During a recent meeting of the San Diego Community Power board, Chief Financial Officer Dr. Eric Washington presented a significant resolution aimed at authorizing an energy prepayment transaction. This initiative, identified as resolution 2024 8, is designed to reduce power costs for the community by at least 8%, addressing the largest expense in the organization's budget.

Dr. Washington highlighted the extensive groundwork laid over several months to reach this point, noting that the concept of prepaid financing has been discussed since his arrival at the organization. He emphasized the potential benefits of this transaction, which leverages tax-exempt bond capacity to secure a long-term supply of power.

The CFO provided context by referencing the history of similar transactions in the United States, which date back to the early 1990s and have involved over $75 billion in deals. He noted that 12 community choice aggregators (CCAs) have successfully executed such transactions, collectively totaling approximately $11.3 billion. The board was informed that six CCAs have already closed transactions, positioning San Diego Community Power to be the next.

Dr. Washington also shared data on past gas-related transactions, which have achieved discounts of around 15% on power purchase agreements (PPAs). He indicated that most recent transactions among CCAs have realized discounts of 9.5% or better, with some exceeding 12%.

The meeting concluded with Dr. Washington announcing that the organization has received conditional approval from the California Community Choice Financing Authority, which will serve as the issuer for the bond transaction. The board is expected to finalize approval soon, with hopes to execute and close the transaction by early November, contingent on market conditions.