Palm Springs City Council approves $20M line of credit for Desert Community Energy

The Palm Springs City Council meeting on May 28, 2025, focused on a significant financial decision regarding Desert Community Energy (DCE). The council discussed supporting DCE as a guarantor for an expansion of its line of credit with River City Bank, increasing the total to $20 million. This move aims to bolster DCE's financial stability and enhance its ability to secure long-term power agreements for the city.

City officials highlighted that DCE has not drawn on its line of credit since February 2023 and currently holds over $27 million in liquid cash, indicating strong financial health. The increase in the line of credit is seen as a vital tool for DCE to maintain its investment-grade credit rating and improve its liquidity ratios, which are crucial for negotiating power procurement contracts.

Claude, a representative from the financial team, emphasized that the additional credit would allow DCE to secure long-term power agreements, particularly for sustainable energy projects within Palm Springs. The council members expressed their support for the increase, with discussions focusing on ensuring that the amount requested aligns with DCE's actual financial needs and future growth potential.

The council's decision to support this financial measure reflects a commitment to enhancing the city's energy infrastructure and sustainability efforts. The next steps will involve finalizing the agreement with River City Bank, ensuring that DCE remains a reliable energy provider for Palm Springs residents.