Community choice aggregation: assessing the financial and political viability in Humboldt County
Graduation Date
2011
Document Type
Thesis
Program
Other
Program
Thesis (M.S.)--Humboldt State University, Environmental Systems: Energy, Environment, and Society, 2011
Committee Chair Name
Steven Hackett
Committee Chair Affiliation
HSU Faculty or Staff
Keywords
California, Humboldt State University -- Theses -- Environmental Systems, Humboldt County, Renewable energy, CCA, Community choice aggregation
Abstract
The overall feasibility of implementing a Community Choice Aggregation program in Humboldt County is investigated in this thesis by examining its financial viability and likely level of public support. Community Choice Aggregation (CCA) enables the county to procure electrical power, by wholesale market purchases or owning and operating generation facilities, for customers in its jurisdiction. With CCA, a local public agency is responsible for resource decisions, which creates an opportunity to develop renewable energy projects, increase regional jobs, reduce greenhouse gas emissions while simultaneously reducing costs to consumers. A literature review on CCA provides an overview on program elements, aggregator responsibilities and community benefits and risks. A financial analysis then determines the cost of a CCA program with generation portfolios consisting of 33%, 50% and 75% renewable energy. The total operating cost of each CCA scenario is compared to the incumbent utility company's projected cost of providing generation services. The results indicate that the CCA could provide 50% of the region's electricity from renewable sources and obtain cost savings for CCA electricity customers, assuming a 3% escalation rate of the incumbent utility company's generation charge, of about $188 million over 20 years, or about $9 million per year. This equates to an estimated savings of about 6% on customers electric bills. The assessment further reveals that even greater savings could be realized by building renewable generation facilities that provide more energy than needed by the CCA and selling the excess renewable energy. In addition, the thesis examines the likely level of community support that CCA service would have in the county by qualitative and statistical analysis of the regions support for climate change mitigation and local control, which are often the motivating force for CCA. The combined results from the financial and community analysis suggest that Community Choice Aggregation is a viable option for Humboldt County. The results may encourage public discussion, foster support and promote further investigation into establishing a local CCA program.
Recommended Citation
Landau, Michael, "Community choice aggregation: assessing the financial and political viability in Humboldt County" (2011). Cal Poly Humboldt theses and projects. 1406.
https://digitalcommons.humboldt.edu/etd/1406
https://scholarworks.calstate.edu/concern/theses/0z708z412