Community Choice Aggregation (CCA) is a transformative program that allows Rhode Island towns and cities to take control of their electricity procurement. By pooling residential and small business ratepayers into a single buying group, CCAs empower municipalities with the purchasing leverage typically reserved for large energy users like Hasbro Children’s Hospital or Providence College. This collective approach ensures competitively priced electricity while offering robust consumer protections.

Only customers currently on Rhode Island Energy’s Last Resort Service are enrolled in a CCA program, with those already using third-party electricity suppliers unaffected. This opt-out model makes participation simple and hassle-free for the vast majority of ratepayers.

Budget Certainty and Consumer Protections

While cost savings remain a cornerstone of CCA programs, their true value lies in creating stability and certainty for consumers. Rhode Island Energy, the state’s primary utility, adjusts electricity rates twice annually, often leading to sharp price swings. For instance, rates are typically lower in the summer but can spike dramatically in the fall—this year’s October increase reached nearly 70%. These fluctuations make household budgeting especially challenging, particularly for those on fixed incomes.

In contrast, CCAs provide ratepayers with the predictability of fixed electricity prices, often locked in for one or more years. Beyond this, CCAs are designed with key consumer protections, such as:

• No early termination fees
• No hold-over rates
• Straightforward enrollment and cancellation processes

This combination of stability and flexibility has made CCAs a popular choice, with Rhode Island joining a growing list of 10 states enabling the programs. The state first enacted enabling legislation in 2017 under Senate Bill 877, and its first CCA was launched in 2023.

Leveraging Market Opportunities

The rigidity of Rhode Island Energy’s rate-setting process is a key limitation. Regulated by the Public Utilities Commission (PUC), the utility is required to procure energy during fixed windows, regardless of market conditions. This model prioritizes compliance over opportunity, often leaving consumers at the mercy of market volatility.

CCAs, however, are not bound by these constraints. Towns can procure energy strategically, timing their purchases to align with favorable market conditions. This flexibility allows CCAs to deliver competitive pricing while reducing the volatility associated with traditional utility procurement. It’s akin to choosing between two financial advisors: Last Resort Financial, who purchases stock only on January 1st and August 1st, and CCA Financial, who buys strategically when the market is most favorable.

Powering Communities with Green Energy

Many communities use CCA programs as a pathway to achieve renewable energy and carbon reduction goals. CCAs provide the flexibility for towns to include renewable energy content or reduced carbon-emitting generation in their electricity offerings. While renewable options can carry a slightly higher cost, municipalities in other CCA-enabled states have successfully delivered on both their green power and savings goals. By leveraging the collective buying power of CCAs, communities can meet sustainability targets on schedule or even ahead of time, empowering residents to participate in the transition to a cleaner energy future.

A New Era of Energy Choice

Since the Rhode Island Utility Restructuring Act of 1996 deregulated electricity markets, residents have had the ability to choose third-party electricity suppliers. Yet navigating these options can be confusing, and only 25% of Rhode Island’s residential customers have opted to leave Last Resort Service. CCA programs simplify this process, allowing towns to negotiate on behalf of their residents and secure reliable, cost-effective electricity options.

Community Choice Aggregation is more than just an energy procurement model; it’s a tool for empowering communities. By reducing energy cost volatility, protecting consumers, enhancing sustainability options and providing budget certainty, CCAs represent a vital step toward a more stable and equitable energy future for Rhode Islanders.