Los Angeles – October 19, 2026 -- Clean Power Alliance (CPA) closed its seventh energy prepayment bond transaction, valued at $1.4 billion, and expects about $91.1 million in renewable energy cost savings over the bonds' initial 7-year period, an average of $12.7 million per year.
The deal lifts CPA's cumulative prepay issuance to $8.3 billion. Initial-period savings across all seven transactions now total $519.1 million, or roughly $65 million per year on average.
J.P. Morgan acts as underwriter and prepaid energy supplier for the first time
This is CPA's first prepay bond with J.P. Morgan as underwriter and J.P. Morgan Ventures Energy Corporation as prepaid energy supplier. According to CPA, it is also the first electric prepay deal in the U.S. completed with J.P. Morgan.
Moody's assigned the bonds an investment-grade Aa3 rating, and Kestrel gave them a 'Green Bonds' designation.
CPA secures 1.14 million MWh of PCC1-eligible energy annually from wind assets
Over the initial 7-year period, CPA will receive about 1.14 million megawatt-hours of PCC1-eligible energy per year. PCC1 is the highest-tier category of renewable energy in California.
The energy comes from existing long-term power purchase agreements covering 440.8 megawatts of wind resources. CPA says the portfolio supports reliable, carbon-free supply and helps shield customers from market volatility.
Tax-exempt financing delivers historical discounts of 8% to 12%
CPA is a not-for-profit government agency, so it can issue tax-exempt bonds to prepay for energy from sources including solar, wind, geothermal and hydropower. In exchange, energy suppliers have historically given discounts in the range of 8 percent to 12 percent. CPA passes the savings to customers through lower, stable electricity rates. It also directs savings to customer programs, workforce development and skills training, and community energy infrastructure projects.
CPA Chief Financial Officer David McNeil said the deal secures long-term savings "through strategic financial partnerships."
Board authorization allows up to $4.5 billion in new prepay deals by June 2027
The seventh bond was issued under CPA's November 2025 board authorization. That authorization allows up to $4.5 billion of new prepay transactions through June 30, 2027. CPA said it will keep evaluating opportunities that strengthen its financial position.