More States Moving to Deregulated Energy Markets and Innovative Community Choice Aggregation Programs

Alternative electric

Arguably the best thing about deregulated energy markets is that they help to ignite competition, which naturally brings about cheaper prices for services. Unfortunately, many states still are not legally allowed to operate under energy industry deregulation. However, one state that does have deregulated energy markets allowing resident to choose alternative electricity suppliers is New York.

Even many residents of New York are not aware that they have the ability to choose alternative energy sources, at least when it comes to electricity power suppliers. According to, New York also recently became one of the only states in the country to start a community choice aggregation (CCA) program.

Basically, a community choice aggregation system allows townships and municipalities to buy power in bulk on behalf of their citizens. This kind of setup is only allowed in deregulated energy markets and is just another reason more states should opt for this kind of freedom.

The initiative in New York will be done in Westchester County. Sustainable Westchester?s Westchester Smart Power is the name of the program and it’s goal will be more towards improving sustainable and renewable energy companies, as opposed to straight cost-savings, which is what most CCAs concern themselves with.

?If Sustainable Westchester can get private suppliers to bite at a peak demand reduction contract feature, they have created a private-sector solution to a major challenge,? Karl Rabago, executive director of the Pace Energy and Climate Center, said in a statement. ?An efficiency solution would address reliability issues, and add substantial economic value with an environmentally beneficial approach.?

As the article points out, the vast majority of New York residents still choose to procure their electricity from traditional energy suppliers. It’s unclear if most of them even know they have a choice.

?As the first community choice aggregation in New York state, Westchester Smart Power holds the potential to transform how consumers purchase, use and choose the energy for their homes and businesses,? Richard Kauffman, chairman of energy and finance for New York state, said in a statement.

The average delivered cost of electricity for investor-owned utilities was 7.1 cents per kilowatt hour in 1995 and generation accounted for about two-thirds of the price of electricity. According to the Edison Electric Institute, generation accounts for less than half the price thanks to efforts to improve efficiency.

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