East Bay Community Energy strengthens its financial foundation by increasing its reserve fund and signing a new $200MM credit facility
Nov 17, 2022
EBCE’s reserve balance is now $156 million
Oakland, CA (November 17, 2022) – The Board of Directors of East Bay Community Energy (EBCE) yesterday approved a resolution to add approximately $65.7 million to the electricity agency’s reserve fund balance. This establishes a new reserve balance of approximately $156 million and is approximately 28% of the current year’s budgeted operating expenses. This follows a recent EBCE Board decision to finalize and execute a $200 million revolving credit facility agreement with Union Bank. These two financial decisions serve to further harden EBCE’s solid financial position.
EBCE’s current fiscal year budget is $562.7 million in operating expenses, growing from $471.9 million in 2021-22 and $369.2 million in 2020-21 as EBCE’s service area has expanded and energy prices have increased. EBCE now serves about 635,000 electricity accounts with generation service, and is scheduled to further expand to serve customers in Stockton in 2024. The agency is saving customers $19 million this fiscal year through lower rates than the incumbent utility, while investing $21 million in local programs, and recently issued $6 million in bill credits to customers on income-qualifying rates. EBCE maintains an ‘A’ credit rating from S&P, which was established in 2021.
“Having a substantial reserve fund and credit facility provides a financial safety net for EBCE, further ensures to our counter-parties that we are a low-risk partner, and is a benefit to EBCE customers because it helps to get the best terms when we are procuring electricity on their behalf” said EBCE COO Howard Chang.
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About EBCE
East Bay Community Energy (EBCE) is a not-for-profit public agency that operates a Community Choice Energy program in the California Bay Area for Alameda County and fourteen incorporated cities, serving more than 1.7 million residential and commercial customers. EBCE initiated service in June 2018 and expanded to Tracy in neighboring San Joaquin County in 2021 and will expand service to Stockton in 2024. As one of 24 community choice aggregation (CCA) programs operating in California, EBCE is part of the movement to expedite the climate action goals of their communities and those of California. EBCE is committed to providing clean power at competitive rates while reinvesting in its local communities and offering innovative energy programs. For more information about East Bay Community Energy, visit ebce.org.
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Dan Lieberman
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