The devastating fires that swept through California, destroying over 12,000 homes and businesses in Los Angeles alone, are a stark reminder of the urgent need to rethink how we manage energy in this state. Pacific Gas and Electric (PG&E), the state’s largest utility, has repeatedly failed Californians, both financially and operationally. With billions of dollars in losses, a series of lawsuits, and mounting criticism over their role in wildfire prevention and grid management, PG&E has proven that its priorities lie far from the needs of the communities it serves.
The solution is clear: it’s time for every city and town in California to take control of their energy future by establishing their own Community Choice Aggregation (CCA). This model allows communities to purchase and manage their energy supply while still utilizing the existing infrastructure owned by utilities like PG&E. It’s a bold, achievable step toward lower costs, better energy choices, and true accountability.
PG&E Is Overextended and Overcharging
For years, PG&E has operated with little competition, passing its mismanagement costs onto consumers. Recent wildfires, many of which were sparked by PG&E’s poorly maintained equipment, have left the company with billions in liabilities. Instead of absorbing these costs through improved efficiency, PG&E has chosen to hike electricity rates for consumers. Today, Californians pay some of the highest energy prices in the nation, with residential rates averaging $0.30 per kilowatt-hour—nearly double the national average.
This monopoly on energy services stifles competition, leaving towns and cities dependent on a utility giant that has consistently prioritized profits and executive bonuses over public safety. Californians deserve better, and CCAs provide a way to reclaim control.
What Is a CCA, and Why Should Every Community Establish One?
Community Choice Aggregation (CCA) enables local governments to purchase energy directly on behalf of their residents and businesses. This energy is then delivered through the existing utility infrastructure, meaning cities don’t need to build their own power lines or substations. Utilities like PG&E still handle grid maintenance and billing, but the community gains the power to choose where its energy comes from and at what price.
Here’s why CCAs are the future for California communities:
1. Lower Costs: By eliminating PG&E’s profit margins and leveraging bulk energy purchases, CCAs can offer electricity at rates 5–15% lower than traditional utilities.
2. Cleaner Energy Options: CCAs allow communities to prioritize renewable energy, making it easier to meet California’s aggressive climate goals while reducing greenhouse gas emissions.
3. Local Accountability: Unlike PG&E, which is answerable to shareholders, CCAs are run by local governments or boards, ensuring decisions are made in the best interest of residents.
4. Economic Growth: CCAs can invest in local renewable energy projects, creating jobs and keeping revenue within the community.
Lessons from the Los Angeles Fires
The catastrophic fires in Los Angeles and across the state have highlighted the risks of relying on an overburdened, centralized utility. PG&E’s outdated infrastructure and lack of investment in grid modernization have made it a liability. Local CCAs, on the other hand, can prioritize microgrid technology and distributed energy resources, such as solar panels and battery storage. These innovations make the grid more resilient, reducing the risk of widespread outages and ensuring that critical facilities remain powered during emergencies.
A Proven Model
California already has more than 20 operational CCAs serving millions of customers. Cities like San Diego, San Francisco, and Lancaster have successfully launched programs that provide cheaper, cleaner energy to residents. For example:
• San Diego Community Power offers 100% renewable energy options at competitive rates.
• Marin Clean Energy (MCE), one of the first CCAs in the state, has saved customers millions of dollars while significantly reducing carbon emissions.
These successes show that CCAs aren’t just theoretical—they work.
The Path Forward
Starting a CCA may seem daunting, but the process is straightforward and supported by California law. Cities and towns need to:
1. Conduct a feasibility study to evaluate energy demand and potential cost savings.
2. Submit an implementation plan to the California Public Utilities Commission (CPUC).
3. Partner with renewable energy providers to secure long-term contracts.
4. Launch an outreach campaign to educate residents about the benefits of the program.
The upfront costs of starting a CCA are manageable, especially when shared across a community. Municipal bonds, state grants, and private investments can all be leveraged to cover initial expenses, making it a realistic option for cities of all sizes.
The Time for Action Is Now
PG&E has shown time and again that it cannot meet the needs of Californians. By establishing CCAs, every city and town in the state can take charge of its energy future, offering residents cleaner, cheaper, and more reliable power. The infrastructure is already there—what’s needed is the leadership and vision to make it happen.
The stakes couldn’t be higher. California’s communities can’t afford another decade of rising rates, preventable wildfires, and corporate mismanagement. It’s time to decentralize energy control and empower local communities. By starting their own CCAs, California towns and cities can pave the way for a more sustainable, equitable energy system—one that puts people and the planet first.
The choice is simple: continue relying on an overextended monopoly or take charge and build a brighter future. Let’s make it happen.