Clean Power Alliance Secures $1.4 Billion Prepay Bond, Achieving Significant Renewable Energy Savings
In a significant milestone for renewable energy financing, the Clean Power Alliance (CPA), recognized as California's largest community choice energy aggregator, has successfully completed its seventh energy prepay bond transaction, valued at an impressive $1.4 billion. This initiative is poised to deliver approximately $91.1 million in savings during its initial seven years—equating to an estimated annual savings of around $12.7 million.
This recent bond issuance contributes to CPA's growing portfolio, which now totals an astounding $8.3 billion in prepay bond transactions, translating to a cumulative savings of $519.1 million for communities across Southern California. With this latest transaction, CPA's average annual savings across all seven transactions has reached around $65 million.
The prepay bond initiative serves as an essential strategy for CPA to fulfill its commitment to providing not only clean but also reliable and competitive energy rates to communities. Ted Bardacke, CEO of CPA, emphasized the efficacy of this strategy, stating, 'By building on the success of previous transactions, we are securing substantial savings which help to reduce costs while furthering our mission to offer clean energy options to our communities.'
Understanding how this bond program functions is crucial. CPA utilizes long-term financing to procure renewable energy at lower costs. As a non-profit governmental entity, CPA issues tax-exempt bonds to prepay energy from renewable resources such as solar, wind, geothermal, and hydropower, yielding significant discounts from energy suppliers—historically between 8% and 12%. These financial advantages are then conveyed to customers via reduced and stable electricity rates. Furthermore, the savings generated from these bonds are reinvested into essential community programs, workforce training, and crucial energy infrastructure projects, reinforcing CPA's strategy to foster a resilient community framework.
This transaction marks a notable first for CPA, as it is the pioneer prepay bond issued in collaboration with J.P. Morgan. Serving as the underwriter, J.P. Morgan Ventures Energy Corporation refined the energy supply agreements, making this the first electric prepay deal of its kind to be completed with the institution. The bonds achieved an impressive investment-grade Aa3 rating from Moody's and were designated as 'Green Bonds' by Kestrel, which not only underscores their reliability but also their alignment with sustainable financing principles.
Under the terms of this new bond agreement, CPA anticipates receiving approximately 1.14 million megawatt-hours of PCC1-eligible energy annually during the initial seven years. The PCC1 designation represents the highest category of renewable energy available in California, which aligns with CPA's commitment to delivering a diverse portfolio of clean, carbon-free energy while protecting customers against market fluctuations.
As CPA continues to build on its reputation as a leader in the clean energy sector, the seventh prepay bond was issued following an authorization from its board of directors in November 2025, which permits the completion of up to $4.5 billion in new prepay transactions by June 30, 2027.
Through proactive evaluation and strategic financial partnerships, CPA remains steadfast in its mission to enhance its financial posture while working towards sustainable energy solutions that benefit its community.
About Clean Power Alliance:
Clean Power Alliance is a not-for-profit electricity provider serving 38 communities in Los Angeles and Ventura counties. Celebrated as the fourth-largest electricity supplier in California and the top provider of green power in the United States, CPA is dedicated to offering clean renewable energy at competitive rates for approximately three million residents and businesses. Additionally, CPA facilitates innovative programs that enhance resiliency, customer savings, and electrification strategies. CPA maintains an investment-grade credit rating of A from SP Global Ratings, which reflects its strong financial foundation in the energy marketplace.
For more details, please visit Clean Power Alliance’s website or explore the annual impact report to learn more about customer programs and initiatives.
This recent bond issuance contributes to CPA's growing portfolio, which now totals an astounding $8.3 billion in prepay bond transactions, translating to a cumulative savings of $519.1 million for communities across Southern California. With this latest transaction, CPA's average annual savings across all seven transactions has reached around $65 million.
The prepay bond initiative serves as an essential strategy for CPA to fulfill its commitment to providing not only clean but also reliable and competitive energy rates to communities. Ted Bardacke, CEO of CPA, emphasized the efficacy of this strategy, stating, 'By building on the success of previous transactions, we are securing substantial savings which help to reduce costs while furthering our mission to offer clean energy options to our communities.'
Understanding how this bond program functions is crucial. CPA utilizes long-term financing to procure renewable energy at lower costs. As a non-profit governmental entity, CPA issues tax-exempt bonds to prepay energy from renewable resources such as solar, wind, geothermal, and hydropower, yielding significant discounts from energy suppliers—historically between 8% and 12%. These financial advantages are then conveyed to customers via reduced and stable electricity rates. Furthermore, the savings generated from these bonds are reinvested into essential community programs, workforce training, and crucial energy infrastructure projects, reinforcing CPA's strategy to foster a resilient community framework.
This transaction marks a notable first for CPA, as it is the pioneer prepay bond issued in collaboration with J.P. Morgan. Serving as the underwriter, J.P. Morgan Ventures Energy Corporation refined the energy supply agreements, making this the first electric prepay deal of its kind to be completed with the institution. The bonds achieved an impressive investment-grade Aa3 rating from Moody's and were designated as 'Green Bonds' by Kestrel, which not only underscores their reliability but also their alignment with sustainable financing principles.
Under the terms of this new bond agreement, CPA anticipates receiving approximately 1.14 million megawatt-hours of PCC1-eligible energy annually during the initial seven years. The PCC1 designation represents the highest category of renewable energy available in California, which aligns with CPA's commitment to delivering a diverse portfolio of clean, carbon-free energy while protecting customers against market fluctuations.
As CPA continues to build on its reputation as a leader in the clean energy sector, the seventh prepay bond was issued following an authorization from its board of directors in November 2025, which permits the completion of up to $4.5 billion in new prepay transactions by June 30, 2027.
Through proactive evaluation and strategic financial partnerships, CPA remains steadfast in its mission to enhance its financial posture while working towards sustainable energy solutions that benefit its community.
About Clean Power Alliance:
Clean Power Alliance is a not-for-profit electricity provider serving 38 communities in Los Angeles and Ventura counties. Celebrated as the fourth-largest electricity supplier in California and the top provider of green power in the United States, CPA is dedicated to offering clean renewable energy at competitive rates for approximately three million residents and businesses. Additionally, CPA facilitates innovative programs that enhance resiliency, customer savings, and electrification strategies. CPA maintains an investment-grade credit rating of A from SP Global Ratings, which reflects its strong financial foundation in the energy marketplace.
For more details, please visit Clean Power Alliance’s website or explore the annual impact report to learn more about customer programs and initiatives.
Topics Energy）
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