1 Nikolai J. Sklaroff,
Capital Finance Director
May 26, 2026
Results of Recent Financings for
Power Enterprise
Recent Power Bond Transaction
(Series 2026A)
• Staff updates the results of the bond sale to the Commission and in a Board of Supervisors memo.
• Executed for refinancing savings through Direct Purchase transactions with Barclays as Purchaser.
• The Bonds lowered future ratepayer costs by $8.5 million in gross cash flow savings.
2 April 14, 2026
Commission
authorized
refinancing of up to
$30 million to
refund outstanding
2015 Power
Revenue Bonds
Series A
April 21, 2026
The 2026A
Power Bonds
were priced on
April 21 with
Barclays as
Purchaser
May 26, 2026
Commission
Presentation
for Results of
Recent
Financing for
Power Bonds
May 15, 2026
The SFPUC closed
on $26.7 million
2026A Power
Bonds to refinance
2015A Power
Bonds, which were
called on May 15,
2026
May 1, 2025
The 2015A
Power Bonds
became
callable on
May 1, 2025
Power Revenue Bond Sale
(Series 2026A)
3 Par $26,690,000
Purpose Refinance outstanding 2016A Power
Bonds to achieve debt service savings
Average Life 11.6 Years
Final Maturity 11/1/2045
Pricing April 21, 2026
Closing May 15, 2026
Purchaser Barclays
Advisors and
Attorneys:
PFM Financial Advisors, LLC
Stradling Yocca Carlson & Rauth
2026A Bond Sale Conditions
(AAA Rated Bonds Over Past 30 Years)
4 • At the time of the transaction, the broader financial market had largely stabilized following the significant volatility due to the U.S. military strikes on Iran in late February. • High grade tax-exempt municipal bond yields were at the lower end of the 1-year range.
Source: Montague De Rose & Associates; Municipal Market Data Index data.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 AAA MMD Yield
Years to Maturity
AAA MMD Yield Curves Last 30 Years
1 Yr Range 4/21/2026 Historic Lows Historic Highs 10 Year Median 2026A Bond Sale Process
5 Direct Purchase Transaction – The bonds were priced on April 21, 2026, with yields on the bonds ranging from 2.41% for bonds maturing in 2027 up to
3.93% for bonds maturing in 2045. The All-in True Interest Cost (TIC) was
3.74%.
The 2026A Power Bonds did not require a comprehensive disclosure document and provided ratings flexibility. It also allowed the SFPUC to time the pricing with increased flexibility to take advantage of optimal market rates.
Direct Purchase Structure – The bonds were structured as tax-exempt fixed rate bonds and based on market rates with a fixed spread of:
0.25% for bonds maturing in 2026 to 2040 and
0.22% for bonds maturing from 2041 to 2045.
RFP Process - On May 19, 2025, RFP was sent to Office of Public Finance Underwriter Pool and the Airport’s Credit Facility Pool. Proposals reviewed by the SFPUC’s Municipal Advisors and Capital Finance. Barclays Direct Purchase selected.
Sources and Uses of Funds
(2026A Power Revenue Bonds)
6 Sources:
Par Amount $26,690,000
Premium 3,289,440
Bond Proceeds 29,979,440
Reserve Fund Release 2,383,060
Total $32,362,499
Uses:
Refunding Escrow Deposits $32,086,948*
Cost of Issuance 272,157
Additional Proceeds 3,394
Total $32,362,499
* $32,025,000 of 2015A bonds called, plus $61,988.06 of interest.
Key Results
(Series 2026A Power Revenue Bonds)
7 2026 Series A
Par $26,690,000
Final Maturity November 1, 2045
First Call Date November 1, 2036
Average Life (Years) 11.6 Years
Arbitrage Yield 3.31%
All-in TIC 3.63%
Present Value Savings ($) $3,852,028
Present Value Savings (%) 12.03%
Cash Flow Savings $8,514,622
Independent Pricing Consultant
(2026 Series A Report)
8 • “…the final spreads were very
similar to other highly rated
California bond issues sold in
the prior two weeks.”
• “Based on the data presented in
this report, the public market
equivalent spreads to MMD
agreed to for the Bonds were
reasonable and fair in the
context of the market
conditions of April 21, 2026.”
Pursuant to the SFPUC Debt Management Policy, an
Independent Pricing Consultant (Montague DeRose and
Associates LLC) was engaged to evaluate the results of
the sale as required by policy.
Outstanding Power Debt
($ million)
9 Before
2026A
After
2026A
Revenue Bonds $276 $270
Other Debt* 13 13
Commercial Paper
• Authorized
• Drawn
450
193
450
193
Total $482 $476
• As presented to the Commission on April 14, 2026, the refunding analysis based on market conditions on March 31, 2026, showed expected savings of $7.59 million of gross savings or 9.2% net present value savings.
• Actual sale reduced future Power Enterprise debt service costs over the next 20 years by approximately $8.5 million gross savings. The present value savings is $3.9 million or 12% of refunded bond par amount.
*Other debt includes New Clean Renewable Energy Bonds (NCREBs), Qualified Energy Conservation Bonds (QECBs), and Certificates of Participation for 525 Golden Gate Ave.
Projected Aggregate Net Debt Service
10 FY2026-27 to FY2035-36 Financial Plan Projected Debt Issuance FY
2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 FY 2036 Total - - $612 - $457 - $426 - - $572 $2,066
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
Outstanding Revenue Bonds NDS 2026A Debt Service Savings Previous Power Enterprise Parity NDS Annual cashflow
savings of ~$425K
11 Questions
SFPUC Capital Finance Team
Nikolai J. Sklaroff, Capital Finance Director
Edward Kwong, Capital Finance Analyst
Daniel Fuchs, Capital Finance Analyst
Eric Kwak, Debt Analyst
Earl Dunivan, Debt Analyst