Prepaid electric debt for California aggregators soared as interest rates rose

The Bond Buyer

Debt issued by the California Community Choice Finance Authority, a conduit for the state’s community choice aggregators, has climbed to nearly $10 billion in the three years since its inception.

The first California CCA agency was created in 2010 to offer communities alternatives to purchasing power from private utilities and to encourage growth in more climate-friendly methods of producing power.

Since 2023, the CCCFA, a joint powers authority created in 2021 to reduce the cost of power purchases through electricity pre-payment deals, has issued $7.05 billion of bonds, including $1.1 billion in clean energy project revenue bonds priced by Morgan Stanley in January, making it the top issuer of green bonds nationally last year, said Garth Salisbury, chief financial officer for MCE and a CCCFA board member and its treasurer/controller.

Read more here: Prepaid electric debt for California aggregators soared as interest rates rose | Bond Buyer