Credit rating upgrade underscores CleanPowerSF’s stability as it marks 10 years of service
SAN FRANCISCO — Moody’s Ratings has upgraded the credit rating for San Francisco’s CleanPowerSF community choice energy program to A1 from A2, with a stable outlook. The upgrade reflects CleanPowerSF’s stronger cash reserves, steady financial management, and the program’s ability to adjust rates in a changing energy market. CleanPowerSF also has no outstanding debt.
CleanPowerSF is a not-for-profit clean energy program operated by the San Francisco Public Utilities Commission (SFPUC). It provides clean, renewable electricity to more than 385,000 homes and businesses. CleanPowerSF purchases clean energy on behalf of customers, while PG&E continues to deliver that electricity through its existing grid, including utility poles, wires, and substations.
“Moody’s is one of the nation’s leading credit rating agencies, and this upgrade is meaningful recognition of this strong clean energy program the SFPUC has built over the last decade,” said SFPUC General Manager Dennis Herrera. “It reflects disciplined financial management, strong reserves, and quality service for San Francisco ratepayers. We take that responsibility seriously, and this independent validation underscores that CleanPowerSF is a successful and well-managed public power program.”
The credit rating boost should allow the SFPUC to access lower cost financing tools with more flexible terms and to negotiate more favorable terms for power purchases, which helps keep customer rates as low as possible.
The credit rating upgrade comes as the SFPUC already is lowering CleanPowerSF rates for customers.
Last month, the SFPUC approved an unprecedented reduction in its CleanPowerSF electricity rates, cutting its generation charges by 20% to 25%. The rate cuts will take effect March 1, 2026. The rate reduction applies to the CleanPowerSF portion of customers’ electricity bills and helps offset approximately 15% to 25% increases in PG&E delivery and other electricity charges billed by PG&E on the same bill as CleanPowerSF service.
Over the last five years, CleanPowerSF has saved customers an estimated $120 million on their electricity bills compared to what they would have paid to PG&E.
Moody’s rating action (PDF): Ratings.Moodys.com/ratings-news/460150
About CleanPowerSF and Hetch Hetchy Power
CleanPowerSF began serving customers in 2016 with a mission to provide San Francisco residents and businesses with clean, renewable electricity at competitive rates. CleanPowerSF buys clean energy from different producers, including through long-term contracts. It is one of two clean energy programs the SFPUC operates.
The SFPUC also operates Hetch Hetchy Power, which generates and delivers 100% greenhouse gas-free energy to approximately 9,000 customer accounts, including municipal buildings and facilities, such as San Francisco General Hospital, San Francisco International Airport, schools, libraries and the Muni transit system. Hetch Hetchy Power also provides electricity to some commercial and residential developments, including affordable housing sites.
About the San Francisco Public Utilities Commission
The San Francisco Public Utilities Commission is a department of the City and County of San Francisco. It delivers drinking water to 2.7 million people in the San Francisco Bay Area, collects and treats wastewater for the City and County of San Francisco, and meets 75% of the electricity demand in San Francisco with clean energy. The SFPUC’s mission is to provide customers with high-quality, efficient and reliable water, power, and sewer services in a manner that values environmental and community interests, and sustains the resources entrusted to the agency's care. Learn more at sfpuc.gov.