Feb 7, 2018 at 11:00am
Silicon Valley Clean Energy debt-free in less than one year of operation, returning $2.7 million in initial startup loans
Sunnyvale, Calif. – As part of the Joint Powers Agreement (JPA) that formed Silicon Valley Clean Energy (SVCE), a Community Choice Energy agency that provides cleaner power at competitive costs, 12 Santa Clara County communities loaned $2.7 million to provide the agency working capital. The loan agreement outlined in the JPA gave SVCE four years from the effective date of the JPA, or March 2020, to pay back the loan. However, all funds were returned in January 2018, more than two years ahead of schedule, and within SVCE’s first year of operation.
Listed below are the amounts each member community contributed to SVCE for the agency’s initial funding.
|City of Campbell||$100,000|
|City of Cupertino||$520,000|
|City of Gilroy||$100,000|
|City of Los Altos||$100,000|
|Town of Los Altos Hills||$25,000|
|Town of Los Gatos||$100,000|
|City of Monte Sereno||$25,000|
|City of Morgan Hill||$100,000|
|City of Mountain View||$520,000|
|Santa Clara County||$520,000|
|City of Saratoga||$100,000|
|City of Sunnyvale||$520,000|
SVCE also secured an $18 million Revolving Line of Credit and a $2 million Non-Revolving Line of Credit, both of which were retired in late-2017. The loans allowed SVCE to get up and running and pay for startup costs, which included power procurement, staffing, marketing and outreach.
“Returning our startup loans well ahead of schedule and being debt-free in less than a year shows that Community Choice Energy is a viable model,” says Rob Rennie, SVCE Board Chair. “When forming this agency, we were focused on the significant greenhouse gas reductions having carbon-free electricity would provide, but our communities will gain additional benefits with SVCE reinvesting net revenues in our local economy and providing customer programs.”
Community Choice Energy agencies, like SVCE, are funded by ratepayers through electricity sales, and do not rely on taxpayer funds. The agency is locally-governed by a Board of Directors comprised of one elected official from each member community. The City of Milpitas recently joined the agency in November 2017, and no financial contribution was required since the other agency loans were being returned ahead of schedule
Since launching service in April 2017, SVCE now serves more than 242,000 commercial and residential electricity customers in 11 Santa Clara County towns and cities, and unincorporated county communities with carbon-free power. The City of Milpitas enrollment is expected in mid-to late-2018. SVCE electric generation rates are one-percent less than PG&E’s equivalent rate, providing an estimated $3.4 million dollars of on-bill savings to customers. Customers with questions about how to understand SVCE generation charges on their bill can visit svcleanenergy.org/your-bill or call 1-844-474-7823 (SVCE).
About Silicon Valley Clean Energy
Silicon Valley Clean Energy is a community-owned agency serving the majority of Santa Clara County communities by acquiring clean, carbon-free electricity on behalf of residents and businesses. As a public agency, net revenues are returned to the community to keep rates low and promote clean energy programs. Member jurisdictions include Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Saratoga, Sunnyvale and unincorporated Santa Clara County. SVCE is guided by a Board of Directors, which is comprised of a representative from the governing body of each member community. For more information, please visit SVCleanEnergy.org.