CCE Board with local involvement according to local needs and resources. There is a large surplus of renewable energy in the current market. There is an advantage to moving swiftly to get good prices on some long-term contracts sooner than later.
Will my taxes go up? No. CCEs operate on existing revenue of the money electricity customers are already paying in electricity bills for the electricity generation portion of the bill. CCEs are non-profit entities similar to Ventura County Regional Sanitation District, which operate from revenues from their services (no taxpayer support).
Is a CCE a big government project with a new bureaucracy? A CCE governing board is made up of existing elected officials, and staffing is usually very low. Similar agencies in Ohio and Massachusetts that serve several hundred thousand customers each have fewer than five employees. The electricity purchasing district can organize as a multi-jurisdictional Joint Powers Authority, or a single city/Enterprise Fund, or can contract for a commercial managed service. SoCal Edison assisted in establishing the Enterprise Fund for Lancaster because their role in delivering the electricity is easier when the agency is properly set up.
Who maintains the wires and poles that transmit electricity? SCE would continue to maintain the transmission and distribution power lines and handle billing and customer service. The CCE is involved only with buying electricity from those who generate it.
Is buying and selling electricity all that a CCE can do? CCEs can also have the ability to finance renewable energy projects using customer revenue to build and generate local power from sources such as wind, solar, and biomass. CCEs also have the ability to administer energy efficiency programs funded by existing fees on electric bills.
What would change on my utility bill? There are two main aspects to providing electrical power: (1) generation and (2) transmission/distribution (the wires). SCE would continue to bill for the wires, while the generation line item would go to the CCE—replacing a line item that now goes to SCE. There would also be an exit fee, set by the California Public Utility Commission, to offset the cost of power SCE already purchased for customers. (Marin, Sonoma, and Lancaster have been able to offer lower rates than PG&E and SCE, even with the exit fee.)
Would I have to participate in the CCE? No. Customers receive a minimum of 4 opt-out notices over 120 days and can return to SCE at any time.
How does a CCE set rates? Rates are set in open public meetings by the CCE. Here is what Jospeh P. Como, Acting Director of the Division of Ratepayer Advocates at the California Public Utilities Commission, said about keeping rates low (see Petaluma360.com):
- "Sonoma Clean Power customers will have the best weapon against rising utility prices, competition with private utility service. And just by being able to choose between PG&E and Sonoma Clean Power, customers can exercise the most powerful ratepayer protection tool they have: choice."
- "As a Sonoma County resident myself, I plan to choose Sonoma Clean Power. It provides a way to plot a greener energy future for Sonoma County, and it gives me a way to help keep electricity rates low in the long run for my family."
Who is responsible for maintaining a stable electrical supply? The California Independent System Operator (CAISO) remains responsible for reliability of the electrical supply. CAISO independently operates California’s wholesale power grid and is responsible for maintaining reliability and directing flow in the transmission system. CAISO operates the flow of electricity in the service territories of California's three main investor-owned utilities (Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric) and several municipal utilities (see http://www.tanc.us/chap6_picture.html).
What are the sources of renewable energy? Renewable energy can be purchased from any source and investments in new generation can be made anywhere. They do not have to be within the County. Performance criteria in energy contracts follow a Resource Plan developed by the CCE Board with local involvement according to local needs and resources. There is a large surplus of renewable energy in the current market. There is an advantage to moving swiftly to get good prices on some long-term contracts sooner than later.