Pioneer Community Energy

Community Choice Aggregation (CCA) is a program that allows local governments in California to purchase and/or generate electricity for their residents and businesses instead of relying on investor-owned utilities like PG&E.

In July 2024, the City Council heard a presentation from Pioneer Community Energy on how Community Choice Aggregation could benefit the residents of the City of Sonora.

The CCA in our region, Pioneer Community Energy (Pioneer), was formed in 2017 and launched in 2018. Pioneer is governed by a Joint Powers Authority (JPA) with a Board of Directors comprised of representatives from each member agency. This board sets rates and procurement policies. All meetings are open to the public.

CCA programs, offers the following potential benefits to the City of Sonora residents and businesses:

Consumer Choice

When Pioneer service goes live in the City of Sonora and & Tuolumne County customers will be automatically enrolled with Pioneer. However, each customer will have the option to opt out of Pioneer service and stay with PG&E.

Customer Savings

On average, Pioneer provides an opportunity for customer savings.

Consistency with Neighboring Communities

Pioneer currently provides energy to many of our neighboring communities, including Grass Valley, Nevada City, Auburn, Colfax, Lincoln, Rocklin, Loomis, Placerville, unincorporated Placer County, and unincorporated El Dorado County, with Sutter County, Tuolumne County, Butte County, Chico, Live Oak, Oroville, Paradise, Yuba City, Glenn County, Orland, and Willows, joining Pioneer in October 2027.

Opportunities for Local Economic Development

Given its nonprofit JPA structure, excess revenues from Pioneer’s operations will be reinvested in the local communities of the member agencies. The board of the JPA maintains the authority to approve the allocation of the excess funds. As a JPA member, City of Sonora has a seat on the board.

In addition, Pioneer prioritizes purchasing power from local renewable energy providers, supporting local jobs and contributing to the sustainability of local businesses.

Renewable Energy Option

Pioneer offers customers a 100% Renewable Plan option whereas PG&E does not currently offer a 100% renewable energy plan option.

Additional Benefits to Solar Customers

Pioneer currently pays ½ cent more than PG&E for excess kWh (Net Surplus Compensation)
Pioneer solar customers pay monthly when consumption exceeds generation instead of receiving one annual electric true-up bill.
If a NEM produces less electricity than they generate, they receive the same discount to PG&E as non-NEM customers receive.
Unused solar generation credits rollover from month-to-month with Pioneer.
Consumer Choice: Sonora customers will have the option to stay with PG&E.

Visit the Pioneer Community Energy website to learn more.

Maintenance of CARE, FERA, and Medical Baseline Benefits

All current members of these programs will see no changes to their benefits.

Background

February 18, 2025, the City Council Adopts Ordinance No. 902 and Resolution 02-18-2025-A, Adding Chapter 1.30 – Community Choice Aggregation Program, to Title 1, General Provisions, of the Sonora Municipal Code, and Approves the Joint Powers Agreement for Pioneer Community Energy Authorizing the Implementation of a Community Choice Aggregation Program Under Public Utilities Code Section 366.2

February 3, 2025, the City Council considers approval of the Pioneer Community Energy Joint Exercise of Powers Agreement and Waives the First Reading of Ordinance 902 Amending City of Sonora Municipal Code to Implement a Community Choice Aggregation Program in the Territory Under Public Utilities Code Section 366.2

At the December 19, 2024, Pioneer Governing Board meeting, the Board approved unanimously to allow staff to begin the process of amending the JPA to allow the Counties of Butte, Nevada, Sutter, and Tuolumne; the Cities of Chico, Oroville, Live Oak, Sonora, and Yuba City; and the Town of Paradise to join.

December 16, 2024, the Pioneer executive team gave a presentation to the City Council. This presentation was an overview of the results of the Impact Assessment Study related to joining Pioneer Community Energy.

July 1, 2024, the Pioneer executive team gave a presentation to the City Council. This presentation was an overview of the many benefits of CCAs in general and Pioneer specifically, how Pioneer may be a fit for their
region, the necessary next steps required to join Pioneer, and authorized staff to proceed with an Impact Assessment Study.

Impact Assessment Study

According to the Impact Assessment Study and the Pioneer leadership team, the expansion provides potential benefits to the residents and businesses in the new member service territories. Significant benefits include:

Stable and Competitive Rates – From 2018 through 2023, Pioneer customers have saved $85 million, with an additional $21 million in anticipated savings in 2024.
Local Control -As a member of the JPA, the City/County will have one seat on the Pioneer Board of Directors. This person is appointed by the Council/Board from the elected officials. All meetings are open to
the public and every representative’s voice will be heard.
Legislative & Regulatory Influence & Advocacy – Pioneer is an advocate for the member agency residents and businesses by working with the California State Legislature, the California Public Utilities Commission (CPUC), the California Energy Commission, and PG&E on behalf of customer interests and concerns.
Local Jobs and Power Supply Resources – Pioneer supports local businesses and prioritizes local power contracts, goods, and services. The projected savings for Pioneer customers will result in additional spending by residents and businesses, further stimulating the local economy.
Programs – The new members will impact the development of energy efficiency programs and the ability to
customize programs to meet their specific needs.

Next Steps

2025: Pioneer begins to procure power for expansion territories
2026: PCE & City of Sonora will launch community outreach and education efforts.
October 2027: Target for Pioneer to launch service in City of Sonora & Tuolumne County.

About Community Choice Aggregation

Visit the CalCCA website to learn more about Community Choice Aggregation.

How It Works

Under the CCA program, the provider manages where and how local electricity is generated while the local investor-owned utility (IOU) provider (PG&E in Western Nevada County) continues to deliver the power to the community. The CCA program allows for consumer options, local economic development (profits are invested back into the local community instead of paid out to shareholders), transparency in rate setting, and cleaner energy opportunities. PG&E continues to be responsible for customer billing.

Once a local government decides to partner with a CCA, all customers within the jurisdiction will be automatically enrolled in the CCA; however, customers retain the option to “opt out” of the CCA program and continue to receive power from PG&E.

Contact Us

Chris Gorsky
City Administrator
Email: [email protected]
Phone: 209-532-4541