The City of Hanford has selected California Choice Energy Authority (CCEA) to conduct a Community Choice Aggregation (CCA) feasibility study. On Tuesday, January 16, the Hanford City Council authorized an agreement with CCEA for consulting services that will determine the City’s aptitude for a successful CCA.
CCA programs allow local governments to purchase energy and generate electricity for residents and business owners within City limits. CCAs serve as an alternative to investor-owned utility companies like Southern California Edison (SCE) and Pacific Gas & Electric Company (PG&E), Hanford’s current electricity provider.
“Current and new industries coming to the City of Hanford have sizable energy demands. Part of the reason we have decided to consider CCA is to gain an edge in economic development and help businesses prosper in our community,” said Darrel Pyle, City of Hanford City Manager.
To determine the feasibility of a Hanford CCA program, CCEA will request the City’s electricity load data from PG&E. CCEA’s partner and industry expert, Pacific Energy Advisors (PEA), will provide the technical expertise to analyze the City’s data, estimate total usage and prepare a pro-forma among other analysis necessary to confirm the City’s feasibility for implementing CCA.
CCEA will also develop the City’s CCA implementation plan based on information gathered from the feasibility study. The implementation plan, which the California Public Utilities Commission (CPUC) requires for launch of a CCA, outlines the organizational structure and operational functions of the potential CCA. The CPUC must approve the City’s implementation plan before the CCA can be formed. Approval does not bind the City to implementation of a CCA program.
“Partnering with CCEA has prevented us from having to learn from our own mistakes. I have been able to accelerate my education in CCA by calling upon the CCEA team who already has four years of experience in CCA,” added Pyle. “There are great CCA success stories out there. It’s important to reach out to our counterparts who have been successful with CCA programs; they can help us ease our way through the CCA process.”
CCEA is a pioneering Community Choice Aggregation solution for cities in California. The hybrid joint powers authority provides an innovative model that retains local control of utility services for cities who partner with CCEA while alleviating operational risk and administrative overhead associated with the implementation of CCA. For more information, please visit https://californiachoiceenergyauthority.com/.