Clean Power Alliance Locks In $1.4B Wind Deal

Clean Power Alliance has closed a $1.4 billion pre-payment bond transaction to secure wind energy supply for its customers. The downtown-based public agency, which ranks as the fourth-largest electricity provider in California, expects the deal to lower renewable energy costs by approximately $91 million over the first seven years. That amount equates to annual savings of about $12.7 million.

J.P. Morgan underwrote the bond, marking the investment bank’s first electric prepay deal in the United States. Prepay bonds allow public utilities to pay energy suppliers in advance for long-term electricity contracts. In this structure, Clean Power Alliance purchases and generates the renewable power, while Southern California Edison, based in Rosemead, maintains the distribution lines, manages metering, and sends monthly bills to residents in Los Angeles and Ventura counties.

Ted Bardacke, the agency’s chief executive, stated that the prepay strategy is a key tool for meeting commitments to provide clean and affordable energy. He noted that building on previous transactions allows the agency to secure substantial savings while advancing its mission to offer competitive rates. This transaction is the seventh prepay bond the agency has issued.

The agency’s board approved up to $4.5 billion in new prepay deals by the end of next June. Under this specific bond, Clean Power Alliance will receive roughly 1.14 million megawatt-hours of high-tier renewable energy each year for the initial seven-year period. The power will be sourced from existing agreements with a combined capacity of 440.8 megawatts, though the agency did not disclose the specific projects involved.

David McNeil, the chief financial officer, said in a release that reaching $8.3 billion in total prepay transactions demonstrates the scalability of the financing strategy. He added that the latest deal achieves long-term savings through strategic financial partnerships, helping to maintain competitive rates while supporting a diverse portfolio of renewable resources.

Earlier this year, Clean Power Alliance signed a 20-year contract with Avantus, a San Diego-based solar and energy storage firm. That agreement will add solar generation and battery storage capacity sufficient to power 84,000 homes in Southern California. Construction on the Tulare County project is scheduled to begin next year, with operations planned for late 2028.