On September 17, 2019 the San Diego City Council voted 7-2 to implement community choice aggregation (CCA), which included approving a resolution authorizing the city’s entry into a Joint Powers Agreement with the cities of Chula Vista, Encinitas, La Mesa and Imperial Beach, forming one of the largest CCAs in the state of California.

Under the CCA model, communities aggregate their loads – and purchasing power – in order to procure energy from renewable or traditional sources in large amounts.  Some CCAs give customers some flexibility in deciding how much of how much of their energy comes from renewable sources, but it remains to be seen how the details of the plan will play out in terms of the various options that will become available to residents of San Diego and neighboring cities.

As the number of CCAs in California continues to grow – California Community Choice Association estimates that there are 19 CCA programs in the state with more considering forming a CCA – they will likely continue to re-shape the market for renewable power.  San Diego’s 2018 business plan addressing the potential for a CCA program forecasted that the total load to be served by a CCA would be slightly over 6,000 GWhs, so the adoption by San Diego of a CCA model is noteworthy.  The expected launch is planned for 2021 and is important to achieving the city’s goal of running on 100% renewable energy by 2035.

Photo of Bo Harvey Bo Harvey

Bo Harvey is a partner in Stoel Rives’ Energy Development practice. He represents energy clients and financial institutions in connection with a wide variety of matters. He has particular expertise in negotiating and structuring energy hedges, swap and derivative transactions, and providing related…

Bo Harvey is a partner in Stoel Rives’ Energy Development practice. He represents energy clients and financial institutions in connection with a wide variety of matters. He has particular expertise in negotiating and structuring energy hedges, swap and derivative transactions, and providing related regulatory advice concerning the Dodd-Frank Act and Commodity Futures Trading Commission regulations. In addition, he counsels clients with respect to the structuring of power purchase and offtake agreements generally. More broadly, he also represents energy developers in connection with the development, acquisition, and sale of renewable energy projects.

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