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November 14, 2024
By Laurie Hanson
An innovative, environmentally conscious power program in Pico Rivera is saving residents money while infusing the local economy.
The Pico Rivera Innovative Municipal Energy (PRIME), short for Pico Rivera Innovative Municipal Energy, is a Community Choice Aggregation (CCA) program that allows the city to provide cleaner and more affordable electricity options directly to residents and businesses.
Inspired by successful CCA models in California, including in Marin County, Sonoma County, and the City of Lancaster, PRIME pioneers locally governed energy solutions that are aligned with the city’s environmental sustainability and economic goals.
Other places in the state that use similar models to provide locally controlled energy include Los Angeles, San Diego, and San Francisco.
“What sets Pico Rivera’s PRIME program apart is its exclusive focus on serving Pico Rivera residents, unlike neighboring CCAs that span multiple cities—with one nearby CCA including around 35 participating cities,” said Victor H. Ferrer, General Manager of the City of Pico Rivera’s Office of Sustainability. “PRIME is uniquely governed by our City Council, acting as its board, allowing for truly localized control.”
“This structure enables PRIME to tailor programs, projects, and initiatives specifically to Pico Rivera’s community needs,” added Ferrer. “Each CCA operates with its own approach, but they all share a commitment to delivering cleaner, cost-effective electricity choices to their communities.”
According to Ferrer, Pico Rivera’s program came about during the city’s transition out of the pandemic, where, like other city services, they were re-establishing momentum to serve the community better.
“The concept of CCA has been around in California since the early 2000s, but PRIME was created specifically to meet the unique needs of the Pico Rivera community,” he explained.
PRIME focuses on increasing the share of renewable energy, including solar, in the community’s electricity mix, reducing reliance on fossil fuels. By doing so, there are lower greenhouse gas emissions, which contribute to improved air quality, aligning with California’s broader environmental goals, according to Ferrer.
Ferrer has overseen both sustainability and the PRIME program since 2022 and has been dedicated to advancing sustainability and climate resilience in his position for the last two years. He said that historically, PRIME participants have saved up to 9 percent on their monthly utility bills.
Solar or other power generation systems are offered to residents to produce energy at their homes or businesses, offsetting their power costs while selling any excess power generated back to Pico Rivera Innovative Municipal Energy (PRIME). They can earn substantially more for every kilowatt hour of energy they provide back to the grid. The PRIME Partner Net Energy Metering (NEM) reimbursement rate is currently 100 percent higher than the rates offered by Southern California Edison (SCE), according to www.poweredbyprime.org/primepartner.
Another plus and strength of the PRIME program is that every dollar stays local. Not only does it provide residents with access to cleaner, more affordable energy options, but it also ensures that their energy dollars are reinvested directly back into the community, according to Ferrer.
“This community-centered reinvestment amplifies cost savings by funding local projects directly through PRIME’s revenues—initiatives that would otherwise be at the mercy of traditional energy providers and distant shareholders,” he explained. “Over time, this approach drives savings and builds a more robust, resilient Pico Rivera.”
“When residents pay into PRIME, the revenues generated stay within Pico Rivera, funding local programs, projects, and community-centric initiatives that benefit everyone,” Ferrer said. “In contrast, when residents pay a traditional energy company, that money goes into a large pool, often benefiting shareholders far removed from the community, with no guarantee of specific investments in Pico Rivera.”
“PRIME’s structure empowers Pico Rivera to invest in itself, ensuring that hard-earned dollars are used to strengthen and improve local services, infrastructure, and sustainability efforts,” he added. “It supports local clean energy projects and energy efficiency programs, helping to meet growing demand with sustainable options.”
According to Ferrer, by sourcing electricity from renewable sources and encouraging energy-efficient practices, PRIME also reduces the strain on the electricity grid while supporting California’s transition to clean energy.
In 2016-2017, the city’s initial investment for PRIME was approximately $110,000. Ferrer explained that the expense was carefully planned to minimize the financial impact on the city and ensure efficient implementation.
“Today, PRIME operates with an annual budget of around $23 million, which has allowed it to build a healthy reserve,” he added. “This reserve supports the community by maintaining historically competitive rates and funding local programs, projects, and initiatives—all without relying on the City’s General Fund. This financial model reinforces PRIME’s commitment to sustainable growth and community investment.”
Participation in PRIME is optional. Residents are automatically enrolled but can opt-out anytime if they prefer to remain with traditional energy providers. This flexibility ensures that each household can make the best choice for their energy needs.
“PRIME is more than just an energy provider,” said Ferrer. “It’s a self-sustaining investment in the community.”
“For future generations, PRIME represents a commitment to keeping resources local,” he added. “I’d tell future residents that through PRIME, every energy dollar they spend benefits their neighbors supports community projects, and builds a stronger, more resilient Pico Rivera.”
“Unlike paying into a large, traditional utility company where profits are distributed to shareholders, PRIME keeps wealth within our city, ensuring that each generation has a stake in building a sustainable, thriving community,” Ferrer said. For more information about PRIME, please visit online at www.poweredbyprime.org.
