HomeMy WebLinkAboutCCA FAQ Final.pdfCommunity Choice Aggregation (CCA)
Frequently Asked Questions
Q. How small of a community is too small to participate in CCA? Can there be aggregation of
multiple smaller communities and do they have to be adjacent? Who can participate in CCA?
A. Any size community can participate in CCA. Communities can join together to increase the size
of the aggregation, the only limitation is communities must be in the same utility territory and
load zone. Bigger aggregations are better as they should drive down the $/kWh. All residents
and non-demand small commercial users can join the aggregation.
Q. How much will the residents in my community save?
A. The exact $/kWh, and thus savings, will be different for each community. Factors that impact the
price include size of the aggregation, location in the state, and additional requests beyond basic
electric supply (e.g. green energy). Unlike electric supply from the utility, the CCA price will be
fixed, which is nice from a budgeting perspective as it insulates residents from fluctuations that
occur during times of peak demand. If a community doesn't like the price the suppliers propose
there is no obligation to move forward with a program.
Q. What types of options do we have for supply?
A. This program is about community choice and control over supply. MEGA will help your
community write a request for proposal (RFP) that asks suppliers for the specific desires of your
community. Knowing that some choices might be more expensive than current utility supply
(e.g. 100% locally-sourced clean energy), we will ask the suppliers to provide pricing on multiple
options.
Q. Are there additional benefits of a CCA program?
A. Yes! Communities have the additional option of creating an energy efficiency/renewable energy
or other type of fund. By slightly increasing the $/kWh offered by the supplier, money will be
generated that can be distributed in ways most important to the community. For example, a
community might elect to reinvest the funds into energy efficiency improvements for low-income
households or create a fund to put toward addition of solar panels on the local library.
Q. How does MEGA get paid?
A. Payment comes after residents have switched to the selected supplier. Our compensation is
generated through a fraction of a cent added to the $/kWh of supply.
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Q. Why should we partner with MEGA to develop a CCA program?
A. MEGA is particularly suited to support this work given the emphasis and experience working
with and for local government since MEGA's founding in 2001. One of MEGA’s capabilities is
the experience in writing the RFP and selecting the supplier. We provide a level of protection
against inept energy brokers, and predatory supplier behavior. While MEGA has no direct
experience in CCA (no one in NY does) we will be working with our partners from Illinois and
using their experience to support successful CCA projects.
Q. If my county decides to participate in CCA and my village wants to participate but wants a
different option (e.g. 100% locally-sourced clean energy) is that possible?
A. While we are waiting on a final ruling from the State to know for sure, we don't see a reason why
there can't be options within the aggregation. There will need to be one default supply option and
price that includes all residents unless they opt-out, but we think it will be possible for additional
options within the aggregation.
Q. What is the impact of the high number of rentals/turnover within my community?
A. The suppliers will want to understand the percent of turnover but in general expect and accept
change/churn. New tenants will automatically be added into the aggregation and will also have
the ability to opt-out. The experience in Illinois is that 75% of residents participate.
Q. How long is the contract for?
A. Supply contracts will be for about 3 years. Once a community has passed a referendum the CCA
program can continue, no need to get community support each time the supply contract needs to
be renewed.
Q. How is this different from municipal electric?
A. With a CCA program the community does not own the distribution infrastructure.
Q. Why do CCA now?
A. CCA programs save money and stabilize electric costs for residents in your community. As
residents can opt-out at any time there is minimal risk associated with CCA programs. CCA does
not preclude participation in other renewable energy supply opportunities such as solarize
campaigns or community solar.
Updated 11.6.15
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