In 2002, California Community Choice Aggregation (CCA) legislation (Assembly Bill 117 (Migden, Chapter 836, Statutes of 2002)) provided local governments with the ability to combine electricity loads within their communities and act on behalf of those customers to buy or choose electricity for them. In some cases, cities and counties have used the CCA program to set up alternatives to private utilities such as PG&E. For example, governments in San Francisco and nearby Marin County have instituted CCA programs to circumvent PG&E.
Proposition 16 would amend the constitution by altering the necessary qualifications for CCA programs. Under the act, a potential local municipal utility would need to gain approval of two thirds of the voters who live in the area the utility would cover. Two-thirds approval would also be required for a CCA program to expand electric services to a new area or new customers.
Pacific Gas & Electric (PG&E) is the primary financial sponsor of Proposition 16.