Orange County Power Authority Secures First Green Prepayment Bond, Locking In $25.3 Million In Energy Cost Savings Over Initial Five Years

IRVINE, Calif. (March 20, 2026) – Orange County Power Authority (OCPA) – a local not-for-profit community clean energy provider – announced the successful closing of its first Renewable Energy Prepayment Bond transaction through the California Community Choice Financing Authority (CCCFA). The transaction marks a major milestone in OCPA’s strategy to manage power supply costs, strengthen rate stability, and support long-term customer affordability.

The $929.4 million Clean Energy Project Revenue Bonds transaction closed on March 19, 2026, and is expected to deliver an estimated 12.45 percent discount in energy costs, generating approximately $25.3 million in total savings over the initial five-year period. This represents a significant financial benefit for OCPA and its customers by reducing one of the agency’s largest cost components and creating meaningful near-term value that supports long-term rate stability. Similar bond transactions have historically achieved discounts of 8 percent to 12 percent, making OCPA’s transaction notably strong despite significant recent financial market volatility. The savings from this agreement are expected to be locked in through 2031, when the bonds will be repriced pursuant to the transaction structure.

The bonds received an Aa2 rating from Moody’s and a Green Bonds designation from Kestrel Verifiers, reflecting the transaction’s strong credit quality and alignment with recognized green financing standards. The financing supports the prepayment of a 30-year supply of EPS-compliant energy for OCPA, including approximately 2.1 million MWh of prepaid energy during the initial reset period.

“OCPA is committed to offering renewable energy choice at stable rates for our customers,” said Joe Mosca, CEO of Orange County Power Authority. “This prepay transaction enables us to achieve this goal, while strengthening long-term fiscal responsibility, investment in renewable energy, and grid reliability.”

Prepayment bonds are a financing tool available to public agencies that can reduce the cost of long-term energy purchases by leveraging tax-exempt municipal bond financing.  As part of OCPA’s transaction, Morgan Stanley served as sole managing underwriter, and Energy Prepay XI, LLC served as prepaid energy supplier. The bond issuance was completed through CCCFA, a joint powers authority formed to help community choice aggregators (CCA) lower power procurement costs through prepayment structures.

“Affordability remains central to OCPA’s financial strategy, and this transaction helps us manage one of our largest cost drivers in a disciplined and proactive way,” said Tiffany Law, OCPA Chief Financial Officer. “By locking in approximately $25.3 million in projected savings through 2031, OCPA is capturing meaningful financial value that will support greater rate stability for customers while reinforcing the agency’s long-term financial strength.”

OCPA’s inaugural Renewable Energy Prepayment Bond adds to the growing use of this financing structure among California public power providers and CCAs to improve affordability, enhance long-term financial planning, and support clean energy procurement. This financing approach is consistent with OCPA’s mission to provide renewable energy at stable rates while equitably reinvesting in programs that support sustainable communities.

As a result, OCPA customers are expected to benefit from greater long-term rate stability and lower electricity costs, as well as continued investment in programs that help customers and communities achieve energy savings, and progress toward a clean energy future.

About Orange County Power Authority

The Orange County Power Authority is a not-for-profit public agency that offers clean power at stable rates, significantly reducing energy-related greenhouse emissions and enabling reinvestment in local energy programs. To learn more, visit www.ocpower.org.