November 28, 2018

How Community Choice Is Transforming California’s Retail Energy Markets

Kevin Haroff

For generations, Californians have depended on three large investor-owned utilities (IOUs)—Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E)—to meet most of their needs for electrical energy.

That is now changing. With the advent of community choice aggregation, California cities and counties are joining together to provide electricity directly to consumers, with only limited involvement by the IOUs. As they do, these communities are altering the character of the state’s retail energy markets in dramatic ways. 

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