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Second clean-energy prepayment saves San Diego Community Power about $6.1 million annually through 2034, staff says
Summary
Staff reported results of a July 2025 clean-energy prepayment transaction: about $1.005 billion in bonds sold as certified green bonds (Moody’s A2 rating for the funding recipient), producing estimated annual savings of $6.1 million through 2034 and larger cumulative savings layered on a prior 2024 transaction.
San Diego Community Power staff told the Finance & Risk Management Committee that the agency’s second clean-energy prepayment transaction, executed in July 2025, produced an estimated $6.1 million in annual savings through 2034 and will layer additional savings on top of a November 2024 transaction.
Jeff Spangler, senior strategic finance manager, said the transaction sold just over $1.005 billion of tax-exempt bonds through the funding issuer (the California Community Choice Financing Authority) and that the bonds received a Moody’s equivalent rating of A2 for the funding recipient in the offering. Spangler said the bonds carried a top-tier green bond certification (a 5 out of 5 score) that attracts green/institutional investors.
“The punchline of all this is we were able to save San Diego Community Power $6,100,000 average annually between now and 2034,” Spangler said. He told the committee those savings begin to show in the agency’s accounts starting in September and that layered savings from the two transactions could approach $16 million by 2030.
Spangler summarized the guardrails the board set for the transaction: total bond size not to exceed $1.5 billion, a minimum discount (savings) threshold of 8%, issuance costs capped at 1% of par, and explicit non-obligation status for Community Power (the bonds are obligations of the issuer, not the agency). Staff reported all parameters were met.
Spangler said the final bond maturity date is Oct. 1, 2055, and the issuance will require a repricing of discounted savings in 2034 when bonds are repriced to a new discount for the next period. The committee received and filed the update.
