Clean Power Alliance, or CPA, said its renewable energy financing could mean more electricity savings for customers across Southern California.

The nonprofit power provider said it completed a $1.4 billion prepayment transaction that it expects will reduce renewable energy costs by about $91.1 million over the bond's first seven years.

Here's what to know

With this deal included, CPA said its total prepay bond volume has grown to $8.3 billion, generating $519.1 million in savings during the initial periods of those bonds, according to PR Newswire. The agency expects this latest transaction to deliver an average annual savings of $12.7 million.

CPA said the program relies on tax-exempt borrowing to prepay for renewable electricity from sources such as solar, wind, geothermal, and hydropower. In exchange, suppliers offer discounts that CPA said have historically ranged from 8% to 12%. 

According to the agency, this helps keep rates lower and more stable for customers.

CPA said this was its seventh prepay transaction. It was also its first electric prepay deal with J.P. Morgan as underwriter and J.P. Morgan Ventures Energy Corporation as the supplier of prepaid energy. 

Moody's gave the bonds an Aa3 rating, and Kestrel classified them as Green Bonds. As CPA Chief Financial Officer David McNeil put it, "Reaching 8.3 billion in prepay transactions reflects the strength and scalability of this financing strategy."

More background

CPA said the deal is expected to supply about 1.14 million megawatt-hours of PCC1-eligible energy each year during the bond's initial seven-year term. The agency said PCC1 is California's highest renewable classification and that the energy tied to this transaction comes from long-term wind contracts totaling 440.8 megawatts of capacity.

The organization said it serves 38 communities in Los Angeles and Ventura counties, provides renewable electricity to about 3 million residents and businesses, and is California's fourth-largest electricity provider and the nation's top green power provider.

For homeowners, utility-scale savings are not the only way to lower power costs. Going solar is one of the best ways to save on home energy, and Palmetto is currently running an exclusive offer for Southern California residents that lets customers save an average of 40% on their electric bills with $0 down.

What's being done?

CPA said the bond was issued under a November 2025 board authorization that permits up to $4.5 billion in additional prepay transactions through June 30, 2027. The agency added that it will keep assessing opportunities that improve its financial position while supporting clean, reliable, and affordable electricity.

CPA also said the savings created by this bond structure extend beyond rate support. The agency said it directs those funds to customer programs, workforce development and skills training, and community energy infrastructure projects designed to strengthen resilience.

For households that want a more direct way to shrink monthly energy costs, Palmetto's offer adds another option. With Palmetto's help, the average Southern California resident can save 40% on their electric bills, which can add up to thousands of dollars per year.

CPA Chief Executive Officer Ted Bardacke said, "CPA's prepay strategy is an important tool for delivering on our commitment to provide clean, reliable and affordable energy."

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