S&P’s ‘A’ Rating and Stable Outlook to Further Reduce Cost of Energy and Accelerate Path to 100% Clean and Renewable Energy for Central Coast Communities
Monterey, CA. October 16, 2020 – Central Coast Community Energy (3CE) today received an ‘A’ issuer credit rating (ICR) from Standard & Poor’s (S&P), the highest rating received by a California community choice aggregator (CCA). S&P’s ICR and “stable” outlook is an independent assessment of 3CE’s operational and financial strategies over the long term, confirming the agency’s economic stability and footing for future success.
“3CE is proud to receive the first ‘A’ investment grade credit rating among California CCAs. This is a testament to the hard work and forward thinking 3CE staff and leadership have demonstrated since launching in 2018,” exclaimed 3CE Policy Board Chair and Santa Cruz County Supervisor, Bruce McPherson.“ In that short time this agency has set a very high bar in terms of financial strength, operational responsibility, innovative energy procurement and energy programs, not to mention extending CCA benefits to the entire Central Coast. This historic rating will allow 3CE to embark on an even more impactful path towards reducing greenhouse gas emissions through local energy programs and energy procurement, and it helps to ensure the longevity and continued success of 3CE on behalf of our communities.”
The ‘A’ rating recognizes 3CE’s stability within the California CCA market and the strong socio-economic conditions of 3CE’s growing service area. S&P’s rating action stressed 3CE’s strong economic fundamentals, comprehensive governance structure, robust energy risk management policy, and experienced executive leadership as contributing factors to 3CE being the first CCA to receive an ‘A’ rating and “stable” outlook.
The ‘A’ rating enables 3CE to continue providing electric service and innovative energy programs at competitive rates to its 33 member agencies and over 400,000 agriculture, commercial, and residential customers. The ‘A’ rating will aid in increasing the number of counterparties competing for 3CE wholesale contracts, lower transaction costs, and make innovative financing structures accessible to help 3CE continue to develop solutions to California’s greatest energy challenges.
“Achieving the first ‘A’ rating is a testament to our Boards, customers, staff and 33 communities that believe in the CCA model as critical to our affordable clean and renewable energy future,” stated 3CE’s CEO Tom Habashi. “This rating also demonstrates the viability of both the CCA business model and the leadership that CCAs provide in achieving California’s greenhouse gas emission goals while providing reliable low-cost electricity. 3CE’s CEO Tom Habashi said.
Please see S&P’s credit rating action links below.
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About Central Coast Community Energy
Central Coast Community Energy (3CE) is a public agency that sources competitively priced electricity from clean and renewable energy resources. 3CE is locally controlled and governed by board members who represent each community served by the agency. Revenue generated by 3CE stays local and helps keep electricity rates affordable for customers, while also funding innovative energy programs designed to lower greenhouse gas emissions and stimulate economic development. 3CE serves more than 400,000 customers throughout the Central Coast, including agriculture, commercial and residential customers in communities located within Monterey, San Benito, San Luis Obispo, Santa Barbara and Santa Cruz counties. Learn more at 3CEnergy.org and on social media, including Facebook, Instagram and Twitter @3CEnergy.
Senior Energy Media Specialist