What Is Community Choice Aggregation?
Community Choice Aggregation (CCA) or municipal aggregation is a program that enables local governments to enroll residents, businesses and municipal accounts under one energy supplier. With a CCA, the government procures power from an alternate supplier while the local area utility continues to deliver energy for a smooth transition. The only significant changes clients will experience are their electricity source and overall price.
How Does Community Choice Aggregation Work?
A CCA program is only possible in states with approved legislation, meaning that only the following states permit them:
- Rhode Island
- New Jersey
- New York
- New Hampshire
Four more states are actively investigating the possibility of allowing CCAs:
Since a CCA is entirely voluntary, participants can choose to opt out as well, which means that when a community begins a program, residents and businesses can choose to continue receiving electricity from their current suppliers.
The price for electricity under a CCA is generally lower than the residential retail price due to collective buying power. This collective buying power enables communities to negotiate and gain access to more choices when it comes to energy sources, such as switching to clean energy or supporting a local supply.
Benefits of Community Choice Aggregation
A CCA program offers a few essential benefits for towns and residents:
- Greater community buying power: By grouping entire towns and municipalities together, local governments wield greater buying power to negotiate lower prices for their community and leverage more active supplier participation.
- Price stability: CCAs enable communities to obtain fixed rates over long contract terms to avoid market changes.
- Self-funded: Since CCAs are entirely self-funded, they will not create significant stress for local budgets or result in additional costs for nonparticipating consumers.
- Ability to withdraw: Participants can leave their community’s CCA at any time without facing a penalty and directly enroll with another service provider.
- Protection for consumers: With a CCA, the contract terms and conditions yield greater protection than those offered by suppliers directly to consumers.
- Public oversight: Under a CCA, town officials hold all suppliers and other parties responsible.
- Local control: CCA programs are based on local community priorities and objectives.
- Professional expertise: Our partner, CPG, equips your community to access professional expertise to ensure a smooth rollout and ongoing program administration.
- Product options: Under a CCA, municipal clients can define their standard product plus offer other options.