DeShazo Remarks on Rise of CCAs in Future of Clean, Cheap Energy

J.R. DeShazo, director of the UCLA Luskin Center for Innovation (LCI),  is featured in a Comstock’s article assessing publicly owned electric-power-purchasing organizations in a transient energy market. The growth of so-called Community Choice Aggregators (CCAs) as an alternative to municipal and investor-owned utilities is transforming the energy market. CCAs offer cheaper and cleaner power, but their future hinges on their ability to navigate regulatory and market changes. DeShazo, who is also chair of Public Policy at UCLA Luskin, is cautious about predicting the long-term success of CCAs, citing past bankruptcies of large utilities as a result of “wrong conditions and bad policy by the legislature.” Climate change and the resulting shifts in environmental policy make electricity and the energy market as a whole competitive arenas. If they are able to overcome the obstacles in their path, “CCAs may serve the majority of the state’s consumers now served by the big three investor-owned utilities within 10 years,” the article stated, citing a July report from LCI.

Consumer Choice Has Revolutionized Electricity Business in California, DeShazo Says

JR DeShazo is quoted in a recent column in the Los Angeles Times on the rise of community choice aggregators (CCAs) and their effects on California’s major electric utilities. “The pressure they’ve placed on the [investor-owned utilities] has produced a focus on competition that did not exist before,” said DeShazo, director of the Luskin Center for Innovation and co-author of a 2016 study on CCAs. “So a competitive dynamic already has emerged that has been beneficial to customers.” Only a small number of states have legalized these government-affiliated, non-traditional utilities, which now serve almost 2 million Californians.