Community Choice Aggregation (CCA) programs allow local governments to purchase electricity on behalf of their residents and businesses from an alternative supplier while still using existing power lines. CCAs can lower electricity rates, source more renewable energy, and invest savings into local priorities. They give communities control over their energy supply while breaking up utility monopolies. Many regions across the country could implement CCAs to realize greater local benefits from clean, distributed energy resources.

1. Clean, Local Energy
with Community Choice Aggregation
John Farrell, Director
Energy Self-Reliant States and Communities program
jfarrell@ilsr.org
612-808-0888
Presentation on Feb. 10, 2012

2. ILSR’s Unique Perspective
Yesterday Tomorrow
Centralized Power Clean, local power
Solar PV
power plant
Storage Storage
Transmission network
Storage
Storage
House
Local CHP plant
Distribution network House with
domestic CHP
Wind
power
Factory Commercial plant
building

3. Centralized Power

4. CCAs Break Monopoly

5. CCAs Lower Rates
NOPEC, OH - 4-6%
REAP, RI -
Fulton, IL - 20% $18m saved
Oak Park, IL - 2¢/kWh over 10 yrs

6. CCAs Green Electricity
MEA, CA NOPEC, OH - 50% more
up to 590% more
Oak Park, IL - 400% more

7. Greater CCA Potential

8. should
CCAs Localize Electricity
^
Local Ownership Boosts Impact of Renewables
Absentee
Local 1.5x (low)
Local 3.4x (high)
Total Economic Impact
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

9. should
CCAs Localize Electricity
^
Local Ownership Boosts Jobs from Renewables
Solar
Wind
Coal
Natural Gas
0 2 4 6 8 10
Jobs per Megawatt
Construction, manufacturing and installation
Ongoing maintenance and fuel
Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

10. should
CCAs Localize Electricity
^
Local Ownership Boosts Jobs from Renewables
Solar
Wind
Coal
Natural Gas
0 2 4 6 8 10 12 14
Jobs per Megawatt
Construction, manufacturing and installation
Ongoing maintenance and fuel

11. should
CCAs Localize Electricity
^
Local Ownership Boosts Support for Renewables
No local ownership 60% negative
Local ownership 45% positive
0 25 50 75 100
very negative negative neutral positive very positive
Attitude towards increased use of local wind energy

12. should
CCAs do Feed-in Tariffs
^
• Long-term, standard contract
• Fixed price
• Grid connection*

13. should
CCAs do Feed-in Tariffs
^
low risk = low cost
REC Market
Risk
Auction
FIT
Return

14. should
CCAs do Feed-in Tariffs
^
Avg. Cost of Solar (2011 3Q)
U.S.
$5.20/W
Risk
Germany
$2.80/W
Return

15. should
CCAs Support DG
^
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
-15 cents How the utility values
4 cents
-20 cents
Cost of solar Energy value
distributedSocial benefits
Grid benefits
generation

16. DG Grid Benefits
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
8.5 cents But it’s
-15 cents
4 cents
worth more
-20 cents
Cost of solar Energy value Grid benefits Social benefits
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

17. DG Social Benefits
•avoided cost
10 cents
•on-site/near demand
•lower transmission losses
5 cents •reduce dist. system stress
0 cents •hedge against fuel prices
12.5 cents
•prevent blackouts
-5 cents •reduce pollution
-10 cents $4/Watt •create jobs
-15 cents
-20 cents
Cost of solar Energy value Grid benefits Social benefits
and more
Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

18. How Munis Value DG
$0.15 6 cents per kWh
$0.12
in addition to
electricity
$0.09
$0.06
Additional local value
Avoided transmission access
$0.03 Environmental
Time-of-delivery
Brown energy replacement
$0
Palo Alto, CA, municipal utility

19. CCA Landscape
Active CCAs
No active CCAs

20. m o us
or
En Clean Energy Potential
31 states could be electricity self-reliant
100% or more
75 to 100%
50 to 75%
25 to 50%
25% or less
Energy Self-Reliant States, 2nd Edition | ILSR, 2010

21. State Renewable Policy
29 states have a clean energy mandate
Renewable mandate (29)
Renewable goal (8)
No RPS policy (13)

22. State Electricity Markets
Deregulated (13)
Suspended (7)
Regulated (30)

23. State Electricity Markets
Deregulated + CCA
Suspended + CCA
Regulated (30)

24. CCA Opportunities
“storm of interest”
“going Boulder”
burst of activity

25. Thank you!
John Farrell
energyselfreliantstates.org
jfarrell@ilsr.org
johnffarrell
612-808-0888