COMMUNITY POWER AGGREGATION

PRS Briefs
PRS POLICY BRIEF 2023-24-01
Tuesday, March 12, 2024
Cooper
Hyldahl
Carly
Walther-Porino
Chase
Kamikawa

Our research explored the concept of Community Choice Aggregation (CCA), which empowers local governments to procure electricity on behalf of their communities. CCA, alternatively termed Municipal Aggregation or Community Power Aggregation (CPA), is an energy supply model founded on the principle of collective demand. By harnessing the strength of bulk purchasing, these models secure power from alternative suppliers while upholding the essential transmission and distribution services provided by existing utility companies. This approach holds the potential to provide communities with greater control over their energy sources, access to more sustainable power options, and lower electricity costs. We have also noted the stark disparities in CCA outcomes across different U.S. states, with some experiencing steady growth in participation, while others encounter stagnation or even a decline. This variation prompts our research to delve deeper into the underlying factors that drive these outcomes.

Additionally, our preliminary analysis highlights the relevance of CCA programs, especially in regions like New Hampshire, where residents grapple with high electricity costs due to heavy reliance on imported fossil fuels, volatile energy prices, and challenging climatic conditions. These factors underscore the importance of exploring the intricacies of CCA systems, regulatory frameworks, and the lessons that can be drawn from states with successful programs. Through several case studies, we aim to provide a comprehensive analysis to glean insights for New Hampshire and offer actionable insights for shaping more sustainable, cost-effective, and resilient energy systems in the future.