Public Power Daily
Moody’s Investor Service on July 15 assigned a first time Baa2 issuer rating to Silicon Valley Clean Energy (SVCE), a California community choice aggregator.
Moody’s issuer rating is an independent assessment of SVCE’s financial strength over the long term and acknowledges the agency’s economic stability. SVCE is the third CCA to receive an investment-grade credit rating.
“SV Clean Energy is pleased to have received the Baa2 rating from Moody’s as we continue to enhance financial strength in our customers’ interest,” said Howard Miller, SVCE Board Chair and City of Saratoga Mayor. “With this credit rating, the agency will be even more equipped to continue investing in cost-effective, new renewable energy projects to provide our customers and communities with affordable, clean energy.”
The Baa2 rating recognizes SVCE’s stability within the California CCA business model and the strong socio-economic conditions of the SVCE service area, despite the negative impacts of the COVID-19 pandemic.
Additional value consideration was given to SVCE’s ability to maintain rate competitiveness relative to PG&E since 2017 by offering rate discounts between 1-6% to PG&E’s rates, while growing its cash position to $120 million.
The benefits of a Baa2 rating include access to new energy supply contracts, greater negotiation resulting in lower energy rates, and further transparency for SVCE customers on the agency’s financial standings, SVCE noted.
Moody’s in May 2108 issued the first ever credit rating for a CCA, a Baa2 rating and stable outlook for California-based CCA Marin Clean Energy. In May 2019, Moody’s assigned a first-time Baa2 issuer rating to Peninsula Clean Energy, a California CCA.