Community Choice Aggregation--Consumer Information

What is Community Choice Aggregation?

Community Choice Aggregation (CCA) is a program that allows cities, counties and other qualifying governmental entities available within the service areas of investor-owned utilities (IOUs), to purchase and/or generate electricity for their residents and businesses. It is not an IOU program. The IOU continues to deliver the electricity through its transmission and distribution system and provide meter reading, billing, and maintenance services for CCA customers.

• Enables local governments to aggregate electricity demand within their jurisdictions in order to procure electricity for its customers
• The IOU provides transmission and distribution services, and continues to provide all metering, billing, collection, and customer service to retail customers that participate in a CCA.

How do I know if I am in a CCA service area?

Ask your IOU provider or check the Clean Power Exchange's interactive map that provides this information.

Active CCAs: PG & E, SCE, and SDGE

Does the CCA procure electricity on behalf of its residents and businesses?

Community choice aggregations procure electricity on behalf of retail electricity customers within some geographic areas. CCAs may be run directly by a city or county government or by a third party through a contractual arrangement such as a joint powers agreement.

Is the CCA responsible for transmission and distribution of electricity?

CCAs are not responsible for transmission and distribution of electricity.

Does the CCA bill its residents and businesses?

CCAs are not responsible for billing. The IOU will be responsible for billing customers.

How will I be billed for CCA service?

Customers who receive their electric supply from a CCA receive a consolidated bill issued by the IOU that includes charges from both parties. The IOU collects payments on behalf of the CCA, which are then sent to the CCA.

How much will I pay for the IOU's electric charges?

Under a CCA program, the IOU will continue to bill you for non-generation charges, which include electricity delivery (transmission and distribution) and other miscellaneous charges. Additionally, the IOU assesses a tiering of rates through its delivery charges for residential customers, known as the Conservation Incentive Adjustment. You will also be assessed a Power Charge Indifference Adjustment (PCIA), which is a charge to cover the IOU's generation costs acquired prior to a customer's switch to a third-party electric generation provider. Your CCA provider will bill you separately for its electric generation charges, which are included in the monthly bill you receive from the IOU.

Is there a way to compare the CCA generation rates with those of the IOU?

Yes, rate comparisons can be found here

How are customers enrolled in a CCA program?

Once a city or county implements or joins a CCA program, state law requires that customers within a CCA's member jurisdiction be enrolled in CCA service unless they choose to opt out. In some instances, a CCA may choose to phase-in its program, bringing in different customers at different times.

How will I be notified about my CCA?

As part of the CCA notification process, you will receive at least two notices during a 60-day period prior to CCA service commencement. These notices will inform you as to how to how to opt out of the program should you choose to do so. Once a CCA completes its enrollment process, all new customers establishing service in that area will be enrolled in CCA service unless they opt out.

Can I opt out of a CCA program?

Yes, if a CCA is available in your area, you'll be automatically enrolled as a CCA customer unless you opt out. If you wish to opt out of the CCA program and continue to have the IOU be your generation provider, you must submit your opt-out request directly to the CCA. Each CCA is required to have a link to opt-out on their website, or you can contact the CCA directly.

You may opt out of a CCA program starting at least 60 days before your account is scheduled to switch to the CCA and any time thereafter. After 60 days of CCA service, there may be charges or conditions from the IOU or the CCA associated with requests to opt out. Optouts take effect at the end of a customer's current billing cycle. As a result, customers that opt out will receive a final billing with CCA charges. If a customer requests to opt out of a CCA program less than five days before their meter-read date, the customer may see an additional month of CCA charges on their bill due to the timing of the request. The customer would then be returned to the IOU bundled service on their next regularly scheduled meter read date. If you opt out, the IOU will continue to procure electricity for you. If you do not opt out, you will receive electric procurement services from your CCA. In either event, the IOU will continue providing transmission and distribution services to you. Regardless of whether or not you opt out of CCA service, you will continue to be eligible for ratepayer- funded programs, such as the California Solar Initiative and energy efficiency programs that are funded by distribution surcharges.

Can the IOU process my opt out request?

The IOU cannot assist with your request to opt out of CCA. To opt out, each CCA program will require customers to take some type of action, such as calling a toll-free number, sending a self-addressed return postcard or letter, or completing an opt-out form. A CCA is required to notify customers in writing to explain which opt-out methods will be available should they decide to opt out of the program.

Can a customer join a CCA after they've opted out?

Yes, a customer who opts out of a CCA program can join the program. However, if a customer opts out of a CCA program after the first 60 days of service with the CCA, the customer will be required to remain with the IOU's bundled service for one year. In order for a customer to join a CCA program after opting out, the customer must contact the CCA program directly.

What happens to my electric service if I move to a city or county that is part of a CCA program?

If a customer moves to a city or county that has started a CCA program, the customer becomes a customer of the CCA program by default unless they take action to opt out. If a customer does not opt out of the CCA program at the time they start service, the customer will receive 2 notifications from the CCA program during the initial 60-day period that include opt-out instructions.

Is there a way to compare the CCA generation rates with those of the IOU?

Yes, each IOU and CCA are required to develop a Joint Rate Comparison that shows the how the different rates compare to one another. The Joint Rate Comparison should have been sent to all potential customers. The rate comparison is also available on the CCA and IOUs websites or by contacting them directly.

How will I be billed for CCA service?

Customers who receive their electric supply from a CCA receive a consolidated bill issued by the IOU that includes charges from both parties. The IOU charges for transmission and distribution services to deliver your power, and the CCA charges for the power itself. The IOU collects payments on behalf of the CCA, which are then sent to the CCA. There will only be one bill to pay.

How much will I pay for the IOU's electric charges?

Under a CCA program, the IOU will continue to bill you for non-generation charges, which include electricity delivery (transmission and distribution) and other miscellaneous charges. Additionally, the IOU assesses a tiering of rates through its delivery charges for residential customers, known as the Conservation Incentive Adjustment. You will also be assessed a Power Charge Indifference Adjustment (PCIA), which is a charge to cover the IOU's generation costs acquired prior to a customer switching to a third-party electric generation provider. Your CCA provider generation charges will be consolidated in the monthly bill you receive from the IOU.

What is the Power Charge Indifference Adjustment (PCIA) I see on my bill?

PCIA is the portion of your bill intended to ensure that customers who receive their electric supply from third-party providers, such as a CCA, pay their share of costs for energy that was acquired by the IOU to serve them prior to their departure. The PCIA is included in the IOU's non-generation charges and may change annually to ensure that the IOU's remaining customers do not bear any cost created by departing customers who receive their electric supply from a third- party provider, such as a CCA. Customers who participate in the Medical Baseline Allowance program are exempt from the PCIA charge.

Which IOU services and programs remain available to CCA customers?

IOUs manage transmission, distribution, and delivery of a CCA customer's electricity, including providing meter reading, billing, maintenance, and outage response services. Additional IOU services, including energy-efficiency rebates, California Alternative Rates for Energy (CARE), medical baseline, balanced payment plans (generally only on IOU delivery charges), net metering, California Solar Initiative, other solar programs, and some demand response programs, as well as programs such as e-Bills and Automated Payment Services are still available to CCA customers. Programs administered by the CCA may differ from those provided by the IOU.

Why is my home's electric use billed according to pricing tiers?

The State of California requires IOUs to charge all residential customers on a tiered rate structure which is reflected in the Conservation Incentive Adjustment section of your bill. With tiers, electricity is charged at a progressively increasing rate based on your household's use. At the beginning of each month, you start with a baseline amount of electricity where energy costs the least—Tier. The higher the tier, the more you pay for a kilowatt-hour of electricity in that tier. As a CCA customer, this tiered rate structure remains in place for your delivery(non-generation) charges. The Conservation Incentive Adjustment is included within your IOU delivery charges.

Why do I have a Vintage Rate as a CCA customer?

The portion of the IOU's generation rate that needs to be recovered through the PCIA depends on the year in which the customer began receiving generation supply from the CCA. Up to that point, the IOU was responsible for undertaking generation commitments to serve the customer. The customer's Vintage Rate does not change, but the PCIA rate for that vintage will likely change every year.

What is a Franchise Fee Surcharge (FFS)?

Customers who receive their electric supply from a third-party provider are billed a franchise fee surcharge (FFS). The IOU normally collects the FFS directly from full bundled customers in the Total Bundled Rate. The money collected through the FFS is paid to municipalities for the purpose of supporting vital local services. The IOU acts as a collection agent for this fee.

If I am in a CCA program and have questions about the charges on my bill, whom do I contact?

If you have questions about the IOU charges on the bill, you should contact the IOU. If you have questions about the CCA charges on your bill, you should contact the CCA. You may also need to contact one or both service providers for inquiries other than billing.