FAQ

In June 2021, Central Coast Community Energy (3CE), Clean Power Alliance (CPA), Ava Community Energy (Ava), Marin Clean Energy (MCE), and Silicon Valley Clean Energy (SVCE) formed the California Community Choice Financing Authority (CCCFA), a Joint Powers Agency (JPA). Formation of CCCFA assists the member Community Choice Aggregators (CCAs) by undertaking the financing or refinancing of energy prepayments with tax-advantaged bonds. The prepay structure enables publicly owned utilities, including CCAs, to effectively leverage the difference between tax-exempt and taxable debt rates to fund the reduction in the cost of power purchases.

CCCFA was created with the goal to reduce the cost of power purchases through a pre-payment structure. Member agencies can save up to 10% or more on power purchase agreements entered into under this structure, reducing customer costs and increasing funding available for local programs.

CCCFA, as a public joint powers agency (JPA), can issue tax-exempt bonds and enter into a 30-year, non-recourse, tax-exempt prepay transaction with a taxable, prepaid supplier of energy. CCCFA is a conduit agency to issue bonds; it is not intended for joint procurement. Prepayment transactions are codified in the US Tax law, and Congress enacted legislation specifically allowing for such transactions as part of the National Energy Policy Act of 2005. CCCFA will take advantage of this structure to increase the amount, and reduce the cost, of clean energy on the California grid, combating climate change and fulfilling customers' needs for non-polluting resources.

CCCFA is governed by a Board of Directors consisting of one director representing each founding CCA. Energy prepayment transactions undertaken by CCCFA must be approved by the Board of Directors of the member agency proposing the prepayment. Then the CCCFA Board will have the opportunity to fully consider the benefits, obligations, and risks of each prepayment transaction prior to approving any bond issuance.

Any CCA is eligible to request membership. If the CCCFA Board accepts the new member, the CCA will be able to utilize the JPA for prepayment transactions.