California’s CCA structure gets Moody’s thumbs up

PV Magazine

Moody’s has rated Peninsula Clean Energy, a California CCA, at Baa2 Investment Grade status. The rating agency gave significant credit to the legal structure surrounding CCAs giving them “sticky” customers, in addition to the PCE’s conservative management and strong customer relationships. The rating was made taking into account the ongoing bankruptcy proceeding at Pacific Gas & Electric (PG&E). All of PCE’s customers are located within the PG&E region, and PG&E – as per the CCA structure – bills and collects all money from those customers, then distributes them to the CCAs. Moody’s noted that a judge’s “first-day orders” directing PG&E to continue standard payment processes was also considered in their rating.

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