Since its launch in 2010, MCE has always strived to be a dynamic, community-governed agency welcoming input from a diverse array of stakeholders, such as the elected officials that comprise our board, the community-based organizations across our 4-county service area, as well as members of the public. As a public agency at the forefront of driving energy innovation at the local level without the need to serve profit-focused shareholders, we are constantly seeking ways to enhance our operations to make clean energy affordable and sustainable over the long term.
The recent public discussions and spirited debate among MCE’s board and members of the public demonstrate the vitality of the community-choice model as an alternative to investor-owned utilities.
Customers of an investor-owned utility have no seat at the table unless they are a shareholder. The views of the community are too often left out of the conversation. While we don’t always agree on the nuance and complexity of electricity markets and how MCE participates in them, the fact that these conversations are happening in local, public spaces is a net positive for customers in our communities.
Being the first community choice aggregator (CCA) launched in California – where currently 25 CCAs meet the energy needs of roughly 30% of the state’s electricity customers — MCE has always been a bit of a trendsetter. Since 2010, MCE has grown to serve more than 600,000 customers while helping reduce nearly 548,000 metric tons of greenhouse gas emissions and delivering about $80 million in customer bill savings and discounts.
Over 87% of electricity customers in Marin, Napa, Solano and Contra Costa counties purchase their electricity from MCE. We have directly supported the addition of 1,000 megawatts of new renewable energy capacity to serve these customers.
As MCE embarks on the next 15 years, California’s energy market finds itself at a crossroads that can adversely impact customers if not thoughtfully navigated. Electric load growth driven by data centers, EV adoption, and other electrification efforts is raising demand for renewable energy and battery storage to new highs. At the same time, grid congestion and outdated infrastructure make connecting these resources to the California grid increasingly difficult for load serving entities like MCE.
Further complicating matters are policies that are unfairly impacting customers. For example, customers of CCA’s are forced to pay what is called the Power Charge Indifference Adjustment (PCIA), an exit fee for customers departing from their investor-owned utility. This fee is the primary driver of bill increases for CCA customers in 2026 because the California Public Utility Commission allowed utilities like PG&E to raise the PCIA after claiming under collection in previous years. While these rates are expected to return to historical norms after 2026, the effect is having real impact on customer bills now. In response, MCE’s board is recommending a 14% decrease in its generation rate to help offset this increased exit fee from PG&E, which will be voted on at its March 19 meeting.
The PCIA is only one of the many complex challenges facing MCE and other CCA’s across the state. While there may be varying perspectives about how to best balance the goals of customer affordability, agency competitiveness with PG&E, and renewable energy procurement, it is heartening to see the broader community and our board show genuine interest in making MCE the best agency it can be.
Democracy thrives on compromise. In this industry, tradeoffs are inevitable and the issues at stake are nuanced and not easily condensed to soundbites. Fortunately, MCE’s board is comprised of thoughtful, curious leaders who bring the perspective of their constituents to the discussion while leaning on the technical expertise of MCE’s staff to understand the complexity and contradictions of the energy market in which we operate. This is a formula that has proven successful for many years and leaders of other CCA’s often point to MCE as the standard to strive for.
MCE is no longer the small startup agency that it once was. The next phase of the agency’s growth will focus not only on procuring more renewable energy from the grid but also tapping into the value of the distributed energy resources –like rooftop solar, and batteries – within our service area. These are resources that represent a win-win-win: their owners can gain additional income for participating in MCE’s virtual power plant, MCE can utilize the resources to reduce our peak load, and customers can save on their energy bills when MCE avoids required purchases of the most costly energy on the grid.
This continued evolution of the agency also requires a fresh look at its governance structure to ensure the most efficient, effective processes for our board to decide on critical matters. That is why the board is looking to engage outside expertise in a governance assessment with recommendations for improvement. The results of that initiative will be provided to the board for consideration later in the year. I am optimistic that this process will address critiques raised by some members of the public in recent months.
With the help of thoughtful engagement by the community and our board, MCE can navigate these challenges and continue to be a model for CCAs across California. I’m excited for the work ahead.
By Dawn Weisz