Community Power board authorizes third prepay clean‑energy transaction to lock market savings
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Summary
The San Diego County Community Power board voted Feb. 26 to adopt a resolution authorizing a third prepayment financing transaction that staff say could lock multiyear savings for ratepayers; staff described a tight pricing window and risk mitigations if a deal terminates.
The San Diego County Community Power Board of Directors on Feb. 26 adopted a resolution authorizing staff to execute documents for a third clean‑energy prepayment transaction intended to lock long‑term energy savings for customers.
Jeb Spangler, senior strategic finance manager at San Diego Community Power, told the board the item is transaction number three in a program that began with diligence in 2023 and produced two earlier prepay transactions in November 2024 and July 2025. “To date, there have been 2 prepaid transactions…Collectively, those 2 transactions have saved ratepayers almost a $100,000,000 over the next 10 years,” Spangler said, and he described projected incremental savings from a third transaction that could reach nearly $20 million in total annual savings across three deals by 2030.
Spangler described the market timetable: the conduit issuer has provided conditional approval contingent on board action, staff selected Goldman Sachs as the counterparty for this transaction, and price discovery could begin as soon as March 5 with a potential closing around March 19. “If we price on March 5, we would close this bond issue in March on approximately March 19, and energy cost savings on this transaction would begin as early as August,” Spangler said.
Board members pressed staff on whether the item represented a single transaction or a programmatic approval; Spangler said this motion was for one transaction (transaction #3), though other CCAs have approved multi‑transaction programs. Directors voiced support for the demonstrated savings and noted staff has previously presented the program’s structure and partners.
Staff explained the principal risks and mitigations: if a prepay transaction terminates in the future, assigned power purchase agreements (PPAs) would revert to Community Power and the agency would continue to pay the underlying PPA costs without the discounted prepay benefit. Spangler also described limits contained in the resolution’s parameters, including a maximum issuance amount and minimum savings thresholds.
Vice Chair Yamani moved and Director Nzunza seconded the motion to adopt the resolution. The board took a roll‑call vote and the motion carried unanimously.
The resolution authorizes staff to proceed within the board‑set parameters; staff said they will return with bond pricing and closing details once market conditions and counterparties are confirmed.