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Electricity aggregation in cities - often called community choice aggregation (CCA)- is a program allowing cities or towns to combine the buying power to purchase electricity in bulk. If you are in the North East or California your communities may be in these programs.
Electricity aggregation comes with both advantages and disadvantages. Here's a breakdown of the "goods and bads" to help you understand the trade-offs.
✅ Goods
1. Lower Electricity Rates
Cities can negotiate better bulk rates than individuals can on their own.
2. Clean Energy Options
Cities can choose to buy more renewable energy (like wind or solar). helping reduce carbon footprints
3. Boosts Green Jobs
Large demand for renewables can stimulate local clean energy industries and infrastructure development.
❌ Bads
1. Savings Aren’t Guaranteed
Prices may not always be lower than the utility’s default rate—especially in volatile markets. Some aggregations overpromise savings early on.
2. Limited Customer Awareness
Many residents don’t realize they’ve been opted in or don’t understand how the program works. Confusion about who provides service or who to contact in outages or billing issues.
3. Administrative Complexity
Cities may not have the expertise or resources to manage it well.
4. Opt-Out Burden
Residents are often automatically enrolled and must take action to opt out, which some view as invasive or paternalistic.
5. Risk of Market Manipulation
If not well-regulated, aggregations could be influenced by special interests or vendors with profit motives.
Poor contract negotiations can lock communities into bad deals.
Contact Us and we will be happy to review your communities and let you know if you are in an aggregation and the details around it.
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