Presentation is loading. Please wait.

Presentation is loading. Please wait.

Expanding Local Energy Options through Community Choice Aggregation National Renewable Energy Laboratory (NREL) December 18, 2012.

Similar presentations

Presentation on theme: "Expanding Local Energy Options through Community Choice Aggregation National Renewable Energy Laboratory (NREL) December 18, 2012."— Presentation transcript:

1 Expanding Local Energy Options through Community Choice Aggregation National Renewable Energy Laboratory (NREL) December 18, 2012

2 WHAT IS CCA? Established by State law, CCA allows cities and counties to pool their residential, business and municipal electricity loads, and to purchase power (and/or generate it*) on their behalf. Energy transmission, distribution, repair and customer service functions remain with the incumbent utility. *Where allowed by state CCA law Utility

3 IOU Procures Power Muni Procures Power IOU Maintains Transmission Lines Local Gvt.(s) Procure Power IOU Provides Customer Service IOU Maintains Transmission Lines Muni Provides Customer Service Muni Maintains Transmission Lines IOU Provides Customer Service IOU Investor-Owned Utility CCA Community Choice Aggregation Municipal/ Public Utility (also Co-ops) A HYBRID APPROACH Roughly 70% of U.S. electricity is supplied by vertically integrated investor- owned utilities (IOUs), with much of the balance coming from publicly-owned municipal utilities. CCA offers a third, hybrid option, where key energy functions are split between a public entity and the IOU.

4 CALIFORNIAMarin Energy Authority (launched in 2010; 110,000 customers by 2013) San Francisco approved first contract, Sonoma County next up 20+ additional cities/counties currently investigating CCA ILLINOISWOW! 20 cities in 2011 to 400+ by the end of 2012, incl. City of Chicago Average electricity rate savings of 25-30% MASSACHUSETTS Cape Light Compact (launched in 1998; 21 towns; 200,000 customers) Average electricity rate savings of 6% 10+ new communities currently investigating CCA OHIONortheast OH Public Energy Council (launched in 1999) 2 million+ aggregated customers statewide (2010) 53+ new cities in 2011/Q1 2012 City of Cincinnati approved a 100% renewable/RECs contract RHODE ISLAND37 cities & towns; municipal loads only $28 million in rate savings since 1999 NEW JERSEY CCA starting to take off; anticipated savings = 10% Clean energy integration up next WHERE IS CCA NOW? Quick Stats

5 POTENTIAL FOR EXPANSION Influenced by Electricity Markets Deregulated (13) Suspended (7) Regulated (30)

6 WHY PURSUE CCA? The answer largely depends on what part of the Country you’re in, but here are the main ones… 1.ECONOMICS Pooled customer base = aggregated/redirected revenues Revenue supported, not taxpayer subsidized New buyer in town = new jobs, regional economic impacts 2.ENVIRONMENT Control over supply = potential for clean energy integration, GHG reductions, new renewable development, energy efficiency, demand response, et al 3.RATE STABILITY & SAVINGS Competitive markets generally yield better prices; CCA is a market model Current pricing scenarios (IL, NJ, CA) A page from the munis: supply ownership can stabilize/lower rates over time 4.CONSUMER CHOICE & LOCAL CONTROL Energy choice; local policy goals, programs and rate setting

7 Enabled by State legislation Opt-out program Local govts. as decision-makers/facilitators Utilities as energy delivery and billing partners Existing regulations and environmental mandates apply (e.g. RPS, RA) Not taxpayer funded or subsidized CCA’s “UNIVERSAL” FEATURES

8  Local referendum vs. vote of elected body  City as contracting agent vs. public agency formation  Statutory requirements and implementing regulations vary  Program objectives, operations and procurement approach varies  Utility relationships and service agreements vary DIFFERENCES BETWEEN STATES

9 WHAT ARE THE RISKS? And how are they mitigated? Rate competition: Supply RFP is essential; know the value of your customer base; take the long view and balance supply portfolio Opt-Out risk: Rate competitive; conservative modeling; Add local program and consumer value beyond rates Politics: Understand policy goals, economics, constituent benefits Regulatory/ Legislative: Track influencing statutes/regulatory proceedings “CCA is not a liberal or conservative thing… It’s a business tool that reflects the values of its region.” – D. Orth, Kings River Conservation District

10 CCA CASE STUDY - Marin Clean Energy 10 Two Product Options: Light or Dark Green 50% renewable – comparable rates to utility 100% renewable - 1 cent/kwh premium At Full Implementation: 120,000 accts, $100+M annual revenue; 150 MW per year; ~ 10% margin GHG Reductions Current reduction of 15,420 tons annually After July enrollment reductions increase to 39,027 tons annually Member cities achieve GHG reduction compliance (AB 32) within 3-4 years Local Programs: Net Energy Metering, EV charging stations; EE rebates and retrofits; green business program. Coming Soon: Solar Shares

11 CCA CASE STUDY - Marin Clean Energy 11 14 Energy Contracts Shell Energy North America (5 years) Noble Energy Solutions (back office) Examples of PPAs for new renewables in California: 30 MW new solar – enXco (2014) 15 MW new solar – North American Power Group (2013) 3.2 MW of new biogas – G2 Energy (2012) Local Procurement 1 Feed-In Tariff Project (1MW airport solar project) 1900 NEM customers generating 5.7 MW of local capacity Further expansion planned; PACE integration Energy Efficiency $450,000 allocated by CPUC in 2012 for multifamily retrofits $4 M approved for 2013-2014, includes all County residents

12 CCA CASE STUDY - Marin Clean Energy 12

13 For More Information or to Join our Network: Shawn Marshall, Executive Director P.O. Box 961, Mill Valley, CA 94941 (415) 888-8007 THERE’S NEVER BEEN A BETTER TIME TO TAKE CONTROL OF YOUR COMMUNITY’S ENERGY FUTURE. …CCA IS THE PATH FORWARD.

Download ppt "Expanding Local Energy Options through Community Choice Aggregation National Renewable Energy Laboratory (NREL) December 18, 2012."

Similar presentations

Ads by Google