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<br /> <br /> <br />ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY <br /> <br />Chris Bazar <br />Agency Director <br /> <br />224 West Winton Ave <br />Room 110 <br /> <br />Hayward, California <br />94544-1215 <br /> <br />phone <br />510.670.5333 <br />fax <br />510.670.6374 <br /> <br />www.acgov.org/cda <br /> <br /> <br />TO: CCE City Staff and City Steering Committee Representatives <br /> <br />FROM: Chris Bazar, Director, Community Development Agency <br />Bruce Jensen, Senior Planner <br />Shawn Marshall, CCE Consultant <br /> <br />DATE: November 8, 2016 <br /> <br />RE: CCE Financing Requirements and Options <br /> <br /> <br />Background <br /> <br />The following is a detailed summary of capital and credit requirements for new <br />Community Choice Energy (CCE) programs that is informed by the experiences of <br />other multi-jurisdictional CCE programs in California. This framework will inform the <br />discussions of the new East Bay Community Energy (EBCE) Board of Directors as it <br />pursues agency working capital and longer term credit arrangements. It should be <br />noted, however, that CCE credit terms/availability are rapidly evolving, and there may <br />be other credit opportunities or structures the EBCE Board may wish to consider. <br />Financing for new, multi-jurisdictional CCE programs generally falls into three capital <br />categories: <br />1) Seed Capital -- Initial program planning and start-up <br />2) Bridge Financing/Line of Credit -- Program launch/initial power contract(s) <br />3) Working Capital/Term Debt – for longer term EBCE operations, power projects <br /> <br />Seed Capital: Financing for pre-revenue start-up has generally been provided by local <br />governments interested in forming a CCE program. In EBCE’s case, the County of <br />Alameda has stepped up to provide $3.7 million in upfront monies to cover the costs <br />of early planning, technical analytics, and the various tactical steps involved in EBCE <br />formation and program implementation. As discussed in the JPA Agreement, this <br />initial capital investment will be reimbursed to the County within 3 or less years of <br />EBCE program launch and revenue. <br /> <br />Bridge Financing/Line of Credit: New CCE programs (and their JPAs) need to form <br />independent, long-term banking and credit relationship(s) to move from initial start-