"Breaking PG&E's monopoly with cheaper, greener energy is a compelling vision offered by MCE (aka Marin Clean Energy) and other community choice aggregators. However, as Contra Costa County residents are learning, MCE is no longer delivering on the promise of local government-controlled community choice aggregators, or CCAs. In fact, they may be better off with PG&E after all. Although it has "Marin" in its name, MCE is now largely a Contra Costa County operation."
"So, Contra Costa reporters and residents should be paying more attention to the recent challenges at MCE. The agency's latest financial report shows a $12 million operating loss for the 2025 fiscal year compared to operating income of $144 million the year prior. These operating losses may increase in future years as it appears that MCE has committed to long-term fixed price power purchase contracts at a time when electricity rates are actually falling."
"Two cases in Southern California illustrate the serious downsides of the CCA model. In Riverside County, Western Community Energy (WCE), which served Jurupa Valley, Hemet and nearby communities filed for Chapter 9 bankruptcy in 2021. WCE was subsequently dissolved, returning all customers to Southern California Edison and leaving creditors, including at least one public agency, with unrecoverable losses."
MCE and other community choice aggregators promised cheaper, greener energy as an alternative to PG&E. MCE now serves more customers in Contra Costa County than in Marin, Solano, and Napa, with 15 of Contra Costa’s 19 municipalities and the county joining. The agency reported a $12 million operating loss for fiscal 2025 after $144 million operating income the prior year. MCE appears committed to long-term fixed-price power purchase contracts while electricity rates fall, risking larger future losses. Southern California CCAs experienced failures and criticism, including WCE’s Chapter 9 bankruptcy and OCPA’s transparency and hiring problems. CCA governance often depends on part-time elected officials lacking time and expertise.
#community-choice-aggregators-cca #marin-clean-energy-mce #financial-losses #governance-and-transparency
Read at The Mercury News
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