What Happened?
Santa Cruz County, CA, is considering establishing a joint powers authority for its various municipalities to increase citizen purchasing power of energy sources, allowing for more green options to be selected. Local municipalities are looking into similar programs to promote the use of renewable energy sources to support a more independent sustainability strategy.
So What?
Throughout California, municipalities are working with nonprofit organizations to replace current energy suppliers with alternative sources to power the community while reducing costs and the environmental impact. Residents can opt out of working with large energy corporations in favor of other sources including wind, solar and green energy solutions and products.
When communities join forces and demand choice aggregation plans, individual consumers gain the purchasing power typically enjoyed by large corporations. With enough residents and governmental agencies partnering together to demand alternative energy sources, providers must either comply with requests or lose the business. When communities come together to create joint powers authorities, local governments become players in the energy markets, working to lower prices, reduce greenhouse gasses and improve municipality sustainability.
Action Plan
Sonoma recently approved a plan to develop a community choice aggregation program known as Sonoma Clean Power. The joint authorities plan will allow numerous cities or counties to work together to select an energy provider with increased purchasing power while promoting green energy sources.
Sonoma is paying the Marin Energy Authority, another community aggregation program, $50,000 to provide consulting services to the power authority during the implementation process. While transmission, distribution, customer service and billing processes will remain the same under the new choice aggregation program, the plan will provide numerous beneficial changes to the community including:
- Increased renewable energy use
- Stimulation to local economy with increased business for local energy providers
- Substantial greenhouse gas reduction with investment in green energy
Buying Local
A recent study from the Institute for Ecological Economy Research discussed the value and cost savings contracts with local renewable energy providers can bring to a community. The study analyzed the impact working with regional energy providers had on cities in Germany, citing increased savings, job creation and tax revenues. The local economy benefits from increased business, residents enjoy more affordable energy costs and taxes paid to the municipality increase local resources and amenities. The study noted increased value in the community through:
- Increased profits for local companies with less turnover and more guaranteed sales.
- Boosted income for residential employees of energy providers as well as partnering companies such as banks or insurance companies.
- Growth in tax revenues for municipalities such as income tax from waged work and business taxes.
- Elevated lease proceeds for growth and expansion of energy facilities in the community
Other Examples
Gov1 has covered other communities investing in solar power innovations and other green practices to implement a more sustainable energy plan. A great resource for information about Community Choice Aggregation is Paul Fenn’s Blog. Fenn is a pioneer in the area of CCA and the CEO of LocalPower.