KBRA Releases Research - A Better Way: The Emergence of Community Choice Aggregation in California

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has continued to monitor the proliferation of Community Choice Aggregation (CCA) incorporations in California and believes that the burgeoning industry presents a compelling alternative to traditional utility generation services.

Key Takeaways:

  • KBRA believes that well-run CCAs with favorable characteristics in California can achieve strong investment-grade ratings through an asset-light and community-centric business model that provides clean, competitively priced power to residents.
  • As stakeholders increasingly prioritize environmental, social, and governance (ESG) considerations, CCAs in California are uniquely positioned to ride the coattails of this movement, helped by social dissatisfaction with traditional vertically integrated utilities.
  • KBRA sees a window of opportunity for CCAs in California, given the higher-cost electricity supply and legacy governance issues that burden existing utilities.
  • Although KBRA’s outlook for CCAs in California is positive, we do see some challenges ahead including regulatory rulings regarding the calculation of the Power Charge Indifference Adjustment (PCIA), and the ability of CCAs to continue to offer discounted electricity to customers compared to traditional vertically integrated utilities.

To view the report, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Corinne Hill, Senior Director, CFA
+1 (646) 731-3331
chill@kbra.com

Adam Gracely, Associate
+1 (646) 731-3329
agracely@kbra.com

Andrew Giudici, Senior Managing Director
+1 (646) 731-2372
agiudici@kbra.com

Business Development Contact:

Jason Lilien, Managing Director
+1 (646) 731-2442
jlilien@kbra.com

Contacts

Analytical Contacts:

Corinne Hill, Senior Director, CFA
+1 (646) 731-3331
chill@kbra.com

Adam Gracely, Associate
+1 (646) 731-3329
agracely@kbra.com

Andrew Giudici, Senior Managing Director
+1 (646) 731-2372
agiudici@kbra.com

Business Development Contact:

Jason Lilien, Managing Director
+1 (646) 731-2442
jlilien@kbra.com