The California Community Choice Financing Authority issued more than $1 billion in green bonds in late 2023.
The bonds fund clean energy projects built in partnership with California community choice aggregator MCE.
The bond issue generated more than $2.5 billion in orders from institutional investors, far exceeding initial expectations, MCE said on Jan. 16.
The success of the bond issue allowed Goldman Sachs, the underwriter for the transaction, to reduce interest rates resulting in increased savings for MCE customers.
MCE said 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.
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 U.S. 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,” MCE said.
