Community Choice Aggregation (CCA)
COMMUNITY CHOICE AGGREGATION (CCA)
The Town of East Hampton is considering to establish a Community Choice Aggregation (CCA) program to procure electricity (and/or natural gas) on behalf of residents and businesses. The delivery of power and maintenance of infrastructure would remain with the current utility. CCA is one of several available options to empower our community to decide where the energy we purchase comes from.
What is Community Choice Aggregation?
CCA is a program that allows local governments (cities, towns, villages) to procure power on behalf of their residents, businesses, and municipal accounts from a provider other than the utility’s default provider while still receiving transmission and distribution service from their existing utility. CCAs are an attractive option for communities that want more local control over their electricity sources, and more green power than is offered by the default utility. By aggregating demand, communities gain leverage to choose greener power sources and potentially negotiate better rates with competitive suppliers.
CCAs are currently authorized in California, Illinois, Ohio, Massachusetts, New Jersey, New York, Rhode Island and Virginia. 80 municipalities in New York State have adopted CCA enabling legislation and more than 60 of them are already offering alternative energy to their constituents.
How do CCAs work?
Local government must hold public hearings and pass a law authorizing the CCA. Depending on state and local government regulations, all homes, businesses, and municipal sites in that jurisdiction may be eligible to participate in the CCA.
Participation in CCAs is always voluntary. Most CCAs have opt-out provisions, meaning when a community begins a program, customers are given advanced notice and have the choice to opt-out of the CCA program and continue to receive service from their current supplier. Customers that do not opt-out are automatically enrolled in the program.
Advantages of CCA
Enables faster shift to renewable power
Local control of electricity generation, which can be more responsive to local economic and environmental goals
Can offer savings through energy-efficiency, smart energy management, and bulk purchase programs for solar, battery storage, and electric vehicles
Expands consumer choices
Potential retail electric rate stabilization or reduction
Can spur local jobs and renewable energy development
For more information and to stay up to date on the latest as the Town is exploring CCA, visit the Energize East Hampton CCA page.