Community Choice Aggregation Policies

1/12/2015

Chicago SkylineCommunity 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:


Table: Community Choice Aggregation State Policies

State

Year Established

Statute

Notes and Resources

California

2002

Assembly Bill 117

Illinois

2009

House Bill 362

  • Includes an opt-out provision.
  • Illinois Citizen’s Utility Board CCA web page.

Massachusetts

1997

Acts 1997, Chapter 164

New Jersey

2003

Assembly Bill 2165

  • Includes an opt-out provision.
  • New Jersey Community Clean Energy Aggregation web page.

New York

2014

Governor’s Press Release, Public Service Commission documents pending

Reforming the Energy Vision (REV) web page and fact sheet.

Ohio

1999

Senate Bill 3; Senate Bill 221 (2007)

  • Localities can select an opt-out or opt-in provision.
  • Public Utilities Commission of Ohio CCA web page.
  • Office of the Ohio Consumer’s Counsel Fact Sheet.

Rhode Island

2002

House Bill 7786

  • Includes an opt-out provision.
  • The Rhode Island Energy Aggregation Program web page.