Moody’s Ratings has upgraded the credit rating for San Francisco’s CleanPowerSF community choice energy program to A1 from A2, with a stable outlook.
The upgrade reflects CleanPowerSF’s stronger cash reserves, steady financial management, and the program’s ability to adjust rates in a changing energy market. CleanPowerSF also has no outstanding debt, the San Francisco Public Utilities Commission said on Feb. 26.
CleanPowerSF is a not-for-profit clean energy program operated by the SFPUC. It provides clean, renewable electricity to more than 385,000 homes and businesses. CleanPowerSF purchases clean energy on behalf of customers, while PG&E continues to deliver that electricity through its existing grid, including utility poles, wires, and substations.
“Moody’s is one of the nation’s leading credit rating agencies, and this upgrade is meaningful recognition of this strong clean energy program the SFPUC has built over the last decade,” said SFPUC General Manager Dennis Herrera. “It reflects disciplined financial management, strong reserves, and quality service for San Francisco ratepayers. We take that responsibility seriously, and this independent validation underscores that CleanPowerSF is a successful and well-managed public power program.”
The credit rating boost should allow the SFPUC to access lower cost financing tools with more flexible terms and to negotiate more favorable terms for power purchases, which helps keep customer rates as low as possible.
The credit rating upgrade comes as the SFPUC already is lowering CleanPowerSF rates for customers, SFPUC noted.
Last month, the SFPUC approved an unprecedented reduction in its CleanPowerSF electricity rates, cutting its generation charges by 20% to 25%. The rate cuts will take effect March 1, 2026. The rate reduction applies to the CleanPowerSF portion of customers’ electricity bills and helps offset approximately 15% to 25% increases in PG&E delivery and other electricity charges billed by PG&E on the same bill as CleanPowerSF service.
Over the last five years, CleanPowerSF has saved customers an estimated $120 million on their electricity bills compared to what they would have paid to PG&E.
