San Francisco, CA –Moody’s Investors Service, an internationally recognized credit rating agency, has assigned an A2 credit rating for CleanPowerSF, the San Francisco Public Utilities Commission’s local renewable energy program.
Moody’s rating of A2 indicates that CleanPowerSF has a strong capacity to meet its financial obligations and that such financial obligations are subject to low credit risk. The first-time credit rating is one of the highest such assessments for programs in the state’s Community Choice Aggregation (CCA) community, which includes CleanPowerSF.
“This credit rating exceeded our expectations and shows once again how CleanPowerSF is a model for both environmental sustainability and financial stability,” said SFPUC Acting General Manager Michael Carlin. “With this rating, we can continue to provide low-cost, effective power services that meet our City’s ambitious climate action goals.”
According to Moody’s, the A2 Issuer Rating for CleanPowerSF was underpinned by the strength of its service area, the CCA's ownership by the City and County of San Francisco, the SFPUC's standing experience operating large utility enterprises with energy procurement, a common pool of experienced employees, as well as access to the unrestricted portion of the City's general fund liquidity pool in the case of an emergency.
The strong initial credit rating from Moody’s for CleanPowerSF is the latest example of the SFPUC’s solid financial indicators. Earlier this year, the agency listed a $342 million taxable green bond offering for its Water Enterprise on the London Stock Exchange, a first ever for a US muni green bond.
In November 2019, Moody’s upgraded the SFPUC’s Water Enterprise credit rating to Aa2, and in June 2020, it upgraded the SFPUC’s Wastewater Enterprise credit rating to Aa2, rating increases that will allow the agency to borrow at lower interest rates.
CleanPowerSF launched in 2016 with a mission to provide San Francisco residents and businesses with clean, renewable electricity at competitive rates. Following the largest and last enrollment period in April of this year, CleanPowerSF now serves more than 380,000 customer accounts in San Francisco.
Along with CleanPowerSF, the SFPUC operates Hetch Hetchy Power, which provides 100 percent greenhouse gas-free energy to public facilities such as City Hall, schools and libraries, some private commercial developments, and affordable housing. Collectively, the two systems meet over 70 percent of the electricity demand in San Francisco.
About the San Francisco Public Utilities Commission
The San Francisco Public Utilities Commission (SFPUC) is a department of the City and County of San Francisco. It delivers drinking water to 2.7 million people in the San Francisco Bay Area, collects and treats wastewater for the City and County of San Francisco, and generates clean power for municipal buildings, residents, and businesses. Our mission is to provide our customers with high quality, efficient and reliable water, power, and sewer services in a manner that values environmental and community interests and sustains the resources entrusted to our care. Learn more at www.sfwater.org.