Over $6.8 Million a Year in Customer Savings Expected Through 2030
FOR IMMEDIATE RELEASE
January 16, 2024
Press Contact:
Jackie Nuñez, Bilingual Communications Manager
(925) 695-2124 | communications@mceCleanEnergy.org
SAN RAFAEL and 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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About MCE: MCE is a not-for-profit public agency and the preferred electricity provider for more than 586,000 customer accounts and 1.5 million residents and businesses across Contra Costa, Marin, Napa, and Solano counties. Setting the standard for clean energy in California since 2010, MCE leads with 60-100% renewable power at stable rates, delivering a 1,400 MW peak load and significantly reducing greenhouse emissions and reinvesting millions in local programs. For more information about MCE, visit mceCleanEnergy.org, or follow us on your preferred social platform @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.
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