Draft Minutes
Board of Directors Meeting
Wednesday, February 19, 2025
6:00 pm
In Person:
The Lake Merritt Room
Cal State East Bay - the Oakland Center
In the Transpacific Centre
1000 Broadway, Suite 109
Oakland, CA 94607
Or from the following locations:
• Albany Community Center - 1249 Marin Ave, Albany, CA 94706 • 9175 Lark St Elk Grove, CA 95624
• Clipper Club - 5 Captain Dr. Emeryville, CA 94608
• Hayward City Hall - 777 B St Hayward, CA 94541
• 1100 Webster St Oakland CA 94607
• San Joaquin County Administration Building, 44 N. San Joaquin Street Room 145, 1st floor, Stockton, California 95202
• 1755 Harvest Landing Ln., Tracy, CA 95376
Via Zoom:
https://ebce-org.zoom.us/j/87023071843
Or join by phone:
Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free)
Webinar ID: 870 2307 1843
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 Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting.
1. Oath of Office
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The following Members were sworn in:
Councilmember Dan Goldstein (Hayward – Alternate)
Councilmember Rowena Brown (Oakland - Primary)
Supervisor Robert Rickman (San Joaquin County – Primary)
2. Welcome & Roll Call
Present: Members: Marquez (Alameda County), Lopez (Albany), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Goldstein (Hayward), Barrientos (Livermore), Del Catancio (Newark), Brown (Oakland), Rickman (San Joaquin County), Gonzalez (San Leandro), Fugazi (Stockton), Nygard (Tracy), Sakakihara (Union City), CAC Chair Hernandez (Community Advisory Committee), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton)
Not Present: Members: Keng (Fremont) and Member Diallo (Lathrop), Please note that Member Goldstein served as an alternate for Member Roche (Hayward).
Member Barrientos joined the meeting at 6:14pm.
Member Gonzalez joined the meeting at 6:25pm.
3. (1:01) Pledge of Allegiance
Member Sakakihara led the body in reciting the Pledge of Allegiance.
4. (1:14) Public Comment
This item is reserved for persons wishing to address the Board on any Ava-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 Board are customarily limited to two minutes per speaker and must complete an electronic speaker slip. The Board Chair may increase or decrease the time allotted to each speaker.
There were no speakers for public comment.
CONSENT AGENDA
5. Approval of Minutes from January 15, 2025
6. Contracts Entered Into (Informational Item)
7. PC Professional Contract Amendment
Add a fifth amendment to add $100,000 to the PC Professional Contract
8. Amend Agreement with Dakota Press
Increase the NTE amount in the contract from $200k to $400k Ava Community Energy
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9. Increased Budget for Coastal Cloud Consulting
Amend the CSA with Coastal Cloud, LLC to add $50,000 to the NTE for a total NTE of $149,900.
10.2nd Amendment to Aramis Confirm
Approval to negotiate & execute a 2nd Amendment to the Aramis RA Confirm
11.First Amendment to Cascade Energy Contract
Approval to negotiate and execute a first amendment to Cascade Energy Contract
12.Appoint a Treasurer
Appoint CFO as Treasurer
13.Omni Government Relations Contract Amendment
Extend CSA for an additional term of 1 year and add to the NTE (3:36) Member Marquez motioned to approve the Consent Agenda. Member Morada seconded the motion, which was approved 14/0/0/0/4. (yes/no/abstain/recuse/not present).
Yes: Members: Marquez, Lopez, Tregub, Morada, Kaur, Goldstein, Del Catancio, Brown, Rickman, Fugazi, Nygard, Sakakihara and Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Keng, Diallo, Barrientos and Gonzalez
REGULAR AGENDA
14.(5:27) CEO Report
CEO Howard Chang summarized the February 5 Executive Committee meeting, where members received a mid-year budget update and a briefing on the Moss Landing battery fire. He also announced that future Executive Committee meetings will now take place at on the first Wednesday of each month at 3:00pm instead of 9:00am CEO Chang spoke about the fire at the Moss Landing battery storage facility and provided an overview of Ava’s battery storage portfolio.
CEO Chang introduced two new employees: Cheri Tse, who joined as a Clean Energy Services Analyst focusing on Ava’s DC fast charge network, and Russell “Rusty” Mills, the new Chief Financial Officer.
Finally, CEO Chang spoke about the launch of Ava’s first DC fast charging station in Downtown Oakland at City Center West Garage. He also provided an update on the enrollment of Stockton and Lathrop customers, set to begin in April 2025.
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15.(19:20) CAC Report
CAC Chair Hernandez provided an update on the Community Advisory Committee’s recent discussions, including outreach efforts for Stockton and Lathrop, the Critical Municipal Facilities Program, and energy affordability initiatives. He stated that the committee is focused on understanding electricity costs, advocating for consumer savings, and evaluating Ava’s role in regulatory matters, with two ad hoc committees dedicated to energy affordability and the Local Development Business Plan. CAC Chair Hernandez also stated that CAC members expressed interest in ensuring that Ava’s rate-payers understand rate savings options.
16.(26:07) Rate Setting Methodology and Historical Rates Discussion (Informational Item)
Overview of Ava’s rate setting methodology and a historic look-back at electricity ate components
CEO Howard Chang provided an informational presentation on Ava’s rate-setting methodology and historical rates, explaining key components such as Ava’s generation rate, PG&E’s delivery charges, and the Power Charge Indifference Adjustment (PCIA).
He spoke about how Ava indexes its rates to PG&E’s generation rates while maintaining a consistent value proposition for customers. Additionally, he outlined Ava’s annual rate-setting process and how energy procurement strategy aligns with market trends. 1:14:22 – Public Comment – Jim Lutz expressed concern that rising PG&E rates make it difficult to communicate Ava’s cost savings to customers. He also asked whether Ava’s long-term power contracts have fixed prices or if they fluctuate with CAISO market rates.
Selection of topics discussed by Board members:
• Correlation of PCIA and market rates
• Ava’s exposure to CAISO’s spot market pricing
• The role of resource adequacy in Ava’s risk management and procurement strategy
• How Ava adjusts its rates in response to PG&E’s rate changes • How to explain rising customer bills despite Ava’s discounted rates compared to PG&E
17.(1:18:23) Mid-Year Budget Update (Informational Item) Update the Board on mid-year changes to revenues and costs CEO Howard Chang presented Ava Community Energy’s mid-year budget update, showing that projected net revenues have increased from $42 million to $95 million. He explained that while energy costs rose, lower brown power costs and changes in the Power Charge Indifference Adjustment (PCIA) helped balance the impact. CEO Chang warned of financial uncertainty from a new CPUC review of PCIA calculations, which could lead to retroactive changes.
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Selection of topics discussed by Board members:
• Request for a deeper dive into capacity, renewables, and carbon-free energy costs in a future discussion
• Whether the 1% uncollectible rate is intentional and how it compares to industry standards
• CPUC’s review of Market Price Benchmark calculations and its potential financial impact
• How partial payments are distributed between Ava and PG&E • Reserve levels as Ava expands into new territories
18.(1:40:17) Critical Municipal Facilities Update (Informational Item) Update to Board on risks associated with CMF projects
JP Ross provided an update on Ava Community Energy’s Critical Municipal Facilities Program, which aims to develop solar and battery storage resilience hubs for six participating cities. With the selected developer, Greenbridge, pausing work due to financial concerns, staff presented multiple risk mitigation options. 2:01:06 – Public Comment – Bradley Cleveland spoke in support of the Critical Municipal Facilities initiative, citing its benefits for cities, Ava customers, and local union jobs. Mr. Cleveland stated that, with board support, the program could serve as a model for the state.
2:02:20 – Public Comment – Jim Lutz asked if it would it be possible to use the reserves as a temporary funding bridge.
Selection of topics discussed by Board members:
• The estimated costs and potential financial risks for Ava if it takes over the project • Efforts to push for an extension of the Net Energy Metering (NEM) 2.0 deadline • Consideration of downsizing the project, adjusting system designs, or decoupling solar and storage installations
• Potential legal consequences if Greenbridge withdraws from the project • Securing skilled labor and potential partnerships with unions or training programs The Board directed the Executive Committee to provide further guidance to staff on next steps before a formal action item is brought back in March.
19.(2:22:27) Sub-committee Assignment (Action Item)
Member Gonzalez motioned to approve the Subcommittee Assignments. Member Barrientos seconded the motion, which was approved 16/0/0/0/2. (yes/no/abstain/recuse/not present).
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Yes: Members: Marquez, Lopez, Tregub, Morada, Kaur, Goldstein, Barrientos, Del Catancio, Brown, Rickman, Gonzalez, Fugazi, Nygard, Sakakihara and Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members: Keng and Diallo
20.(2:25:07) Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas
• Chair Balch reminded members that the board will meet at Cal State East Bay for the March meeting, and will meet at a new location starting in April.
21.Adjourned at 8:26 pm.
The next Ava Board of Directors meeting will be held on Wednesday, March 19, 2025 at 6pm.
The Lake Merritt Room
Cal State East Bay - the Oakland Center
In the Transpacific Centre
1000 Broadway, Suite 109
Oakland, CA 94607