Background

Over the past two decades, Community Choice Aggregators (CCAs) have revitalized California’s energy landscape, providing local choice, electricity rate control and accelerated climate action in communities across the state. 

In 2002, the passage of Assembly Bill 117 legalized the creation of CCAs, allowing local governments to procure electricity on behalf of local residents and businesses. In 2008, Marin Clean Energy (MCE) became California’s first CCA, offering a higher percentage of renewable energy than its investor-owned utility, Pacific Gas and Electric. 

Soon thereafter, MCE’s success inspired the rapid proliferation of CCAs across the state. In 2016, six CCAs founded CalCCA to support community choice electricity providers at the state level. Now, more than 200 towns, cities and counties throughout California participate in CCAs to procure their energy. These 25 CCAs serve more than 14 million electric customers, providing local transparency, distributing cleaner energy portfolios and driving economic development in their communities.

Based on a feasibility study completed in April 2019, the cities of Carlsbad, Del Mar and Solana Beach partnered in November 2019 to form the Clean Energy Alliance (CEA), a new public entity that will operate a Community Choice Aggregation program to provide alternative energy resources within the communities’ service territories. In December 2021, the City of Escondido and the City of San Marcos joined as CEA’s first new members. In July 2022, CEA expanded into the City of Oceanside and City of Vista.

CEA is locally controlled and supported by ratepayers, with no taxpayer subsidies. By law, as a joint powers authority (JPA), CEA is a separate legal entity from its member agencies. Its budget is separate from the member cities’ general funds. In addition, CEA is funded by program revenues and reserves.

CEA’s member agencies are able to pool their communities’ energy demands and increase their purchasing power for higher renewable energy content. Revenue from the program will be reinvested in local energy infrastructure and energy efficiency programs for customers. 

In December 2019, CEA completed its implementation plan, which included hiring key vendors and staff, setting operational policies and establishing the energy supply mix, rates and programs.

On May 1, 2021, CEA began providing energy services, offering residents cleaner energy, competitive rates, local programs and local control. CEA also helps its member communities lead the way in reducing greenhouse gas emissions, improving quality of life, and meeting their Climate Action Plan goals.