Community choice energy: Bridging the gap between sustainability and affordability in electricity supply

The requisite deep decarbonization in order to stave off environmental degradation will need to come from not merely technological change but also positive transformation of social conditions that can deliver ‘sustainability for all’. Within the United States electric power sector, a prominent proposal to advance competition and accommodate citizen demand was the introduction of private electricity retail choice options. The impact of retail competition on electricity prices remains open for debate. Several recent state-wide investigations conducted in the United States conclude that customers, especially those on lower incomes, pay more for electricity from these ‘competitive supply’ (CS) options compared to standard utility rates. In turn, consumer advocates in multiple states are calling for the discontinuation or severe restriction of individual residential CS in an attempt to avoid aggravating existing energy burdens. An alternative model – in the form of Community Choice Energy (CCE) – operating in Massachusetts and other jurisdictions aggregates community-wide electricity demand and offers electricity service choice. Analysis of the Massachusetts electricity supply market indicates that CCE programs have generally resulted in lower costs compared to alternative supply options, with benefits for both general and low-income households.