Clean Power Alliance (CPA), a non-profit electricity provider based in California, has completed its seventh energy pre-paid bond issuance deal, totaling $1.4 billion. This transaction is expected to allow the company to save $91.1 million over seven years, averaging about $12.7 million annually.
With this latest issuance, CPA's total volume of pre-paid bond transactions reached $8.3 billion. Under this program, savings of $519.1 million have been secured across the initial periods of all seven deals. CPA utilizes this financial strategy to acquire renewable electricity at reduced rates.
The new transaction supports the organization's goal of providing affordable, reliable, and clean energy to communities in Southern California. Chief Executive Officer Ted Bardacke noted that this strategy helps reduce costs while maintaining competitive electricity rates, and also contributes to CPA's broader mission in community energy projects.
As a state non-profit agency, CPA is authorized to issue tax-exempt bonds to prepay renewable energy suppliers. In return, suppliers offer discounts that have historically ranged from 8% to 12%. Energy sources include wind, solar, geothermal, and hydropower.
CPA passes the resulting savings on to its customers through lower and more stable electricity rates. Furthermore, the organization invests the saved funds in customer programs, workforce development, and skills training, which helps strengthen the sustainability and infrastructure of community energy projects.
This latest deal was CPA's first pre-paid bond transaction with J.P. Morgan as the underwriter. J.P. Morgan Ventures Energy Corporation acted as the pre-paid energy provider. It was also the first electric prepayment deal in the United States concluded with J.P. Morgan.
The bonds received an investment-grade rating of Aa3 from Moody’s, and Kestrel classified them as Green Bonds, recognizing their environmental financing classification. The prepayment allows suppliers to receive funds in advance in exchange for discounts.
The agreement is based on existing long-term power purchase agreements covering 440.8 megawatts of wind capacity. CPA expects to receive approximately 1.14 million megawatt-hours of PCC1-equivalent energy annually over the initial seven-year period.
PCC1 represents the highest category of renewable energy in California. This agreement supports CPA's commitment to carbon-free electricity and helps protect consumers from market volatility. The expected annual energy volume demonstrates the scale of the agreement.
Chief Financial Officer David McNeil stated that the program demonstrates the strength and scalability of this financing strategy, emphasizing its role in ensuring long-term savings through strategic financial partnership. Wind agreements also help support a diverse portfolio of renewable energy.
This approach enables CPA to manage energy costs while continuing to serve its customers. Wind energy generation is part of California's broader transition to low-carbon electricity. The contractual supplies also link financing to existing renewable energy projects.
The latest bonds were issued based on a board of directors approval from November 2025. This approval allows CPA to complete up to $4.5 billion in additional prepayment transactions by June 30, 2027. The organization will continue to evaluate financing opportunities that strengthen its financial position.
Future deals may help sustain the cost-saving strategy and expand access to renewable electricity. CPA serves 38 communities in Los Angeles and Ventura counties, supplying electricity to approximately three million residents and businesses. The organization is the fourth-largest electricity provider in California and positions itself as a leading green energy provider in the United States. Its financing program remains central to providing competitive rates alongside clean energy options.