Third Community Choice Aggregator to receive Baa2 Issuer Rating
Santa Clara County, Calif. – Today, Moody’s Investor Service assigned a first-time Baa2 Issuer Rating to Silicon Valley Clean Energy (SVCE). Moody’s Issuer Rating is an independent assessment of SVCE’s financial strength over the long term and acknowledges the agency’s economic stability. SVCE is the third Community Choice Aggregator (CCA) to receive an investment-grade credit rating.
“SV Clean Energy is pleased to have received the Baa2 rating from Moody’s as we continue to enhance financial strength in our customers’ interest,” said Howard Miller, SVCE Board Chair and City of Saratoga Mayor. “With this credit rating, the agency will be even more equipped to continue investing in cost-effective, new renewable energy projects to provide our customers and communities with affordable, clean energy.”
The Baa2 rating recognizes SVCE’s stability within the California CCA business model and the strong socio-economic conditions of the SVCE service area, despite the negative impacts of the COVID-19 pandemic. Additional value consideration was given to SVCE’s ability to maintain rate competitiveness relative to PG&E since 2017 by offering rate discounts between 1-6% to PG&E’s rates, while growing its cash position to $120 million.
The benefits of a Baa2 rating include access to new energy supply contracts, greater negotiation resulting in lower energy rates, and further transparency for SVCE customers on the agency’s financial standings.
Moody’s full press release can be found here.
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a not-for-profit community-owned agency serving the majority of Santa Clara County communities, acquiring clean, carbon-free electricity on behalf of more than 270,000 residential and commercial customers. As a public agency, net revenues are returned to the community to keep rates competitive and promote clean energy programs. Member jurisdictions include Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and unincorporated Santa Clara County. SVCE is guided by a Board of Directors, which is comprised of a representative from the governing body of each member community. For more information, please visit SVCleanEnergy.org.