Over $6.8 Million a Year in Customer Savings Expected Through 2030
POUR PUBLICATION IMMÉDIATE
January 16, 2024
Contact presse :
Jackie Nuñez, responsable de la communication bilingue
(925) 695-2124 | communications@mceCleanEnergy.org
SAN RAFAEL et CONCORD, Calif. In its tenth industry-transforming transaction, the California Community Choice Financing Authority (CCCFA) issued over $1 billion in green bonds in late 2023. These bonds fund clean energy projects built in partnership with MCE.
The bond issue generated more than $2.5 billion in orders from institutional investors, far exceeding initial expectations. The success of this bond issue allowed Goldman Sachs, the underwriter on the transaction, to reduce interest rates resulting in increased savings for MCE customers.
“These bonds prepay the costs of generating 1256 gigawatt-hours annually — equivalent to the energy needs of 210,000 homes,” said Garth Salisbury, MCE’s Chief Financial Officer and CCCFA Board Member. “This reduces costs for MCE customers and allows us to reinvest in other valuable programs like EV charging and energy efficiency.”
These tax-exempt green bonds will have several key impacts:
- Prepay six of MCE’s long-term renewable energy power purchase agreements;
- Save 12% on prepaid energy for the first seven years; and
- Secure competitive rates for MCE customers, ensuring sustained savings.
The transformative funding approach for clean energy projects leverages financing tools previously used primarily for polluting fossil fuel projects. In 2021, CCCFA became the first municipal agency to utilize this pathway for clean energy projects.
As California’s first clean energy prepayment bond agency, CCCFA issued $5.48 billion of bonds in 2023, making it the third largest issuer of tax-exempt debt in the US for 2023 after the State of California and State of New York. CCCFA has issued nearly $9 billion of prepayment bonds on behalf of community choice energy providers, saving participating community choice ratepayers over $45 million yearly.
With this latest transaction issuing over $1 billion in green bonds and expected customer savings of more than $6.8 million a year through 2030, CCCFA and MCE are setting new standards in the transition to clean energy.
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À propos de MCE : MCE est une agence publique à but non lucratif et le fournisseur d'électricité privilégié de plus de 586 000 comptes clients et de 1,5 million de résidents et d'entreprises dans les comtés de Contra Costa, Marin, Napa et Solano. Établissant la norme en matière d'énergie propre en Californie depuis 2010, MCE est leader avec 60-100% d'énergie renouvelable à des tarifs stables, fournissant une charge de pointe de 1 400 MW, réduisant de manière significative les émissions de gaz à effet de serre et réinvestissant des millions de dollars dans des programmes locaux. Pour plus d'informations sur MCE, visitez le site mceCleanEnergy.orgou suivez-nous sur votre plateforme sociale préférée @mceCleanEnergy.
About CCCFA: The California Community Choice Financing Authority (CCCFA) was established in 2021 with the goal to reduce the cost of power purchases for member community choice aggregators (CCAs) through pre-payment structures. The founding members of CCCFA include Ava Community Energy, Central Coast Community Energy, Clean Power Alliance, MCE, Pioneer Community Energy, and Silicon Valley Clean Energy. CCCFA is a Joint Powers Authority which can help member CCAs save up to 10% or more on power purchase agreements, helping reduce costs for ratepayers and increase available funding for local programs. Learn more at CCCFA.org.
