Pasadena Water and Power
Prepaid Renewable Energy
Transaction for Cost Savings
Municipal Services Committee
October 28, 2025
Item #3
Pasadena Water and Power
Background
2 • In April 2024, SCPPA and Anaheim initiated
a prepaid clean energy contract, saving
~$3.5M annually.
• PWP has used this structure before for
natural gas—Anaheim was the first
application for clean energy for a POU.
• Now, PWP is now exploring a similar
opportunity with SCPPA.
Pasadena Water and Power
What is a Prepay Renewable Bond?
• A financial tool
leveraging PWP’s
tax-exempt status.
• Allows prepayment
for energy under
existing PPAs using
tax-exempt
municipal bonds.
• Results in
discounted energy
rates over the life of
the contracts.
3 PWP assigns
energy
rights to
SCPPA
SCPPA issues
clean energy
bonds
PWP
repurchases
energy at
discounted
rates
PWP
customers
realize
savings
All leads to
customer
savings!
Pasadena Water and Power
PPAs identified for inclusion
4 Five existing PPAS:
> Antelope Big Sky
Ranch Solar
> Big Sky Summer Solar
> Columbia 2 Solar
> Kingbird Solar
> CalWind
Pasadena Water and Power
Risks and Benefits
5 Risk Management Strategic Benefits
• Rigorous negotiations with
legal and financial counsel
through SCPPA
• Reversion to original PPAs if
adverse events occur (e.g.,
bankruptcy).
• Option to cancel if discount
rate drops below threshold.
• Legal and financial frameworks
provide flexibility for future
transactions.
• Supports affordability for
Pasadena’s 100% carbon-free
goal by 2030.
• Establishes groundwork for future
clean energy contracts.
• Potential for additional savings as
new PPAs come online.
• Streamlines future transactions.
Pasadena Water and Power
Next Steps
6 Finalize
contracts
and
agreements
Seek City
Council
Authorization
Complete
bond
issuance
*2025*
Return with
finalized
savings
post-
pricing