Request for Proposals - PrePay CounterParty for an Energy Prepayment Transaction

Desert Community Energy (DCE) and Redwood Coast Energy Authority (RCEA) are jointly seeking proposals from qualified financial institutions to serve as the Prepay Counterparty for an Energy Prepayment Transaction. DCE is a California Joint Powers Authority formed to offer Community Choice Aggregation (CCA) services in the desert region of Riverside County, currently serving the City of Palm Springs with operating revenues of $70.8 million in FY2024/25 and a net position of $40 million as of December 31, 2025. RCEA is a Joint Powers Authority created in 2003 to serve as a local leader in advancing secure, sustainable, and affordable energy resources in Humboldt County, currently serving more than 60,000 customer accounts with an annual load of approximately 600 GWh, with operating revenue of $77.5 million for fiscal year 2024/25.

The selected Consultant will provide financial structuring and counterparty services for DCE and RCEA's first prepayment transaction, with a target closing by the end of the second quarter of 2026. Services are expected to commence on March 9, 2026, and continue through the successful closing of the prepay transaction. The transaction is expected to range between $400 million and $600 million. Proposals must be received electronically to procurement@redwoodenergy.org by 4:00 p.m. PPT on February 23, 2026.

Proposers must hold a valid business license in the jurisdiction where they operate and demonstrate technical expertise, depth of experience, and availability to support DCE and RCEA in successfully completing their first prepayment transaction. The proposing firm must demonstrate experience working with California-based public agencies or municipalities. Firms must be independent, properly licensed, and authorized to conduct business in the State of California, with no conflicts of interest with respect to other work performed for DCE and RCEA. Due to the confidential nature of DCE and RCEA's operations, the selected Consultant will be required to execute a Non-Disclosure Agreement (NDA) covering any DCE and RCEA customer or proprietary information accessed during the engagement.

Key dates include: RFP Release on February 9, 2026; Release of Addendum 1 on February 17, 2026 (or sooner); Deadline for Written Questions on February 17, 2026; Responses to Questions Provided on February 19, 2026; Proposals Due at 4:00 p.m. PPT on February 23, 2026; Evaluation of Proposals during the Week of February 23, 2026; Interviews (if needed) during the Week of March 2, 2026; and Execute Engagement Letter on March 9, 2026.