Public Power Daily
S&P Global Ratings on Jan. 5 assigned an “A” issuer credit rating to Silicon Valley Clean Energy (SVCE), a California community choice aggregator (CCA).
This credit rating, the second investment-grade credit rating for SVCE, “reflects the assessment completed by S&P Global, and speaks to SVCE’s financial strength and robust energy risk management policies,” SVCE said in a news release.
“New opportunities from this credit rating allow SVCE to provide affordable clean electricity while continuing to fund innovation and decarbonization programs within the SVCE service area,” said SVCE CEO Girish Balachandran.
SVCE said that S&P Global’s “A” rating recognizes the stability of the customer base since service began in 2017, a diverse clean power supply, low rates and internal credit-supportive policies seen at SVCE.
S&P Global views SVCE financial and enterprise profiles as strong, with approximately $160 million in cash reserves, the CCA said.
In addition, the rating will enable SVCE to negotiate new energy supply contracts at lower costs, resulting in lower energy rates for customers, it noted.