Green financing has been making significant waves in the energy sector, and Clean Power Alliance (CPA) is at the forefront. This article delves into CPA's remarkable achievements in green financing and its impact on the energy market.

Unveiling CPA's Green Financing Triumph

CPA's August 2024 Prepay Bond: A Milestone in History

Los Angeles, California, is witnessing a remarkable transformation in the energy landscape. Clean Power Alliance, the leading green power provider in the US, has been honored with the ESG/Green Financing Award from The Bond Buyer magazine. Their $1.52 billion clean energy project revenue bond transaction issued in August 2024 stands as a testament to their commitment to sustainable energy. This largest renewable energy prepayment financing in history secured 30 years of solar and storage, enabling CPA to serve over 225,000 homes annually with clean energy at reduced costs. The bond structure achieved record customer savings and demonstrated the power of large-scale green financing. The bond issuance was underwritten by Goldman Sachs.CPA's Chief Executive Officer, Ted Bardacke, accepted the award on behalf of the company at a ceremony in New York City. He emphasized that since its founding, CPA has been developing innovative practices to provide clean energy supply at the lowest possible cost. The board's support for cutting-edge programs across the organization, including the finance staff's efforts to repurpose a financial mechanism from the fossil fuel industry for greener purposes, has been crucial.The Bond Buyer's annual Deal of the Year awards recognize outstanding achievement in municipal financing. Winners were named in 10 categories, and Southern California was well represented. The Los Angeles Unified School District saved taxpayers approximately $175 million with its largest municipal finance issuance, and Los Angeles County Metropolitan Transportation Authority's CEO Stephanie Wiggins was honored with the 2024 public sector Freda Johnson Award for Trailblazing Women in Public Finance.Mike Scarchilli, editor-in-chief of The Bond Buyer, highlighted the diversity and purpose-driven innovation at the heart of the municipal finance market. These winning deals showcase the ingenuity and resilience of public finance professionals.CPA continues to leverage prepay bonds to secure clean energy at reduced costs. In November, they issued their fourth municipal non-recourse clean energy project revenue bond through the California Community Choice Financing Authority. The new $1.153 billion bond issuance is expected to reduce renewable energy costs by an estimated $70 million over the initial eight-year period, or an average of $8.9 million annually. The savings from this latest prepay transaction are locked in until 2032.Energy prepayment bonds are long-term financial transactions that provide cost savings for public agencies like CPA. A clean energy project revenue bond requires three key parties: a tax-exempt public electricity retailer (CPA), a taxable energy supplier (Royal Bank of Canada in November 2024), and a municipal bond issuer (CCCFA). The three parties enter into long-term power supply agreements for zero-emission clean electricity sources. The municipal bond issuer issues tax-exempt bonds to fund the prepayment of energy. The energy supplier provides a discount in exchange for the prepayment.CPA has assigned a solar-plus-storage power purchase agreement and a geothermal PPA to the November 2024 transaction. This bond will prepay the purchase of 314 MW of renewable energy and 150 MW of battery storage, enough to power over 163,000 Southern California homes per year.For all four of its pre-pay bonds, CPA has been advised by municipal financial advisor Municipal Capital Markets Group and law firm Chapman & Cutler.Clean Power Alliance is the locally operated not-for-profit electricity provider for 33 cities across Los Angeles County and Ventura County. It is the fourth largest electricity provider in California and the number one green power provider in the US. It provides clean renewable energy at competitive rates and innovative programs for approximately three million residents and businesses.To view CPA's 2023 Impact Report, click here. Learn more about CPA at www.cleanpoweralliance.org.CONTACT: Joseph Cabral Clean Power Alliance (213) 442-8109 jcabral@cleanpoweralliance.org