Clean Power Alliance signs EEI master agreement for renewable energy cost savings

The San Diego County SDCP Board of Directors has taken a significant step towards enhancing renewable energy cost savings by approving the EEI master agreement confirmation and collateral annex with the Clean Power Alliance of Southern California. This decision, made during the board meeting on May 22, 2025, aims to implement a collaborative initiative known as the Vamoswap agreement.

Andrea Torres, the director of origination, presented the proposal, highlighting its potential to prepay a substantial portion of renewable energy portfolios currently under annual agreements with local utilities. This prepayment strategy is expected to yield material cost savings for customers by leveraging a mechanism called the Voluntary Allocation Market Offer (BAMO), which allows Community Choice Aggregators (CCAs) to contract directly with investor-owned utilities.

The Vamoswap agreement will facilitate the swapping of renewable energy products, specifically photovoltaic energy and associated Renewable Energy Certificates (RECs), under a widely recognized industry contract. The initial swap will involve 720 gigawatt hours of energy, with the potential to increase to nearly 1,000 gigawatt hours annually over a ten-year term starting in July 2025.

This initiative is part of a broader trend, as ten CCAs have already executed over a dozen prepayment transactions, amounting to nearly $18 billion. The board emphasized that while there is no immediate fiscal impact from this contract, the anticipated future use of prepayment transactions could lead to significant savings for customers.

In addition to the Vamoswap agreement, the meeting included discussions on various other topics, but the focus remained on the implications of this renewable energy strategy. The board's approval marks a proactive approach to enhancing energy affordability and sustainability in the region, setting the stage for future developments in renewable energy procurement.