Draft Minutes
Executive Committee Meeting
Wednesday, November 1, 2023
9:00 am
In Person:
Conference Room 5
Ava Community Energy
(formally East Bay Community Energy)
1999 Harrison St., Suite 2300
Oakland, CA 94612
Or from the following location:
Dublin City Hall - 100 Civic Plaza, Dublin, CA 94568
Via Zoom:
https://us02web.zoom.us/j/88267670367
Or join by phone:
Dial(for higher quality, dial a number based on your current location):
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Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906- 0491 or [email protected].
If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting.
1. Welcome & Roll Call
Present: Members: Tiedemann (Albany), Kalb (Oakland), Marquez (Alameda County) and Chair Balch (Pleasanton)
Excused: Member Hu (Dublin)
Member Kalb joined the meeting at 9:24am.
2. Public Comment
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This item is reserved for persons wishing to address the Executive Committee on any Ava Community Energy-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called.
As with all public comment, members of the public who wish to address the Committee are customarily limited to three minutes per speaker and must complete an electronic speaker slip. The Executive Committee Chair may increase or decrease the time allotted to each speaker.
(1:07) Public Comment: Jessica Tovar raised concerns about $14.75 million being unallocated in the latest budget session, initially earmarked for bill credits, and stressed the need for clear and detailed budgeting to ensure proper fund allocation. Jessica Tovar noted a discrepancy in the proposed bill credits for residential versus municipal and commercial accounts, advocating for transparency in budget distribution, and emphasized the importance of investing in energy resilience and addressing environmental injustice, particularly in communities historically affected. Tovar urged the agency to commit to local development solutions that tackle both local pollution and broader climate change challenges
3. (7:04) Approval of Minutes from June 7, 2023 and October 4, 2023 Member Tiedemann noted one needed correction to the October 4, 2023 minutes.
In the Committee Member and Staff Announcements, Chair Balch requested that staff discuss the Power Content Label controls and certification process on behalf of Pleasanton, not Oakland.
Member Tiedemann motioned to approve the minutes pending correction. Member Marquez seconded the motion, which passed 3/0/2.
Yes: Members Tiedemann, Marquez and Chair Balch
Excused: Members Hu and Kalb
4. (8:11) Ava Solar Billing Plan Proposal (Informational Item) Discussion about Ava Solar Billing Plan Proposal
Staff provided an overview of the base solar billing plan being implemented by PG&E and CPUC, which changes the compensation rate for solar exports through a new Avoided Cost Calculation (ACC) rate called the Energy Export Credit (ECC). They noted Ava aims to provide consistency with PG&E but better value for customers.
Ava plans differentiated offerings including capacity-based battery storage payments to incentivize solar+storage, export adders above PG&E's credits for certain customers/times to encourage exports that benefit the grid during peak times, and a 5- year timeline to establish benchmarks before reassessing the program.
Staff modeled impacts for average residential customers, comparing base PG&E solar billing credits to credits with Ava adders. Adders would cost around $8 million more over 5 years.
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Staff recommend further developing the proposed battery storage incentive program and implementing export adders for now over a 5-year term.
(22:49) Chair Balch asked if the batteries are smart enough for Ava to control when they are charging/discharging. CEO Chaset responded that the batteries can be controlled, but Ava may not need that level of direct control. Mainly they want the batteries connected to Ava's system for monitoring and incentive payment purposes. (32:46) Public Comment: Jessica Tovar emphasized the foundational purpose of community choice aggregation, highlighting its objective to surpass the standards and offerings of traditional utilities like PG&E. She stressed the importance of recognizing and maintaining the unique character and goals of community choice, which is tailored to address the distinct energy needs of various communities. Jessica Tovar also raised concerns about the current Solar Billing Plan Proposal. She pointed out that the proposal's approach to net billing tariffs contradicts a resolution passed by the agency in 2021, which opposed the CPUC's actions. She acknowledged the positive aspect of incentivizing batteries in the proposal but suggested that modifications are needed to enhance the proposal's effectiveness.
(34:51) Public Comment – Elsa Potter, representing the Local Clean Energy Alliance, posed a question regarding the financial aspects of Ava Community Energy's Solar Billing Plan. She referred to the graph on slide 10 (“Ava Financial Impacts – Credits Provided for Exports) that showed a significant difference (approximately $9 million) in payments by Ava Community Energy under the base solar billing plan and with the inclusion of Ava adders in total. Potter expressed interest in understanding how this amount is divided between the Ava adders and capacity payments. She highlighted the importance of distinguishing these two components, as they serve different purposes: one acting as a feed-in tariff and the other related to peak load management. Potter requested a detailed breakdown to clarify how much funding is allocated towards capacity payments and Ava adders
(38:54) Member Kalb asked if other CCAs are taking a similar approach. CEO Chaset said yes, Ava's proposal mirrors what other CCAs like Clean Power Alliance are doing. (40:09) Member Kalb asked which solar industry groups Ava has consulted. CEO Chaset said they have talked to the state solar trade association CalSSA and local installers.
(41:19) Member Tiedemann asked for more detail on how the Energy Export Credit (also known as the Avoided Cost Calculation) is calculated. Staff explained that this rate is based on the forecasted market price of energy that they have avoided buying. (43:10) Member Tiedemann asked if staff was trying to simplify the pitch for solar energy by aiming to match PG&E's system while adding extra benefits for easier comparison with systems like NEM 2.0 and 3.0. CEO Chaset emphasized the role of batteries in enhancing the value of solar energy for home use and offsetting more of the PG&E bill.
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He highlighted plans to subsidize batteries, making solar energy more accessible and cost-effective for consumers.
(45:58) Member Marquez asked how many current solar customers have battery storage. Staff said very few, only about 60,000 total solar customers and batteries are still relatively new.
(47:50) Member Marquez asked when the new policy would have to be implemented.
Staff explained PG&E is rolling it out starting Dec 2023, but that the bulk of new solar installations this year are locked in NEM 2.0.
(50:28) Chair Balch asked why Ava is not just offering a simple battery rebate. CEO Chaset explained that payments over time tied to peak load management performance are better to ensure batteries are programmed to benefit the grid. (52:55) Chair Balch expressed support for the current direction of solar energy development, considering it a low-hanging fruit opportunity for local capacity and load management. He suggested that the budget might allocate local development dollars for additional incentives like rebates to promote solar and battery installations. CEO Chaset agreed, highlighting the flexibility of their structure to enhance benefits like capacity payments, thus promoting battery installations for peak management and clean energy. (56:51) Member Marquez inquired about incentivizing batteries for low-income households, to which CEO Chaset responded affirmatively, outlining a simplified structure offering different incentives based on customer categories. They also discussed the process of communicating these changes to solar installers, emphasizing training and software updates. Chair Balch also noted the potential for adjusting benefit rates based on the agency's financial situation and concluded that the strategy would be reassessed in five years, with annual budget considerations allowing for adjustments.
5. Closed Session
a. Public Employee Performance Evaluation pursuant to Government Code § 54957: Chief Executive Officer.
6. General Report Out of Closed Session
There were no items to report out of Closed Session.
7. Committee Member and Staff Announcements including requests to place items on future Executive Committee Agendas
There were no Committee Member or Staff Announcements.
8. Adjourn at 11:17am.
The next Executive Committee meeting will be held on Wednesday, December 6, 2023.