FOR IMMEDIATE RELEASE
CONTACT
Patrick Beger, Assistant Marketing and Communications Manager, San José Clean Energy
408-535-8220;
patrick.beger@sanjoseca.gov
San José Clean Energy Saves on Renewable Energy with Pre-Pay Green Bonds
SAN JOSE, Calif. (November 4, 2024) – San José Clean Energy (SJCE) joins a growing list of Community Choice Aggregators (CCAs) across California utilizing Clean Energy Project Revenue Bonds (Green Bonds) to generate savings from energy prepayment transactions. This is the first energy prepayment transaction for the City of San José, operator of SJCE, and will provide more stable and affordable rates for nearly 350,000 customer accounts in San José.
The 30-year tax-exempt Green Bonds of $1.24 billion will provide over 12% savings annually, or $8.7 million per year on average during the initial 8 years. These savings will amount to $66 million by the end of the initial term, ending Sept. 1, 2032. SJCE will pass these savings to customers through decreased energy rates.
“San José Clean Energy is breaking new ground every year. Whether it is procuring cutting-edge renewable energy technology or making agreements with innovative financial strategies to achieve lower prices, we are constantly thinking of what’s best for our city residents and businesses,” said City Manager Jennifer Maguire.
The bonds were sold and issued today, November 4, 2024, by California Community Choice Financing Authority (CCCFA) and received an investment grade credit rating of A1 from Moody’s Ratings, as well as a ‘Green Bonds’ designation by Kestrel Verifiers.
“Utilizing CCCFA for a pre-payment transaction reduces financial risk for the City, since it is not obligated for payment on the bonds, and the bonds do not impact its credit rating or debt capacity,” said Drew Corbett, Interim Director of Finance. “This is a way for the City to pass on more savings to customers using its tax-exempt status.”
This prepay structure enables publicly owned utilities, including CCAs, to reduce their energy costs by financing the acquisition of long-term energy supplies with tax-exempt bonds. Other CCAs that have used Green Bonds for prepayment transactions include MCE, Silicon Valley Clean Energy, Ava Community Energy, Clean Power Alliance, and Central Coast Community Energy.
“San José is known for being a hub of innovation,” said Lori Mitchell, Director of San José Clean Energy. “As part of city government, we are here to serve this city with that same spirit. This agreement is a perfect example, lowering rates for our customers while making the grid more resilient, our air cleaner, and our future brighter.”
About the City of San José
With almost 1 million residents, San José is one of the most diverse large cities in the United States and is Northern California’s largest city and the 13th largest city in the nation. San José’s transformation into a global innovation center has resulted in one of the largest concentrations of technology companies and expertise in the world.
About San José Clean Energy
San José Clean Energy (SJCE) is the local, not-for-profit electricity generation provider for homes and businesses in the City of San José. SJCE is operated by the City’s Energy Department and governed by the City Council. SJCE provides nearly 350,000 customer accounts with clean energy at competitive rates plus the additional benefits of customer choice, community programs, local control, transparency, and accountability. For more information, please visit www.SanJoseCleanEnergy.org.
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