Opinion: Is Marin Clean Energy the right choice for Contra Costa County?

Breaking PG&E’s monopoly with cheaper, greener energy is a compelling vision offered by MCE (aka Marin Clean Energy) and other community choice aggregators.

However, as Contra Costa County residents are learning, MCE is no longer delivering on the promise of local government-controlled community choice aggregators, or CCAs.

In fact, they may be better off with PG&E after all.

Although it has “Marin” in its name, MCE is now largely a Contra Costa County operation. Fifteen of Contra Costa’s 19 municipalities, along with the county on behalf of its unincorporated areas, have joined MCE, supplying more customers than the other three counties in which it offers service: Marin, Solano, and Napa.

So, Contra Costa reporters and residents should be paying more attention to the recent challenges at MCE. The agency’s latest financial report shows a $12 million operating loss for the 2025 fiscal year compared to operating income of $144 million the year prior. These operating losses may increase in future years as it appears that MCE has committed to long-term fixed price power purchase contracts at a time when electricity rates are actually falling.

Two cases in Southern California illustrate the serious downsides of the CCA model. In Riverside County, Western Community Energy (WCE), which served Jurupa Valley, Hemet and nearby communities filed for Chapter 9 bankruptcy in 2021. WCE was subsequently dissolved, returning all customers to Southern California Edison and leaving creditors, including at least one public agency, with unrecoverable losses.

Meanwhile, the Orange County Power Authority, or OCPA, has faced criticism from the county’s civil grand jury report over its lack of transparency, overreliance on highly-compensated contractors and poor hiring practices.

These cases are indicative of a broader problem: CCAs are governed by part-time elected officials from the communities they serve. These governing board members often lack the time and expertise to effectively steer these financially complex organizations.

Although MCE is a more experienced agency than Riverside’s WCE or Orange County’s OCPA, it is not immune to their issues. One concern evident from financial disclosure is the high cost of MCE staff and contract personnel. MCE CEO Dawn Weisz received $703,511 of cash compensation in 2024 well ahead of CCA peers managing larger agencies. MCE’s overall staff costs as a percentage of revenue are greater than those of peer agencies, yet they are exceeded by MCE’s spending on contractors.

A primary selling point of MCE was that it would be cheaper than PG&E. But as financial pressures mount, that value proposition has disappeared. For a typical residential customer paying “time of use” rates, MCE’s Light Green plan costs $3.06 more than PG&E per month. For those choosing Deep Green, the gap rises to $8.53.

And with higher power costs locked in, MCE will face the difficult choice of matching PG&E rate cuts or maintaining its financial stability.

Contra Costa officials and ratepayers should pay more attention to the situation at MCE.

We cannot afford to be silent partners in an agency named for Marin but mainly funded by customers in Contra Costa. Local leaders in Concord, Richmond, Walnut Creek and Contra Costa County’s supervisors need to demand rigorous, independent financial oversight and a governance structure that prioritizes solvency over political optics.

We traded a regulated monopoly in PG&E for an unregulated government bureaucracy in MCE. If we aren’t careful, we may find that the new boss is more expensive — and less stable — than the old one.

Finally, the four Contra Costa cities that stayed out of MCE thus far — Antioch, Brentwood, Clayton and Orinda — should take care before jumping in.

Marc Joffe is president of the Contra Costa Taxpayers Association and a visiting fellow at the California Policy Center.

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