Community Choice Aggregation Policies

Community choice aggregation policies enable local entities to aggregate electricity contracts within a specific jurisdiction to procure electricity as a group, rather than individuals.

States may consider aggregation to reduce electricity costs, provide power from local sources or purchase energy from renewable sources. Massachusetts, for example, included aggregation in the state's electric utility restructuring policy to lower electricity costs for consumers. Ohio however, advertises both cost savings and profit-sharing potential to prospective customers, while New York is currently establishing aggregation as a method of procuring cost-effective local renewable energy.

Entities with aggregation still retain their existing electricity provider for transmission and distribution services.

Six states—California, Illinois, Massachusetts, New Jersey, Ohio and Rhode Island—have established community choice aggregation. Several of these states established aggregation in conjunction with electric restructuring policies and all states with community choice aggregation are in restructured electricity markets.

In 2014, New York began the process of establishing aggregation through the state Public Service Commission. Utah enacted legislation in 2014 to conduct a study of aggregation implementation; legislation concerning this topic has been introduced in Minnesota and Utah. Additionally, research is being conducted to establish aggregation in Delaware and Minnesota has completed research on this issue. The table below provides an overview of state policies.

Evaluations and research on community choice aggregation policies can be found in:

• A 2009 report, “Community Choice: Lessons Learned and Best Practices,” prepared for the San Francisco Public Utilities Commission by Local Power, Inc.
• A 2010 report, “Forming a National Community Choice Aggregation Network: Feasibility, Findings and Recommendations,” by Marin Energy Authority (CA) staff.