Item 17. EBCE FY 2023-24 Budget (Action Item) — Ava Community Energy Board of Directors, June 21, 2023

Staff Report Item 17
Staff Report Item 17
TO: East Bay Community Energy Board of Supervisors
FROM: Nick Chaset, CEO
SUBJECT: EBCE Budget Fiscal Year 2023-2024 (Action Item) DATE: June 21, 2023
________________________________________________________________________ Recommendation
Adopt a resolution approving the 2023-2024 fiscal year budget.

Background and Discussion
EBCE’s fiscal year is from July 1 through June 30. Staff is presenting a proposed draft budget for fiscal year 2023-2024.

This budget presents changes to EBCE’s value proposition by recommending an increase from 3% to 5% discount relative to PG&E rates for EBCE’s Bright Choice product and decreasing the premium of the Renewable 100 product from $0.0075 to $0.0025.

This budget also presents a large net position surplus as a base-case scenario. Staff is recommending a method to manage this surplus to increase EBCE’s value to the community through four processes:

1. Significant contributions to working capital and reserves to ensure agency solvency in the event of possible risk contingencies

2. Increase value proposition customer discount and establish on-bill credits as levels of net position surplus are realized through the year

3. Increase in carbon free energy procurement with short and long-term investments

4. Continued significant contribution to Local Development programs This presented budget is based on feedback from a draft version presented at the Executive Committee on May 3, 2023, the Board of Directors on May 17, 2023, and the Executive Committee on June 7, 2023 (“previous versions”). The budget outlines staff’s best expected estimates for costs and revenues anticipated for the next fiscal year based on load, market prices, and PCIA charges. Due to these updates, the numbers in this draft may differ from those presented in previous versions.

Staff Report Item 17
Summary of EBCE Budget FY 2023-2024
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATING ACTIVITY

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 953,323,000 792,009,000 873,457,000
Uncollectables (12,054,000) (15,840,000) (17,469,000)
Other Operations Revenue (6,642,000) (6,229,000) 9,658,000 Total Operating Revenue 934,627,000 769,940,000 865,646,000

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 683,883,000 523,996,000 654,987,000
Energy Operating Services 11,230,000 11,245,000 11,270,000 Total Energy Operating Expenses 695,113,000 535,241,000 666,257,000 Overhead Operating Expenses
S Personnel 21,911,000 15,711,000 13,317,000
M Marketing & Communications 5,303,000 2,824,000 2,073,000 G Legal, Policy, & Regulatory Affairs 3,459,000 2,411,000 1,603,000 B Other Professional Services 2,555,000 2,293,000 1,302,000 A General & Administrative 5,711,000 4,007,000 3,563,000 Depreciation 360,000 180,000 158,000
Total Overhead Operating Expenses 39,299,000 27,426,000 22,016,000

NON-OPERATING ACTIVITY

NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,561,000
Grants 0 0 1,100,000
Other Non-Operating Revenue 48,000 15,000 160,000
Total Non-Operating Revenue 1,728,000 276,000 2,821,000

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 587,000
Local Development Funding 22,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 717,000
Total Non-Operating Expenses 24,650,000 30,990,000 23,854,000 TOTAL EXPENSES 759,062,000 593,657,000 712,127,000
NET INCREASE(DECREASE) IN POSITION 177,293,000 176,559,000 156,340,000

RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 367,206,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Staff Report Item 17
Fiscal Impact
This establishes the forecast of EBCE’s fiscal position for the next 12 months with a positive net position.

Attachments
A. Resolution adopting the EBCE Budget FY 203-2024
B. EBCE Budget for Fiscal Year 2023-2024 Presentation
C. Overview of Public Process and Summary of Comments
D. Value Proposition Webinar Presentation
E. Public Comments Summary Report
Attachment Staff Report Item 17A
RESOLUTION NO. R-2023-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE EAST BAY COMMUNITY ENERGY AUTHORITY TO APPROVE THE BUDGET FOR THE 2023-2024 FISCAL YEAR
WHEREAS, The East Bay Community Energy Authority (“EBCE”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, Under the Joint Exercise of Power Act, California Government Code sections 6500 et seq., among the County of Alameda, and the Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Piedmont, Oakland, San Leandro, and Union City to study, promote, develop, conduct, operate, and manage energy-related climate change programs in all of the member jurisdictions. The cities of Newark and Pleasanton, located in Alameda County, along with the City of Tracy, located in San Joaquin County, were added as members of EBCE and parties to the JPA in March of 2020.

WHEREAS, EBCE operates on a fiscal year budget cycle from July 1st through June 30th;
WHEREAS, draft versions of EBCE’s budget for fiscal year 2023-2024 were presented to the Executive subcommittee on May 3, 2023 and the Board of Directors on May 17, 2023 (the “Prior Presentations”);
WHEREAS, staff has incorporated feedback from the Prior Presentations and prepared a revised proposed budget, set forth in Exhibit A (the “Proposed Budget”);

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE EAST BAY COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Board of Directors hereby approves and adopts the Proposed Budget, as set forth in Exhibit A, as EBCE’s fiscal year 2023-2024 budget.

ADOPTED AND APPROVED this 21st day of June, 2023 .

Elisa Marquez, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Attachment Staff Report Item 17A

EXHIBIT A
EBCE FISCAL YEAR 2023-24 BUDGET
(as adopted on 6/21/2023)
EAST BAY COMMUNITY ENERGY FY 2022-23 FY 2021-22

BUDGET BUDGET

OPERATING ACTIVITY

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 Operating Revenue
Electricity Sales 792,008,000 508,636,000
Uncollectables (15,841,000) (8,939,000)
Other Operations Revenue (6,229,000) 0
Total Operating Revenue 769,938,000 499,697,000

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 523,996,000 442,337,000
Data Management/Customer Service 7,834,000 8,645,000
PG&E Service Fees (Billing/Metering) 2,715,000 2,752,000 CAISO Scheduling Coordinator 696,000 843,000
Total Energy Operating Expenses 535,241,000 454,577,000 Overhead Operating Expenses
Personnel 15,712,000 10,171,000
Marketing & Communications 2,876,000 1,686,000
Legal, Policy, & Regulatory Affairs 2,488,000 1,592,000 Other Professional Services 2,292,000 850,000
General & Administrative 3,884,000 2,961,000
Depreciation 180,000 60,000
Total Overhead Operating Expenses 27,432,000 17,320,000 Total Operating Expenses 562,673,000 471,897,000

NON-OPERATING ACTIVITY

NON-OPERATING REVENUE
Interest Income 262,000 798,000
Grants 0 894,000
Other Non-Operating Revenue 15,000 0
Total Non-Operating Revenue 277,000 1,692,000

NON-OPERATING EXPENSES
Borrowing Interest 1,440,000 898,000
Local Development Funding 22,550,000 8,475,000
Grant 0 0
Capital Expenditures 7,000,000 5,500,000
Total Non-Operating Expenses 30,990,000 14,873,000
NET NON-OPERATING ACTIVITY (30,713,000) (13,181,000)
TOTAL REVENUES 770,215,000 501,389,000
TOTAL EXPENSES 593,663,000 486,770,000
NET INCREASE(DECREASE) IN POSITION 176,552,000 14,619,000 Draft Budget for Fiscal
Year 2023-2024
JUNE 21, 2023
PRESENTED BY:

NICK CHASET, CEO
Attachment Staff Report Item 17B
2 Executive Summary – June Update
• PG&E May ERRA Forecast – filed after May Budget presentation – results in less than $3M change in EBCE’s project net position targets set in 2022 o No changes to base case value proposition (5% discount for BC and $0.0025 premium for R100)
o This additional $3M is added to local programs to extend Community Grant funding and provide technical assistance to CBO Resilience Hubs • Additional changes to the forecast are market fluctuations of about $1.2MM • Staff has also provided more detailed discussion of:
o Major Risk Factors
o Personnel Budget Build Out
o Use of Funds under different Value Proposition scenarios Attachment Staff Report Item 17B
3 Summary Draft Budget for Fiscal Year 2023-2024
Notes:

YTD* reflects actuals through Apr 30, 2023
EST are most current projections as of June 5, 2023
Net Position through Apr 30, 2023: $92MM
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATING ACTIVITY

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 682,367,000 523,996,000 657,984,000
Energy Operating Services 11,219,000 11,245,000 11,274,000 Total Energy Operating Expenses 693,586,000 535,241,000 669,258,000 Total Overhead Operating Expenses 39,299,000 27,426,000 21,793,000

NON-OPERATING ACTIVITY
Total Non-Operating Revenue 1,728,000 276,000 3,275,000 Total Non-Operating Expenses 27,650,000 30,990,000 23,893,000 NET NON-OPERATING ACTIVITY (25,922,000) (30,714,000) (20,618,000) TOTAL REVENUES 940,019,000 770,216,000 863,660,000
TOTAL EXPENSES 760,535,000 593,657,000 714,944,000
NET INCREASE(DECREASE) IN POSITION 179,484,000 176,559,000 148,716,000

RESERVE BALANCE
Beginning Reserve Balance* 230,873,000 155,873,000 155,873,000 # Operating Target (50%) 366,443,000 281,334,000 281,334,000 *Expected value after FY 2022-23 contribution
Attachment Staff Report Item 17B
4 Draft Budget: Base Case Assumptions
Revenues
• Increase to customer value proposition by
o Bright Choice from 3% to 5% discount to PG&E
o R100 from $0.0075 to $0.0025 above PG&E
o Estimated revenue reduction of $23.2MM
• $50 bill credit applied to all CARE & FERA customers
inQ1/Q2, totaling an estimated $6.6MM in one
time bill savings
• Assumes current rates and PCIA are unchanged
through 2023
• Rates and PCIA for 2024 are non-stressed, or as
forecasted, energy rates from May ERRA filing
• 1.5% uncollectable rate for 2023, then 1.0% for
2024
• No recognition of GASB 62 revenue ($15,814,000)
• Non-operating revenue assumes 2.5% interest
earned on treasury backed cash balance accounts
Energy Costs
• Costs are derived from a blend of contracted and open positions for all energy, attributes, and RA
o Open prices are non-stressed, mean forecasted
• Carbon free energy (which can include either RE or CO2- free) is above recent board approved targets by 10% above EBCEs
o 2023: CF 66% --> 71% (FY 22/23 5% increase) --> 76%
o 2024: CF 71% --> 81%
o Adds between $3.6 and $21MM to costs
o Each one 1% increases costs between $720,000 and
$4MM
Other Costs
• Adding incremental staff of 15 FTE
• $2.6MM increase in Marketing for re-branding campaign • $2MM increase in G&A to account for increased staff
requirements
• Significant Program funding of $25.9MM
Attachment Staff Report Item 17B
5 Draft Budget: Carbon Free Procurement Options
Variation in the Renewable/Carbon Free targets
• Recommendation to increase the total carbon free target of the Bright Choice product by 10% for 2023 and 2024 above the annual targets set in 2022
o Current targets for both years are 71% retail load
• Staff is requesting flexibility to achieve the proposed increases by sourcing from either Renewable or carbon free/large hydro resources in light of a highly constrained and volatile market • Each increase of carbon free procurement of 5% has an expected cost impact of between $3.6-21MM depending on the product type
Calendar Year 2023 2024
Current Carbon Free Targets 71% 71%
Proposed Increases for FY 2024 5% 10%
Proposed Carbon Free Targets 76% 81%
Attachment Staff Report Item 17B
6 Draft Budget: On-Bill Credit Average Allocations
• Current annual average savings and premiums paid at the 3% discount for Bright Choice and the 0.75c premium on Renewable 100 products for customers are shown above
• Savings for each 1% discount with Bright Choice or decrease of 0.25c in premium for Renewable 100 is also shown o Total EBCE wide customer savings per 1% discount with Bright Choice is about $6.6MM o Total EBCE wide customer savings per 0.25c decrease in Renewable 100 premium is about $4.9MM • With both the discount and the On-Bill credit at the end of the year, on average most customers would experience actual savings over PG&E rates
• Total Customer Savings = Adjustment to Value Proposition + On-Bill Credits = $23.2MM + $14.8MM = $38MM Base methodology for the On-Bill Credit: Dividend = Individual annual kWh x (Total Surplus)/(Total annual kWh) Average for Each Account
Bright Choice Renewable 100 Bright Choice Renewable 100 Bright Choice Renewable 100 Current Avg Savings (Premium) to PG&E $20.68 ($34.01) $262.73 ($427.23) $41.50 ($86.74) Each 1% BC or 0.25c R100 change 6.58 10.89 83.25 136.11 13.17 27.68 5% BC and 0.25c R100 33.83 (12.24) 429.23 (155.02) 67.85 (31.38) On Bill Credit 9.94 9.94 128.36 128.36 21.62 21.62
Total Annual Savings (Premium) 43.77 (2.30) 557.59 (26.66) 89.47 (9.76) Residential C&I Total EBCE Wide
Attachment Staff Report Item 17B
7 Draft Budget: Historical Rate Trends
• The rates shown are inclusive of all fees, including PCIA, and EBCE’s value proposition to reflect what the customer pays on their bill (exclusive of T&D)
• These averages are by calendar year, and some years had more than one rate adjustment • Average rates by product and year show EBCE rates consistently lower than PG&E’s as per our value proposition • Rates have not recovered from large increases to rates in 2022 and 2023, due to increased energy costs • Proposed adjustment to value proposition helps rates recover faster for customers in both products o On average, 2024 rates are returned closer to 2022 rates for EBCE customers Calendar Year 2019 2020 2021 2022 2023 2024
PG&E 0.1067 0.1060 0.0949 0.1275 0.1407 0.1360
%Change/Yr -0.7% -10.4% 34.4% 10.3% -3.3%
EBCE 0.1051 0.1047 0.0940 0.1250 0.1350 0.1292
%Change/Yr -0.4% -10.3% 33.1% 8.0% -4.3%
Compared Average Rates for Bright Choice Customers by Year ($/kWh) Attachment Staff Report Item 17B
8 Draft Budget: Value Proposition Alternatives
• Bright Choice/RE100 customer value proposition is
generally correlated where 0.75% change in BC equates
to a 0.25c change in RE100 at current procurement cost
levels
• A decrease in customer savings of one increment - where BC would be priced at a 4% discount to PG&E and RE100
priced at a 0.50c premium to PG&E) – would increase
expected Net Income by $11.5m, while
maintaining current value proposition (3% discount and

0.75% RE100 premium) would increase expected net
income to $23.2m
1 increment Change 2 Increment Change
Bright Choice $6.6m $13.2m
RE 100 $5m $10m
$11.5m $23.2m
Options for Use of Funds if Discount Reduced
CO-2 Free
energy options
$11.5m ~2.5% increase in CO2-
free energy content
Local
Development
options
EBCE staff has limited capacity to increase LD
funding beyond current levels. At most $3m could
be allocated to extend existing work.
-$1m - $2m to TE incentives
-$1m for Resilience project development
Residential C&I Total
Each 1% Change in Bright Choice 3,027,000$ 3,607,000$ 6,634,000$ Each 0.25c Change in Renewable 100 1,684,000 3,260,000 4,944,000 Total 4,711,000 6,867,000 11,578,000
Customer Savings per Incremental Change in Product Rate Attachment Staff Report Item 17B
9 Draft Budget: Proposed Surplus Allocations
Net Position Estimated at $179.5MM*
Proposed Budget Surplus Waterfall Allocation:
1) Working Capital Needs: $50MM*
2) Reserve Account Funding: $100MM*
3) 50/50% split of any excess to:*
o Incremental Long-Term Renewable Energy/Clean Energy Storage Investments: ~$14.75MM o One-time On-Bill Credits to Customers: ~$14.75MM
*Assuming a budget surplus that is materially consistent with this forecast, staff would plan for an even allocation. Formal action would be brought forth to the board to formally adopt prior to, or in conjunction with, the presentation of the audit in October of 2024. This timing would allow for staff to have exact knowledge of available surplus.

Attachment Staff Report Item 17B
Risk Management—Market Risk
10 • Historically, market prices have averaged in the $30- 50/MWh range, but currently estimated near $80/MWh
• Historically, volatility has ranged from 10-20% on a
regular basis, but currently ranging 50-60%
• In recent months, prices have softened for the Draft
Budget year, but volatility remains high
• This market volatility creates risk on working
capital requirements and basis between hedge costs and
retail rates.
• EBCE has approximately 60-80% of its budget year energy portfolio hedged against market prices with the balance effectively hedged via the PCIA - i.e. increase in market prices is offset somewhat by decrease in PCIA in future years
• When prices decrease, PCIA increases, which reduces
operating headroom
• Although the fiscal years of 2020-2021 and 2021-2022 were positive with net position, calendar year 2021 was
operationally negative in net position for EBCE with margins being squeezed from low 2020 prices setting PCIA and with rising 2021 market prices
DLAP = Default Load Aggregation Point—the hub price where EBCE serves its customers Attachment Staff Report Item 17B
Risk Management—Additional Risks
11 • Uncollectables/Write-offs:
o EBCE increased uncollectables from 0.5% to 2.5% of revenues for COVID crisis in 2020-21 FY o For FY 2022-2023 Budget, this estimation is reduced to 2.0%, and 2023-24 Draft Budget reduced further to 1.5% and 1.0% to align with trending aging actuals
o Uncollectables are at the higher range than other CCA’s based on regional income demographics o To mitigate, pushing CARE/FERA enrollments, AMP, PIPP, and Connected Communities programs DAC-GT/CS-GT • Opt-Out Risk:
o No anticipated risk of increased opt-outs for established communities o New community enrollment opt-outs are estimated at 5%-10% of total accounts—current jurisdiction-wide rate is 4.9% o Changes to value proposition or change in product decisions may increase opt-outs but difficult to estimate. Many constituents have opted-up to Renewable 100 product, which carries a slight premium relative to PG&E rates • Financial Market & Economic Risk
o Recessionary risks may drive reductions in load or an increase in uncollectables - mitigated in part by limiting overhedging o Banking sector risk may impact cash, deposits, and credit availability – mitigated by cash collateral requirements on gov't deposits, FDIC insurance, and diversification of banking deposits • Wildfire Risk:
o EBCE does not own or maintain any transmission or distribution facilities. PSPS events cause decreased customer use during peak periods, this can reduce estimated revenues if a significant area of EBCE service territory is affected o 2019 wildfire PSPS events impacted nearly 46,000 customers, disrupting 6% of load for a full day o 2020 events impacted nearly 20,000 customers disrupting about 2% of load over 4 days Attachment Staff Report Item 17B
12 Draft Budget: Local Development Fund
• 2023-2024 Local Development Fund
allocation is set at $25.9MM
• Allocating budget for capital
intensive infrastructure
development projects
• Allocating EBCE capital to reduce
cost of ownership for building and
vehicle electrification
• Unspent Local Development
budget carries forward year to year Local Development Areas of Emphasis Budget Allocation Transportation Electrification $11.75M
Building Electrification $8.5M
Energy Efficiency No Direct EBCE Cost
Community Resilience/VPPs $4M
Community Grants $1.4M ($4.2M
allocated in FY'23)
Sponsorships/Memberships $250k

LOCAL DEVELOPMENT FUND
FY 2023-24 FY 2022-23 FY 2021-22 FY 2020-21 FY 2019-20
BEGINNING BALANCE 35,927,953 16,626,143 10,398,245 5,201,410 0

REVENUE & OTHER SOURCES
Transfer from Operating Fund 25,500,000 22,550,000 8,475,000 6,340,000 6,340,000 Grants/Interest - 1,200,405 335,460 395,000 219,673
Total Revenues & Other Sources 25,500,000 23,750,405 8,810,460 6,735,000 6,559,673

EXPENSES & OTHER USES
Actual Program Expenses - 3,235,594 2,582,563 1,538,165 1,358,263 Expected Remaing Expenses 61,427,953 1,213,000 - - -
Total Expenses & Other Uses 61,427,953 4,448,594 2,582,563 1,538,165 1,358,263 ENDING BALANCE - 35,927,953 16,626,143 10,398,245 5,201,410 Attachment Staff Report Item 17B
Transportation Electrification
13 • Transportation is the largest source of emissions of GHG and particulate matter from Light, Medium and Heavy-duty vehicles
• EBCE is developing publicly available charging infrastructure tailored to renters and low-income communities to ensure these residents can transition to EVs (currently developing the first 3 charging hubs)
• Goods movement is particularly important with Port impacts to communities and access through the territory and into the Central Valley
• EBCE will continue assisting Cities to electrify fleets; providing fleet electrification technical assistance and offering to develop and operate charging infrastructure for Cities with "Charging as a Service" product
• With more vehicle models becoming available EBCE will develop programs to facilitate the buying process and make EVs accessible across all customer income levels • Partner with local agencies and local business to increase access to eMobility solutions • Provide capital to reduce cost of ownership through credit enhancements across multiple vehicle classes Attachment Staff Report Item 17B
Transportation Electrification
14 • Publicly Available Fast Charging Hubs ($3.75M)
• Funds to support EBCEs efforts to build a network of public fast chargers across the communities we serve with an emphasis on siting these chargers close to high densities of multi-family housing where home charging is often not accessible. EBCE BOD approved $30M NTE over 10 years at 11/16/22 BOD meeting • Medium/Heavy duty project investment capital ($3M)
• Funds to support Medium/Heavy duty vehicle electrification projects in EBCE territory • EV adoption acceleration program with emphasis on access for low and moderate income consumers ($3M)
• Funds to support one or more projects to accelerate EV Adoption and enroll EV drivers in manage charging programs to manage new EV electricity load with an emphasis on low and moderate income consumers • EBCE Ride Electric Program ($2M)
• Funding for year 2 of EBCE e-bike Lending and Incentive Program Attachment Staff Report Item 17B
Building Electrification
15 • Electrification installation network ($2M)
• Develop an installation network of electrical contractors to deliver reasonably priced electrification upgrades to customers
• Partner with 10-20 contractors across the territory so that customers can obtain multiple competitively priced proposals for electrical upgrades in a timely manner
• EBCE incentive enables contractors to offer standard pricing for electrical service panel upgrades that facilitate full electrification
Electrification Workforce Training Program ($1.5M)
• Increase qualified workforce for electrification
• Provide apprenticeship stipends to enable on the job training for graduates of workforce training organizations • Partner with electricians in the EBCE network to hire apprentices Attachment Staff Report Item 17B
Health-e Communities
16 Budget Request: $5M for first year of $15M 3-year Program Program Summary:
- Replace 1000 – 2000+ gas stoves with induction ranges in households with children suffering from pulmonary disease (eg. asthma) and households with a newborn child with focus on low-income and disadvantaged communities
- EBCE to deliver and install induction cooktops, while partnering with health care research partner that can provide medical referrals and complete longitudinal health study Program Development Progress
EBCE has identified a Health Care Provider with research capabilities that we are working to secure - EBCE has secured a verbal agreement for $250k in funding to support health care partnership - EBCE has identified several non-profit partners who can manage the health-care partnership - EBCE is currently hiring a building electrification channel manager to develop EBCE’s installation partner network
Attachment Staff Report Item 17B
Resilience and VPPs
Budget Request, $2M to expand Community Resilience
and Virtual Power Plant management capabilities
• Phase I: Berkeley, Hayward, San Leandro, Fremont
– Contracting for 2.7 MW solar PV + 4.8 MWh storage
across 29 sites ranging from fire stations to senior
centers, resulting in $25M in projects
– Largest procurement of its kind to date
– Received $2M in federal funds
• Phase 2: Emeryville, Livermore, Oakland, Pleasanton
– Developing additional ~50 resilience projects with

7.5 MW solar PV & 5.5 MWh storage, resulting in
$40M+ in projects
• Phase 3: Albany, Piedmont...open for additional Cities • Pursuing $35M in Federal funding to expand Resilience to school districts and other public service agencies
– Federal funding will enable facility upgrades
and electrification
• All projects will be aggregated into Virtual Power Plant to reduce EBCE procurement needs
Fremont Fire Station Microgrid
Attachment Staff Report Item 17B
Resilience and VPPs – Resilience Hubs Technical
Assistance
EBCE proposes to enhance its Community Resilience and VPP management program by adding an additional $2M to fund technical assistance for community based organizations considering the development of microgrids and resilience hubs.

At this time, EBCE does not have the internal resources to directly support the inclusion of CBO sponsored projects in our community resilience program. But with significant local, state and federal available in the form of grants to support these projects, EBCE staff is able to provide technical assistance in the form of engineering and grant writing support.

EBCE staff proposes to allocate $2m over the next two years to provide CBOs with engineering reviews of potential host sites for solar and storage microgrids and grant writing support for CBOs seeking to apply for Resilience Hub grants.

EBCE will provide these funds in the form of direct, in-kind engineering and grant writing up to $15,000 per resilience hub site. Staff will develop a streamlined process for CBOs to bring forward projects to receive this technical assistance.

Attachment Staff Report Item 17B
Community Grant (update)
19 Background:
- EBCE BOD approved $4.2M in FY'23-24 budget for 3-year Community Grant Program ($1.4M/year)
- EBCE proposes to add and additional $1.4m from this FY to fund a fourth round of grants in 2026
- EBCE staff have developed a list of grant priorities to support EBCE Programs - EBCE staff plans to issue first grant opportunity to increase education and awareness of induction cooking to start Summer 2023
- Staff and CAC Chair are collaborating to host a public workshop on June 7 to gather community feedback to develop additional grant funding cycles - Proposed Grant Solicitation timing:
- Round 1 - August 2023 / Round 2 - January 2024 / Round 3 - January 2025 / Round 4 – January 2026 Attachment Staff Report Item 17B
20 Break Page
Attachment Staff Report Item 17B
21 Draft Budget: Carbon Free Procurement
Variation in the Renewable/Carbon Free targets
• April 2022, the Board approved the “Path to Zero by
2030” for the Bright Choice product shown in the table
to the left
o Carbon Free percentages reflect renewable energy
and large hydro energy
• June 2022, the Board approved 5% increases to the
carbon free targets for calendar years 2022 and 2023,
effectively increasing both renewable and carbon free
targets
• This year, staff is proposing an additional increase in carbon free procurement that would result in an
additional 5% increase in 2023 and 10% in 2024 targets
o 2023: Carbon Free 66% --> 71% (22/23) --> 76%
o 2024: Carbon Free 71% --> 81%
Attachment Staff Report Item 17B
22 Draft Budget: Operating Revenues
• Increase to value proposition
o Bright Choice from 3% to 5% discount to PG&E
o Renewable 100 from $0.0075 to $0.0025 above PG&E
o $50 bill credit to all CARE & FERA customers in July-Sept 2023, shown as Other Operations Revenue reduction
• Assumes current rates and PCIA are unchanged through 2023 • Rates and PCIA for 2024 are non-stressed, or as expected, energy rates from May ERRA filing • 1.5% uncollectable rate for rest of 2023 and 1.0% for 2024 • No recognition of GASB 62 revenue ($15,814,000)
• Current Year Other Operations Revenue is CARE & FERA on-bill credits plus damages received from counterparties
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

REVENUE & OTHER SOURCES
GASB 62 Unrecognized Revenue Balance 15,814,000 15,814,000 15,814,000 Operating Revenue
Electricity Sales 957,028,000 792,009,000 867,591,000
Uncollectables (12,095,000) (15,840,000) (17,352,000)
Other Operations Revenue (6,642,000) (6,229,000) 10,146,000 Total Operating Revenue 938,291,000 769,940,000 860,385,000 Attachment Staff Report Item 17B
23 Draft Budget: Overview of Expenses
• Expenses are divided into three overall cost
center categories:
• Energy Operations which includes all energy,
energy attributes, and ancillary related costs
and the services required to managing
energy and attributes, such as scheduling,
data management, and customer billing
o This category comprises more than
90% of EBCE’s total expenses
• Overhead Operations which includes all
personnel and staffing needs as well as work
function cost centers required to manage
the organization at large
• Non-Operating Expenses which are all
capital and capital transfer related costs
FY 2023-24
DRAFT BUDGET % Cost

EXPENSES & OTHER USES
Energy Operating Expenses
Cost of Energy 682,367,000 89.7%
Energy Operating Services 11,219,000 1.5%
Total Energy Operating Expenses 693,586,000 91.2%
Overhead Operating Expenses
Personnel 21,911,000 2.9%
Marketing & Communications 5,303,000 0.7%
Legal, Policy, & Regulatory Affairs 3,509,000 0.5%
Other Professional Services 2,505,000 0.3%
General & Administrative 5,711,000 0.8%
Depreciation 360,000 0.0%
Total Overhead Operating Expenses 39,299,000 5.2%

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 0.2%
Local Development Funding 25,500,000 3.4%
Grant 0
Capital Expenditures 500,000 0.1%
Total Non-Operating Expenses 27,650,000 3.6%
TOTAL EXPENSES 760,535,000 100.0%
Attachment Staff Report Item 17B
24 Draft Budget: Energy Expenses
Energy Costs
• Costs are derived from a blend of contracted and
open positions for all energy, attributes, and RA
o Open prices are non-stressed, or as forecasted
o FY 23/24 overall price projections are about on
parr with FY 22/23 actuals on average
o Most materially significant increase for FY
23/24 is with RECs and capacity charges
• Carbon free energy is above recent board approved
targets by 5% for calendar 2023 and 10% for 2024
Bright Choice targets
o 2023: CF 66% --> 71% (22/23) --> 76%
o 2024: CF 71% --> 81%
o Adds up to $21MM costs
• Note: We are still in a period of historically high
energy pricing and significant uncertainty/volatility
o Forecasted market energy costs in 2023 and
2024 are approximately double the historical
10-year average and has persisted since 2021
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Energy Operating Expenses
Cost of Energy 682,367,000 523,996,000 657,984,000
Energy Operating Services 11,219,000 11,245,000 11,274,000 Total Energy Operating Expenses 693,586,000 535,241,000 669,258,000 Attachment Staff Report Item 17B
25 Draft Budget: Overhead Expenses
Material Overhead Items for FY 23-24:
• Personnel costs will be discussed more in-depth on the next slide
• $2.5MM increase in Marketing costs is specifically driven by re-branding campaign
o Also includes approx. $1MM of Programs related
marketing costs
• $1.0MM increase in Legal, Policy, & Regulatory affairs is due to a couple of factors
o Membership expansion (Stockton)
o Additional volume of consulting/vendor agreements
and power contracts
• Larger staffing demand, from Personnel costs, increases in Professional Services with HR/recruiting and additional project support
• Increase to G&A is also directly related to increase in staffing with software subscriptions, membership dues, equipment, office space, insurance, and the like
• Depreciation increases due to new building
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST
Overhead Operating Expenses
Personnel 21,911,000 15,711,000 13,131,000
Marketing & Communications 5,303,000 2,824,000 1,884,000 Legal, Policy, & Regulatory Affairs 3,509,000 2,411,000 1,661,000 Other Professional Services 2,505,000 2,293,000 1,232,000 General & Administrative 5,711,000 4,007,000 3,744,000
Depreciation 360,000 180,000 141,000
Total Overhead Operating Expenses 39,299,000 27,426,000 21,793,000 Attachment Staff Report Item 17B
26 Draft Budget: Overhead Expenses—Personnel
• FY 2021-22 Budget was initially approved at 43 FTE and expanded mid-year to 49 o 2.5% COLA and up to 5% merit-based/promotional compensation allotted o Currently at 45 FTE and interviewing for an additional 4 roles • FY 2022-23 Budget was increased to 68 FTE to accommodate additional work requirements in all areas.

Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 5 Marketing, 4 Local Programs, 3 Operations, 3 Technology, 2 Power Resources, 2 Legal • FY 2023-24 Budget seeks an additional 15 FTE to accommodate additional work requirements in all areas. Additional headcount will expand on internal expertise/skills, build more depth, and scale operations:
o 3.5% COLA and up to 10% merit-based/promotional compensation pool o 3 Marketing, 2 Local Programs, 2 Operations, 2 Technology, 3 Power Resources, 3 Legal FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

PERSONNEL
Salaries & Wages 16,587,000 11,598,000 9,784,000
Retirement 2,058,000 1,544,000 1,382,000
Health Care/Benefits 2,893,000 2,292,000 938,000
Payroll Expenses 373,000 277,000 167,000
Total 21,911,000 15,711,000 12,271,000
Attachment Staff Report Item 17B
28 Draft Budget: Organization Chart
Attachment Staff Report Item 17B
29 Draft Budget: Open Position Count
Team
# of New
Roles
Data & Tech 2
MAS 3
Operations, Admin &
Finance 2 +1
Power Resources 3
Programs 3 +1
Public Policy 2
Total New Roles: 15 + 2 (17)
● # of New Roles to budget for next FY: 15
○ Add 2 carry-over roles from FY 22-23, so 17 Total
Attachment Staff Report Item 17B
30 Draft Budget: Personnel Demographics
• Open position average costs are below current staff averages, as position band for open positions is lower than average staff
• Loading rate for new positions is expected to be complete by the end of financial Q3 (March 31, 2024)
• The average position band being hired is under the manager level Quarter Positions Filled
Q1 9
Q2 3
Q3 5
Q4 0
Expected Loading Rate for Open Positions
Current Open
Salary 157,984.45 142,368.59
Merrit 22,117.82 19,931.60
Retirement 23,887.25 21,526.13
Health Care 24,000.00 24,000.00
PTO 9,114.49 8,213.57
Life Insurance 789.92 711.84
Other 12,553.33 12,553.33
Payroll Tax 4,096.98 3,735.41
Total 254,544.25 233,040.48
*C-list is not included
Average Personnel Costs by Category*
Open Count Title
1 Analyst
2 Associate
6 Sr. Associate
1 Manager
2 Sr. Manager
4 Director
1 Sr. Director
Open Position Banding
Attachment Staff Report Item 17B
31 Draft Budget: New Positions
Team Position Title (Draft) Position Level Desired Start Comp Band $ Low (Base) $ High (Base) $ Mid (Base) Data & Tech IT HelpDesk Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Data & Tech Junior Data Engineer Analyst Q3 (Jan - Mar 2024) 3 $89,597 $117,596 $103,596 MAS Graphic Designer & Content Developer Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Copywriter Associate Q1 (Jul - Sep 2023) 4 $117,597 $133,400 $125,498 MAS Manager, Customer Experience Manager/Principal Q3 (Jan - Mar 2024) 6 $151,319 $167,170 $159,245 Operations, Admin &
Finance Sr. Mgr / Mgr, Structured Finance (TBD) Sr Manager/Sr Principal Q2 (Oct - Dec 2023) 7 $167,171 $190,393 $178,782 Operations, Admin &
Finance Finance Associate Associate Q2 (Oct - Dec 2023) 4 $117,597 $133,400 $125,498 Operations, Admin &
Finance
Coordinator, Ops & Admin
(Carry-over from last yr) Coordinator Q1 (Jul - Sep 2023) 2 $69,174 $89,596 $79,385 Power Resources Contract Manager Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources "CAISO Day Ahead Manager" Level Manager/Principal Q1 (Jul - Sep 2023) 7 $167,171 $190,393 $178,782 Power Resources Settlements Manager Manager/Principal Q3 (Jan - Mar 2024) 7 $167,171 $190,393 $178,782 Programs Programs Director Role Director Q1 (Jul - Sep 2023) 8 $190,394 $219,052 $204,723 Programs Program Lead / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Solar & Storage Programs / Associate Associate Q3 (Jan - Mar 2024) 4 $117,597 $133,400 $125,498 Programs Project Manager (Carry-over from last yr) Sr Associate Q2 (Oct - Dec 2023) 5 $133,401 $151,318 $142,360 Public Policy Contract Management Manager/Principal Q1 (Jul - Sep 2023) 6 $151,319 $167,170 $159,245 Public Policy Regulatory Analyst Analyst Q2 (Oct - Dec 2023) 3 $89,597 $117,596 $103,596 Attachment Staff Report Item 17B
32 Draft Budget: Overhead Expenses—Marketing &
Account Services
Next Year Material Items:
• Majority of increase is driven by $2.6MM allocation for our first major foray into customer facing program campaigns where we are trying to acquire customers to participate and/or use our equipment (e.g. e-Bike, DCFC stations, induction cooking and EV adoption). Additionally, EBCE’s rebranding campaign will carry incremental costs beyond past year marketing spends that will pull from this allocation Included in cost items is approximately $1.0MM dedicated to Programs related marketing costs
• Required Mailings: Joint Rate Mailer w/ PG&E, Power Content Label, New Account Noticing
• Advertising: Active community presence activities, sponsorships, local events, increase due to Stockton and rebranding campaigns • Promotional Items: Give away items
• Communications: Public relations, media, newsletters, consultants, minor software needs--Website development from rebranding is biggest cost item at $1MM
Current Year Material Items:

Marketing has lower cost with advertising and
communications consultant due to shifting in
Programs related needs with Resilient Home and
BlocPower campaigns
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

MARKETING
Required Mailings 282,000 520,000 483,000
Advertising 2,044,000 986,000 572,000
Promotional Items 123,000 50,000 38,000
Communications 2,854,000 1,268,000 790,000
Total 5,303,000 2,824,000 1,883,000
Attachment Staff Report Item 17B
33 Draft Budget: Overhead Expenses—Legal, Policy, &
Regulatory Affairs
Current year spending was less than budgeted this year due to a delay in expected litigation expenses and unused contingency set aside
Next Year:
• Legal Consultants: Outside general counsel for procurement, analysis, and general operations.

Increase is driven by:
o Multiple pending and on-going litigations expenses
o 2023 Large Clean Energy RFO
o Implementation of numerous local development initiatives o Additional volume of consulting/vendor agreements and power contracts • Legislative Consultants: Retainer for legislative advocacy. For this coming fiscal year, EBCE has added additional resources focused on federal affairs to support both funding and policy initiatives. • Other Consultants: Policy related advising and economic consulting FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

LEGAL AND POLICY
Legal Consultants 3,117,000 2,135,000 1,445,000
Legislative Consultants 237,000 177,000 180,000
Other Consultants 155,000 147,000 36,000
Total 3,509,000 2,459,000 1,661,000
Attachment Staff Report Item 17B
34 Draft Budget: Overhead Expenses—Other Professional
Services
Next Year Material Items:
• Operations: Accounting and auditing for financial
compliance, general finance, and addition of new
project with treasury management consulting
• Human Resources Consulting: Support for additional
HR demand for increased staffing recruitment,
professional development, and training
• Tech Consulting: Technical network assistance
• Power Resources: Technical consulting for Power
Resources, operational compliance support and other
various tasks
Current Year Material Items:
• HR consulting was approximated as first year need
for consulting. Hiring of HR lead has led to reduced
costs with active management
• Technology Consulting is lower than expected with
reevaluation of timeline for cost-of-service
implementation
• Power Resources consulting lower than expected
with IRP below budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

OPERATIONS CONSULTANTS
Operations 881,000 315,000 444,000
Human Resources Consulting 634,000 1,000,000 327,000
Tech Consulting 360,000 325,000 188,000
Power Resources 630,000 605,000 273,000
Total 2,505,000 2,245,000 1,232,000
Attachment Staff Report Item 17B
35 Draft Budget: Overhead Expenses—General & Administrative Next Year Material Items:
• Operational Expenses: Increased staff costs related to insurance, service fees, supplies, membership dues,
operational services, building maintenance, and other
relevant G&A
• Software, Subscriptions, SaaS: Increase covers
additional software needs for Finance, Power
Resource, and Technology operations, as well as
essential subscriptions for ongoing operations with
expanded staff
• Rent & Utilities: Increases with office space needs
due to expanded staff
• Conferences & Professional Development: Trainings,
conferences, and related expenses
• Board & Director Fees: Monthly stipends and
transportation reimbursements for board members
Current Year Material Items:
• Operational Expenses were higher than expected primarily due to inflationary increases in insurance costs and industry memberships dues
• Software costs were lower with delay in implementing
customer portal development and battery optimization as well as data storage was under budget
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

GENERAL OPERATIONS
Operational Expenses 1,523,000 1,039,000 1,387,000
Software, Subscriptions, SaaS 2,676,000 2,345,000 1,506,000 Small Equipment 510,000 210,000 101,000
Rent & Utilties 764,000 345,000 569,000
Conferences & Prof. Development 160,000 130,000 127,000 Board & Director Fees 78,000 50,000 53,000
Total 5,711,000 4,119,000 3,743,000
Attachment Staff Report Item 17B
36 Draft Budget: Non-Operating Activity
• Non-Operational Revenue: Interest earned on Treasury backed cash account balances (estimated at 2.5%) and BlocPower loan (5.5% on $500k)
• Grants: Generally only recognized against qualifying expenses as incurred, thus not projected
• Other Non-Operational Revenue: Rent from AT&T tower on new building
• Borrowing Interest Expenses: Expected costs associated with expanded credit facility
• Local Development Funding: Capital transfer to Local
Development Fund
• Capital Expenditures: Moving and new equipment/furniture related to new office space
FY 2023-24 FY 2022-23 FY 2022-23
DRAFT BUDGET BUDGET YTD* + EST

NON-OPERATING REVENUE
Interest Income 1,680,000 261,000 1,837,000
Grants 0 0 1,272,000
Other Non-Operating Revenue 48,000 15,000 166,000
Total Non-Operating Revenue 1,728,000 276,000 3,275,000

NON-OPERATING EXPENSES
Borrowing Interest 1,650,000 1,440,000 570,000
Local Development Funding 25,500,000 22,550,000 22,550,000 Grant 0 0 0
Capital Expenditures 500,000 7,000,000 773,000
Total Non-Operating Expenses 27,650,000 30,990,000 23,893,000 NET NON-OPERATING ACTIVITY (25,922,000) (30,714,000) (20,618,000) Attachment Staff Report Item 17B
Thank You!
@PoweredbyEBCE
[email protected]
37 Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
Attachment Staff Report Item 17B
Public Comment Period: May 18 - June 9, 2023
Overview of Public Process and
Summary of Comments
As part of East Bay Community Energy’s (EBCE) rate setting process, staff hosted an open public comment period regarding our proposed value proposition changes for fiscal year 2023 - 2024. Staff opened this session with the email shown in Image 1, below.

Image 1: Introduction and webinar invitation email, sent on May 18, 2023 Attachment Staff Report Item 17C
In addition to the email to EBCE’s subscribers, staff advertised the webinar and public comment period via Facebook, Instagram, NextDoor, and Twitter. Sharing statistics are in Table 1, in the section below.

After the webinars, the recordings were added to EBCE’s rates website at https://ebce.org/rates/.

Webinar and Public Comment Marketing and
Communications
Date Source Content # of Views or Opens
5/18/2023 Email - 3,483 delivered
- 3,016 total opens
- 1,790 unique opens
5/18/2023 Facebook 31
5/18/2023 Twitter 58
5/18/2023 Instagram 59
Attachment Staff Report Item 17C
5/18/2023 LinkedIn 301
5/23/2023 NextDoor 11,212
5/24/2023 Facebook 25
5/24/2023 Twitter 84
5/24/2023 Instagram 43
5/25/2023 Zoom Webinar Registred: 6 Attended: 2
Public Comment: 0
6/03/2023 Zoom Webinar Registered: 5 Attended: 1
Public Comment: 0
6/06/2023 Zoom Webinar Registered: 8 Attended: 3
Public Comment: 2
6/09/2023 Youtube Video of
Webinar #2
EBCE 2023-2024
Proposed Value
Proposition Webinar
(6/3/2023)
Views: 25
Attachment Staff Report Item 17C
6/09/2023 Youtube Video of
Webinar #3
EBCE 2023-2024
Proposed Value
Proposition Webinar
(6/6/2023)
Views: 6
Table 1: Event advertising and customer participation
Summary Overview of Comments
Two verbal comments and one written comment were received, which are summarized below.

Comments and questions were received from the following individuals and/or organizations:

Verbal Comments Written Comments
Jim Lutz: community member, Oakland Jim Lutz: community member, Oakland Charles Mee: adjacent community member,
Danville
Stephen Taylor: community member,
Berkeley
Summary of Comments:
● Jim Lutz (oral and written): community member (also member of EBCE CAC), Oakland, CA
Lutz wanted to express his dissatisfaction with the length and complexity of PG&E bills.

He would like the bills to appear shorter, with fewer line items. Lutz compared EBCE and PG&E to Alameda Municipal Power’s less complex energy bills. They would like EBCE to unlink our rates from PG&E to offer lower rates for customers in transitioning to a cost of service model.
● Charles Mee (oral): adjacent community member, Danville, CA Mee inquired regarding renewable percentage of Bright Choice, and wanted to express support for the energy movement of CCAs generally. Mr. Mee was informed that the CCA in their service territory is MCE.
● Stephen Taylor (written): community member, Berkeley
Taylor commented in support of the proposed 2023-2024 value proposition and provided general support for lowering rates or discounts in relation to PG&E’s generation rates, maintaining a 3% discount or greater.

Attachment Staff Report Item 17C
Verbal Public Comments
Public comments were gathered at two webinars. Links to the staff presentation and the comments can be found on our website at ebce.org/rates and here:
● Thursday, May 25, 2023 at 6:00 pm
● Sunday, June 3, 2023 at 9:00 pm
● Tuesday, June 6, 2023 at 12:00 pm
5/25/2022 Webinar: Public Comments
● No Public Comments Made
6/3/2022 Webinar: Public Comments
● No Public Comments Made
6/6/2022 Webinar: Public Comments
● Charles Mee: adjacent community member, Danville
Transcript: I am a new resident of Danville in this area so that is why I tried to learn this a long time ago and tried to catch up with this movement, which is really meaningful.

And also because maybe we are new we kind of want to get more educated about the local CCA program to see how we can personally benefit from this program, secondly how can we help to improve the program.
● Jim Lutz: community member (also member of EBCE CAC), Oakland Transcript: Thank you for doing this I was curious about I want and wanted to compare my understanding to understand the utility bill so I am trying to reverse engineer he PG&E bill and oh my goodness it's complicated there's 27 line items on it just the electricity not counting the gas and I wanted to compare it to a friend of mine in Alameda.

In Alameda Municipal Power and just to see how the rates compare, because I think it’s, I’m not sure we should be comparing PG&E as our value Proposition. So the PG&E bill was 6 pages long so one page of that was the gas so it's five pages about electricity.

The Alameda Municipal Power, AMP as they call it I think that’s cute, they were two pages and there were four line items. That's how the charges broke down and on the PG&E there were 27 line items so it's very very complicated to decode a PG&E bill and try to see what I’m saving from the bill. So, but just as a comparison to the AMP the Alameda one there's an energy charge and a customer charge at the sort of highest level there's a PG&E electric delivery charges page and an EBCE electric generation charges page. And for my bill it turned out the charges, the generation charges, which Attachment Staff Report Item 17C
I’m assuming are equivalent charges on the Alameda bill - on my bill on the time of use and the Renewable 100 but the average cents per kilowatt-hour for my generation charges was 13.8 and for the Alameda it was 11.7 cents per kilowatt-hour so the Alameda ones are significantly lower and that suggests that to me that we shouldn't be tieing to PG&E, we should be providing rates that make sense to EBCE and keep them lower as is fiscally prudent. That's it, thank you.

Written Public Comments
Full Written Comments
● Jim Lutz: community member (also member of EBCE CAC), Oakland, CA Submitted June 9, 2023
Dear EBCE Board,
I am submitting this comment in response to the EBCE 2023-2024 Proposed Value Proposition Webinar I attended on June 6. The rate changes proposed by staff were to increase the Bright Choice discount relative to PG&E rates from 3% to 5% and to reduce the Renewable 100 premium relative to PG&E rates from ¾% to ¼%.

Since EBCE began, its rates have always been established relative to PG&E’s rates for comparable products. While this may have been appropriate for a newly established community energy agency, it is no longer necessary. I believe this practice is now leading EBCE to charge its customers more than it should.

A more fiscally responsible method of setting rates would be to estimate operating costs, including appropriate market volatility risks and maintaining prudent reserves, and then divide those costs across the total projected energy sales, while preserving the current incremental rate differences between the various EBCE products (Bright Choice and Renewable 100) and rate classes.

EBCE states that, as a Renewable 100 customer, I’m paying only ¾ percent more per kWh today than I would be paying if I were a PG&E customer.

While I believe this to be true, there is no way I can confirm it by examining my own PG&E bill.

To get a rough estimate of the reasonableness of EBCE electric generation charges, I compared my November 2022 PG&E bill with the November bill of a friend of mine who lives in Alameda. My EBCE Attachment Staff Report Item 17C
generation-only charges divided by my kWh usage for the month was 13.81 cents per kWh. The energy charges from the Alameda Municipal Power (AMP) bill for the same month was 11.72 cents per kWh. For basically the same rate class, EBCE generation charges were 17.8% higher than AMP energy charges. While I do not know what EBCE is paying to procure electricity, to me this dramatic difference in generation charges suggests significant opportunities for potential rate reductions for EBCE customers if our rates were calculated independently and not tied to PG&E’s.

I’m asking the Board to consider directing staff to evaluate other ways of setting rates for customers, given EBCE’s successful operations so far.

Sincerely, your loyal customer,
Jim Lutz
PS: I am a member of the Community Advisory Committee, but I am submitting this comment on behalf of myself.

PPS: My original email to [email protected] was returned by google mail with a message the group I was trying to contact (publiccomment) may not exist or I didn't have permission to post messages to the group. ● Stephen Taylor: community member, Berkeley
Submitted June 5, 2023; Resubmitted June 12, 2023 (due to technical issues related to the email address)
Dear EBCE:

In response to your request for comment on your proposed new rate plan, please rest assured that I support lowering your rates relative to PG&E, to create a 3% discount or greater.

Sincerely,
Stephen A. Taylor
Berkeley, CA
Attachments

1. PDF of Presentation made during webinars
Attachment Staff Report Item 17C

2. PDF of Public Comments Summary Report Presentation to the BOD Attachment Staff Report Item 17C
2023-2024 EBCE
Value Proposition:

Public Comment
Attachment Staff Report Item 17D
Public Meeting Reminders
● Thank you for participating in our public meeting
● The video and audio from this meeting will be posted on our website ● We will provide a brief introduction to the proposed policy and then allow for your comments
○ Everyone will be muted until the public comment period ● Please be prepared to provide:
○ Your name
○ Organization, if applicable
○ City of residence or business location
○ Your comment
2 Attachment Staff Report Item 17D
What is EBCE?
East Bay Community Energy (EBCE)
is our local power supplier
committed to providing Alameda
County and the city of Tracy with
more renewable energy at lower
rates. EBCE reinvests earnings back
into the community to create local
jobs, administer customer
programs, and catalyze sustainable
development.
3 Attachment Staff Report Item 17D
How it Works

PG&E DELIVERS THE POWER
EBCE’s power is delivered to customers
by PG&E. Customers
pay PG&E for power delivery
as they always have.

YOU GET THE POWER

AND ALL THE BENEFITS
You benefit from cleaner energy,
low rates, local governance,
and innovative programs.

EBCE BUYS CLEAN POWER
EBCE buys from, and is building, clean
power plants. EBCE sells the energy to
customers at low rates.
4 Attachment Staff Report Item 17D
Definitions
5 Attachment Staff Report Item 17D
EBCE Service Plan Choices Today
RENEWABLE 100
100% California solar & wind
energy at $0.0075 (¾) cent per kilowatt-hour
above PG&E rates

BRIGHT CHOICE
Rates 3% below PG&E with a goal to be
carbon-free by 2030
6 Attachment Staff Report Item 17D
Default Service
Jurisdiction Commercial Residential CARE/FERA/
Medical Baseline
Albany, Berkeley, Dublin,
Emeryville, Hayward, Pleasanton,
San Leandro
Renewable 100 Renewable 100 Bright Choice
Piedmont Bright Choice Renewable 100 Bright Choice
Livermore, Newark, Oakland,
Tracy, Union City, and County of
Alameda
Bright Choice Bright Choice Bright Choice
7 Attachment Staff Report Item 17D
Additional Terms
● Rates – what EBCE charges customers for electricity,
currently updated when PG&E changes their
generation rates or fees
● (Rate) Value proposition – the cost comparison to
PG&E rates based on EBCE product
○ EBCE brings additional value to our community. This is only about the direct financial value to our customers.

EBCE has saved Bright Choice customers
over $37 million since 2018
8 Attachment Staff Report Item 17D
2023-2024
Recommendations
9 Attachment Staff Report Item 17D
2023-2024 Forecast
● Energy prices are high this year
● PG&E raised their generation rates
○ EBCE sets our rates based on PG&E rates - today offering a 3% discount compared to PG&E
● EBCE’s rates to procure power have also increased, but not as much as PG&E’s rates
10 Attachment Staff Report Item 17D
EBCE Staff Recommendation
Value proposition update:
● Increase the Bright Choice discount from 3% to 5% savings to PG&E
● Decrease the Renewable 100 premium from $0.0075 (¾ of a penny) to $0.0025 (¼ of a penny) above PG&E
● $50 bill credit to all CARE & FERA customers
Potential for an annual on-bill credit to customers
depending on market conditions. Credit would be
applied during the subsequent fiscal year.
11 Attachment Staff Report Item 17D
Residential Bill Estimates
Customer Type: Residential 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Residential Bright Choice
Electric Bill
$129.12 $128.15
Monthly Savings to PG&E $1.45 $2.42
Renewable 100 Premium $0.0075 per kWh (¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Residential Renewable
100 Electric Bill
$134.04 $132.21
Monthly Renewable 100 Premium $2.74 $0.91
Average residential customer uses 390 kWh per month 12
Attachment Staff Report Item 17D
Small Commercial Bill Estimates
Customer Type: Small Commercial 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Bright Choice Electric Bill $479.78 $476.11
Monthly Savings to PG&E $5.50 $9.17
Renewable 100 Premium $0.0075 per kWh (¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Renewable 100 Electric
Bill
$498.53 $491.53
Monthly Renewable 100 Premium $10.50 $3.50
Average Small Commercial (B1) customer uses 1,800 kWh per month 13 Attachment Staff Report Item 17D
Large Commercial Bill Estimates
Customer Type: Large Commercial 2022-2023 (Today) 2023-2024 (after July) Bright Choice Discount 3% 5%
Average Bright Choice Electric Bill $61,963.27 $61,359.87 Monthly Savings to PG&E $905.09 $1,508.49
Renewable 100 Premium $0.0075 per kWh(¾ of one cent) $0.0025 per kWh (¼ of one cent) Average Renewable 100 Electric
Bill
$65,103.37 $63,901.00
Monthly Renewable 100 Premium $1,803.55 $601.18
Average Large Commercial (B19) customer uses 162,700 kWh per month and has a demand of 487 kW 14
Attachment Staff Report Item 17D
East Bay Community Energy Timeline
2019
Value Proposition:

No Change
2020
Value Proposition:

Bright Choice Discount: 1%
Brilliant 100: At Parity
Renewable 100 Premium: $0.01
2021
EBCE began service:

Tracy, Pleasanton, & Newark
Value Proposition:

No Change
2022
Brilliant 100 Sunset
Value Proposition:

Bright Choice Discount: 3%
Renewable 100 Premium: $0.0075
2023
Proposed Value Proposition:

Bright Choice Discount: 5%
Renewable 100 Premium: $0.0025
2025
Planned - EBCE
begins Service:

Stockton
2018
EBCE Service Started:

Commercial: June
Residential: November
Value Proposition:

Bright Choice Discount: 1.5%
Brilliant 100: At Parity
Renewable 100 Premium: $0.01
15 Attachment Staff Report Item 17D
Public Comment
Period
16 Attachment Staff Report Item 17D
How to Participate
● Click on the Q&A bubble
● Enter your name, city, and organization into the text box ○ Note that everyone on the call will see what you type into the chat box ● We will call on each speaker in the order we received the chat, we’ll then disable the mute feature for each speaker
● Please be conscientious of the time. Every speaker will be allowed three minutes.
● Note that this webinar is being recorded and will be posted to our website
17 Attachment Staff Report Item 17D
Thank You for Participating
● EBCE staff’s next steps:
○ Post this webinar, including the audio recording of your comments, on our website at ebce.org/rates
○ Summarize all public comments in the staff report to Board ○ Present summary and value proposition recommendation at Board of Directors meeting on June 21 as part of the next fiscal year’s budget ● Additional comment opportunities:
○ Written comments may be emailed to [email protected] ● All comments are due by Friday, June 9, 2023 at 8 AM
18 Attachment Staff Report Item 17D
Comments
Welcome at:

[email protected]
19 Attachment Staff Report Item 17D
Public Comments
Summary Report
June 21, 2023
Attachment Staff Report Item 17E
2023 Process
Webinars Written Comments
Thursday, May 25, 2023, at 6pm
● 6 registered, 2 Attended
● 0 Public Comments
Saturday, June 3, 2023, at 9:00am
● 5 registered, 1 Attended
● 0 Public Comments
Tuesday, May 31, 2023, at 12pm
● 8 registered, 3 attendees
● 2 Public Comments
Opened on May 18
Closed at 8am on Friday, June 9
● 2 written comments received
Attachment Staff Report Item 17E
Respondent Demographics
City of Residence/Business Written Verbal
Berkeley 1
Oakland 1 1
Danville 1
TOTAL 2 2
Unique respondents = 3
Attachment Staff Report Item 17E
Outreach and Interactions
Date Source # of Views or Opens
5/18/2023 Email 3,016 total opens
1,790 unique opens
5/18/2023 Facebook 31
5/18/2023 Twitter 58
5/18/2023 Instagram 59
5/18/2023 LinkedIn 301
5/23/2023 NextDoor 11,212
5/24/2023 Facebook 25
5/24/2023 Twitter 84
5/24/2023 Instagram 43
Attachment Staff Report Item 17E
Summary of Comments
Comments Occurrence
Cost:
● Support for 2023-2024 Value Proposition
● De-pegging EBCE’s generation rates from PG&E for a Cost-of-Service Generation Rate Model 1 1
Billing:
● Reduced length and Complexity of PG&E bills 1
Community Choice Aggregation (CCA):
● General Support for Community Choice Aggregation 1
Attachment Staff Report Item 17E

Ava Community Energy Board of DirectorsJune 21, 2023

Ava Community Energy Board of Directors
June 21, 2023