Baa2 Rating Indicates Stable Outlook
REDWOOD CITY, Calif.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/PCEPowersMe?src=hash” target=”_blank”gt;#PCEPowersMelt;/agt;–Moody’s Investors Service assigned a first-time Baa2 Issuer Rating to
Peninsula Clean Energy (PCE). Moody’s Issuer Rating is an independent
assessment of PCE’s financial strength over the long term, and PCE’s
outlook is stable. PCE is the second Community Choice Aggregation (CCA)
program to obtain an investment-grade credit rating.
“Peninsula Clean Energy is excited to have reached this important
financial milestone. May 2019 represents the two-year anniversary of PCE
serving all of our customers in San Mateo County with cleaner and
greener electricity at lower rates,” said Jan Pepper, CEO of Peninsula
Clean Energy. “The Baa2 Issuer Rating from Moody’s further validates the
CCA model in California.”
The Baa2 Issuer Rating recognizes PCE’s strong financial performance,
stable customer base, and success in securing cost-competitive renewable
resources. The rating further recognizes the local Board-regulated
rate-setting authority afforded to PCE, including the broad business
background of the PCE Board. As of March 2019, PCE had unrestricted cash
of $108 million. PCE projects cash on hand of approximately $125 million
by FY 2019. This financial strength allows PCE to re-invest in the local
community with new energy programs to advance its mission to reduce
greenhouse gas emissions in San Mateo County.
The benefits of a Baa2 credit rating for PCE include the potential to
negotiate lower energy prices and improved credit terms for future power
purchasing needs. This credit rating assures regulators and legislators
that PCE’s financial strength is sound and, in light of PG&E’s
bankruptcy filing, the CCA business model provides a stable framework
for serving customers and advancing the state’s low carbon energy future.
The full press release from Moody’s can be found here,
with a PDF version here.
About Peninsula Clean Energy
Peninsula Clean Energy (PCE) is San Mateo County’s official electricity
provider. PCE (www.PeninsulaCleanEnergy.com)
is a public not-for-profit local community choice energy agency that
provides all electric customers in San Mateo County with cleaner
electricity at lower rates than those charged by the local incumbent
utility. PCE saves its customers an estimated $18 million a year. PCE,
formed in March 2016, is a joint powers authority made up of the County
of San Mateo and all 20 cities and towns in the County. PCE serves
approximately 290,000 accounts.
Contacts
Kirsten Andrews-Schwind
Peninsula Clean Energy
[email protected]
M:
650.260.0096
