Renewable 100 Cost
Allocation Methodology
July 10, 2024
1. Background
2. Renewable Cost Allocation
Methodology Options
3. Rate Implications
4. Feedback & Next Steps
Background
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• Historically, Renewable 100 pricing is set at a premium to PG&E rates. This premium is set based on the differential cost to serve R100 customers relative to Bright Choice customers. o Certain components of the rates are rising
o Historically Ava has blended all renewable energy costs uniformly across Bright Choice and R100 with the cost differential based on the increased % of renewable energy in R100. o Our historical method of allocating costs associated with energy components may not be the best option for our customers and our agency moving forward due to rising renewable energy costs and large changes to R100 city-wide opt-ups.
Ava requires a Cost Allocation Method to formally allocate procurement costs from renewables to develop our
Renewable 100 and Bright Choice rates
Ava Service Plans: Renewable 100 and
Bright Choice
City of Fremont
Renewable 100
Transition
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Why is there a Price
Impact for a
Fremont Opt-up,
but not
Historically?
Cost Allocation
Methodology Options
Options: How toBlend Renewable Energy
Components intoa Rate
Energy Prices
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Rate Implications
Cost AllocationMethodology Scenarios
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Considerations •
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Next Steps •
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Thank you!