Clean Power Alliance (CPA), a California-based nonprofit electricity provider, has closed a $1.4 billion energy prepayment bond transaction designed to reduce renewable energy costs and deliver savings to customers.
The transaction is expected to generate approximately $91.1 million in savings during its initial seven-year period, averaging around $12.7 million annually. The deal marks CPA’s seventh energy prepayment bond transaction and brings its total completed transactions to $8.3 billion.
The latest transaction also marks CPA’s first prepay bond deal involving J.P. Morgan as underwriter and J.P. Morgan Ventures Energy Corporation as the prepaid energy supplier.
How Clean Power Alliance Plans to Deliver Energy Savings
CPA uses energy prepayment bonds to secure renewable electricity at discounted prices through long-term arrangements with energy suppliers.
As a not-for-profit government agency, the organization can issue tax-exempt bonds to prepay for renewable energy from sources such as wind, solar, geothermal, and hydropower. In exchange, suppliers provide discounted energy prices, historically offering savings of around 8% to 12%.
CPA passes these savings on to customers through lower and more stable electricity rates. The organization also invests savings in customer assistance programs, workforce development, skills training, and community energy infrastructure.
With its latest transaction, CPA expects to receive approximately 1.14 million megawatt-hours of eligible renewable energy annually during the bonds’ initial seven-year period.
J.P. Morgan Supports CPA’s Latest Bond Transaction
The $1.4 billion transaction represents CPA’s first energy prepayment bond deal with J.P. Morgan serving as underwriter and J.P. Morgan Ventures Energy Corporation acting as the prepaid energy supplier.
According to CPA, it is also the first electric prepay transaction of its kind in the United States to be completed with J.P. Morgan.
The bonds received an Aa3 investment-grade rating from Moody’s and a Green Bonds designation from Kestrel, reflecting the transaction’s credit rating and environmental financing classification.
The agreement draws on existing long-term power purchase agreements covering a combined 440.8 megawatts of wind energy capacity. These resources are intended to support reliable, carbon-free electricity while helping protect customers from energy market volatility.
CPA’s Seven Bond Deals Generate $519.1 Million in Savings
The latest transaction builds on CPA’s broader strategy of using energy financing to reduce electricity costs.
Across its seven completed prepayment bond transactions, CPA has secured $8.3 billion in financing and locked in approximately $519.1 million in savings during the initial periods of those transactions.
The organization estimates that its seven deals generate average annual savings of around $65 million.
CPA’s board authorized up to $4.5 billion in additional prepayment transactions in November 2025, with a deadline of June 30, 2027. The organization plans to continue evaluating opportunities to strengthen its finances and deliver affordable renewable electricity.
About Clean Power Alliance
Clean Power Alliance is a locally operated, not-for-profit electricity provider serving 38 communities across Los Angeles and Ventura counties in California.
The organization supplies electricity to approximately three million residents and businesses, offering renewable energy options at competitive rates. Its programs also focus on energy resilience, electrification, and reducing customer bills.
CPA is the fourth-largest electricity provider in California and describes itself as the leading green power provider in the United States.
