Dive Brief:
- Communities around the country are seeking deals to provide power for their residents at prices below the incumbent utility.
- Buying power locally allows them to control the fuel mix, moving them faster towards emissions and climate control goals.
- But critics warn communities buying power may see rates jump when market forces change.
Dive Insight:
California is often on the forefront of progressive strategies, and earlier this year Sonoma County began providing power to tens of thousands of its residents. Through Sonoma Clean Power, the provider gives cities in the county the option to use solar, wind and geothermal.
Sonoma Clean Power is a not-for-profit agency, independently run by the Sonoma County cities. According to the Los Angeles Times, the county follows Marin County's program, while communities like Lancaster, San Diego and San Francisco are all considering the move as well.
But critics warn that the savings may be short-lived. They argue that many utilities locked into long-term contracts when the price of natural gas was still high, and local providers could be left with the higher price when those agreements roll off. According to the Times, some Midwest communities have already seen customers leave local power providers for traditional utilities when they could no longer compete on price.