In its third transaction, California community choice aggregator MCE, in partnership with the California Community Choice Financing Authority, issued more than $1 billion in green bonds on June 18.
The bonds will finance 775,000 megawatt-hours of renewable energy annually, enough to power 105,000 homes each year for the next 10 years, MCE said.
These tax-exempt green bonds will:
• Prepay four of MCE’s long-term renewable energy power purchase agreements
• Save 11% on prepaid energy for the first 10 years, with future savings subject to market conditions
• Provide nearly $7 million in upfront savings in the 2025/2026 fiscal year and approximately $6.4 million annually for the next nine years
• Support competitive rates for MCE customers and reinvestment in local clean energy projects
Since 2021, MCE has completed three prepay transactions to purchase renewable energy at lower costs, all of which have realized at least 10% in cost savings for its customers.
As a not-for-profit, MCE partners with CCCFA to issue tax-exempt bonds to prepay for energy from diverse renewable sources, including solar, wind, and geothermal.
