New CCAs Negotiating Big Rate Savings

The Illinois Community Choice Aggregation Network (ICCAN) reports that of the 250 communities that have approved CCA measures, more than 90 have negotiated rates that offer customers the opportunity to save up to 33% on their electricity bills. According to ICCAN, the most recent procurement contracts feature energy rates that range from approximately 4 to 5 cents per kilowatt-hour--significantly less than the new state default rate of about 8 cents. The 3-cent rate reduction per kWh could yield a total savings per household of about $300 annually, and many contracts include 50% to 100% renewable energy credits through which to green the supply. "In negotiating directly with suppliers for better pricing plans, communities are adding electricity to the list of services they already manage, such as garbage and water," noted John Kelly of the Perfect Power Institute. "And because they choose their power supplier, communities can help address residents' demands for affordable, cleaner power as well."

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Chicago Aboard the CCA Bandwagon

The Chicago Tribune reported that Mayor Rahm Emanuel has given his support for a fall ballot measure to ask Chicago voters if the city should pursue cheaper electricity rates, and perhaps greener power, through municipal aggregation. The question seems likely to appear on the November ballot. Two of the City Council's most influential aldermen are pushing for a committee endorsement of their electrical aggregation plan. Consumer cost savings remain paramount, but LEAN Energy is encouraging city staff to integrate clean energy in the city's power supply, citing procurement practices from Cape Light Compact and the Marin Energy Authority. READ ON 

East Peoria Takes the Money and Opts for Renewables

Residents of East Peoria will soon enjoy green savings. After approving electric aggregation, the city accepted a bid that will result in a savings of approximately 33% over current electricity prices. The city chose a 100% renewable source, supported by renewable energy credits. According to East Peoria city administrator Tom Brimberry, the cost difference between the REC-based "green" option and the "brown" coal and nuclear option was only 1.7%. READ ON

NEW JERSEY: The Next Illinois?

CCA could begin to take off in New Jersey given recent estimates on ratepayer savings. The state has some of the country's highest electricity rates; its four IOUs charge between 10 and 11 cents/kWh, far above the current market price of 7 to 9 cents. According to Brian Murphy of Colonial Power Group, which helps communities become energy aggregators in the northeast, local leaders are anxious to deliver electricity cost savings.

Plumsted Township Leads the Way 

New Jersey's first CCA--or CEA (Community Energy Aggregation)--may soon be launched by Plumsted Township. The Plumsted Municipal Utilities Authority, after studying CCA efforts in other states, engaged Gabel Associates, Inc. and Cooling America Thru Local Leadership (CALL) to implement the procurement process. The team is working with the New Jersey Board of Public Utilities, the local utility, and the New Jersey Rate Counsel on development of program documents and expects to issue a supplier request for proposals by early fall. Unlike typical CCAs, businesses will have to opt in; residents will be aggregated under the opt-out system. READ ON 

The Town of Barnegat is also exploring CCA. It recently passed a resolution appointing an engineering firm to develop its CCA.

The City of Bayonne announced that the city and the Bayonne Municipal Utilities Authority will continue to participate in the Hudson County Cooperative Purchasing System. "This year, 21 local governments from Hudson County and 15 local governments from Essex County are participating in the electrical aggregation project," Bayonne Mayor Mark Smith said. "Bayonne is looking forward to reaping the benefits of this year's bulk purchasing." The purchasing cooperative divided its accounts into three bid groups: general power and light for municipal buildings, commercial/industrial for larger buildings, and street lighting. Hudson County estimates that the City of Bayonne will achieve savings of 28%; the Bayonne Housing Authority, 19%; and the Bayonne Municipal Utilities Authority, 40%. READ ON          

MASSACHUSETTS: Enjoying a CCA Resurgence

And Then There Were Five...

Three CCAs have been approved in Massachusetts this year. The towns of Ashland, Lunenburg, and Lanesborough join the Cape Light Compact and the City of Marlborough in their pursuit of CCA. At least five other Massachusetts municipalities are seriously exploring CCA. The Town of Ashby has passed a CCA resolution and is looking for an energy consultant. The towns of Swampscott and Leicester have approved CCA but have not yet moved on formation. The Town of Lancaster has a CCA proposal before the Massachusetts Department of Public Utilities on which a ruling is expected in late July. The City of Lowell has issued an RFP for CCA consulting services.

Regional Council of Governments Offers Municipal Aggregation Program

In western Massachusetts, the Hampshire Council of Governments (COG) is offering a municipal aggregation program to its member cities. The program has no impact on municipal budgets, because the COG pays all its costs. As of June, 28 communities with more than 100,000 residents had completed all of the approvals required to participate in the program, which could save customers up to $6 million annually if the collective price is just $.01/kWh under the current electricity price. READ ON 

Berkshire Regional Planning Commission Recommends CCA

The Berkshire Regional Planning Commission has recommended that all municipalities in the region consider municipal electricity aggregation. In Common Ground, the BRPC newsletter, the commission reported that the Town of Lanesborough is projected to save its electricity users approximately $150,000 in the coming year. It further noted that the Berkshire Chamber of Commerce considers electricity costs in the county to be one of the major hurdles in attracting and keeping businesses. Small businesses without the capacity or leverage to purchase electricity on the open market benefit from the lower electricity rates obtained through municipal electricity aggregation. While Berkshire County cities and towns are taking the steps necessary to authorize investigation of CCA, BRPC will be identifying the costs and benefits of establishing a public agency modeled on a regional electric cooperative and on a regional CCA with powers similar to those of the Cape Light Compact. READ ON