California community choice aggregator Peninsula Clean Energy has received an upgraded credit rating of Baa1 from Moody’s Investors Service, the CCA said on June 29.
The rating action is “the latest indication of the agency’s strong finances as it preserves discounted power rates and accelerates renewable power procurement,” Peninsula Clean Energy said.
The higher rating from Moody’s further underscores Peninsula Clean Energy’s robust post-pandemic growth, while keeping its ECOplus electric generation rate for all customers at least five percent below PG&E’s baseline electric generation rate, the CCA said.
The CCA “has shown strong resiliency as it demonstrated effective management through a volatile power market and pandemic shock over the last several years,” Moody’s said.
Moody’s initially gave Peninsula Clean Energy a rating of Baa2 in May 2019, and in 2022 upgraded the agency’s outlook from stable to positive.
Peninsula Clean Energy on June 20 of this year received an A- rating from S&P Global, the highest the agency has received from a credit agency. Peninsula Clean Energy has also received a rating of BBB+ from Fitch.
The benefits of higher credit ratings include the potential for Peninsula Clean Energy to negotiate lower energy prices and improved credit terms for future power purchasing needs as it moves toward its utility sector-leading goal of achieving all-renewable power on an hourly basis, the CCA noted.
The higher rating “also assures regulators and legislators that the Community Choice Aggregation business model provides a stable framework for serving customers and advancing California’s low-carbon energy future,” Peninsula Clean Energy said.
