Rating increase recognizes financial strength and robust renewable energy portfolio
Santa Clara County, Calif. – Today, Moody’s Investor Service upgraded its investment grade credit rating to Baa1 for Silicon Valley Clean Energy (SVCE). Moody’s Issuer Rating is an independent assessment of SVCE’s financial strength over the long term and acknowledges the agency’s economic stability and diverse renewable energy portfolio.
“Receiving a higher credit rating from Moody’s is an additional sign that the Community Choice Energy model is strong and sound,” said George Tyson, SVCE Board Chair and Town of Los Altos Hills Councilmember. “SVCE takes its financial responsibilities seriously so that we can reliably serve our customers and community with clean energy while maintaining stable rates and offering innovative services.”
The higher rating level is a result of SVCE having a positive financial outlook, including the agency’s strong liquidity, increased financial reserve targets, favorable rate forecasts, and its two clean energy project bonds. Moody’s also acknowledged the effective management at SVCE to have withstood the challenges of a volatile power market and the COVID-19 pandemic. Also taken into consideration was the expansion of SVCE’s diverse renewable energy portfolio and taking on new load in the form of innovative agreements, such as the carbon-free energy service with Google.
The benefits of a Baa1 rating include improved access to capital for energy supply contracts and the potential to negotiate lower energy prices. Moody’s previously issued a Baa2 rating to SVCE in July 2020. In June 2023, S&P Global Ratings affirmed its ‘A’ issuer credit rating for SVCE. SVCE’s financial information is publicly available on its website and transparently reviewed through an annual process by its board of directors.
Moody’s full press release can be found here.
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit, community-owned agency providing clean electricity from renewable and carbon-free sources to more than 275,000 residential and commercial customers in 13 Santa Clara County jurisdictions. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Silicon Valley Clean Energy is advancing innovative solutions to fight climate change by decarbonizing the grid, transportation, and buildings. Learn more at SVCleanEnergy.org.