Evaluating Community Choice Aggregation Alternatives for the City of Santa Monica

Evaluating Community Choice Aggregation Alternatives for the City of Santa Monica

Kelly Trumbull, Julien Gattaciecca, J.R. DeShazo

Community choice aggregators (CCAs) are a new type of retail electricity provider that allows cities or counties to make decisions about what kinds of energy resources to invest in rather than relying on traditional investor-owned utilities. Since 2010, California communities have established nine CCAs. Additionally, over a dozen communities are actively exploring CCA options. Multiple CCA models have arisen out of this rapid growth. The City of Santa Monica commissioned this report by the UCLA Luskin Center for Innovation as an analysis of the following three CCA options that the City is considering:

  • Join Los Angeles Community Choice Energy (LACCE), a Los Angeles County-wide CCA composed of all unincorporated areas and any city that wishes to join a larger, regional CCA effort;
  • Initiate South Bay Clean Power (SBCP), a CCA designed for a group of South Bay and Westside Cities; or
  • Create a single-city CCA through the services of California Choice Energy Authority (CCEA), which pools services for multiple single-city CCAs.  

The analysis may be relevant to other cities exploring similar options.