Pasadena Saves Ratepayers More Than $5 Million on Renewable Power Contracts in First Green Bond Transaction

PASADENA, Calif. - Pasadena Water and Power (PWP) finalized its first green bond prepayment, a move forecasted to save $800,000 annually and more than $5.6 million within seven years.

Approved by the Pasadena City Council in 2025, the prepayment strategy positioned the utility to make the most of favorable market conditions. PWP has since prepaid certain solar and wind contracts via a third-party provider, ensuring continued access to discounted energy. Through this model, a utility receives a bulk-purchase-style discount on energy it has already contracted. Pasadena's share of the bonds meets green bond criteria because all funds support renewable energy projects. This marks the City's inaugural use of green bonds and highlights efforts to match financial planning with sustainability goals.

"Pasadena is committed to delivering carbon-free electricity by the end of 2030, and this transaction shows that community-owned utilities can pursue critical goals while exploring all avenues to lower costs for customers." said David Reyes, PWP General Manager.

The transaction was completed in collaboration with four other municipal utilities and facilitated by the Southern California Public Power Authority (SCPPA). In addition to Pasadena, the broader SCPPA transaction included multiple public utilities including Burbank, Colton, and Vernon. Each agency prepaid its share of selected renewable contracts under a coordinated structure, allowing the participants to achieve economies of scale in the bond market that no single utility could reach on its own.