WHAT IS CCA?
How CCA Works
Community Choice Aggregation (CCA) is a program that allows cities, counties and other qualifying governmental entities to purchase and/or generate electricity for their residents and businesses. Once the local CCA is formed, in our case Butte Choice Energy (BCE), it will purchase and/or generate electricity for customers and PG&E will continue to deliver the electricity and provide meter reading, billing, and maintenance services for CCA customers. Customers will not notice any change other than a line item on their utility bill that replaces the PG&E electric generation charges.
How CCA Will Work in Butte County
A feasibility study regarding a local Community Choice Aggregation (CCA) program showed that a CCA could work in Butte County and outlined several potential benefits for local electric customers. Specifically, the study showed that a CCA serving the City of Chico and unincorporated area of the County could provide an initial 1-2 percent savings to customers, with a total regional savings of approximately $4 million. A CCA will also create energy programs to benefit local customers and community development.
BCE for Residents and Business
Customer Choice
Beginning in the Fall of 2023, BCE plans to offer its customers three power options to choose from. The base option will meet California’s minimum renewable portfolio standard (RPS) at a price lower than PG&E for a similar power mix but without nuclear power. A second option will be a minimum of 50% renewable at prices at or below PG&E. A third option will be sourced with 100% renewable power and offered at a slight price premium. These choices allow customers to determine which plan works best for their home or business and determine how green they want their power mix to be.
Local Control
BCE is governed by a four-member Board of Directors representing Butte County and the City of Chico. The governing board sets policies and rates, approves special programs and directs how revenue will be reinvested locally once program reserve requirements have been met.
Community Development
There are several ways in which BCE will support local economic and community development. Energy savings reduces overhead costs and allows for more dollars to circulate in the local economy. BCE will consider offering special rates to attract or support local businesses. Finally, BCE plans to support and invest in local energy projects over time.
Potential Lower Rates
To date, CCAs like BCE have been able to provide lower cost electricity for their customers, as well as special rates to attract and support local business. BCE is conservatively projecting a 1-2 percent savings in its first year of operations which will yield an anticipated $4 million in savings region-wide.
