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Sustainable Ned: Community Choice Energy

Posted 10/20/22

In 2019, Governor Jared Polis committed Colorado to 100% renewable energy fueling its electric grid by 2040. The Town of Nederland committed to this same goal but by 2025. Over a dozen other

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Sustainable Ned: Community Choice Energy

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In 2019, Governor Jared Polis committed Colorado to 100% renewable energy fueling its electric grid by 2040. The Town of Nederland committed to this same goal but by 2025. Over a dozen other local governments in the state have committed to similar and even more aggressive goals. Despite strong local support and ambitions, renewable energy options are limited by many state energy providers and in 2020, Colorado’s electric grid was responsible for 25% of the state’s carbon emissions, tying with the transportation sector.

In walks Community Choice Energy (CCE). CCE, or sometimes referred to as Community Choice Aggregation, is an alternate option to the typical energy supply structure in which an investor-owned utility, like Xcel Energy, is allowed to dictate the type of energy supplied to and cost for, its customers. Instead, CCE provides a channel to voluntarily pool local governments to advocate collectively for a service area’s energy choices and even secure reduced costs.

According to Christina Van Winkle (2020), a Senior Environmental Analyst at the Colorado Legislative Council, CCE can support a range of objectives, including:

• competitive, often lower electricity rates;

• local control and consumer choice;

• local job creation and power resiliency;

• transition to a cleaner, more efficient energy supply;

• new renewable energy development; and

• complementary energy programs such as distributed solar, demand response technologies, and energy efficiency retrofits.

CCE has already been achieved in eight states. One of these states, California, is using this framework to more rapidly transition their grid to renewable sources and reduce their greenhouse gas emissions while keeping prices at or below standard utility costs. In fact, according to Lean Energy, across the nation, CCE is supporting an average of 2-20% electric rate savings.

This week, CCE is moving closer to enactment in Colorado as the Public Utility Commission holds a public hearing to explore best practices uncovered through the research directed by Bill HB21-1269 in the 2021 legislative session. This bill supported research into CCE options for communities or groups of communities that are powered by investor-owned utilities, to learn more about how CCE may affect the Colorado investor-owned utility market.

As we wait for CCE in Colorado, optin programs are one of our best available options such as community solar gardens (CSG). CSGs are available in Colorado through state legislation and because of this, these options can appear too good to be true as renewable energy options through Colorado utilities are often premium programs or at best, even with standard program costs. As Colorado waits for CCE, check out Nederland’s community solar garden subscriptions, guaranteed to save you money on your electric bill while also supporting new renewable energy on Colorado’s grid. (https://townofnederland.colorado.gov/ Community-Solar-Garden).