• CCA
What's New

Community Choice Aggregation - Sonoma Clean Power

Community Choice Aggregation

What's New

Background

On March 22, 2011, the Sonoma County Water Agency Board of Directors directed the Water Agency to investigate Community Choice Aggregation (CCA) while concurrently approving the Water Agency’s Energy Policy.

The Water Agency’s Energy Policy includes the ability to develop Projects of Regional Benefit, specifically  “The Agency will continue to seek and develop more reliable sources of electricity for the region, including participating in local energy projects and programs that promote self-sufficiency and make North Bay residents less dependent on outside energy sources subject to market fluctuations, natural disasters, and transmission system failures. To accomplish this, the Agency will seek to work with partners, such as the County of Sonoma and other local jurisdictions.”

The Water Agency is leading a steering committee consisting of representatives from the cities of Sonoma County, the County, the Regional Climate Protection Authority, Climate Protection Campaign, the Agricultural Preservation and Open Space District, International Brotherhood of Electrical Workers, the Santa Rosa Board of Public Utilities, Sierra Club, and private industry.

Community Choice Aggregation allows one or more cities and/or counties to form a service area that provides for the purchase of power generation of customers within that service area. Transmission, distribution, customer service and billing remain the same, delivered through the existing utility (PG&E). Customers within this service area can opt out of participating in the CCA program and continue to receive their power generation services through the existing utility.

On October 19, 2011, the Water Agency's Board of Directors accepted the Dalessi Management Consulting's feasibility study, dated October 13, 2011.  The Board of Directors instructed the Water Agency to continue to further define the goals, costs, and elements of a Sonoma County Community Choice Aggregation program.

On April 10, 2012, the Water Agency’s Board of Directors reviewed the program’s progress and directed the Water Agency to continue taking following steps towards the creation of Sonoma Clean Power:

  • Prepare an Implementation Plan (business plan) including start-up costs, financing, level of participation, etc.
  • Approved the goals for Sonoma Clean Power which include 1) reducing greenhouse gas emissions, 2) be cost competitive, 3) develop local jobs in renewable energy and 4) develop long-term rate stability and energy reliability for Sonoma County residents through local control.
  • Pursue the creation of a Joint Powers Authority to govern Sonoma Clean Power
  • Investigate possible sources of start-up funding for Sonoma Clean Power
  • Conduct an in-depth interview study with local businesses to determine value and price sensitivity for Sonoma Clean Power and electricity derived from local and renewable sources.

For additional information please contact Cordel Stillman, Deputy Chief Engineer, at cordel.stillman@scwa.ca.gov or 707-547-1953.

Potential benefits and risks of implementing a CCA program include the following:

Benefits

  • Increased renewable energy use – A CCA can choose to develop and deliver increased levels of renewable power.
  • Local economic benefits – Utility revenues could remain local rather than be sent to a distant utility and shareholders.
  • Local control – The governing board of a CCA would be comprised of local elected officials.
  • Substantial greenhouse gas reduction – By  providing increased levels of renewable energy a CCA program can result in significant reduction of greenhouse gas emissions for the service area.
  • No risk to general fund budget – A CCA program is typically funded exclusively by power rates paid by program participants.  There is no risk to city or county general funds.
  • Implementing energy conservation and efficiency programs – Revenues collected by a CCA through power rates can be used to implement conservation and efficiency programs beyond those currently funded by the existing utility.
  • Implementing carbon sequestration projects – A CCA program could work with the Agricultural Preservation and Open Space District on carbon sequestration projects.

Risks

  • Costs of development and implementation – The cost of developing a complex entity could be significant.
  • Ongoing financial risk – If too many customers  opt out of the program there would not be enough customers to cover operational expenses.
  • Utility opposition – The existing utility could mount a significant legal and political opposition campaign.

Feasibility Study

Download the CCA Feasibility Study (Posted 10/13/11), developed by Dalessi Management Consulting with input from the steering committee.

Project Documents

 

 

© 2012 Sonoma County Water Agency