How would MCE be financed?
MCE would be financed from the revenues received for electricity delivered to participating customers. The initial start-up costs and reserves for MCE can be funded by loans secured by future revenues. In the long term, tax-exempt revenue bonds can be issued to build and own generation. California law provides CCAs with both ratemaking authority and the ability to impose exit fees, both of which are necessary to ensure repayment of bonds. Please refer to the business plan for greater detail on the costs and financial options.
