Community Choice Aggregation Can Accelerate The Transition To Renewables

​By Jim Wylie, Chapter Clean Energy Team Member

Pennsylvania Boroughs Can Lead The Way!

Pennsylvanians are free to choose their electricity supplier, but most (70%) don't shop for alternatives. And when we do, it's hard to get a competitive rate as a single buyer. And, if you want to buy electricity from renewable sources your choices are limited - especially if you are not a rooftop solar candidate.  That's where Community Choice Aggregation (CCA) comes in. It's a tool that allows the aggregation of a whole community's electric demand to create the purchasing power (and reliable income needed by wind and solar developers) to realize competitive rates for renewable energy. CCA has been a key tool to help boost the demand for renewable energy in several states.

Municipal aggregation can help protect consumers by providing consistent electricity prices year-round. Also, by purchasing electricity in bulk, a municipality can negotiate a better deal for its residents & businesses than they are able to get on basic service or from a competitive supplier. Energy suppliers will bid for the municipality’s contract, potentially leading to lower energy costs for individual ratepayers. 
 
wind turbine
Suzanne Tegen/National
Renewable Energy Laboratory

 

The Pennsylvania electricity sector produced 75 million tons of greenhouse gas pollution in 2019 (see PA GHG Inventory). CCA communities choosing renewable energy as the default can drastically lower GHGe pollution from the electricity sector.

Ten states  allow communities to choose the default power mix. Pennsylvania has not enabled all municipalities to act on behalf of their constituents, but the Pennsylvania Municipal Code for Boroughs, chapter 24A Manufacture and Supply of Electricity states that PA Boroughs (PA townships and cities will require PA PUC regulatory approval) can act on behalf of their constituents  to procure electricity. That’s CCA.

In 2022, through the CCA for PA Working Group, towns with 100% renewable energy goals (Ready For 100) began exploring their legal, financial and organizational options to adopt CCA. Leading boroughs in Montgomery and Delaware County are drafting CCA Implementation Plans and approaches to working with the PA PUC and utilities.

The CCA goal is to help communities attain their 100% renewable energy goals using PA resources. CCA is also a means to contract with local solar and wind developers to create added community economic and emissions benefits. The Boroughs’ CCA programs will choose a supply mix that is best for the long-term health and climate of its community.

This is the default case only. Residents can still choose to opt for the utility’s default supply, or any 3rd party they choose through PAPowerSwitch. But if residents do not explicitly choose, then it will be up to the Borough's CCA program to choose a supply mix that is best for the long term health and climate of its community and our planet.

In CCA, all residents and small businesses who do not have a current third-party supplier will receive the CCA default supply that is chosen by the community. Without cost or penalty, anyone can opt out of the CCA supply to the utility default supply or to any 3rd party through PAPowerSwitch.  Thus CCA adds local energy democracy and consumer choice and consumer protection as well as a competitive and stable renewable energy option.

If your Borough is interested in learning more about CCA or in joining the flagship group of CCA Boroughs, contact info@CCAforPA.com, or Jim Wylie at jim.wylie@verizon.net

Learn more about CCA for PA Boroughs here. And check out the Westchester, NY CCA program. Lot’s of great info there, including rate history. 


This blog was included as part of the February 2023 Sylvanian newsletter. Please click here to check out more articles from this edition!