Clean Power Alliance Secures $963 Million Prepay Bond, Locking in $66.6 Million in Renewable Energy Cost Savings

CPA’s Sixth Prepay Transaction Brings Total Bond Program Savings to $427.9 Million for Communities Across Southern California

Los Angeles, Calif., March 03, 2026 (GLOBE NEWSWIRE) -- Clean Power Alliance (CPA), the nation’s number one green power provider and California’s largest community choice energy aggregator, today announced the successful closing of its sixth energy prepayment bond transaction, valued at $963 million. The transaction will generate approximately $66.6 million in renewable energy cost savings during the bond’s initial 10-year period — an average of $6.6 million per year.

With this issuance, CPA has now completed $6.9 billion in prepay bond transactions, locking in total initial-period savings of $427.9 million. Across all six prepay transactions, CPA’s average annual savings total approximately $52 million.

“Each prepay transaction strengthens our ability to provide stable, affordable clean energy to the communities we serve,” said CPA Chief Executive Officer Ted Bardacke. “This sixth bond builds on a proven strategy that delivers meaningful savings while supporting long-term investments in renewable energy and grid reliability.”

How the bond program works
CPA’s prepay bond program uses long-term financing to purchase renewable energy at a lower cost. As a not-for-profit government agency, CPA can issue tax-exempt bonds to prepay for energy from renewable sources like solar, wind, geothermal and hydropower, in exchange for significant discounts from energy suppliers—historically in the range of 8 percent to 12 percent. These savings are passed on to customers through lower, stable electricity rates. CPA also invests cost savings into customer programs, workforce development and skills training, and critical community energy infrastructure projects. The bond program is central to CPA’s strategy to provide competitively priced, reliable, clean energy while strengthening community resilience.

First prepay transaction with Morgan Stanley
This transaction marks CPA’s first prepay bond executed with Morgan Stanley serving as underwriter and with Morgan Stanley Capital Group acting as prepaid energy supplier. The bonds received an investment-grade Baa1 rating from Moody's and a ‘Green Bonds’ designation by Kestrel.
During the initial 10-year period of the bonds, CPA will receive approximately 543,000 megawatt-hours of PCC1-eligible energy annually under the agreement. PCC1 is the highest-tier category of renewable energy in California.
“This transaction demonstrates the continued strength of CPA’s prepay program,” said CPA Chief Financial Officer David McNeil. “By leveraging favorable financing structures and strong counterparties, we are able to secure long-term cost savings that directly benefit our customers.”

Supporting a diversified clean energy portfolio
Energy supplied through the transaction will be sourced from a portfolio of existing long-term power purchase agreements with a combined capacity of 214.5 megawatts (MW) of geothermal, wind, and solar-plus-storage resources. These resources support CPA’s commitment to reliable, carbon-free energy while helping shield customers from market volatility.

Delivering long-term affordability
The sixth prepay bond was issued pursuant to CPA’s November 2025 board authorization, which allows for the completion of up to $4.5 billion of new prepay transactions by June 30, 2027. CPA will continue to evaluate opportunities that strengthen its financial position and advance its mission to deliver clean, reliable and affordable energy to its customers.

About Clean Power Alliance
Clean Power Alliance is the locally operated, not-for-profit electricity provider serving 38 communities across Los Angeles and Ventura counties. CPA is the fourth largest electricity provider in California and the number one green power provider in the United States. CPA provides clean renewable energy at competitive rates for approximately three million residents and businesses, along with innovative programs that promote resiliency, electrification and customer bill savings. CPA has an investment-grade credit rating of A from S&P Global Ratings.

View CPA’s annual impact report: Impact Report

Learn more about CPA: www.cleanpoweralliance.org

Learn more about customer programs: cleanpoweralliance.org/programs

JOhn Axtell
Clean Power Alliance
(213) 376-4850 Ext. 184
jaxtell@cleanpoweralliance.org

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