Clean Energy > Community Choice Energy > Community Choice Energy FAQ
Community Choice Energy FAQ
What is Community Choice Energy?
Community Choice Energy (CCE) allows local governments to take over the buying of power for their communities. These are local programs that prioritize the environment by buying clean, carbon-free energy on our behalf and then reinvesting it into the community. There are over 26 Community Choice Energy programs around California and over 30% of Californians are served by them. Community Choice Energy is a proven way to get cleaner electricity to local homes and businesses and provide greater local control over how that electricity is sourced.
Local governments create a new public agency responsible for purchasing and producing electricity.
The utility remains responsible for delivering that electricity, maintaining lines and handling billing.
Communities gain control over their power supply.
Watch this short video to learn the basics of how Community Choice Energy works
Why are local governments doing this? What benefits does Community Choice Energy provide?
The City of Santa Barbara has a goal of carbon neutrality by 2035, and many other cities have their own sustainability goals. Getting 100% clean energy into our community is an important first step to get there.
Existing programs in Marin, Sonoma, Lancaster, Los Angeles, and elsewhere show that Community Choice Energy provides a wide range of benefits:
Choice
Community Choice Energy introduces competition into the marketplace and provides customers with a choice about the energy sources they wish to support.
Community
Community Choice Energy is typically run by a public agency, meaning that it is accountable to the community, not shareholders. Surplus funds may be reinvested locally in renewable energy, energy efficiency, jobs and programs to encourage residents and businesses to adopt clean energy technologies.
Sustainability
CCE may help communities achieve their climate action goals by lowering energy-related greenhouse gas emissions through cleaner, renewable energy choices. Central Coast Community Energy and Santa Barbara Clean Energy both have goals of 100% renewable electricity by 2030. Clean Power Alliance offers 100% renewable energy as a default option in many cities in Ventura County and other areas of its service territory.
Economics
Community Choice Energy may provide customers renewable energy options at rates competitive with Pacific Gas & Electric and Southern California Edison. Central Coast Community Energy generated $44 million in surplus revenue in 2019, which funded customer rebates, programs, and reserves.
How is this different from our current energy system?
Before Community Choice, customers only had one choice of a monopoly energy provider, Pacific Gas & Electric (PG&E) in North Santa Barbara county and San Luis Obispo county, and Southern California Edison (SCE) in South Santa Barbara and Ventura county. These are investor-owned companies, meaning they are beholden to shareholders and are committed to providing profits to their investors. Community Choice Energy programs give us a choice in who buys our power, while directing profits back into the community (instead of to investors).
Will this increase power outages?
No. SCE/PG&E still maintain the poles and wires. As a customer, you probably won’t even notice a change. In fact, your bill will still come from SCE/PG&E. The Community Choice Energy program is just taking over the power contracting to align with climate goals and generate local revenue and community resilience.
Will my bill go up?
Each program varies, but in general customers have the choice to stay at a rate at or below their current electricity rate. For example, Central Coast Community Energy has lower rates than PG&E, even as they seek to reach 100% renewable energy by 2030. The City of Santa Barbara's Community Choice Energy program defaults its customers into its 100% Green product, which is 100% carbon-free. This greener, climate-friendly electricity does come at a slight premium (about $5 per month for your home) but is much cheaper than fully outfitting your house with solar panels. Customers in this program can also opt down to the Green Start product, which is at least 50% carbon-free and costs the same amount that you've typically paid Southern California Edison.
Will this lead to more or less PSPS events?
Since local governments are not in control of SCE/PG&E’s poles and wires, safety shutoffs and unscheduled utility outages will remain the same. However, a major goal of these Community Choice Energy programs is to invest in local energy resilience (which includes renewable energy and battery banks) and will therefore look to help local area residents and businesses establish this infrastructure at their homes and places of work.
What do I need to do to sign up?
Nothing. All customers are automatically enrolled in the new Community Choice Energy Program and will stay that way unless they take steps to opt out. Because most of the community enrolls in the new program together, Community Choice Energy is a very powerful program to increase renewable energy, gain access to new rebates and programs, and help our region meet our climate goals. By staying opted in, you support a local program that aligns with local climate goals and keeps decision-making local.
