Reverse high exit fees

Description: State level utility commissions in states allowing Community Choice Aggregation (CCA) may impose fees on CCAs intended to prevent rate increases for accounts that remain with investor owned utilities (IOUs). These rate increases arise from existing IOU contract obligations that were incurred to provide electricity to ratepayers who later migrate to CCAs. Such rate increases may inadequately account for the full benefits of the CCA programs, including local generation that reduces the need for non-local transmission lines and other local programs, and may ignore the expiration of utility contracts that were required to serve the electrical load of accounts that have migrated to the CCA. For example, in California many feel that such “exit fees” hamper CCA programs that, on average, are moving more quickly than the utilities to procure clean electricity and reduce associated greenhouse gas (GHG) emissions.

The California Community Choice Association (CalCCA) opposed the California Public Utilities Commission (CPUC) decision October 11, 2018, to alter the Power Charge Indifference Adjustment (PCIA), which will lead to sharp increases in PCIA rates for existing CCA programs and make it uneconomic for new CCA programs to launch. The high fees not only increase rates to CCA customers, but also reduce funds available to CCAs to support lower rates, local development, distributed energy, and other community programs. Opportunities for local action include passing city or county resolutions opposing the high PCIA charges and contacting state legislators and the CPUC.

Goal: Reverse the high exit fees (called PCIA charges) charged by utilities to all CCA customers forever

Measurement: PCIA rates reduced

Time to Implement: Unknown


CalCCA Calls on Commission to Reject Alternate PCIA Proposal

The PCIA Story

Additional Information:

Contact Info:

Email: California Community Choice Association (CalCCA)

Sectors(s) Community Choice Aggregation
Date First Adopted 2018
Last Updated October 31, 2021
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