Clean Power Alliance locks in $1.4 billion wind energy deal

Clean Power Alliance, the fourth-largest electricity provider in California, completed a $1.4 billion pre-payment bond transaction for wind energy. The downtown-based agency announced the deal on November 2, 2026. J.P. Morgan underwrote the bond, marking the firm's first electric prepay deal in the United States.

The agency stated the contract will lower renewable energy costs by approximately $91 million over the first seven years. This translates to annual savings of about $12.7 million for the communities served by the provider. Residents in Los Angeles and Ventura counties buy and generate renewable energy through the alliance. Southern California Edison, based in Rosemead, handles the maintenance of power lines, meter reading, and monthly billing for these customers.

Prepay bonds allow public utilities and municipal agencies to pay energy suppliers in advance for long-term electricity supply. This is the seventh prepay bond executed by Clean Power Alliance. The agency's board previously approved up to $4.5 billion in new prepay deals to be finalized by the end of June 2027.

Ted Bardacke, the chief executive of Clean Power Alliance, described the prepay strategy as a key tool for providing clean, reliable, and affordable energy. He noted that the new transaction secures substantial savings while advancing the agency's mission to serve communities with competitive clean power rates.

The bond will deliver roughly 1.14 million megawatt-hours of top-tier renewable energy annually for the first seven years. This power comes from a portfolio of existing agreements with a combined capacity of 440.8 megawatts. The agency did not specify which projects will source this energy. David McNeil, the chief financial officer, said the transaction brings the total volume of prepay transactions to $8.3 billion.

McNeil emphasized that the financing strategy demonstrates scalability and strength. He stated that the deal achieves long-term cost savings through strategic financial partnerships. This approach helps maintain competitive rates while supporting a diverse portfolio of renewable energy resources.

In a separate move earlier this year, Clean Power Alliance signed a 20-year agreement with Avantus, a San Diego-based solar and energy storage company. The contract adds enough solar generation and battery storage to power 84,000 homes in Southern California. Construction on the Tulare County project is scheduled to begin next year, with the site becoming operational in late 2028.