Agenda packet — Ava Community Energy Board of Directors, March 19, 2025

Board of Directors Meeting
Wednesday, March 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 • Clipper Club - 5 Captain Dr. Emeryville, CA 94608
• Milk and Honey Cafe, 34265 Fremont Blvd, Fremont, CA 94555 • 35653 Scarborough Dr. Newark CA 94560
• 1100 Webster St Oakland CA 94607
• San Joaquin County Administration Building, 44 N. San Joaquin Street Room 145, 1st floor, Stockton, CA 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].

Ava Community Energy
Board of Directors Page | 2
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. Welcome & Roll Call

2. Pledge of Allegiance

3. 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.

4. Closed Session Public Comment

5. Closed Session
A. Public Employee Performance Evaluation Pursuant of Code § 54957: Chief Executive Officer

6. General Report Out of Closed Session

CONSENT AGENDA

7. Approval of Minutes from February 19, 2025

8. Contracts Entered Into (Informational Item)

9. Amend Agreement with Chen Design Associates
Increase the NTE amount in the contract from $200k to $300k

10.Policy Update to include Stockton/ Lathrop/ Unincorporated San Joaquin Update language in NEM tariff to include Stockton, Lathrop and Unincorporated San Joaquin County customers

11.Q2 Financial Statements
Present the second quarter financial statements for current fiscal year

12.Ascend Analytics
Second Amendment to increase NTE and add another project.

13.SMUD Task Order 4, Accounts Receivable Recovery Agent Services Order 4 for Accounts Receivable Recovery Agent Services Ava Community Energy
Board of Directors Page | 3

REGULAR AGENDA

14.CEO Report

15.CAC Report

16.Reserve Fund Policy Review (Informational Item)
Present the reserve fund policy for review and discussion

17.SB 540 Support Letter (Action Item)
Presenting on SB 540 and the Pathways Initiative, and seeking Board approval to sign support letter for SB 540

18.Local Development Fund Reconciliation (Informational Item) Overview of budget and expenses assigned to Local Development fund since FY20

19.Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas

20.Adjourn
The next Ava Board of Directors meeting will be held on Wednesday, April 16, 2025 at 6pm. Please note the new location
Conference Room 5
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612

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:

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
Ava Community Energy
Board of Directors Page | 2
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
Board of Directors Page | 3

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.

Ava Community Energy
Board of Directors Page | 4

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.

Ava Community Energy
Board of Directors Page | 5
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).

Ava Community Energy
Board of Directors Page | 6
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
Consent Item 8
Consent Item 8
To: Ava Community Energy Authority
From: Howard Chang, Chief Executive Officer
Subject: Contracts Entered Into
Date: March 19, 2025
_____________________________________________________________________

RECOMMENDATION
Accept the CEO’s report on contracts that Ava Community Energy has entered into, as required by the Administrative Procurement Policy, from February 12, 2025, through March 12, 2025; C-2025-021 Kitchen Stadium, Inc (Delaware) Consulting Service Agreement, provides engagement of Consultant to manage Ava's purchasing and billing processes for self-consumption of gifting to Third Parties, including but not limited to employees, clients, customers, and other guests, and certain other items via the platform to Ava, effective January 1, 2025, through December 31, 2025, with a maximum compensation of $150,000.bystadium.com platform to Ava, effective January 1, 2025, through December 31, 2025, with a maximum compensation of $150,000.

C-2025-022 Path to Summit, LLC (Louisiana) Consulting Service Agreement, provides Asana Project Management Software Training and Support services, effective February 20, 2025, through December 12, 2025, with compensation not to exceed $5,000.

C-2025-023 Oakland Roots Sports Club Brand Partnership Agreement, provides the Oakland Roots Sports Club with $175,000, as a local clean power sponsor, for the term of February 24, 2025, through December 31, 2025.

C-2025-024 Abbott Stringham and Lynch (Campbell, CA) Consulting Service Agreement, provides data and security audit services to Ava, effective February 12, 2025, through June 30, 2025, with a max compensation of $10,000.

Consent Item 8
C-2025-025 LHi Group Inc. Search Assignment Form, provides for talent search pertaining to Ava's specified vacancy of Salesforce Director, with a retainer fee of $5,000 per specified vacancy, effective February 2, 2025.

C-2025-026 J. Tedesco & Associates (San Diego, CA) Consulting Services Agreement CEO performance evaluation services through June 30, 2025, with compensation not to exceed $8,000
C-2025-027 Omni Government Relations, LLC First Amendment to CSA extends the term of agreement for legislative advocacy services through December 31, 2025, and adds $120,000 in additional compensation for that term, with total compensation under this agreement not to exceed $235,000.

C-2025-028 Matthew Eva (Santa Clara, CA) Purchase Rider provides content writing services in support of Ava's Marketing team, effective March 6, 2025, through June 30, 2025, with a max compensation of $10,000.

C-2025-029 Emerald Cities Collaborative, Inc Community Organizing and Capacity Building for Resilience Hubs Grant Agreement, empowers local communities to own and lead Resilience Hub efforts that can best address the communities' unique needs, with a grant of up to $300,000 over 18 months, effective March 1, 2025, through August 31, 2026.

C-2025-030 City of Livermore First Amendment to Charging Station License Agreement, amends to reflect Ava's name change, add language regarding public disclosure under California Public Records Act, and update specific requirements related to operation and maintenance.

C-2025-031 Wilson, Sonsini, Goodrich and Rosati Sixth Amendment to CSA, adds $350,000 in additional compensation for fiscal year 2024/2025, which is through June 30, 2025.

C-2025-032 PC Professional Fifth Amendment to CSA adds $100,000 in additional compensation for fiscal year 2024/2025, which is through June 30, 2025.

C-2025-033 SolarAPP Foundation (Washington, DC) Consulting Services Agreement for the purposes of developing and implementing heat pump water heater permit streamlining functionality in the existing SolarAPP+ software and providing relevant training to Ava Member Agencies with compensation not to exceed $350,000 through February 28, 2027.

C-2025-034 City of Livermore First Amendment to Charging Station Master Site License Agreement, amends to reflect Ava's name change, update Ava's address, add language regarding public disclosure under California Public Records Act, and update specific requirements related to operation and maintenance.

C-2025-035 DeSpain and Associates Inc (dba DAI Source) Terms of Use 12-month subscription to IBM Environmental Intelligence Suite at a cost of $5,871.

C-2025-036 San Francisco Elevator Proposal #Q-84395 & Terms and Conditions authorization for the labor and materials to install a new cellular gateway to interface with the existing elevator's ADA telephone at 251 8th Street Oakland, at a cost of $4,000.

Consent Item 8
C-2025-037 7th Inning Stretch LLC (dba Stockton Ports Baseball Club) 2025 & 2026 (With Opt-Out) Stockton Ports and Ava Community Energy Partnership Agreement, Ava will provide a sponsorship to the Stockton Ports for the 2025 season and potentially the 2026 season, in the amount of $40,000 per season, in return Ava will receive certain promotional rights. If Ava opts out of sponsorship for the 2026 there will be a $5,000 opt out fee.

C-2025-038 Noceti Group (dba San Joaquin Asparagus Festival) 2025 San Joaquin Asparagus Festival $5,000 Asparagus Spear Sponsorship, Ava will provide a $5,000 sponsorship in support of the April 2025 Asparagus Festival located in San Joaquin County, and in return Ava will receive certain promotional rights.

C-2025-039 Brandt Energy Strategies Second Amendment to CSA adds $5,000 for legislative policy advocacy services through June 30, 2025.

Consent Item 9
Consent Item 9
To: Ava Community Energy Authority
From: Dan Lieberman, Director of Marketing
Subject: Approving a resolution to execute a contract to increase the Not To Exceed amount to $300,000 with Chen Design Associates
Date: March 19, 2025
__________________________________________________________________ Summary/Recommendation
Approve a Resolution authorizing the CEO to enter into a First Amendment to the Consulting Services Agreement with Chen Design Associates to increase the not-to-exceed compensation by $100,000 for a total not-to-exceed amount of $300,000 for this fiscal year (through June 30, 2025) because this vendor provides critical design services and our forecast design needs are beyond what can be covered by the existing contract.

Financial Impact
There is sufficient room in the FY 2024-2025 design budget for this increase in the contract.

Analysis and Context
Through a competitive solicitation in 2024, Ava staff selected Oakland-based Chen Design Associates (“CDA”) as our primary provider of creative design services. CDA’s services include including graphic design, photography, videography, and exhibit booth design.

Last Spring, staff estimated that we would need $200,000 in creative services from CDA this Fiscal Year (2024-2025). However, as of March 5, 2025, we have spent about $150,000 of the Consent Item 9
authorized $200,000 with CDA and there are several projects left in the schedule for this Fiscal Year that we would like them to produce, including photography for our website and printed collateral, videos used for advertising and social media, brochures and other hand-outs in multiple languages, signage at our booth used during public events, and assorted collateral for our programs.

Attachments
A. Resolution
B. Consulting Services Agreement Amendment Template
Attachment Consent Item 9A
RESOLUTION NO. R-2025-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CEO TO

INCREASE THE COMPENSATION ALLOWED IN THE CONSULTING

SERVICES AGREEMENT WITH CHEN DESIGN ASSOCIATES FROM
$200,000 TO $300,000
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers 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 Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The City of Stockton was added as a member to Ava in September of 2022. The City of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.

WHEREAS Ava Community Energy has extensive creative design needs, including photography for our website and printed collateral, videos used for advertising and social media, brochures and other hand-outs in multiple languages, signage at our booth during public events, assorted collateral for our programs; and WHEREAS Through a competitive solicitation in 2024, Ava staff selected Oakland-based Chen Design Associates (CDA) as our primary provider of creative design services. CDA’s services include including graphic design, photography, videography, and exhibit booth design. They have provided quality work and customer service for projects including our launch of service in Stockton and Lathrop; and WHEREAS Last Spring, staff estimated that we would need $200,000 in creative services from Chen Design Associates this Fiscal Year (2024-2025). However, as of March 5, 2025, we have spent approximately $150,000 of the authorized $200,000 and there are several projects still left in the schedule for this Fiscal Year that we would like them to produce.

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

Section 1. Authorize the CEO to enter into a First Amendment to the Consulting Services Agreement with Chen Design Associates to increase the not-to-exceed amount from $200,000 to $300,000 through June 30, 2025
Attachment Consent Item 9A
ADOPTED AND APPROVED this 19th day of March, 2025.

Jack Balch, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
1 First Amendment to Consulting Services Agreement by and Between Ava Community Energy Authority and [Vendor]
This [Number] Amendment to the Agreement with [Vendor] for Consulting Services (“[Number] Amendment”) is made this [day] day of [month], [202X], by and between the Ava Community Energy Authority, a Joint Powers Agency formed under the laws of the State of California (“Ava”) and [Legal Name of Vendor] (“[Vendor]”), for the purposes of adding additional compensation, adding additional services to the scope, extending the termination date, and updating the hourly rates of compensation.

Recitals
A. Ava and [Vendor] entered into that certain Consulting Services Agreement dated [date] (“Agreement”), wherein [Vendor] agreed to provide [service] to Ava, with compensation not to exceed $[amount].

B. Ava and [Vendor] entered into that certain [Number] Amendment to the Consulting Services Agreement on [date] to add additional compensation, increasing the not-to-exceed amount by $[amount] for a total amount not to exceed $[amount], to update the scope of services, to extend the term, and to update the hourly rates of compensation.

C. Ava and [Vendor] entered into that certain [Number] Amendment to the Consulting Services Agreement on [date] to add additional compensation, increasing the not-to-exceed amount by $[amount] for a total amount not to exceed $[amount], to update the scope of services, to extend the term, and to update the hourly rates of compensation.

D. Ava and [Vendor] now desire to amend the Agreement to add additional compensation, increasing the not-to-exceed amount by $[amount], to add additional services to the scope of services [to include additional services], to extend the term, and to update the hourly rates of compensation.

E. On October 24, 2023, East Bay Community Energy Authority legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.

Now therefore, for good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. All references to East Bay Community Energy (“EBCE”) in the Agreement are hereby amended to Ava Community Energy (“Ava”).

2. Section [#] of the Agreement (“Term”) is amended to extend the term of the Agreement through [new date].

Attachment Consent Item 9B
2 3. Section [#] of the Agreement (“Compensation and Payment”) is amended in part to increase the total compensation of the Agreement by $[amount] for a total amount not to exceed [new amount spelled out] ($[new amount]).

4. Section [#] of the Agreement (“Notices”) is amended in part to include [email protected] as a required additional recipient for Ava.

5. Exhibit A (“Scope of Work”) of the Agreement is replaced in its entirety by Exhibit A, attached hereto.

6. Exhibit B (“Schedule”) of the Agreement is replaced in its entirety by Exhibit B, attached hereto.

7. Exhibit E (“Compensation/Budget”) of the Agreement is replaced in its entirety by Exhibit E, attached hereto.

8. All other terms and conditions in the Agreement not otherwise modified by this [Number] Amendment will remain in full force and effect.

In witness whereof, the Parties have entered this Amendment on the date written above.

Ava Community Energy Authority,
A Joint Powers Authority
[Name]
[Title]
Date: ____________________________
Approved as to form:

Ava General Counsel
[Vendor],
A [Legal form of entity]
[Name]
[Title]
Date: ______________________________
[Name]
[Title]
Date: ______________________________
Attachment Consent Item 9B
A-1
Exhibit A
Scope of Work
[Insert text here]
Attachment Consent Item 9B
B-1
Exhibit B
Schedule
[Insert text here]
Attachment Consent Item 9B
E-1
Exhibit E
Compensation/Budget
[Insert text here]
Attachment Consent Item 9B

Consent Item 10
Consent Item 10
To: Ava Community Energy Authority
From: Kelly Brezovec, Senior Director, Account Services Subject: Amending the Net Energy Metering Policy Tariff Date: March 19, 2025
__________________________________________________________________ Summary/Recommendation
Adopt a Resolution authorizing the Chief Executive Officer to amend the Net Energy Metering Policy to include the Cities of Stockton and Lathrop, Unincorporated San Joaquin County, and future Ava territories in the event that the Board approves additional expansion.

Financial Impact
N/A
Analysis and Context
Ava’s Board of Directors has voted to expand services to the Cities of Stockton and Lathrop in April 2025. The Board of Directors has also voted to begin service to Unincorporated San Joaquin County in 2026. Ava is amending the Net Energy Metering Policy language to encompass this planned expansion as well as any future territories.

Attachments
A. Resolution
B. Amended Net Energy Metering Policy
C. Amended Net Energy Metering Policy with edits
Attachment Consent Item 10A
RESOLUTION NO. R-2025-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE AVA COMMUNITY ENERGY AUTHORITY APPROVING AN

AMENDED NET ENERGY METERING POLICY
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers 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 Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The City of Stockton was added as a member to Ava in September of 2022. The City of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.

WHEREAS the Board of Directors approved an initial Net Energy Metering Policy on February 21, 2018, and amended the Policy on December 5, 2018, February 20, 2019, December 16, 2020, May 17, 2021, and October 19, 2022; WHEREAS in 2022, 2023, and 2024, the Board of Directors voted to expand service to the Cities of Stockton, Lathrop, and Unincorporated San Joaquin County respectively; and
WHEREAS the Board desires to update the Net Energy Metering Policy to reflect this expansion and any possible future expansions of Ava territory which may be approved by the Board.

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

Section 1. The Board of Directors hereby amends the Net Energy Metering Policy in the form attached to the staff report associated with this action to include language inclusive of the Cities of Stockton and Lathrop, Unincorporated San Joaquin County, and any possible future expansions, and authorizes the CEO to make any minor clarifying or clerical changes to the Policy as needed.

ADOPTED AND APPROVED this 19th day of March, 2025.

Attachment Consent Item 10A
Jack Balch, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 Ava Community Energy Net Energy Metering Policy 6.5
ELECTRIC SCHEDULE NEM ‐ NET ENERGY METERING SERVICE
Sixth Amended and Restated Net Energy Metering Service Policy APPLICABILITY:

This net energy metering (NEM) schedule is applicable to a customer who uses an eligible Renewable Electrical Generation Facility, as defined in PG&E’s Electric Schedule NEM (http://www.pge.com/tariffs), within the capacity limits described in PG&E’s Electric Schedule NEM that is located on the customer’s owned, leased, or rented premises, is interconnected and operates in parallel with PG&E’s transmission and distribution systems, and is intended primarily to offset part or all of the customer’s own electrical requirements (hereinafter “eligible customer generator” or customer”).

This rate schedule is available on a first‐come, first‐served basis to customers that provide PG&E with a completed PG&E NEM Application and comply with all PG&E NEM requirements as described in PG&E Electric Schedule NEM. This includes customers served by NEMV (Virtual Net Energy Metering), NEMVMASH (Virtual Net Energy Metering for Multifamily Affordable Housing), NEMA (NEM Aggregation) and Multiple Tariff facilities as described by PG&E Electric Schedule NEM.

DEFINITIONS:

Original Jurisdictions: Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Oakland, Piedmont, San Leandro, Union City and the unincorporated area of Alameda County
Customer type definitions:

Standard Ava NEM: All NEM customers who do not fall into the below groups.

Legacy Municipal NEM: All municipal NEM customers from Ava's original jurisdictions that had an interconnection date between 6/1/2018 and 4/1/2021.

CARE/FERA Ava NEM: All CARE/FERA NEM customers with an interconnection date after beginning electric service under Ava.

Rates: All rates charged under this schedule will be in accordance with the eligible customer generator’s otherwise‐applicable Ava rate schedule (OAS), which includes their rate schedule and Ava service level (i.e. Bright Choice or Renewable 100). An eligible customer‐generator served under this schedule is responsible for all charges from its OAS including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to Ava or PG&E. Charges for energy (kWh) supplied by Ava, will be based on the net metered usage in accordance with this tariff.

Billing: Customers with NEM service will be billed as follows:

Attachment Consent Item 10B
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 a) Standard Ava NEM customers may choose between a monthly or annual true-up option.

Standard Ava NEM customers will be defaulted to a monthly true-up, and may select their preferred true-up cycle once per year before March 1, effective following the next April cash-out/ true-up period.

CARE/ FERA Ava NEM and Legacy Municipal NEM customers must be enrolled in a monthly true-up cycle.
b) For a customer with Non‐Time of Use (TOU) Rates:

Any net consumption or production shall be valued monthly asfollows:

If the eligible customer‐generator is a “Net Consumer,” having overall positive usage over a billing cycle, the eligible customer‐generator will be billed or debited in accordance with the eligible customer‐generator’s OAS.

If the eligible customer‐generator is a “Net Generator,” having overall negative usage over a billing cycle, any net energy production shall be valued at the OAS plus any additional incentive payment as applicable (e.g. for new installations for CARE/ FERA Ava NEM accounts). The calculated value of any net energy production shall be credited to Ava customers as described in Section (c).
c) For a customer with TOU Rates:

Any net consumption or production shall be valued monthly asfollows:

If the eligible customer‐generator is a Net Consumer (as defined above) during any discrete TOU period, the net kWh consumed during such period shall be billed or debited in accordance with applicable TOU period‐specific rates/charges, as described in the eligible customer‐generator’s OAS.

If the eligible customer‐generator is a Net Generator (as defined above) during any discrete TOU period, the net kWh produced during such period shall be valued in consideration of the applicable TOU period‐specific rates/charges, as described in the eligible customer‐ generator’s OAS, plus any additional incentive payment as applicable (e.g. for new installations for CARE/ FERA Ava NEM accounts). The calculated value of any net energy production during a specific TOU period shall be credited to Ava customers as described in Section (c).
d) Settlement of Ava Charges/Credits:

NEM customers will receive a statement in their monthly PG&E bills indicating any accrued charges for their usage during the current billing cycle. Customers who have accrued credits during previous billing cycles will see these credits applied against current charges.

1. Monthly True-Up
For customers on a monthly true-up cycle, any remaining balance is due and must be paid during each monthly billing cycle.

Attachment Consent Item 10B
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25

2. Annual True-Up
For customers on an annual true-up cycle, any remaining balance will appear as a debit on the bill and roll over, until the annual true-up in April.

When a customer’s net energy production results in a net bill credit over a billing cycle, the value of any net energy production, during the billing cycle,shall be noted on the customer’s bill and carried over as a bill credit for use in subsequent billing period(s).

Monthly credits are valued as follows based on customer definition:

Customer Type Bill Credit per kWh
Standard Ava NEM Customer Retail*
Legacy Municipal NEM Customer Retail* + $0.01
CARE/FERA Ava NEM Customer Retail* + $0.01
*Equivalent to the generation rate you are charged for powerreceived from Ava e) Ava Annual True-Up and Cash‐Out:

Customers on an annual true-up cycle are eligible for the annual true-up and/or cash-out.

Customers on a monthly true-up are eligible for the cash-out.

1. Annual True-Up
Standard Ava NEM customers on an annual true-up cycle may owe Ava money during the April true-up period. Any amount owed will be tracked monthly on the customer’s bill, as a debit, and will be due at the true-up period. Customers on an annual true-up that have surplus kWh are eligible for the cash-out as described in section (e)2.

2. Cash-Out
During the April billing cycle of each year, all current NEM customers with a cash-out credit balance of more than $100 will be offered a direct payment by check for this balance. Any cash-out credit balance will be determined as of the final date of the customer’s March‐ April billing Cycle (i.e. the first bill period ending on or after April 1). Customers who participate in the Ava Cash‐Out or transfer process will have an equivalent credit removed from their NEM account balance at the time of check issuance or transfer. In the event that a customer’s credit balance is less than $100, such credits will continue to be tracked by Ava and will remain on the customer’s account for future use (i.e., reduction of future Ava charges).

Customers who close their electric account through PG&E or move outside of the Ava service area prior to the April billing cycle of each year are also eligible for the annual Ava true-up and cash‐out process.

Ava will, at least once each year, conduct an audit of the CARE/FERA NEM customers to ensure that eligible CARE/FERA NEM customers are included in the CARE/FERA NEM program.

Cash-Out credits are valued as follows:

Attachment Consent Item 10B
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 Customer Type Annual Payout Credit per kWh
Standard Ava NEM Customers PG&E Net Surplus Compensation (NSC) Legacy Municipal NEM Customers Retail* + $0.01
CARE/FERA Ava NEM Customers Retail* + $0.01
*Equivalent to the generation rate you are charged for power received from Ava f) Return to PG&E Bundled Service:

Ava customers with NEM service may opt out and return to PG&E bundled service at any time. Customers should be advised that PG&E will perform a true‐up of their account at the time of return to PG&E bundled service and that PG&E’s standard terms for transitional rates apply to customer returns with less than a six‐month advance notice, if they have been an Ava customer for 60 days or more.

If any Ava NEM customer opts out of the Ava program and returnsto PG&E bundled service, Ava will cash‐out any remaining generation credits on the account (using the approach detailed in section d above) and mail a check to the billing address. g) PG&E NEM Services:

All Ava NEM customers are subject to the conditions and billing procedures of PG&E for their non-generation services, as described in PG&E’s Electric Schedule NEM and related PG&E tariff options addressing NEM service. Customers should be advised that while Ava settles out balances for generation on a monthly or annual basis, PG&E will continue to assess charges for delivery, transmission and other services. Most NEM customers will receive an annual true-up from PG&E (on their NEM interconnection anniversary with PG&E) for these non-generation services.

Customers are encouraged to review PG&E’s most up‐to‐date NEM tariffs, which are available from PG&E.
h) Aggregated NEM
Per the California Public Utilities Code Section 2827(h)(4)(B), aggregated NEM customers are “permanently ineligible to receive net surplus electricity compensation.” Therefore, any excess accrued credits over the course of a year under an aggregated NEM account are ineligible for Ava’s annual Cash‐Out process as described in section (d). All other NEM rules apply to aggregated NEM accounts.

Attachment Consent Item 10B
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 Ava Community Energy Net Energy Metering Policy 6.5
ELECTRIC SCHEDULE NEM ‐ NET ENERGY METERING SERVICE
SixthFifth Amended and Restated Net Energy Metering Service Policy APPLICABILITY:

DEFINITIONS:

Standard Ava NEM: All NEM customers who do not fall into the below groups.

Legacy Municipal NEM: All municipal NEM customers from Ava's original jurisdictions that had an interconnection date between 6/1/2018 and 4/1/2021.

CARE/FERA Ava NEM: All CARE/FERA NEM customers with an interconnection date after beginning electric service under Ava. (6/18/2018 for Ava's original jurisdictions and 4/1/2021 for the cities of Newark, Pleasanton, and Tracy). by date of NEM system installation and location:

Original Jurisdictions 2021 Expansion
Jurisdictions
Standard Ava NEM Customer Anytime Anytime
Legacy Municipal NEM
Customers
6/1/18 – 4/1/2021 N/A
Formatted Table
Formatted: Condensed by 0.1 pt
Formatted: Character scale: 105%, Condensed by 0.1
pt
Formatted: Indent: Left: 0.5"
Formatted: Indent: Left: 0.11", Space Before: 3.95 pt
Formatted Table
Formatted: Body Text, Indent: Left: 0.11", Space
Before: 3.95 pt, Line spacing: single
Formatted: Body Text, Indent: Left: 0.11", Right: 0",
Space Before: 3.95 pt, Line spacing: single
Formatted: Body Text, Indent: Left: 0.11", Space
Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Right: 0",
Space Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Space
Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Right: 0",
Space Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Space
Before: 3.95 pt
Formatted: Not Expanded by / Condensed by
Formatted: Normal, Indent: Left: 0", Space Before: 0
pt
Formatted: Normal, Indent: Left: 0"
Attachment Consent Item 10C
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 CARE/FERA Ava NEM
Customers
After 6/1/2018 After 4/1/2021
Territory: The entire Ava service area.

Billing: Customers with NEM service will be billed as follows:

Formatted: Body Text, Indent: Left: 0.11", Right: 0",
Space Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Space
Before: 3.95 pt
Formatted: Body Text, Indent: Left: 0.11", Right: 0",
Space Before: 3.95 pt
Attachment Consent Item 10C
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 a) Standard Ava NEM customers may choose between a monthly or annual true-up option.

CARE/ FERA Ava NEM and Legacy Municipal NEM customers must be enrolled in a monthly true-up cycle.
b) For a customer with Non‐Time of Use (TOU) Rates:

Any net consumption or production shall be valued monthly asfollows:

1. Monthly True-Up
For customers on a monthly true-up cycle, any remaining balance is due and must be paid during each monthly billing cycle.

Attachment Consent Item 10C
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25

2. Annual True-Up
For customers on an annual true-up cycle, any remaining balance will appear as a debit on the bill and roll over, until the annual true-up in April.

Monthly credits are valued as follows based on customer definition:

Customer Type Bill Credit per kWh
Standard Ava NEM Customer Retail*
Legacy Municipal NEM Customer Retail* + $0.01
CARE/FERA Ava NEM Customer Retail* + $0.01
*Equivalent to the generation rate you are charged for power received from Ava e) Ava Annual True-Up and Cash‐Out:

Customers on an annual true-up cycle are eligible for the annual true-up and/or cash-out.

Customers on a monthly true-up are eligible for the cash-out.

Ava will, at least once each year, conduct an audit of the CARE/FERA NEM customers to ensure that eligible CARE/FERA NEM customers are included in the CARE/FERA NEM program.

Cash-Out credits are valued as follows:

Attachment Consent Item 10C
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25 Customer Type Annual Payout Credit per kWh
Standard Ava NEM Customers PG&E Net Surplus Compensation (NSC) Legacy Municipal NEM Customers Retail* + $0.01
CARE/FERA Ava NEM Customers Retail* + $0.01
*Equivalent to the generation rate you are charged for power received from Ava f) Return to PG&E Bundled Service:

Ava customers with NEM service may opt out and return to PG&E bundled service at any time. Customers should be advised that PG&E will perform a true‐up of their account at the time of return to PG&E bundled service, and that PG&E’s standard terms for transitional rates apply to customer returns with less than a six‐month advance notice, if they have been an Ava customer for 60 days or more.

If any Ava NEM customer opts out of the Ava program and returns to PG&E bundled service, Ava will cash‐out any remaining generation credits on the account (using the approach detailed in section d above) and mail a check to the billing address. g) PG&E NEM Services:

Attachment Consent Item 10C
Consent Item 11
Consent Item 11
To: Ava Community Energy Authority
From: Jason Bartlett, Senior Finance Manager
Subject: Fiscal Year 2024-2025 Q2 Financial Statements
Date: March 19, 2025
__________________________________________________________________ Summary/Recommendation
This memo updates the Board on Ava’s financial position as of December 31, 2024.

Financial Impact
This is an informational item
Analysis and Context
Ava’s current fiscal year (FY) runs from July 1, 2024, through June 30, 2025. Financial position statements are generated every quarter, and are audited annually by a third party. The financial statements presented today represent Ava’s financial position and activity for the quarter ending December 31, 2024 and the FY to date. These statements are prepared by Ava’s accountant, Maher Accountancy.

Committee Recommendation
The Finance Administrative and Procurement Committee has reviewed these statements without comment.

Attachments
A. Fiscal Year 2024-2025 Q2 Financial Statements
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
AVA Community Energy
Management is responsible for the accompanying financial statements of AVA Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2024, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months and six months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.

Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.

AVA Community Energy’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.

Maher Accountancy
San Rafael, CA
February 7, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Attachment Consent Item 11A
Current assets
Cash and cash equivalents - unrestricted $ 388,231,317
Cash and cash equivalents - restricted 8,015,906
Accounts receivable, net of allowance 84,866,701
Accrued revenue 45,632,247
Other receivables 3,119,744
Prepaid expenses 4,667,967
Deposits 4,212,125
Investments 31,960,980
Total current assets 570,706,987
Noncurrent assets
Cash and cash equivalents in Rate Stabilization Fund - unrestricted 57,472,293 Deposits 1,090,907
Investments 286,256,555
Loan receivable 2,336,589
Capital assets, net of depreciation and amortization 9,952,531 Total noncurrent assets 357,108,875
Total assets 927,815,862
Current liabilities
Accrued cost of electricity 164,818,978
Accounts payable 3,194,335
Advances from grantors 8,015,906
Other accrued liabilities 1,791,160
User taxes and energy surcharges due to other governments 8,122,890 Lease liability 252,660
Security deposits - energy suppliers 5,746,750
Total current liabilities 191,942,679
Noncurrent liabilities
Security deposits - energy suppliers 3,600,000
Total liabilities 195,542,679
Rate Stabilization Fund 79,916,987
Net investment in capital assets 9,699,871
Unrestricted 642,656,325
Total net position $ 652,356,196

NET POSITION

AVA COMMUNITY ENERGY

STATEMENT OF NET POSITION
As of December 31, 2024
ASSETS

LIABILITIES

DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Attachment Consent Item 11A
Three Months Year-to-Date

OPERATING REVENUES
Electricity sales for resale
Electricity sales, net $ 211,785,121 $ 483,412,777
Liquidated damages 3,262,500 9,577,500
Grant revenue 1,077,421 1,486,448
Other operating revenues 16,906 118,637
Total operating revenues 216,141,948 494,595,362

OPERATING EXPENSES
Cost of electricity 182,338,646 359,938,505
Contract services 5,778,818 11,831,766
Staff compensation 4,606,365 9,645,632
Other operating expenses 2,394,232 3,889,842
Depreciation and amortization 226,822 458,306
Total operating expenses 195,344,883 385,764,051
Operating income (loss) 20,797,065 108,831,311

NONOPERATING REVENUES (EXPENSES)
Investment income 4,116,483 8,215,210
Interest expense (9,544) (24,356)
Nonoperating revenues (expenses), net 4,106,939 8,190,854 CHANGE IN NET POSITION 24,904,004 117,022,165
Net position at beginning of period 627,452,192 535,334,031 Net position at end of period $ 652,356,196 $ 652,356,196

AVA COMMUNITY ENERGY

STATEMENT OF REVENUES, EXPENSES

AND CHANGE IN NET POSITION
Three Months and Year-to-Date Ended December 31, 2024
See accountants' compilation report. 3
Attachment Consent Item 11A
Three Months Year-to-Date

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 233,039,266 $ 517,428,566
Receipts of supplier security deposits 3,932,252 3,932,252 Other operating receipts 3,366,566 10,161,737
Payments to suppliers for electricity (155,166,501) (340,806,306) Payments for other goods and services (11,456,259) (17,551,396) Payments for staff compensation (4,788,384) (9,577,762) Payments for deposits and collateral (3,894,000) (8,894,000) Payments of taxes and surcharges to other governments (8,679,853) (17,921,289) Net cash provided by operating activities 56,353,087 136,771,802

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (243,705) (480,312)
Purchases of capital assets (41,881) (87,745)
Net cash (used) by capital and related financing activities (285,586) (568,057)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 4,363 4,363 Principal payments received of loan receivable 3,638 7,226 Investment income received 3,019,027 7,147,896
Purchase of investments (319,172,441) (319,172,441)
Loan issued (2,057,344) (2,057,344)
Net cash provided (used) by investing activities (318,202,757) (314,070,300) Net change in cash and cash equivalents (262,135,256) (177,866,555) Cash and cash equivalents at beginning of period 715,854,772 631,586,071 Cash and cash equivalents at end of period $ 453,719,516 $ 453,719,516 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current) $ 388,231,317 $ 388,231,317 Cash and cash equivalents - restricted (current) 8,015,906 8,015,906 Cash and cash equivalents (noncurrent) 57,472,293 57,472,293 Cash and cash equivalents $ 453,719,516 $ 453,719,516
Three Months and Year-to-Date Ended December 31, 2024

STATEMENT OF CASH FLOWS

AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Attachment Consent Item 11A
Three Months Year-to-Date
Operating income (loss) $ 20,797,065 $ 108,831,311
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 226,822 458,306
(Increase) decrease in:

Accounts receivable 6,131,976 96,104
Market settlements receivable 1,534,027 -
Other receivables 283,095 (756,574)
Accrued revenue 6,644,550 15,320,146
Prepaid expenses (2,091,890) (1,842,426)
Deposits 6,931,232 1,931,232
Increase (decrease) in:

Accrued cost of electricity 18,734,321 15,519,469
Accounts payable (3,925,836) (2,218,473)
Other accrued liabilities (181,825) 59,725
Advances from grantors (1,005,657) (1,036,245)
Deferred revenue 97,958 (1,686,978)
User taxes due to other governments (202,233) 678,253
Security deposits from energy suppliers 2,379,482 1,417,952 Net cash provided (used) by operating activities $ 56,353,087 $ 136,771,802

NONCASH INVESTING ACTIVITIES
Unrealized appreciation (depreciation) and
timing differences in investment income $ 1,097,456 $ 1,067,314

RECONCILIATION OF OPERATING INCOME TO NET

CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Three Months and Year-to-Date Ended December 31, 2024
STATEMENT OF CASH FLOWS (Continued)

AVA COMMUNITY ENERGY
See accountants' compilation report. 5
Attachment Consent Item 11A
Consent Item 12
Consent Item 12
To: Ava Community Energy Authority
From: Gabriel Head, CAISO Markets Manager
Subject: Adopting a Resolution of the Board of Directors of Ava Community Energy Authority Authorizing the CEO to Negotiate and Execute a Second Amendment to the Master Agreement- Software as a Service with Ascend Analytics
Date: March 19, 2025
__________________________________________________________________ Recommendation
Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute a Second Amendment to the Master Agreement- Software as a Service with Ascend Analytics (“Ascend”) for storage and renewable bid optimization software services dated June 22, 2023, which was amended March 21, 2024 (collectively, the “Agreement”) for a 2-year subscription term, with a cost not-to-exceed $338,100, together with the option to extend the subscription term for up to one, additional 1-year term. The amendment adds an additional $24,480 for the remainder of the 2-year term for a new not-to-exceed cost for the Agreement of $362,580.

Financial Impact
The addition of this storage resource to our portfolio optimized with Ascend triggers a discounted service fee, so on a per-megawatt-managed basis, Ava’s cost to optimize storage resources in the CAISO is going down, even with the added $24,480 compensation.

Analysis and Context

1. Assessment, Review and Selection Process
Consent Item 12
Following a round of interviews, staff members participating in the evaluation voted for Ascend .

The following advantages were cited:
• Overall, the Ascend platform provides for a user-friendly experience and allows for uploading and downloading of operational data with ease. The interface is entirely web-based and allows users to access from anywhere they have internet access. • Ascend platform allows for easy scenario analysis to determine the most appropriate bidding and scheduling strategy, each being unique to a particular solar plus storage resource.
• Ascend optimizes bids for both the solar resource and the storage resource, creating a paid bid set that manages the resource efficiently.
• Ascend platform shows detailed financial breakdowns for each hour of each day for Ava staff to dive into and see where revenue streams are generated. • Ascend platform contains all necessary information but does not contain extras for the sake of inclusion. This allows for focused presentation of information to allow Ava staff to digest the intricacies of operations.

2. Proposed Subscription Services
Below are the key features for Ascend’s proposed services:
• Forecasting – Forecast market conditions to optimize both day-ahead and real-time. • Automated Bids Submissions – Manage asset revenue through 25 automated and optimized bid submissions per day (1 Day-Ahead and 24 Real-Time) with an adaptive real-time agent continuously adjusting real-time bids.
• Plant Dispatch Optimization – optimize plant dispatch of traditional resources, such as natural gas, biomass, biogas and geothermal.
• State of Charge Management – Balance battery state of charge against current and future revenue opportunities.
• Bidding Strategies – Manage multiple bidding strategies tune to asset-specific goals, risk appetite and desired revenue stack, through review of strategy performance. • Risk – Ensure risk from market commitments remains within user defined acceptability parameters.

Ava staff will retain unlimited user licenses to cover members in Power Resources and NCPA scheduling teams.

Adding a resource to Ascend’s optimization platform results in operational efficiencies, by reducing points of failure and tightening coordination in responding to market conditions.

Attachments
A. Resolution Authorizing the CEO to Negotiate and Execute a First Amendment to the Software as a Service Master Agreement with Ascend Analytics B. Consulting Services Agreement Amendment Template
Attachment Consent Item 12A
RESOLUTION NO. R-2025-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CEO TO

NEGOTIATE AND EXECUTE A SECOND AMENDMENT TO THE MASTER

AGREEMENT- SOFTWARE AS A SERVICE WITH ASCEND ANALYTICS
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers 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 Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The City of Stockton was added as a member to Ava in September of 2022. The City of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.

WHEREAS there is a need for Ava to add an additional standalone storage asset, Kola Energy Storage II, to the existing Storage and Renewable Bid Optimization software platform for the Power Resources objectives;
WHEREAS Ava staff has conducted a thorough assessment of Ava’s requirements for a Storage and Renewable Bid Optimization platform; and WHEREAS after interviewing various vendors, including Ascend Analytics (“Ascend”), the services offered by Ascend were determined to be the best fit to meet the current and future needs of Ava;
WHEREAS, Ava and Ascend previously entered into a Master Agreement-Software as a Service for storage and renewable bid optimization software services dated June 22, 2023, which was amended March 21, 2024 (collectively, the “Agreement”) and such Agreement may be amended to include the additional services;

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

Section 1. The Board of Directors hereby authorizes the CEO to negotiate and execute, subject to approval of General Counsel, a Second Amendment to the Agreement, for a Attachment Consent Item 12A
2-year subscription term, at a cost not-to-exceed $338,100, together with the option to extend the subscription term for up to one, additional 1-year term.

ADOPTED AND APPROVED this 19th day of March 2025
Jack Balch, Chair
ATTEST:

Now therefore, for good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. All references to East Bay Community Energy (“EBCE”) in the Agreement are hereby amended to Ava Community Energy (“Ava”).

2. Section [#] of the Agreement (“Term”) is amended to extend the term of the Agreement through [new date].

3. Section [#] of the Agreement (“Compensation and Payment”) is amended in part to increase the total compensation of the Agreement by $[amount] for a total amount not to exceed [new amount spelled out] ($[new amount]).

Attachment Consent Item 12B
2 4. Section [#] of the Agreement (“Notices”) is amended in part to include [email protected] as a required additional recipient for Ava.

5. Exhibit A (“Scope of Work”) of the Agreement is replaced in its entirety by Exhibit A, attached hereto.

6. Exhibit B (“Schedule”) of the Agreement is replaced in its entirety by Exhibit B, attached hereto.

7. Exhibit E (“Compensation/Budget”) of the Agreement is replaced in its entirety by Exhibit E, attached hereto.

8. All other terms and conditions in the Agreement not otherwise modified by this [Number] Amendment will remain in full force and effect.

In witness whereof, the Parties have entered this Amendment on the date written above.

Ava Community Energy Authority,
A Joint Powers Authority
[Name]
[Title]
Date: ____________________________
Approved as to form:

Ava General Counsel
[Vendor],
A [Legal form of entity]
[Name]
[Title]
Date: ______________________________
[Name]
[Title]
Date: ______________________________
Attachment Consent Item 12B
A-1
Exhibit A
Scope of Work
[Insert text here]
Attachment Consent Item 12B
B-1
Exhibit B
Schedule
[Insert text here]
Attachment Consent Item 12B
E-1
Exhibit E
Compensation/Budget
[Insert text here]
Attachment Consent Item 12B

Consent Item 13
Consent Item 13
To: Ava Community Energy Authority
From: Chris Davis, Account Services Manager
Subject:

Adopting a Resolution of the Board of Directors of Ava Community Energy Authority Approving Sacramento Municipal Utility District Task Order 4 for Accounts Receivable Recovery Agent Services
Date: March 19, 2025
__________________________________________________________________ Recommendation
Adopt a Resolution to allow the CEO to negotiate and execute a contract with Sacramento Municipal Utility District (“SMUD”) for accounts receivable recovery agent services, through December 2026, aligning the contract with Ava’s current SMUD Agreement.

Summary
The initial policy regarding Delinquent Accounts and Collections (Accounts Receivable Recovery Process) (“Policy”) was adopted as part of the February 7, 2018 Staff Report covering Administrative and Operational Policies. The Board of Directors (the “Board”) received an informational review of this Policy at the November 20, 2019 meeting. At that time, staff planned to implement the Policy by the end of the 2019-2020 fiscal year. However, the Policy was put on hold in response to the State’s emergency customer protections, which were introduced to support customers impacted by the COVID-19 pandemic. The State’s COVID-19 State of Emergency terminated on February 28, 2023.

Consent Item 13
Staff updated the Policy, and the Board approved it on March 20, 2024. Staff then took steps to implement the Policy, starting with issuing a request for proposals for collection agencies in September 2024.

Ava is able to collect on unpaid bills after the customer’s Ava account has closed, or terminated, and the debt is at least 61 days old. After this period, the debt being collected by PG&E on Ava’s behalf is reversed, and it becomes eligible for Ava’s own collection activities. Over the past four years, Ava has accumulated nearly $20 million in uncollected billings eligible for recovery, with approximately $5 million becoming eligible for recovery annually, stemming from over 300,000 customer accounts. Residential customers account for 59% of the total outstanding bills ($11.5 million) and 95% of total accounts (~287,000). Approximately $400,000 becomes eligible for collections each month.

Residential C&I Total
Monthly Average
Uncollectible $241,050 $167,840 $408,890
Monthly Average
Customer Count 5,970 315 6,285
Average Uncollectible
per Customer $40 $533 $65
Yearly Average
Uncollectibles $2,892,600 $2,014,080 $4,906,680
Table 1: Average Uncollectibles, 2020-2024
Financial Impact
SMUD will assess both an initial set up and an ongoing fee to administer recovery services. The initial setup includes integrating systems and processes across agencies configuring, compiling, and updating reporting and data, and customer service representative training. The initial fee is $100,000. The monthly administrative fee of $5,000, will support researching and responding to customer inquiries and disputes and managing and analyzing data and resolution of data discrepancies. Additionally, SMUD’s partner, ICS, will retain 10% of the recovered amount. Ava anticipates the monthly administrative fee costs will be covered by ongoing past-due payments received through the recovery efforts.

Based on other CCA collections activities, staff estimates 2-15% of past due balances will be recovered., Based on $400,000 in past-due balances eligible for collections monthly, staff expects to recover $8,000 - $60,000.

Consent Item 13
Collections Rate Total Collected Net to Ava
2% $8,000 $7,200
10% $40,000 $36,000
15% $60,000 $54,000
Table 2: Estimated range of monthly recoveries
Analysis and Context
Following Board approval for the Policy, Ava issued an RFP in September 2024 for an Accounts Receivable Recovery Agent to implement the approved policy.

Three agencies responded to the RFP; none are local to Ava’s service territory. The top two agencies were selected for interviews: SMUD, in partnership with ICS, and Harris & Harris (H&H). These agencies were evaluated based on the following key criteria: experience, recovery rates, cost, and customer communications and recovery methodology. Both agents had extensive experience, but SMUD was deemed more suitable, due to costs, its existing relationship with Ava, and their managing of the same process with another CCA, Valley Clean Energy.

Recovery rates for both agencies are expected to be similar, given the unique challenges of CCAs, such as low brand recognition and the inability to have debt affect customers credit rating, due to lack of having key customer information, such as social security numbers and complex billing structure. Regarding costs, SMUD proposed a $100,000 initial setup fee and a $5,000 monthly management fee to cover ongoing administrative costs. Due to the role SMUD plays in Ava’s ongoing billing operations, SMUD would be involved in both the data integration and ongoing administrative work.

Although both proposals were comparable, SMUD presented a more cost-effective option, due to its lower primary recovery fee of 10% versus H&H’s 16.2%. SMUD's lower primary recovery fee (10%) and customer-centric approach—offering multilingual support and flexible payment options—align more closely with Ava’s priorities. Staff will collaborate with SMUD to develop standardized language for use across all customer communication channels. H&H, while effective, takes a more data-driven approach and less person-to-person interaction.

Since 2018, Ava has contracted with SMUD to handle our billing operations and customer service duties. SMUD is the nation's sixth largest community-owned electric utility, committed to sustainability, innovation, and exceptional customer service. SMUD is well-regarded for its customer service; their team is praised for being knowledgeable and friendly, often going above and beyond to assist customers with billing inquiries, service issues, and energy-saving tips.

Also, SMUD reinvests profits back into their local area, funding programs for low-income residents, energy efficiency initiatives, and education around sustainability.

Consent Item 13
Subcommittee Recommendation
Staff presented this item to the Financial, Administrative and Procurement Subcommittee (FAP) on March 12, 2025. The subcommittee recommended this item for approval and requested that Staff require frequent vendor performance monitoring. Staff has incorporated this feedback into the final Staff Report.

Recommendation
Staff recommends contracting with SMUD for accounts receivable recovery services through December 2026, aligning this service with Ava’s current SMUD Agreement.

Attachments
A. Resolution
B. Accounts Receivable Recovery Policy
C. SMUD Task Order 4 – Debt Collection Services
D. PowerPoint
Attachment Consent Item 13A
RESOLUTION NO. R-2025-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY APPROVING SACRAMENTO
MUNICIPAL UTILITY DISTRICT TASK ORDER 4 FOR ACCOUNTS RECEIVABLE

RECOVERY AGENT SERVICES
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers 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 Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The City of Stockton was added as a member to Ava in September of 2022. The City of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception.

WHEREAS as a CCA, Call Center and Data Management Services (“CCDMS”) are fundamental to the efficient operation of Ava Community Energy; WHEREAS Ava, then East Bay Community Energy Authority, issued a Request for Proposals (“RFP”) for CCDMS in March 2021 and selected the Proposal from the Sacramento Municipal Utility District (“SMUD”) for further consideration and ultimately a three-year agreement;
WHEREAS Ava had entered into a Master Services Agreement (“MSA”) with SMUD for a term of approximately two years, effective January 30, 2018, permitting Ava to execute Task Orders to purchase services;
WHEREAS Ava and SMUD subsequently amended the MSA, effective December 20, 2020, to extend the term of the MSA until December 31, 2022; WHEREAS Ava and SMUD again amended the MSA, effective January 4, 2022, to extend the term of the MSA until December 31, 2024;
Attachment Consent Item 13A
WHEREAS Ava and SMUD executed Task Order 2, effective January 1, 2021, with an expiration date of December 22, 2022;
WHEREAS Ava and SMUD subsequently amended Task Order 2, to extend the expiration date to December 31, 2024;
WHEREAS Ava and SMUD executed Task Order 3, effective January 1, 2025, with an expiration date of December 31, 2029, and amended the MSA, effective January 1, 2025, to extend the term of the MSA until December 31, 2029; and WHEREAS Ava is wholly satisfied with SMUD’s services to-date and desires to amend the SMUD MSA to expand services to include accounts receivable recovery activities under Task Order 4, with updated scope and terms of compensation.

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

Section 1. The Board of Directors hereby authorizes the Chief Executive Officer to negotiate and execute, subject to the approval of General Counsel, Task Order 4 with SMUD, for the purposes set forth above and for compensation in substantial conformance with the terms set forth in the staff report associated with this Resolution.

ADOPTED AND APPROVED this 19th day of March 2025.

Jack Balch, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Attachment Consent Item 13B

ACCOUNTS RECEIVABLE RECOVERY PROCESS
Policy Number: P-2024-4.1
Approval Date: March 20, 2024
Agenda Item: Consent Item 15
Approved by Resolution: R-2024-22
Delinquent Accounts:

Pursuant to Electric Rules 8 and 11, Pacific Gas & Electric (PG&E) uses the following process to determine past due accounts and the necessary action:

Residential Accounts Non-Residential Accounts
Day 0 Bill is completed and
issued. Day 0 Bill is completed and issued.

Day 21 Bill is due Day 17 Bill is due
Day 22 Past due Day 18 Past due
Day 27-
34 A new bill is issued for
current charges and a 15-
day notice is included for
past due charges.

Day 21-
34 A new bill is
completed for new
charges and any
unpaid charges and a 7-day
notice is issued for past due
charges.

Day 42 96-hour notification sent
Day 44-47 48-hour notice via mail
Day 48 Outbound phone call
Day 51 Account is eligible for
disconnection Day 43 Account is eligible for disconnection Day 60 Final letter is sent Day 52 Final letter is sent Day 95 Reverse debt to CCA Day 87 Reverse debt to CCA
Aging Accounts:

All Ava Community Energy accounts, whether Residential or Non-Residential, identified in the month aging accounts receivable report, as provided by PG&E, are eligible to be returned to PG&E for continued non-payment.

Accounts Receivable Recovery Process:

Closed Ava accounts with overdue amounts may be recovered by Ava or referred to a collection agency and are subject to the recovery process established by this policy.

This policy replaces the existing policy for Delinquent Accounts and Collections (P-2018-4).

Attachment Consent Item 13C
Ava-SMUD Task Order 4 1
EXHIBIT A: SCOPE OF SERVICES
Task Order 4 – Debt Collection Service
SMUD and Ava agree to the following services, terms and conditions described in this Task Order. This Task Order 4 is for Debt Collection Services, the provisions of which are subject to the terms and conditions of the Agreement between the Parties. If any provisions of this Task Order 4 conflict with any provisions in the Agreement, the provisions of this Task Order 4 shall take precedence.

The Effective Date of this Task Order 4 is the date of last signature.

1. SCOPE OF WORK
SMUD will provide debt collection services as required by Ava during the term of this Task Order 4.
• Start Up Activities
o Set up Ava as a client in ICS system
o Set up ICS reporting
o Set up ICS portal
o Create Placement File
o Create Payment File
o Set up automated file transfers between ICS and SMUD
o Update Aging Reports to reflect Payments
o Update CRM to reflect Payments
o Set up document storage repository
o Set up Dashboard
o Set up payment transfers into Ava bank account
o Train ICS CSRs on Ava information and policy
o Set up processes (NLAR, Litigation, Dispute)
• Data Analytics
o Profile customers based on customer type, past due amount, engagement history, available contact information, and more
• Here to Help Letter
o Reach out to each customer to let them know that we are available to help, Ava to approve letters
o Encourage a call with one of our Energy Advisors who can educate about programs available to them to help lower their bills, from energy efficiency opportunities to low-income programs o Provide information about payment channels and programs to remove perceived barriers to payment
• Customer Care Calls
o Encourage a conversation with our Energy Advisors who are adept at “save” techniques to significantly reduce opt-out rates, and explain energy bills, determine high bill root cause, and educate on energy usage management, Ava to approve call scripts
o Support 150 different languages through the call center o Record and monitor all calls for quality assurance and adherence to customer care protocols
Attachment Consent Item 13C
Ava-SMUD Task Order 4 2
o Store and make all calls available for two years
o Keep call center hours of 9am – 5pm Pacific Time
• Validation Notice
o When initial attempts at communication have been unsuccessful in encouraging customers to pay, initiate a formal collections process o Send accounts a validation notice which informs customers of their balance, instructs them how to pay and clearly advises them of their rights as outlined by federal and state laws, Ava to approve letters
• Segmentation
o Group customers using over 40 data points
o Employ a unique strategy for each customer segment
o Re-segment after periodic evaluation
• Written Notifications
o Distribute additional request letters and emails, with frequency based on segmentation and new available information, Ava to approve letters
o Assess communication strategies and modify as needed
o Translate content into multiple languages
o Verify phone number, hours of operations, addresses, formatting of client information and placement of Fair Debt Collection Practices Act (FDCPA) required verbiage o Include a settlement letter if authorized
o As requested, send additional information such as receipt letter, debt validation letter, payment arrangement letter, pre-authorization payment reminder letter, etc. o Store letters in customer’s account record
• Phone Calls
o Where a valid phone number is available, initiate collection calls, Ava to approve call scripts
o In compliance with Regulation F, limit call attempts and dynamically determine best call times
o Clearly communicate agent’s name and agency
o Ensure account authorization to speak with customer
o Request identifying information such as address or birthdate to validate o Read a statement of rights to the customer
o Communicate debt information and instruct customer on ways to exit the collections process
o Request full payment, discusses potential financial resources and negotiate a payment plan if needed
o Offer payment options via the IVR, online or through the mail o Initiate disputed debt process if applicable
o Monitor calls for quality assurance
o Store calls for five years
o Note customer’s account record with call data, follow up date, promise to pay, canceled payment, non-sufficient funds, or other activity o Assign account manager for high value accounts
• Customer Tracing
o Access several data providers to identify the best possible mailing address and phone number
o Check online resources to locate quality customer contact information o Standardize addresses to meet USPS guidelines to improve mail delivery o Check that an account isn’t part of a bankruptcy proceeding Attachment Consent Item 13C
Ava-SMUD Task Order 4 3
o Verify that the responsible party isn’t deceased through an automated scrub o Monitor credit reports looking for changes that may indicate a renewed ability to pay • Remittance
o Provide payment remittance through preferred channel
• Web Portal
o Provide access to client portal with updated customer data, notes o Post reports to AWS including Placement files, Placement File Test files, Placement File Exception files, Debt Acknowledgement reports, Batch Track reports, Special Activity reports, 248 Debt Reversals and Cancel Debt Reversals, Payment reports, Inventory Detail reports, Performance reports, Monthly Dashboard • Attorney Services
o Position accounts with an attorney and initiate a non litigation attorney referral process after 180 days
o Position select accounts with an attorney for litigation upon approval after 270 days • Administrative Support
o Coordinate and attend monthly meetings with Ava
o Coordinate and attend monthly meetings with vendor
o Coordinate and attend monthly meetings with PG&E
o Work with PG&E to resolve missing data
o Research and respond to disputes
o Research and respond to bankruptcies
o Research and respond to customer inquiries
o Update dashboard monthly
o Upload related files and reports to AWS
o Analyze data to ensure accuracy of collection process o Analyze data to propose collection improvement opportunities

2. APPROVAL PROCESS ACCEPTANCE
Both Parties agree to perform tasks, reviews, and approvals in a timely manner.

3. TERM AND TERMJNATION

3.1. Term
Task Order 4 is effective on the Effective Date of this Task Order and shall remain in effect until December 31, 2026.

3.2. Termination
This Task Order 4 may be terminated pursuant to Section 4 ("Term and Termination") of the Agreement. In the event that Ava chooses to terminate this Task Order 4 prior to December 31, 2026, Ava will pay SMUD for fees incurred to date. Such fees shall be due and payable (30) calendar days after the date of the invoice by SMUD to Ava.

Attachment Consent Item 13C
Ava-SMUD Task Order 4 4

4. COMPENSATION FOR SERVICES

4.1. Hourly Rates
Services performed under this Task Order 4 will be billed as follows:

Description Fee
Set Up Fee $100,000 one time
Administrative Support $5,000 per month
Primary Placements 10% of debt collected
Secondary Placements 22% of debt collected
Attorney Referral 50% of debt collected
Litigation 50% of debt collected
Primary placements include accounts that have not gone to other collection agencies.

Secondary placements include accounts that have gone to other collection agencies already.

Costs for marketing and outreach such as postage and vendor fees shall be pass through.

5. PAYMENT TERMS
Fees incurred under this Task Order 4 will be invoiced monthly. For services under this Task Order 4, Ava shall pay all undisputed invoices within thirty (30) calendar days of date of the invoice.

6. TASK AMENDMENT
This Task Order 4 may only be amended or otherwise modified with the written agreement of the Parties and approved by each Party's governing body where required by law or policy. Any changes to the scope defined in Task Order 4 will be addressed through a task amendment process.

Attachment Consent Item 13C
Ava-SMUD Task Order 4 5

SIGNATURES
The Parties have executed this Task Order 4, and it is effective as of the Effective Date.

Ava Community Energy
By
Name
Title
Date
Approved As To Form
Sacramento Municipal Utility District
By
Name Brandy Bolden
Title Chief Customer Officer
Date
Approved As To Form
Accounts Receivable
Recovery Process
Chris Davis | March 19, 2025
Attachment Consent Item 13D
Recommendation:

Staff recommends contracting with SMUD until December 2026, aligning the contract with Ava’s current SMUD agreement.

Executive Summary
● Ava has accumulated $20M in uncollected billings over the past 4 years ● $400k in eligible collections per month from 300K+ customers ● The Board adopted new write-off and collections policies in 2024; staff seeks to implement these into operations
● Recommended Vendor: SMUD (partnership with ICS)
● Key Benefits of SMUD: Cost-effective, positive client feedback, seamless integration with our billing system
2 Attachment Consent Item 13D
Background
Uncollected Billings:
• $20M in total, with $5M becoming eligible for recovery annually • 300,000+ customers with eligible accounts (closed and 61+ days overdue) • 59% of debt is residential
Ava’s Policy History:
• 2018 policy adopted, paused in 2020 due to COVID-19 protections • The State’s COVID-19 state of emergency terminated on February 28, 2023 • Staff issued an RFP September 2024 for debt collection services • Ava’s Accounts Receivable Recovery Policy was adopted March 2024 3 Attachment Consent Item 13D
Ava’s Accounts Receivable Recovery Policy
Delinquent Accounts:

Pursuant to Electric Rules 8 and 11, Pacific Gas & Electric (PG&E) uses the following process to determine past due accounts and the necessary action: (Refer to the chart on the following slide for more details.)
Aging Accounts:

Ava’s Accounts Receivable Recovery Policy:

Closed Ava accounts with overdue amounts may be recovered by Ava or referred to a collection agency and are subject to the recovery process established by this policy. 4 Attachment Consent Item 13D
Customer Timeline - PG&E
5 Residential Accounts Non-Residential Accounts
Day 0 Bill is completed and issued. Day 0 Bill is completed and issued.

Day 21 Bill is due Day 17 Bill is due
Day 22 Past due Day 18 Past due
Day 27- 34 A new bill is issued for current charges and a 15-day notice is included for past due charges.

Day 21-34 A new bill is completed for new charges and any unpaid charges and a 7-day notice is issued for
past due charges.

Day 42 96-hour notification sent
Day 44-47 48-hour notice via mail
Day 48 Outbound phone call
Day 51 Account is eligible for disconnection Day 43 Account is eligible for disconnection Day 60 Final letter is sent Day 52 Final letter is sent Day 95 Reverse debt to CCA Day 87 Reverse debt to CCA
Ava does not have an influence in this schedule or if/when a customer is disconnected.

Customer debt is also reversed to Ava if the customer voluntarily closes their account.

Attachment Consent Item 13D
Request for Proposals Process
In September 2024, Ava issued a RFP for Debt Collection Services. Three agencies responded to the RFP. Proposals were evaluated by a team, and the top two agencies were selected for interviews:

Vendors Considered:
• SMUD - Partnered with ICS
• Harris & Harris (H&H)
6 Attachment Consent Item 13D
Comparison of Collection Methodology
SMUD vs. H&H Key Differences:
• SMUD: 24/7 inbound IVR, manual skip tracing, persistent communication even after 90 days • H&H: Focus on analytics, credit score filtering, more frequent call attempts for smaller balances
Customer Journey Highlights:
• SMUD prioritizes customer experience through multiple communication channels, a "here-to-help" letter • H&H utilizes advanced analytics, but lacks long-term engagement tools 7 Attachment Consent Item 13D
Financial Analysis
• Setup and monthly management fees to SMUD apply to any vendor selected ▪ SMUD handles Ava’s data management and billing services, therefore they are essential to this process
• Estimated recovery rate: 10% (range: 2%-15%)
8 H&H Fee Structure:
● Recovery fee: 16.2%
● Fixed $100k set-up fee
● $5k monthly management fee
SMUD Fee Structure:
● Recovery fee: 10%
● Fixed $100k set-up fee
● $5k monthly management fee
k
Attachment Consent Item 13D
Uncollectibles Breakdown
9 Residential C&I Total
Monthly Average
Uncollectible $241,050 $167,840 $408,890
Monthly Average Customer
Count 5,970 315 6,285
Average Uncollectible per
Customer $40 $533 $65
Yearly Average
Uncollectibles $2,892,600 $2,014,080 $4,906,680
Table 1: Average Uncollectibles, 2020-2024
Attachment Consent Item 13D
Vendor: SMUD in partnership with ICS
Determining Factors:
• Lower primary recovery fee (10%)
• Integration with SMUD will streamline implementation
• Favorable customer feedback and cost-effectiveness
Recommendation:

Staff recommends contracting with SMUD until December 2026, aligning the contract with Ava’s current SMUD agreement. Staff will monitor monthly reports to analyze performance throughout the duration of the contract.

Recommendation
10 Attachment Consent Item 13D
Questions?
11 Attachment Consent Item 13D

CEO Report Item 14
CEO Report Item 14
TO: Ava Community Energy Board of Directors
FROM: Howard Chang, Chief Executive Officer
SUBJECT: CEO Report (Informational Item)
DATE: March 19, 2025
________________________________________________________________________ Recommendation
Accept Chief Executive Officer (CEO) report on update items below.

Executive Committee Meeting
An Executive Committee Meeting was held on Wednesday, March 5, 2025. Members received updates on Critical Municipal Facilities and on the Local Development Fund Reconciliation. The next meeting will be held on Wednesday, April 2, 2025 at 3pm.

Financial, Administrative and Procurement Subcommittee Meeting A Financial, Administrative and Procurement Subcommittee Meeting was held on Wednesday, March 12, 2025. Members received a preview of the annual FAP agenda, and reviews of the FY 2024-2025 Q2 Financial Statements, Reserve Fund, Accounts Receivable Recovery Agent Contract and the Unclaimed Funds Policy. The next meeting is currently scheduled for May 14, 2025 at 1pm and staff may consider a new regularly scheduled time to accommodate board availability.

Marketing, Regulatory and Legislative Subcommittee Meeting The meeting time for the Marketing, Regulatory and Legislative Subcommittee (MRL) has been updated. The MRL will meet on the third Friday of the even months from 10-11:30am, on the following dates:

April 18
June 20
October 17
December 19
Board Meeting Location Update
Beginning April 2025, all Board of Directors (BOD) and Community Advisory Committee (CAC) meetings will be held at Ava Community Energy’s office located at 1999 Harrison Street, Suite 2300, Oakland, CA 94612, in Conference Room 5 (where FAP and MRL subcommittee meetings are currently held). Secured parking is available at the Lake Merritt Plaza Parking Garage (entrance on Harrison Street) for $5 per hour, with a daily maximum of $30, and street CEO Report Item 14
parking is also available. Bike parking is available on the first floor of the building’s parking garage. An Ava staff member will be stationed in the lobby to assist with access.

Local Development Update
A summary list of Local Development programs that are live or in-progress is attached to this report to provide a summary description of the program and indicate target launch dates.

Ava in the Community
Ava will be attending a series of community events within our service area. We are also ramping up outreach in the Stockton/Lathrop region. Here are the events where Ava will have a presence between March 19 and April 19:

Date Event Location
3/22/2025 Union City Culture Fest Kennedy Park in Union City 3/22/2025 Oakland Roots Home Opener Oakland Coliseum
3/25/2025 Tracy State of the City Grand Theatre Center for the Arts in Tracy
3/27/2025 Presentation to Lathrop Senior
Center Lathrop Senior Center
3/29/2025 Migrant Regional Parent
Conference Wentworth Education Center
4/6/2025 Stockton Farmer's Market Weberstown Mall in Stockton 4/8/2025 Stockton Ports Home Opener Banner Island Ballpark in Stockton 4/11/2025 Stockton Asparagus Festival Stockton Fairgrounds 4/12/2025
Newark Family Day at the
Park Newark Community Center Park
4/19/2025 Fremont Earth Day
Fremont Downtown Event Center
and Plaza
4/19/2025 Pleasanton Earth Day Pleasanton Library
Stockton and Lathrop Enrollment Update
Ava continues outreach to customers in Stockton and Lathrop in advance of their enrollment starting April. As of March 11, just 2% of total eligible customers have chosen to opt-out from Ava and remain with PG&E for electricity generation service. The customer service team is experiencing a 300% increase in call volumes compared to 2024. • 60% of inquiries to Ava are coming in through the customer call center, • 35% of customers choose to interact with Ava via our online web forms, and • the remaining 5% use Ava’s bilingual automated phone service.

ATTACHMENTS
• FY25 Local Development Key Efforts Overview
WORKING DOCUMENT v.03.07.25
FY25 Local Development
Key Efforts Overview
Program Summary Key Dates Region Budget
Health-e
Communities
Initial Pilot installs 200 induction
stoves for free to customers in
low-income homes, including air
monitoring. Partnered with Franklin
Energy and Berkeley Air.

Public Launch:

Oct-24
End Date: Oct-25
All of Ava
service
territory
$10M approved to
date, including
$1.5M for pilot
Critical Municipal
Facilities
10-12-project PPA portfolio of solar
and solar PV systems on municipal
buildings in 6 cities.

RFQ+RFP posted
Mar-25
COD by Apr-26 for
“NEM2.0” sites
Berkeley,
Fremont,
Hayward,
Livermore,
Oakland,
San Leandro
$8.85M
Ava Charge EV DC Fast Charger network with
sites located on municipal property
near multi-family housing with
limited access to fast charging
infrastructure. Partnered with EV
Realty and Calibrant.

First station at
Oakland City Center
West: Live,
Additional sites live
throughout 2025
Phase 1a:

Oakland,
Piedmont,
Livermore,
Hayward
$14.35M to date
BOD commitment
of $30M over 10
years
SmartHome
Charging
Managed home EV charging
program that offers residential
customers incentives for allowing
Ava to control time and duration of
charging. Partnered with Optiwatt.

Customer launch:
late Mar-25
End Date: Mar-27
All of Ava
service
territory
$2.3M
Ava Bike Electric Incentives for the purchase of
e-bikes. E-bike instant rebates
issued to monthly random selection
of applicants. Partnered with
APTIM.

Customer launch:

Jul-25
End Date: Jul-26
All of Ava
service
territory + all
residents of
Alameda
County
$10M
$6M from Ava
$4 M from ACTC
SmartHome
Battery Storage
Financial support for installation of
residential and resilience hub solar
+ storage projects. Upfront
incentive at install, on-going
incentives for management of
battery assets. Partnered with
Lunar.

Customer launch:

Oct/Nov-25
End Date: Nov-35
All of Ava
service
territory
$31M
~$15M upfront,
(incl ~$7.5M for
market rate
residential)
$14M ongoing
$2M admin
Attachment CEO Report Item 14A
Resilience Hubs CBO support for community
organizing and pipeline
development of potential project
sites. Technical assistance for
project concept plans and bid
reviews. CBO partner Emerald
Cities Cooperative, TA partner N5.

RFP: Aug-24
Expected Start:

Q1-25, contract
pending final
signature
All of Ava
service
territory
$2M for TA
~$1M for Grants
~$7.5M for

CARE/FERA
customers and
Resilience Hub
S+S incentives
Building Efficiency
Accelerator
Energy efficiency program focused
on large customers. Goal of 30
GWh of energy savings over 3
years. Partnered with Cascade
Energy with a sub to kW
Engineering.

Start Date: May-23
End Date: May-26
All of Ava
service
territory
$5.5M from CPUC
$1M from Ava
Heat Pump Water
Heaters
Support for the BAAD 2027
mandate to all HPWH through
rebates and support for local permit
streamlining and training. Partnered
with StopWaste for rebates and
SolarApp for permitting.

Funding:

HPWH rebates
Jul-24
SolarApp Nov-24,
contract pending
final signature
Rebates -
Only Alameda
County portion
of Ava service
territory
Permitting - All
of Ava service
territory
$1M in rebates
$350k for permit
support
Attachment CEO Report Item 14A
Staff Report Item 16
Staff Report Item 16
To: Ava Community Energy Authority
From: Howard Chang, CEO
Subject: Review of Reserve Fund Policy
Date: March 19, 2025
__________________________________________________________________ Summary/Recommendation
Inform the Board of Directors on Ava’s Reserve Fund Policy as to how it was established, discuss objectives and utilization, provide context to comparable best practices, and set the stage for possible improvements and funding plan considerations.

Financial Impact
This is an informational item with no financial impact.

Analysis and Context
Background and History of Ava’s Reserve Policy
On June 10, 2018, the Board of Directors (the “Board”) approved by resolution (R-2018-26) a financial reserve policy (P-2018-10) to allow Ava to contribute surplus revenues to reserves.

This policy consisted of a waterfall allocation to four separate funds:
• General Operating/Credit Reserve
• Rate Credit Reserve
• Collateral Reserve
• Local Development Reserve
The Board approved by resolution (R-2021-2) to update the financial reserve policy on January 20, 2021, as driven by negotiations with Ava’s credit facility, the restructuring of Local Development as a separate fund, and as advised in preparation for Ava’s first credit rating Staff Report Item 16
review. This update consolidated the reserves into a single reserve fund except for the Local Development Reserve, which was rolled into the balance of the newly created Local Development Fund and now holds all budgeted allocations.

Additionally, the update set a target funding percentage to 50% of operating expenses for the fiscal year, with a range set to a minimum of 25% and a maximum of 75% Survey of Comparable Best Practices
In considering the relevance of Ava’s reserve policy, staff has completed a broad survey of the reserve policies for 23 public agencies to discover the comparable best practices. These agencies were selected to cover the various comparable criteria of other Community Choice Aggregators (CCA’s), non-CCA California public energy providers, and regional operating agencies. The complete list of agencies surveyed is presented here:
• AC Transit—Regional Operator
• Alameda Municipal Power—Non CCA Public Power
• Ava Community Energy--CCA
• Central Coast Community Energy--CCA
• City of Burbank Water & Power—Non CCA Public Power
• Clean Energy Alliance--CCA
• Clean Power Alliance--CCA
• Clean Power SF--CCA
• Desert Community Energy--CCA
• East Bay Municipal Utility District—Regional Operator • Los Angeles Department of Water and Power—Non CCA Public Power • MCE--CCA
• Orange County Power Authority--CCA
• Peninsula Clean Energy--CCA
• Pico Rivera Innovative Municipal Energy—Non CCA Public Power • Pioneer Community Energy--CCA
• Redwood Coast Energy Authority--CCA
• Sacramento Municipal Utility District—Non CCA Public Power • San Diego Community Power--CCA
• Silicon Valley Clean Energy--CCA
• Sonoma Clean Power--CCA
• South Placer Municipal Utility District—Non CCA Public Power • Valley Clean Energy--CCA
The objectives of the survey were to test for generally accepted targets and ranges (if applicable) of reserve fund levels, discover best approaches to funding reserves, and discover best practices for utilization and use discretion. The results of the survey are as follows:

Staff Report Item 16
Statistics of respondents as related to target levels and ranges:
• 22 (96%) have a target reserve that averages 48% (stdev = 17%) of annual operating expenses (OpEx) or gross revenues
o One (4%) respondent had no target identified, but did have minimum and maximum range tied to gross revenues
o Two respondents had reserve targets dependent upon gross revenues, the rest were operating expenses
o One respondent had a fixed dollar target amount not seemingly dependent upon financial aspect
o Ava has a target of 50% of annual OpEx
• 12 (52%) have a minimum reserve target averaging 29% (stdev = 10%) of OpEx, one of which was tied to gross revenues.
o 11 (48%) had no mention of minimum reserve targets
o Ava has a minimum target of 25% of OpEx
• 10 (43%) have a maximum reserve target averaging 73% (stdev = 27%) of OpEx, one of which was tied to gross revenues.
o 13 (57%) had no mention of maximum reserve targets
o Ava has a maximum target of 75% of OpEx
In terms of how reserves are funded, more than half (15) funded reserves from net revenues, 2 funded from gross revenues, and the rest (6) did not specify funding mechanism. Ava funds its reserves from net revenues.

In terms of discretion in utilization of reserves, 10 agencies allow CEO discretion for utilization of reserves, 8 require board approval, and 5 do not specify. Ava currently requires Board approval for use of reserves.

The conclusion can be drawn from the results of the survey that Ava’s current minimum, target, and maximum reserve levels are in line with the agencies surveyed. The ranges are intended to allow flexibility to build reserves over time, swing with any market volatility that would impact annual operating expenses levels, and provide guidelines for potential future utilization.

Staff recommends maintaining the current min/max/target levels and consider adjustments in the future as Ava approaches its target level.

Reserve Policy Funding Plan
With expansion to San Joaquin County current forecasted annual operating expenditures for a full year are estimated at approximately $1.2 billion, which translates to a 50% reserve target of $600 million. Current reserves are at $330 million and are expected to approach $400MM at the end of FY 2025, as shown in the table below which shows the history of reserve levels and upcoming estimates for the next fiscal year.

Staff Report Item 16
Contribution Year Contribution Withdraws Balance Operating Expenses* PctCoverage 2018-2019 40,513,687 - 40,513,687 410,686,000 9.9%
2019-2020 49,704,640 - 90,218,327 383,045,000 23.6%
2020-2021 - - 90,218,327 471,897,000 19.1%
2021-2022 65,655,073 - 155,873,400 562,667,000 27.7%
2022-2023 75,000,000 - 230,873,400 732,885,000 31.5%
2023-2024 100,000,000 - 330,873,400 826,473,000 40.0%
2024-2025** 65,668,500 - 396,541,900 1,076,267,000 36.8% *Operating Expenses are fiscal year ahead for coverage purposes **Proposed contribution with projected operating expenses to cover for FY 25-26 as of 1/28/2025 To reach the 50% annual operating expenses target, staff is asking for feedback from the Board on developing funding plan options. Final options and recommendations are intended to be brought to the Board during this year’s budget development cycle1.

Options being currently considered are:
• Prioritize funding with full net revenues until 50% target is met o Estimated time: 3 – 6 years depending upon broader economic conditions of California energy space
o Pros:
▪ Low risk to value proposition to meet target
▪ No impact to balance budget
▪ Clear intention to public
o Cons:
▪ Dependent upon broader California energy space economics ▪ Limits options on surplus allocations
• Five years to target:
o Allocate about $40-$50 million per year
o Pros:
▪ Clear budget line item
▪ Clear intention to public
▪ Retains flexibility with surplus allocations
o Cons:
▪ Risk to value proposition and balanced budget in lean years • Ten years to target
o Allocate $20-25 million per year
o Pros and cons are same as 5-year option but with reduced risk to value proposition and balanced budget
1 Budget development cycle is in the last quarter of the fiscal year: April through June. Budget approval is typically with the June Board meeting.

Staff Report Item 16
Purpose & Utilization of Ava’s Reserve Policy
As stated in Ava’s reserve policy, the purpose of reserves was to hold a suitable cash balance to meet targeted levels of operating expenses with the objectives of:
• Maintain long-term financial independence and rate stability • Secure favorable commercial terms with vendors and power providers • Support the maintenance of a credit rating
• Provide liquidity for unanticipated expenditures
• Meet Ava’s strategic objectives, and
• Have cash available for other operational needs as approved by the Board Although not explicit in the policy, the operating intent of the reserve fund is to provide resources in cases of extreme need, such as local natural catastrophes (earthquakes, tsunamis, fires, etc.) or significant energy market events that lead to price volatility and financial risk to Ava. Examples include but are not limited to climate event driven extreme supply shortages or demand spikes, market manipulation (ala 2000-2001), global pandemics, geopolitical economic events, etc. In consideration of power resource ownership, such reserves will also be maintained for unplanned outages and other unplanned investments/costs. In general, reserve funds are considered as a last use resource of liquidity.

Rate Stabilization Fund Policy Considerations
Ava has a GASB 62 Revenue Deferral Fund in which budget surplus allocations have been made. This fund has primarily been maintained to allow matching of timing for on-bill credits, the solar & storage incentive program, and a one-time allocation towards long-term renewable energy & clean energy storage investments.

Staff is evaluating a more formalized Rate Stabilization Fund Policy to lay out a funding plan and intended utilization for review with the board.

The policy recommendation will include disbursements for specific purposes to maintain stable rate discounts for customers in response to cyclical and short-term market volatility.

Conclusion & Next Steps
Both the Reserve Fund and the forthcoming Rate Stabilization Fund are key elements necessary to provide a line of financial defense against exogenous events that stress agency finances. Establishment and maintenance of these funds ultimately benefit customers by keeping Ava financially stable and well-buffered against the unexpected. Below is a list that defines the order of how Ava manages liquidity as a resource.

Waterfall of Liquidity Resources

1. Working Capital

2. Rate Stabilization Fund

3. Credit Facility

4. Reserve Fund
Staff Report Item 16
The conclusions to be drawn from this discussion are:
• Ava’s Reserve Policy is in line with industry norms for similar agencies • To reach the 50% target a clear path for funding should be established In light of these conclusions, staff is expecting the following next steps:
• Staff will provide options and a formal recommendation on a Reserve Policy Funding Plan for Board action in May, 2025
• Staff will bring forward a draft Rate Stabilization Fund Policy for consideration in the coming months
Committee Recommendation
This matter was presented to the Finance, Administrative, and Procurement Committee on March 12, 2025. The recommendation was to move forward with bringing possible funding options to the Board at a later date that lean towards the 5-10 year timeline with an emphasis on protecting quality of service and Ava’s value proposition while continuing to support additional priorities.

Attachments
A. Policy 10.1 Updated Financial Reserve Policy
B. Presentation
Finance Department
1999 Harrison Street, Suite 800
Oakland, CA 94612
ebce.org
1-510-650-7584
1-833-699-EBCE (3223) [email protected]
Approved January 20, 2021 Item #11
Policy P-10.1
R-2021-2

EAST BAY COMMUNITY ENERGY FINANCIAL RESERVE POLICY
(Effective as of January 20, 2021, per Resolution No. R-2021-2) Purpose
EBCE’s reserve policy (this “Policy”) is established to provide a suitable cash balance to be held to meet target levels of annual operating expenses. This Policy will be maintained as described in the Guidelines to provide for the following objectives:
• Maintain long-term EBCE financial independence and rate stability, • Meet EBCE strategic objectives,
• Secure favorable commercial terms with vendors and power providers, • Support EBCE’s pursuit of, and maintenance upon receiving, a credit rating, • Provide a source of funds for unanticipated expenditures, and • Make cash available for other operational needs as approved by the Board of Directors (the “Board”).

Guidelines
EBCE shall maintain a cash reserve (the “Reserve”).

EBCE shall strive to maintain the dollar amount in the Reserve during any fiscal year to be equal to a percentage (the “Target Percentage”) of the operating expenses projected for such fiscal year based on the relevant annual budget. The reserves shall be funded by available surplus revenues as determined by the most recent audited financial statements.

If the Board does not take action to determine a new Target Percentage before the beginning of a fiscal year, then the Target Percentage from the prior fiscal year will continue to be the Target Percentage for the new fiscal year, until the Board decides to make any changes. The Board may change the Target Percentage at any time during the fiscal year.

Generally, starting in fiscal year 2021-22, the Target Percentage shall be 50%, but may range from 25% and 75%; provided that upon a finding of special circumstances by the Board, the Board may determine to use a Target Percentage outside of this range for any fiscal year (or other period of time).

Attachment Staff Report Item 16A
ebce.org
In connection with its recommendations with respect to the Reserve and the Target Percentage, Staff will monitor EBCE’s liquidity through the annual audited financial statements.

Spending Authority
Authority to spend from money in the Reserve must align with Board approved budgets or approved for special action by the Board.

Board Discretion
The Board may, by resolution, modify or suspend any provision of this Policy for any duration at any time.

Attachment Staff Report Item 16A
Reserve Fund Review
Speaker Name | March 12, 2025
Attachment Staff Report Item 16B
Background and History of Ava’s Reserve Policy
2 June 10, 2018, the Board of Directors (BOD) approved by resolution (R-2018-26) a financial reserve policy (P-2018-10) to allow Ava to contribute surplus revenues to reserves. ▪ This policy consisted of a waterfall allocation to four separate funds • General Operating/Credit Reserve
• Rate Credit Reserve
• Collateral Reserve
• Local Development Reserve
Negotiations with Ava’s credit facility, restructuring Local Development as a separate fund, and in preparation for a credit rating review, the BOD approved by resolution (R-2021-2) to update the financial reserve policy on January 20, 2021
▪ This update consolidated the remaining reserves into a single reserve fund and discussions also led to creation of a Local Development Fund that was used to accumulate and track budget allocations to Local Development activities
• Target funding percentage was set to 50% of operating expenses for the fiscal year, with a range set to a minimum of 25% and a maximum of 75%
Attachment Staff Report Item 16B
Survey of Comparable Best Practices
In considering the relevance of Ava’s reserve policy, staff has completed a broad survey of 23 public agencies to discover comparable best practices for reserve fund policy and management The goals of the survey were as follows:
• Test for generally accepted targets and ranges, if applicable, for reserve fund levels
• Discover best approaches on funding reserve funds
• Discover best practices for use discretion
3 Agencies Surveyed
• AC Transit
• Alameda Municipal Power
• Ava Community Energy
• Central Coast Community Energy
• City of Burbank Water & Power
• Clean Energy Alliance
• Clean Power Alliance
• Clean Power SF
• Desert Community Energy
• EBMUD
• LADWP
• MCE
• Orange County Power Authority
• Peninsula Clean Energy
• Pico Rivera IME
• Pioneer Community Energy
• Redwood Coast Energy Authority
• SMUD
• San Diego Community Power
• Silicon Valley Clean Energy
• Sonoma Clean Power
• South Placer MUD
• Valley Clean Energy
Attachment Staff Report Item 16B
Results of Survey of Comparable Best Practices
Statistics of Respondents:
• 22 (96%) have a target reserve that averages at 48% (stdev = 17%) of annual operating expenses (OpEx) or gross revenues ▪ One (4%) respondent had no target identified, but did have min and max range tied to gross revenues ▪ Two respondents had reserve targets dependent upon gross revenues, the rest were operating expenses ▪ One respondent had a fixed dollar amount not seemingly dependent upon financial aspect ▪ Ava has a target of 50% of annual OpEx
• 12 (52%) have a minimum reserve target averaging 29% (stdev = 10%) of OpEx, one of which was tied to gross revenues. ▪ 11 (48%) had no mention of minimum reserve targets
▪ Ava has a minimum target of 25% of OpEx
• 10 (43%) have a maximum reserve target averaging 73% (stdev = 27%) of OpEx, one of which was tied to gross revenues. ▪ 13 (57%) had no mention of maximum reserve targets
▪ Ava has a maximum target of 75% of OpEx
More than half (15) funded reserves from net revenues, 2 funded from gross revenues, and the rest (6) did not specify funding mechanism. Ava funds its reserves from net revenues.
10 allow CEO discretion for use of reserves, 8 require board approval, and 5 do not specify. Ava currently requires BOD approval for use of reserves.
4 Attachment Staff Report Item 16B
Current Reserve Fund Levels & Upcoming Needs
• Currently, Ava has $330,873,400 allocated to reserves which covers approximately 40% of current fiscal year’s operating expenses.
• Stockton and Lathrop are only active in the last quarter of this current fiscal year • Next fiscal year (FY 2025-2026) will be a full operating year with Stockton and Lathrop • San Juaquin County will only be active in the last quarter of FY 2025-2026 • The following fiscal year (FY 2026-2027) will be the first year with full participation of all new communities
• Keeping to the reserve policy, Ava will expect to require a material increase to the 50% target • Staff is intending to present a reserve funding plan with the upcoming budget development session this year
5 Contribution Year Contribution Withdraws Balance Operating Expenses* PctCoverage 2018-2019 40,513,687 - 40,513,687 410,686,000 9.9%
2019-2020 49,704,640 - 90,218,327 383,045,000 23.6%
2020-2021 - - 90,218,327 471,897,000 19.1%
2021-2022 65,655,073 - 155,873,400 562,667,000 27.7%
2022-2023 75,000,000 - 230,873,400 732,885,000 31.5%
2023-2024 100,000,000 - 330,873,400 826,473,000 40.0%
2024-2025** 65,668,500 396,541,900 - 1,076,267,000 36.8% *Operating Expenses are fiscal year ahead for coverage purposes **Proposed contribution with projected operating expenses to cover for FY 25-26 as of 1/28/2025 Attachment Staff Report Item 16B
Reserve Policy Funding Plan
Ava min/max/target reserve levels are in line with the averages of surveyed agencies. The min/max ranges are intended to allow flexibility to build reserves over time, swing with any market volatility that would impact the annual operating expenses levels, and provide guidelines for potential future utilization.

Staff recommends maintaining the current min/max/target levels and consider adjustments in the future as Ava
approaches its target level.

With expansion to San Joaquin County current forecasted annual operating expenditures for a full year are estimated at approximately $1.2 billion, which translates to a 50% reserve target of $600 million. From the previous slide, current reserves are at $330 million and anticipates approaching $400MM at the end of FY 2025.

Staff is developing a funding plan to meet target levels in 5 to 10 years.
6 Reserve Funding Options:
• Prioritize with full net revenues until
50% target met
▪ Estimated time: 3 – 6 years
▪ Pros: Low risk to value proposition to meet
target. No impact to balance budget. Clear
to public.
▪ Cons: Dependent upon broader CA energy
economics. Limits surplus options.
• Five years to target
▪ Allocate ~$40-50 million per year
▪ Pros: Clear to public. Clear budget line
item. Retains flexibility with surplus
options.
▪ Cons: Risk to value proposition and
balanced budget to meet target in lean
years.
• Ten years to target
▪ Allocate ~$20-25 million per year
▪ Pros & Cons are same as 5 years but with
reduced risk to value proposition and
balanced budget
Attachment Staff Report Item 16B
Purpose & Utilization of Ava’s Reserve Policy
7 Although not explicit in the policy, the operating intent of the reserve fund is to provide resources in cases of extreme need, such as local natural catastrophes (earthquakes, tsunamis, fires, etc…) or significant energy market events that lead to price volatility and financial risk to Ava. Examples include but are not limited to climate event driven extreme supply shortages or demand spikes, market manipulation (ala 2000-2001), global pandemics, geopolitical economic events, etc. In consideration of power resource ownership, such reserves will also be maintained for unplanned outages and other unplanned investments/costs.

Ava’s reserve policy was established to hold a suitable cash balance to meet targeted levels of operating expenses with the objectives of:
• Maintain long-term financial independence and rate stability • Secure favorable commercial terms with vendors and power providers • Support the maintenance of a credit rating
• Provide liquidity for unanticipated expenditures
• Meet Ava’s strategic objectives, and
• Have cash available for other operational needs as approved by the Board Attachment Staff Report Item 16B
Rate Stabilization Fund Policy Considerations
Ava has a GASB 62 Revenue Deferral Fund in which budget surplus allocations have been made. This fund has primarily been maintained to allow matching of timing for on-bill credits, the solar & storage incentive program, and a one-time allocation towards long-term renewable energy & clean energy storage investments.

Staff is evaluating a more formalized Rate Stabilization Fund Policy in order to lay out a funding plan and intended utilization for review with the board.

The policy recommendation will include disbursements for specific programmatic purpose and in order to maintain stable rate discounts in response to cyclical and short-term market volatility, anticipated 1-2 times each decade.
8 Waterfall of Liquidity Resources

1. Working Capital

2. Rate Stabilization Fund

3. Credit Facility

4. Reserve Fund
Attachment Staff Report Item 16B
Conclusion & Next Steps
• Ava's Reserve Policy is in line with industry norms for similar agency operations • Staff is seeking feedback from the board on funding plan duration • Staff will provide a formal recommendation on a Reserve Policy funding plan for board action in May 2025
▪ FAP subcommittee feedback was to move forward with options that lean towards the 5-10 year timeline with emphasis protecting quality of service, Ava’s value proposition to customers, while continuing to support additional priorities.
• Staff will bring forward a draft Rate Stabilization Fund Policy for consideration in the coming months
9 Attachment Staff Report Item 16B

Staff Report Item 17
Staff Report Item 17
To: Ava Community Energy Authority
From: Todd Edmister, Sr. Director of Public Policy and Deputy General Counsel Dominic Faria, Senior Policy Coordinator
Subject: Seeking Board approval for supporting SB 540 (Pathways legislation) Date: March 19, 2025
________________________________________________________________ Summary/Recommendation
This Staff Report and accompanying presentation are intended to inform the Ava Board of Directors about SB 540 and the West-wide Pathways Initiative, and to seek approval to adopt a Resolution in support of SB 540 and authorizing the CEO to sign the attached Letter of Support.

Financial Impact
There is no cost associated with sending a letter of support but adoption of SB 540 could potentially result in operational savings for Ava in the future.

Analysis and Context
California CCAs, including Ava, have been asked to sign a letter supporting California Senate Bill 540 (SB 540). The letter is being led and signed by a broad coalition of stakeholders, including CalCCA, Natural Resources Defense Council, American Clean Power, among others.

The letter will be sent to members of the legislature urging them to support the legislation.

What is SB 540? On February 20, state Senators Josh Becker (D-Menlo Park) and Henry Stern (D-Los Angeles) introduced SB 540, a bill that establishes a process through which the California Independent System Operator (CAISO) and California utilities can participate in an energy market governed by an independent, West-wide regional organization (RO) as proposed by the Pathways Initiative.

Staff Report Item 17
Under current California law, the state’s energy market rules are governed by the CAISO Board of Governors, a five-member body whose members are appointed by the Governor and confirmed by the state Senate. The CAISO operates the Western Energy Imbalance Market (WEIM), a regional market that enables participants to buy and sell power in real time and plans to launch an Extended Day Ahead Market (EDAM) in 2026. The CAISO also oversees transmission planning, energy project selection, transmission system operation and cost allocation, balancing authority functions, reliability coordination, and energy market operations.

SB 540 would allow the CAISO to transfer its existing governance of the western energy markets to an RO starting in 2027, but only if the CAISO decides that the RO meets a set of specific statutory requirements. The bill does not alter the CAISO’s existing authority over transmission planning, balancing authority functions, or reliability and renewable portfolio standards. Instead, it would merely give the CAISO the authority to decide whether to transfer its existing governance over the energy market rules to the RO while retaining the remainder of its current authorities and functions.

Who is supporting and opposing the Pathways Initiative? SB 540 is co-sponsored by the Coalition of California Utility Employees, State Association of Electrical Workers, Environmental Defense Fund, and Natural Resources Defense Council. It is supported by a range of other utility, labor, developer, and environmental advocacy groups. Supporters within the CCA community include MCE, Silicon Valley Clean Energy and Peninsula Clean Energy. The CalCCA Board of Directors voted in February 2025 to support the legislation.

Opposition has come from Consumer Watchdog and former CPUC President Loretta Lynch.

What is the Pathways Initiative? The Pathways Initiative is a multi-state effort aimed at establishing a unified, independently governed wholesale electricity market that includes all states in the Western Interconnection, including California. The Pathways Initiative began in 2023 at the request of public utility and energy commissioners from California, Oregon, Washington, Arizona, and New Mexico with the intent of maximizing the benefits of coordinated wholesale electricity markets for customers across the entire Western U.S.

The Pathways Initiative Launch Committee was formed in October 2023 and is led by representatives from a variety of stakeholders, including state regulators, investor-owned utilities (IOUs), public utilities, labor unions, non-utility load serving entities (e.g., CCAs), consumer advocates, and others.

This past November, the Pathways Launch Committee approved its Step 2 Final Proposal outlining a plan to form an independent RO responsible for overseeing an integrated WEIM and EDAM for all western states, with the intent to take incremental steps toward ultimate governance and operational control of the market later down the line.

The Pathways Initiative is as notable for what it is not as for what it is. Unlike prior regionalization efforts that have failed to clear the California state legislature or garner requisite support from other states, the Pathways Initiative does not establish a full West-wide regional transmission organization (RTO) with authority over grid operation, capacity requirements, and transmission planning. The proposal does not change existing grid operators or balancing authorities and does not change existing resource adequacy or renewables standards for any Staff Report Item 17
state involved. The RO that Pathways establishes is only limited to governance over regional energy market rules.

By enabling California to transfer authority over the regional energy markets to an RO, SB 540’s passage would be a key step forward in the process of advancing the Pathways proposal and achieving potential energy cost savings, and reliability and emissions benefits for California.

Possible RO benefits: Since it was established in 2014, the WEIM reports saving its 22 market participants a total of $6.62 billion. The WEIM states that it is using state-of-the-art technology to find and deliver the lowest-cost resources to meet immediate power needs and manage congestion on transmission lines to maintain grid reliability. The Pathways proposal aims to expand the benefits and cost savings of the WEIM and soon-to-launch EDAM by increasing coordination with and market participation from balancing authorities in other states.

Through an independent RO, market participants would be able to draw resources from a broader energy footprint and thus potentially increase overall reliability and efficiency. A study by The Brattle Group estimates that expanding the EDAM footprint would save California participants anywhere from $182 million to $800 million per year, depending on the size and extent of the regional market; and that market expansion would also reduce the state’s fossil fuel generation by up to 31% and wind and solar curtailment by up to 10%, resulting in a net reduction in statewide greenhouse gas emissions of up to 11.2%, according to the study.

Another study conducted by the Stanford Woods Institute estimates that an expanded regional energy market would substantially reduce the risks of unserved energy and rotating outages by as much as 40% during extreme stress conditions, such as summer heat waves. This analysis also estimates that unserved load would be more than cut in half during these scenarios, from 1901 GWh to 877 GWh.

Possible benefits to Ava: Based on CAISO’s latest WEIM benefits report, the WEIM saves LSEs within CAISO roughly $50 million per year. Ava serves approximately 4% of the CAISO balancing area’s load, meaning that WEIM saves Ava about $2 million per year under the current market arrangement.

Based on Brattle’s $182 million to $800 million system cost savings estimate, transferring market governance to an independent RO and subsequently expanding the EDAM could save Ava anywhere from $7 million to $32 million per year. Again, the actual cost savings Ava ends up realizing will depend on how many entities join the RO-governed EDAM, the overall size of the EDAM footprint, and how efficiently “seams” issues between an RO-Governed EDAM and adjacent markets are resolved. A larger EDAM footprint generally should lead to greater savings.

Concerns with the Pathways Initiative: Pathways Initiative opponents have raised concerns over California relinquishing to the federal government what remaining, energy crisis-era, control it has over the western energy market. This at a time and moment when an aggressively pro-fossil fuel administration has just taken power and is actively attempting to exert greater control over independent federal agencies, like the FERC.

Staff Report Item 17
This is a very real concern. However, the loss of remaining state control over energy markets is balanced against the reality that the status quo will not hold anyway. SPP’s Markets+, a competing RTO proposal from the Southwest, is already courting commitments from power suppliers and balancing authorities across the West. Should any delays or failures occur in implementing the Pathways proposal, there is a risk that potential EDAM participants instead elect to join Markets+. The resulting supply-demand dynamic in the EDAM could provide less cost reduction than estimated, and in a worst-case scenario could lead to increased wholesale and retail energy prices.

In short, if California does not cede its already limited control over the CAISO markets, critical suppliers (e.g., Bonneville Power Authority and/or Powerex) will likely join competing markets, with a corresponding reduction in supply to California. At minimum, the Pathways Initiative will reduce the number of supplier “defections” from EIM, while at best, as outlined above, the Pathways Initiative expands the universe of available resources. Which leads to the Staff recommendation below.

Staff Recommendation
Staff recommends that the Board authorize the CEO to sign the letter of support on behalf of Ava. Overall, SB 540 will have little to no immediate direct impact on Ava’s operations, but the potential reliability enhancements and operational savings Ava could achieve via a broader, independently governed regional energy market are significant. Even if the estimated expanded EDAM benefits are not fully realized, it is expected to at least be a marginal improvement over the status quo.

Attachments
A. Resolution
B. SB 540 Letter of Support
C. Author’s Fact Sheet
D. Power Point Presentation
Attachment Staff Report Item 17A
RESOLUTION NO. R-2025-XX

A RESOLUTION OF THE BOARD OF DIRECTORS

OF THE AVA COMMUNITY ENERGY AUTHORITY SUPPORTING
CLAIFORNIA SENATE BILL 540 (2025)
WHEREAS Ava Community Energy Authority (“Ava”) was formed as a community choice aggregation agency (“CCA”) on December 1, 2016, under the Joint Exercise of Powers 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 Ava and parties to the Joint Powers Agreement (“JPA”) in March of 2020. The city of Stockton was added as a member to Ava in September of 2022. The city of Lathrop was added as a member to Ava in October of 2023. San Joaquin County was added as a member to Ava in July 2024. On October 24, 2023, Ava legally adopted the name Ava Community Energy Authority, where it had previously used the name East Bay Community Energy Authority since its inception; WHEREAS, on February 20, 2025, California State Senators Josh Becker and Henry Stern introduced SB 540 as a critical step in advancing the West-wide Pathways Initiative by allowing the California Independent System Operator (CAISO) and California load serving entities to participate in an energy market governed by an independent regional organization (RO);
WHEREAS SB 540 and the Pathways proposal aims to lower energy bills, improve grid reliability, and reduce pollution while retaining control over California’s procurement, environmental, reliability, and other public policies; and WHEREAS Ava, as a load serving entity that serves energy demand within the CAISO grid, stands to benefit from the expected cost savings associated with transferring governance over the energy market from the CAISO to an independent RO.

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

Section 1. The Board of Directors hereby expresses its support for SB 540 and authorizes the CEO to sign the Letter of Support urging members of the California legislature to do the same.

ADOPTED AND APPROVED this 19th day of March, 2025.

Attachment Staff Report Item 17A
Jack Balch, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
We are writing to express our strong support for SB 540. This bill provides the statutory authorization necessary to implement the Pathways Proposal, which would make electricity more affordable for California consumers while protecting California’s procurement, environmental, reliability, and other public interest policies.

Developed by a large and diverse set of stakeholders, the Proposal would create a new, independent regional organization that would be solely responsible for setting energy market rules. The California Independent System Operator (CAISO) would continue to operate the markets as it does today, as well as continuing its role in operating the transmission system, transmission system planning, and balancing authority functions. SB 540 ensures the expertise and infrastructure that the CAISO has built is maintained, further protecting investments in current energy markets.

Creating an independent organization responsible for energy market rules would enable more utilities across the West to participate in consolidated electricity markets, making electricity in California more affordable and reliable while also reducing emissions in California.

SB 540 Provides More Affordable Electricity
This legislation, and the consolidated electricity markets it enables, would provide much needed energy affordability benefits to Californians. A new analysis conducted for the California Energy Commission (CEC) determined a West-wide day-ahead market could produce nearly $800 million in annual cost savings for California customers. 1 SB 540 Improves Electric Reliability
The legislation would enhance the reliability of California’s power grid by enabling more efficient and coordinated management of energy supply and demand across the Western region. With better access to shared resources, grid operators will be better equipped to draw on a wider resource pool during peak demand periods, reduce the likelihood of blackouts, and support the resilience of the grid in the face of growing challenges such as extreme weather events and climate-driven disruptions.
2 SB 540 Increases Use of Clean Energy
A consolidated western energy market will maximize use of existing clean energy generation and enable a faster, more affordable clean energy future. SB 540 makes more clean energy available both in California and around the West by reducing curtailment (deliberately reducing output below what could have been produced), a growing problem for solar and wind power generators in California. The CEC study determined the expanded market would reduce wind 1 John Tsoukalis, et al., Brattle Group, “Preliminary Day-Ahead Market Impact Study: Impact of Market Footprints on California Customers” (Prepared for California Energy Commission, January 24, 2025). 2 See Tsoukalis, et al. and Michael Wara, et al., Stanford Climate & Energy Policy Program, “Grid Regionalization in the West: Reliability Benefits from Increased Cooperation in Electricity Markets and Operations”(Prepared for California Energy Commission, January 24, 2025).

Attachment Staff Report Item 17B
and solar curtailment by 10%. This improvement would reduce air pollution by displacing other less efficient emitting resources and enhance the financial foundation for clean energy investment and jobs by enabling California to use and sell more of its clean energy. 3 With 80% of energy customers in the West now served by utilities with net-zero carbon energy mandates, the demand for clean energy resources will continue to grow. Maximizing use of existing clean generation is the fastest, most affordable way to reduce emissions.

SB 540 Protects Consumers and California Energy Policy
SB 540 would permit CAISO and California investor-owned utilities to participate in the independently governed energy markets only if the new regional organization meets guardrails designed to protect consumers and ensure that California can continue to set its own procurement, environmental, reliability, and other public interest policies. These protections include:
● public interest protections in the corporate documents; ● specific roles and engagement with state regulators and consumer advocate offices including access to market data;
● transparent and accessible operations including an office of public participation; ● independent market analysis and monitoring to protect consumers; ● engagement with states, local power authorities, and federal power marketing agencies to evaluate potential impacts of proposed market rule and tariff changes to state, local, and federal policies; and
● retention of the right to withdraw from the energy markets governed by the new regional organization if participation were no longer in the interests of their customers.

The diverse set of signatories on this letter represent an unprecedented coalition of consumer advocates, organized labor, environmental advocates, clean energy developers, investor-owned utilities, public power, and large customers who strongly support SB 540. For all of the above reasons, we support this legislation and request your support. 3 John Tsoukalis, et al., Brattle Group, “Preliminary Day-Ahead Market Impact Study: Impact of Market Footprints on California Customers” (Prepared for California Energy Commission, January 24, 2025).

Attachment Staff Report Item 17B
SB 540 - Pathways Initiative

SUMMARY
SB 540 provides the California Independent
System Operator (CAISO) the authority
necessary to implement the Pathways Initiative
Proposal if it determines an independent regional
organization (RO) meets specific requirements.

The bill allows CAISO to tap into a wider
market of electricity resources which studies
have shown stand to provide significant benefits
to Californians including cost savings, enhanced
grid reliability, and reduced air pollution.

While prior attempts to create a wider regional
market have failed out of concerns that
California would lose control over its
environmental policies, SB 540 enables an
innovative approach that would secure the gains
of an expanded market while protecting
California’s ability to set and enforce its own
procurement, environmental, reliability, and
other public policies.

PROBLEM
For many years, California’s energy regulators
have explored how they could optimize
available energy supplies across other western
states to expand our energy markets and enable
an affordable, clean, and reliable grid.

Studies have shown that there are significant
benefits for California in an expanded energy
market. For example, a Stanford Woods Institute
(2024) study found that an expanded market
would relieve strain on the electric grid during
extreme heat events–in an expanded market
scenario the grid was strained 40% fewer hours.1
A study commissioned by the California Energy
Commission (CEC) found that under an
expanded market, California would save nearly
$800 million per year and gas generation would
fall by 31%, moving us closer to our 100% clean
1 Stanford Woods Institute: “Grid Regionalization in
the West”
energy goals while reducing air pollution.2
However, these benefits only materialize if
other states want to join the regional market, a
market they are wary of if it’s solely under
California’s control.

Several different proposals, that would reassure
other Western states of California’s willingness
to work jointly, have made their way before the
Legislature. Most recently, AB 538 (Holden,
2023) would have transformed CAISO into a
regional transmission organization (RTO).

However, these previous efforts have failed over
reasonable concerns about losing control of the
state’s critical public policies.

The Pathways Proposal offers a way to solve
these problems. Instead of creating an RTO, the
Pathways Proposal creates an RO that only
governs the market rules for energy markets
while retaining CAISO’s role as a
California-governed balancing authority so that
California and CAISO retain control over
procurement, environmental, reliability, and
other public policies.

CURRENT LAW
Existing law enables CAISO to, and instructs
how it will, manage the transmission grid and
related energy markets. It requires, among other
things, that CAISO manage those markets in a
manner that maximizes efficiency, reduces costs
to consumers, protects public health and the
environment, and ensures reliability. However,
additional authority is required in order for
CAISO and California utilities to use energy
markets overseen by an RO as proposed by the
Pathways Initiative.

THIS BILL
SB 540 enables the CAISO and California
utilities to participate in energy markets
governed by a separate, independent regional
2 Brattle: “Preliminary Day-Ahead Market Impacts
Study”
Last Updated 02/20/2025
Attachment Staff Report Item 17C
organization. If the RO meets specific criteria,
CAISO would be authorized to enact a
resolution allowing the RO’s rules to govern
CAISO’s energy markets. The CAISO would
continue to be the operator of the energy
markets.

SB 540 does not transfer authority for
transmission planning, transmission cost
allocation, balancing authority functions, or
reliability coordination–this authority would
remain with the existing CAISO board structure.

The bill also does not immediately authorize
utilities to enter a market governed by an RO,
CAISO must first demonstrate the RO meets a
number of statutory requirements before moving
control of the market rules to the RO including:
confirming that California regulatory agencies
and CAISO retain control over Renewables
Portfolio Standard requirements, climate policy,
other procurement requirements, transmission
planning, CAISO’s interconnection queue, and
resource adequacy requirements; requiring that
the RO provides a procedure for withdrawal
from the market, should it no longer benefit
California to participate; maintaining the
capability to operate its own market, should
California decide to withdraw from the RO;
ensuring the RO is obligated to make decisions
in an open process; making funding available
for consumer advocates to engage in the process,
and more.

The expanded market that SB 540 would enable
will save ratepayers money, improve grid
reliability, and reduce air pollution from power
plants in California by:
1) Optimizing the use of generation, storage and
transmission resources.
2) Securing California’s ability to export excess
renewables rather than curtailing them and
importing them from other states when
available.
3) Allowing California to draw upon a wider set
of Western renewable resources when our grid is
stressed.
4) Making less use of back-up diesel generators
and the oldest, dirtiest gas plants during system
peaks.

SB 540 will ensure that we reach our climate
goals in the most cost-effective and reliable
manner possible by tapping into a much wider
set of Western resources–lowering energy bills,
improving grid reliability, and reducing
pollution in front-line communities, while also
retaining control of our procurement,
environmental, reliability, and other public
policies.

SUPPORT
Coalition of California Utility Employees
(co-sponsor)
State Association of Electrical Workers
(co-sponsor)
Environmental Defense Fund (co-sponsor)
Natural Resources Defense Council (co-sponsor)
American Clean Power–California
California Community Choice Association
California Environmental Voters
Clean Energy Buyers Association
Pattern Energy
Peninsula Clean Energy

FOR MORE INFORMATION
Erika Romero
Policy Analyst
[email protected]
Last Updated 02/20/2025
Attachment Staff Report Item 17C
SB 540 and the West-wide Pathways Initiative
Todd Edmister & Dominic Faria | March 19, 2025
Attachment Staff Report Item 17D
Overview
2 1. What is SB 540?

2. What the bill does

3. What is the Pathways Initiative?

4. Potential benefits & concerns

5. Summary and next steps
Attachment Staff Report Item 17D
What is SB 540?
3 • Introduced Feb 20 in CA Senate by Sens. Josh Becker (D-Menlo Park) and Henry Stern (D-Los Angeles)
• Establishes a process through which the California Independent System Operator (CAISO) and California utilities can participate in an energy market governed by an independent, west-wide regional organization (RO) as proposed by the Pathways Initiative
• Co-sponsored by the Coalition of California Utility Employees, State Association of Electrical Workers, Environmental Defense Fund, and Natural Resources Defense Council
• The CalCCA Board of Directors voted in February 2025 to support the legislation Attachment Staff Report Item 17D
What the bill does
4 • California’s energy market rules are governed by the CAISO Board of Governors, a five-member body whose members are appointed by the Governor and confirmed by the state Senate • CAISO operates the Western Energy Imbalance Market (WEIM), a regional market that enables participants to buy and sell power in real time, and plans to launch an Extended Day Ahead Market (EDAM) in 2026. • SB 540 would allow CAISO to transfer its existing governance of the western energy markets (WEIM and EDAM) to an RO starting in 2027 only if CAISO decides that the RO meets a set of specific statutory requirements, including:
▪ The RO’s governing documents confirm that California regulatory agencies and CAISO will retain control over RPS and other procurement requirements, climate policy, transmission planning, CAISO’s interconnection queue, and RA requirements ▪ The RO makes decisions in an open, public process and establishes formal processes through which to engage with state regulators, policy experts, stakeholders, and the public ▪ The RO makes funding available for consumer advocates to engage in the process ▪ The CAISO continues to operate the energy markets, subject to the market rules determined by the RO ▪ The RO permits and provides a procedure for withdrawal by any participant • Allows CAISO to act as a vendor, through a contract with the RO, to provide market operations, generation dispatch, transmission, and reliability coordination services.

Attachment Staff Report Item 17D
Graphic courtesy of CalCCA
5 Attachment Staff Report Item 17D
What is the Pathways Initiative?
6 • The Pathways Initiative is a multi-state effort aimed at establishing a unified, independently governed wholesale electricity market that includes all states in the Western Interconnection, including California. It began in 2023 at the request of public utility and energy commissioners from California, Oregon, Washington, Arizona, and New Mexico with the intent of maximizing the benefits of coordinated wholesale electricity markets for customers across the entire Western U.S. • The Pathways Initiative Launch Committee was formed in October 2023 and is led by representatives from a variety of stakeholders, including state regulators, IOUs, public utilities, labor unions, non-utility load serving entities (CCAs), consumer advocates, and others. • This past November, the Pathways Launch Committee approved its Step 2 Final Proposal outlining a plan to form an independent RO responsible for overseeing an integrated WEIM and EDAM for all western states.
• The Pathways proposal does not change existing grid operators or balancing authorities and does not change existing RA or RPS standards for any state involved.

Attachment Staff Report Item 17D
Potential Benefits
7 • Estimated cost savings: $182 million to $800 million reduction in annual California system costs, depending on size and extent of the market, compared to the status quo. Translates to roughly $7 million to $32 million in annual cost savings for Ava.
• Enhanced grid reliability: Relieves strain on the electric grid during extreme heat events, reducing the number of hours the grid is strained by as much as 40% and reducing unserved load by more than half in these scenarios.
• Reduced emissions: Decreases California’s fossil fuel generation by up to 31% and greenhouse gas emissions by up to 11.2%
• Optimized resource use: Reduces solar and wind energy curtailment by up to 10%, allowing California to export and import more excess renewable energy to and from other states. • Helps achieve state climate goals: California will maintain authority over its existing policies while being able to tap into a wider set of regional resources in a cost-effective and reliable manner Sources: Stanford Woods Institute: “Grid Regionalization in the West” and The Brattle Group: “Preliminary Day-Ahead Market Impacts Study” Attachment Staff Report Item 17D
Other Considerations
8 • Potential concern: Relinquishing CA control over energy market governance at a time when the administration is attempting to exert greater control over independent agencies, like FERC • Western entities electing to participate in a competing market: SPP's Markets+ is already courting commitments from power suppliers and balancing authorities across the West, limiting the possible benefits of EDAM
• Bottom line: Should any delays or failures occur in implementing the Pathways proposal, there is a risk that potential EDAM participants instead elect to join Markets+. If California does not cede its already limited control over the CAISO markets, critical suppliers will likely join competing markets, with a corresponding reduction in supply to California.

Attachment Staff Report Item 17D
Summary and Next Steps
9 • By enabling California to transfer authority over the regional energy markets to an RO, SB 540’s passage would be a key step forward in the process of advancing the Pathways proposal and achieving energy cost savings, and reliability and emissions benefits for California and Ava. • SB 540 will have a hearing in the Senate Energy, Utilities, and Communications Committee (date TBD)
• The legislature will have until the end of the 2025 session (September 12) to pass SB 540, and then the Governor will have until October 12 to sign the bill into law • Once SB 540 is signed into law, CAISO will have the power to decide whether to join the RO no earlier than January 1, 2027. Until then, the Pathways Formation Committee will work to stand up the RO by finalizing its governing rules and seating the initial seven-member board. • Staff recommendation: Ava should sign onto a coalition letter urging California legislators to support SB 540.

Attachment Staff Report Item 17D

Staff Report Item 18
Staff Report Item 18
To: Ava Community Energy Authority
From: Annie Henderson, Chief Customer Officer
Subject Review of the Local Development Business Plan
Date: March 19, 2025
__________________________________________________________________ Summary
This presentation provides an overview of the budget allocated to the Local Development fund, spending associated with the fund through September 2024, funds which have been committed, and updates to the budget. This is an informational item.

Attachments
A. Presentation
Local Development Fund
Reconciliation
Annie Henderson | March 2025
Attachment Staff Report Item 18A
Methodology
• Budget time frame start date : starting FY20 with first specific budget allocation to the Local Development Fund, year in which fund was established
o FY18 and FY19 had funding for local development but it was not placed into a fund and unspent budget did not roll over
• Budget time frame end date: through FY25
• Expenses time frame: Starting in July 2019 through September 2024 • This presentation focuses on budget, actual expenses through September 2024, and anticipated spending (called "Earmarked") under current contracts and programs in development or already launched.
2 Attachment Staff Report Item 18A
Methodology/Assumptions: Budget Notes
• Some "spent" and/or "earmarked" funds will eventually be reimbursed o Expenses are eligible for reimbursement under a CPUC program ▪ Disadvantaged Community Green Tariff (DAC-GT)
▪ Building Efficiency Accelerator
o Expenses that will be repaid as part of a loan
▪ Residential Electrification Program Loan (BlocPower)
▪ MHD Drayage Loan (Forum Mobility)
▪ Beneficial Municipal Electrification Loan (City of Piedmont) 3 Attachment Staff Report Item 18A
Original Budget Allocation FY19/20 through FY24/25
4 Category Total
Transportation Electrification $42,070,000
Building Electrification $24,790,000
Resilience** $13,740,000
Grants $7,400,000
Other* $1,565,000
Grand Total $89,565,000
* legal, marketing, sponsorships and memberships, admin **Does NOT include any surplus budget allocations
Attachment Staff Report Item 18A
Major Budget Centers - Original
5 Category Program Area Total
Transporation Electrification
Ava Charge (DCFC) $14,350,000
Ava Bike Electric $6,000,000
Drayage Loan $5,250,000
EV Adoption $5,000,000
CaleVIP $3,896,000
Municipal Fleet CaaS $2,000,000
Building Electrification
Health-e Communities $10,000,000
Electrification Incentives $3,850,000
Electrification Install Network $2,000,000
Municipal Electrification $2,000,000
Resilience
Critical Municipal Facilities $8,140,000
Resilience Hub Tech Asst $2,000,000
VPP Manager $2,000,000
Grants Grants: Community $7,400,000
• Total of $73,886,00, accounting for
~83% of the original budget.
• Remaining budget covers individual
items <$2M such as:
o Workforce Training
o Energy Efficiency
o Managed Charging
o Legal expenses
o Induction lending
Attachment Staff Report Item 18A
Original Budget Allocation, YoY
6 Category | FY 20 21 22 23 24 25 Total
Building Electrification $1,250,000 $1,340,000 $2,000,000 $4,700,000 $8,500,000 $7,000,000 $24,790,000 Resilience** $600,000 $400,000 $580,000 $660,000 $4,000,000 $7,500,000 $13,740,000 Transportation Electrification $2,000,000 $4,600,000 $5,470,000 $12,250,000 $11,750,000 $6,000,000 $42,070,000 Grants $600,000 $- $- $4,200,000 $1,400,000 $1,200,000 $7,400,000 Other* $65,000 $- $300,000 $250,000 $250,000 $700,000 $1,565,000 Grand Total $4,515,000 $6,340,000 $8,350,000 $22,060,000 $25,900,000 $22,400,000 $89,565,000 * legal, marketing, sponsorships and memberships, admin **Does NOT includes any surplus budget allocations
Attachment Staff Report Item 18A
Why an Updated Budget?
• Over time some initially proposed budget areas:
o Achieved savings through efficient execution
o Did not go beyond a pilot project
o Were not relevant/necessary due to changes in regulatory policy o Transitioned to other departments/SG&A related budget line items o Were better allocated to a different category within the Local Development Fund o Were consolidated
o Did not end up being an execution priority
o Additional budget assigned as part of surplus budget allocation • This reconciliation is intended to identify and report changes between original budget presentation to the board and current strategy and priorities. 7 Attachment Staff Report Item 18A
Cumulative Comparison of Original to Updated Budgets
Category Original Updated Differential
Transportation Electrification $42,070,000 $41,870,000 $(200,000) Building Electrification $24,790,000 $22,190,000 $(2,600,000) Resilience* $13,740,000 $28,603,130 $14,863,130
Grants** $7,400,000 $10,100,000 $2,700,000
Other*** $1,565,000 $1,765,000 $200,000
Grand Total $89,565,000 $104,528,130 $14,963,130
8 *Includes $14,963,130 in FY24 from surplus budget allocation as indicated in Nov-2024 board meeting **Grants may be associated with Ava Program areas like Resilience *** legal, marketing, sponsorships and memberships, admin Attachment Staff Report Item 18A
Building Electrification
Original $24,790,000
Resilience Municipal Electrification to CMF -$150,000
Rate Pilot to Medical Baseline Battery -$50,000
Grants Workforce Training to Workforce -$1,650,000
Electrical Showcase to COVID -$50,000
NEM Enhancements to COVID -$350,000
Demand Response to COVID -$250,000
Connected Communities to AMP -$100,000
Updated $22,190,000
9 Resilience
Original $13,740,000
Building Electrification Municipal Electrification to CMF $150,000 Rate Pilot to Medical Battery $50,000
Grants Collaborative Procurement to COVID -$300,000
FY24 Budget Surplus Solar + Storage Upfront Incentives $14,963,130 Updated $28,603,130
Transportation Electrification
Original $42,070,000
Other Asset Ownership to Legal -$200,000
Updated $41,870,000
Grants
Original $7,400,000
Building Electrification Workforce Training to Workforce $1,650,000 Electrical Showcase to COVID $50,000
NEM Enhancements to COVID $350,000
Demand Response to COVID $250,000
Connected Communities to AMP $100,000
Resilience Collaborative Procurement to COVID $300,000
Updated $10,100,000
Other
Original $1,565,000
Transportation Electrification Asset Ownership to Legal $200,000 Updated $1,765,000
Details of Original to Updated Budget
This slide shows the details on how funding
was moved between categories and program
areas from original budget to updated budget.

Attachment Staff Report Item 18A
Major Budget Centers - Updated
10 Category Program Area Total
Transporation Electrification
Ava Charge $14,350,000
Managed Charging $6,000,000
Ava Bike Electric $6,000,000
Drayage Loan $5,250,000
EV Adoption $5,000,000
CaleVIP $3,896,000
Other $4,624,000
Building Electrification
Health-e Communities $10,000,000
Other $5,500,000
Resilience
Critical Municipal Facilities $8,850,000
Resilience Hub Tech Asst $2,000,000
VPP Manager $2,000,000
Upfront S+S Incentives $14,963,130
Grants Grants: Community $7,400,000
• Total of $90,833,000, accounting for
~87% of the updated budget.
• Remaining budget covers items
<$2M such as:
o Legal Expenses
o Energy Efficiency
o COVID Grants
o Workforce Grants
o Municipal Fleet Electrification
o Municipal Electrification Loan
Attachment Staff Report Item 18A
Updated Budget Allocation, YoY
11 Category | FY 20 21 22 23 24 25 Total
Building Electrification $550,000 $1,040,000 $1,900,000 $4,700,000 $7,000,000 $7,000,000 $22,190,000 Resilience** $350,000 $550,000 $580,000 $660,000 $18,963,130 $7,500,000 $28,603,130 Transportation Electrification $2,000,000 $4,400,000 $5,470,000 $12,250,000 $11,750,000 $6,000,000 $41,870,000 Grants $1,550,000 $150,000 $100,000 $4,200,000 $2,900,000 $1,200,000 $10,100,000 Other* $65,000 $200,000 $300,000 $250,000 $250,000 $700,000 $1,765,000 Grand Total $4,515,000 $6,340,000 $8,350,000 $22,060,000 $40,863,130 $22,400,000 $104,528,130 * legal, marketing, sponsorships and memberships, admin **Includes $14,963,130 in FY24 from surplus budget for solar and storage incentives allocation as indicated in Nov-2024 board meeting NOTE: figures do not include any forecasted budget surplus allocation from FY 2025 Attachment Staff Report Item 18A
Original Budget that is not currently planned for deployment 12 Other Program Area Budget
Transportation Electrification
EV admin/staffing $704,000
L2 Workplace/Public Charging $500,000
Medium-Heavy Duty Vehicles $1,420,000
Muni Fleet Charging as a Service $2,000,000
Transportation Electrification Total $4,624,000
Building Electrification
Electrification $400,000
Electrification Incentives $3,150,000
Electrification Install Network $1,950,000
Building Electrification Total $5,500,000
Attachment Staff Report Item 18A
13 Category Total Budget
Expenses through
Sep-24 Earmarked Variance
Transportation Electrification $41,870,000 -$4,478,000 -$32,800,000 $4,592,000 Building Electrification $22,190,000 -$5,818,000 -$10,540,000 $5,832,000 Resilience $28,603,130 -$3,204,000 -$25,399,130 $0
Grants* $10,100,000 -$1,436,000 -$8,664,000 $0
Other** $1,765,000 -$2,720,000 -$955,000
Grand Total $104,528,130 -$17,656,000 -$77,403,130 $9,469,000 Cumulative Comparison of Original to Updated Budgets
with Expenses and Earmarks
• There are deficits in individual line items that result in an overall negative remaining budget. The most significant is within the Other category because of legal expenses. • Take away: There is approximately $9.5M in un-earmarked funding.

Attachment Staff Report Item 18A
Earmarked Funds
14 Category Program Area Earmarked Status
Transportation Electrification
CALeVIP -$2,400,000 Committed per grant
Ava Charge (DCFC) -$13,150,000 Initial phase launched
MHD Drayage Loan -$5,250,000 Contracted but not dispersed Ava Bike Electric -$6,000,000 Program launch in FY25
Ava SmartHome Charging (Managed Charging) -$6,000,000 Program launch in FY25 Building Electrification BlocPower Loan -$540,000 In repayment Health-e Communities -$10,000,000 ~$2M committed to Pilot Resilience
Resilience Hub TA -$1,940,000 Contracted
Virtual Power Plant manager -$2,000,000 Contracted
Critical Municipal Facilities -$5,960,000 Program in progress Ongoing Solar + Storage Incentives -$500,000 Program launch in FY26 Upfront Solar + Storage Incentives -$14,963,130 Program launch in FY26 Grants Grants: Community -$6,650,000 Contracted and planned Grants: Workforce -$1,650,000 Contracted and planned
TOTAL -$77,003,130
Attachment Staff Report Item 18A
Next Steps
15 • March-May: Staff will be working on overall FY25/26 budget, including any funding for Local Development work
o Staff will bring a proposal to the board on how to allocate the ~$9.5M in funds as part of the next budget cycle discussions.
o Additional longer term strategic planning is also underway through calendar year Attachment Staff Report Item 18A
March 17, 2025
From: Audrey Ichinose, People’s Clean Power (PCP),
California Alliance for Community Energy (CACE)
To: Board of Directors, CAC members, and Staff of AvaCommunity Energy Re: Ava support for SB 540/Pathways grid regionalization Thank you for taking this public comment.

Please DO NOT support Staff’s proposal. There are 3 important reasons not to do so:

1. First, with SB 540, CA takes many grave risks.

It would be yoked to western coal and oil drilling states with uncertain means of withdrawing, and faced with the possibility of Trump’s weaponizing FERC to punish CA and its clean energy leadership. CA would risk losing control over its RPS choices and its ability to achieve its clean energy goals.

2. Secondly, for these risks we would reap miniscule gains. According to the Brattle study of possible outcomes from SB 540, CA will be saving .16% of total customer bills in 2032 and will experience no change in renewables curtailment in the most realistic case scenarios.

3. Thirdly, contrary to Staff’s report, there is widespread uncertainty and doubt about this bill. The report cites only two opponents: Consumer Watchdog and former CPUC president Loretta Lynch. While neither of these “opponents” can be considered insignificant, in Ms. Lynch’s case, the report seems to trivialize her long experience with CAISO wholesale markets. The Staff report also fails to mention the 125 groups statewide that signed onto a letter of opposition (69 Indivisible California organizations and 56 environmental and social justice organizations).

It would behoove Ava CAC and Board members to listen to Senators’ questions at the recent March 12th informational hearing on the Pathways plan in the Senate Energy Committee. Among those expressing skepticism and the great need for more information were Senators Jerry McNerny from Pleasanton and Senator Aisha Wahab from Fremont.

For all of these reasons, it would not be advisable for Ava to submit a letter of support for SB 540.

Thank you.

Jessica Tovar
339 15th Street #208 Oakland, CA 94612
[email protected]
415-766-7766
Subject: Urgent concern over Agenda Item 17 (Ava Community Energy’s Support of SB 540) Dear Ava Community Energy Board of Directors, Community Advisory Committee, and Ava staff, The People’s Clean Power Alliance (PCPA, formerly known as East Bay Clean Power Alliance), concerned to learn at the March 18th CAC meeting that Ava Community Energy staff is recommending the Board and CAC support SB 540, the California “Pathways” grid regionalization measure. It is extremely disconcerting to us that the Ava board would consider supporting a proposal that not only exposes California’s renewable energy market to our current federal administration, but that also distracts from local clean energy investments, and harms smaller, more local renewable energy producers.

SB 540 proposes that California participate in a broader Western regional energy organization, with the promise that by doing so, energy market participants will save money, increase grid reliability, and reduce the risk of power outages. However, these promises are dependent on actions that would be out of the control of California. PCPA believes that these are false promises that do not outweigh the risks of the Pathways Initiative. Areas of concern about SB 540 include:
● Exposing California to federal administration oversight: There are very real concerns raised over how the Pathways Initiative would reduce the state’s control over the western energy market and expose California to rules made by the federal government. The current federal administration has already overstepped federal authority, killed clean energy investments, and gutted many regulatory measures, especially with regards to the environment. In Trump’s first presidency, his Department of Energy ordered grid operators to buy coal and nuclear power. His “drill, baby drill” motto is a good indication of how a FERC-regulated energy organization will make energy decisions. By putting California in the line of fire of a dangerous and authoritarian federal administration, we would be putting the nation’s top state leader in renewable energy investments at risk of being annihilated.
● Losing CAISO Protections: California’s Independent System Operator was specifically carved out, separately from a regional energy organization, to ensure certain mandates are in place to protect the people of California. These were: reducing costs, protecting the public’s health and environment, and maximizing energy availability. SB540 has no such protections. ● Uncertain benefits for California: The estimated saving of $7 million to $32 million for the Ava is an estimate. Actual cost savings are highly dependent on how many entities join the regional organizational market, and the overall size of the market’s footprint. Ava’s budget is $1 billion, and projected savings will be somewhere between 0.7% and 3.2% of said budget. ● Distracting from local clean energy investments: Ava’s initial mandate under its Joint Power Agreement (JPA) was to promote the development and usage of state, regional, and local renewable energy production. Ava’s mission and goals are to focus on local investments in a robust clean energy economy. SB 540’s proposed Western regional energy market goes completely against that mandate. Procuring power from other states is in direct defiance of Ava’s goals, and flies in the face of the agency’s commitment to local clean energy investments.

Loretta Lynch, the former president of the CPUC, presented on this topic recently, and expressed a variety of concerns on the Pathways initiative. Her presentation can be found at this:
https://www.youtube.com/watch?v=_EAbwTq3fbg.

Lastly, the item on the agenda is presented as an action item which rushes the CAC & Board into a fast tracked vote. This bill requires full transparency on the issue and time to understand the ramifications of regionalizing our grid.

For all of these reasons, it would not be advisable for Ava to submit a letter of support for SB 540 and certainly not rush into doing so.

Thank you.

Clean Power to the People,
Jessica Guadalupe Tovar, People’s Clean Power Alliance
Adrian Bankhead <[email protected]>
Item 17. SB 540 Support Letter (Action Item)
'June Cochran' via Clerk of the Board <[email protected]> Wed, Mar 19, 2025 at 10:52 AM Reply-To: June Cochran <[email protected]>
To: "[email protected]" <[email protected]>
Please share my email today before 6pm, to the entire Ava Community Energy board, their alternates and Community Advisory members:

Oppose SB 540 and at minimum delay a rushed vote that Ava staff is recommending they support.

Please realize the devastating consequences of this bill not only to the environment but to all of us, including you, in California.

Thank you for opposing SB 540.

June Cochran
3/19/25, 12:39 PM Ava Community Energy Mail - Item 17. SB 540 Support Letter (Action Item) https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827045932806354891&simpl=msg-f:1827045932806354891 1/1

Adrian Bankhead <[email protected]>
Oppose Item 17 - SB 540 Support Letter
Aaron Lehmer <[email protected]> Wed, Mar 19, 2025 at 1:28 PM To: [email protected]
Dear Ava Community Energy Board,
I am a long-time customer of Ava, and a proud supporter of community-based clean energy.

I urge you to oppose signing on to the SB 540 support letter (item 17 on your agenda tonight).

While supporting the development of clean energy markets is commendable, SB 540 could expose California to the Trump Administration's oversight, which has already shown its intentions to kill renewable energy. Moreover, it distracts from Ava's focus on investing in a local clean energy economy, which member cities and counties desperately need for long-term energy security.

As written, SB 540 should not become law, and Ava should not be supporting it.

Thank you for your consideration,
Aaron Lehmer
Oakland Ava Community Energy customer
--
Aaron Lehmer, MA
Communications & Policy Specialist | Sustainability & Resilience Co-Founder, Bay Localize/Rooted in Resilience, Local Clean Energy Alliance and the California Trade Justice Coalition 6461 Valley View Road, Oakland, CA 94611
Mobile: (415) 613-4781
Blog | Facebook | LinkedIn | YouTube
3/19/25, 1:47 PM Ava Community Energy Mail - Oppose Item 17 - SB 540 Support Letter https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827055727808275053&simpl=msg-f:1827055727808275053 1/1

Adrian Bankhead <[email protected]>
Oppose SB 540 !!
Janice Cecil <[email protected]> Wed, Mar 19, 2025 at 12:57 PM To: [email protected]
Please Oppose SB 540. It is unintentionally very harmful to California state.

Thank you,
Janice Cecil
2923 Ashby Ave
Berkeley, Ca
3/19/25, 1:55 PM Ava Community Energy Mail - Oppose SB 540 !! https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827053760128967003&simpl=msg-f:1827053760128967003 1/1

Adrian Bankhead <[email protected]>
Opposition to item 17, sb 540
bethw0104 <[email protected]> Wed, Mar 19, 2025 at 1:37 PM To: [email protected]
Dear clerk.

Please forward to the entire Ava Community Energy board, all alternate directors and the Community Advisory Committee my opposition to sb 540 and my request that voting on this measure be delayed long enough for all board members, especially those newly appointed, have time to get fully informed about it. Please make sure this is done before 6 p.m. today.

Thank you.

Beth weinberger
Oakland
Sent from my Galaxy
3/19/25, 1:57 PM Ava Community Energy Mail - Opposition to item 17, sb 540 https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827056257216021430&simpl=msg-f:1827056257216021430 1/1

Raissa Arielle Kasa Ngoma <[email protected]>
Item 17. SB 540 Support Letter (Action Item
1 message
Susan Harman <[email protected]> Wed, Mar 19, 2025 at 2:30 PM To: [email protected]
Please share my email today before 6pm, to the entire Ava Community Energy board, their alternates and Community Advisory members. Thank you. Oppose SB 540!
Susan Harman, Oakland

Raissa Arielle Kasa Ngoma <[email protected]>
Item 17. SB 540 Public Comment
1 message
Gloria Choi <[email protected]> Wed, Mar 19, 2025 at 2:36 PM To: [email protected]
To the Ava Community Energy Board:

Hi, I'm Gloria, a constituent of Union City.

I was informed that Ava is holding a vote with regards to supporting California SB 540. Please forward my email with the Ava Community Energy Board and their alternates before 6PM today.

I’m concerned that this bill would mean California gives up control of our energy market rules to FERC during a time when Trump’s administration is threatening to expand and subsidize coal.

Please oppose SB540—or at least postpone a vote.

Sincerely,
Gloria Choi

Raissa Arielle Kasa Ngoma <[email protected]>
Oppose SB540; look at root causes and implications of regionalization 1 message
Jan Dietrick <[email protected]> Wed, Mar 19, 2025 at 2:55 PM To: [email protected]
Cc: Ben Schwartz <[email protected]>
Dear AVA Board Members,
Managing the grid is a complex issue and grid regionalization is not needed for CAISO to purchase energy from other states. I have been following this issue as an organizer whose work resulted in the creation of Clean Power Alliance serving Ventura County and as a subgroup of Sierra Club California Energy Climate Committee advocating for reform of Transmission Access Charges.

I trust and support Craig Lewis, founder of The Clean Coalition and their legislative priorities. He and Loretta Lynch oppose SB540, in part because without fixing the TAC market distortion, additional costs are likely to be imposed on the ratepayers, further exacerbating the existing issue. Lawmakers must a) fix the TAC before considering regionalization, and b) make this a two-year bill so the proper discussion can occur.

For more I encourage you to listen with an open mind to a talk by Loretta Lynch, former head of the CPUC, who presented her concerns here: https://www.youtube.com/watch?v=_EAbwTq3fbg.

On behalf of informed Californians who have been advocating for local clean energy at fair rates for 15 years, please don't support legislation that does not address root causes and will make things worse for ratepayers.

Yours,
Jan Dietrick, Policy and Communications Leader
350 Ventura County Climate Hub

Raissa Arielle Kasa Ngoma <[email protected]>
Re: Item 17 SB540 Support Letter
1 message
margielewis22 via Clerk of the Board <[email protected]> Wed, Mar 19, 2025 at 2:55 PM Reply-To: [email protected]
To: [email protected]
Dear Clerk of the Board,
Please share this email today 3/19/25 before 6pm to the entire Ava Community Energy board, their alternates and Community
Advisory members. I am requesting the board OPPOSE SB 540 and at minimum delay a rushed vote that AVA staff is recommending
you support. You must have time to view the measure to accurately and effectively represent your constituents in an informed way!
Thank you,
Margie Lewis
Oakland

To: AVA Board members March 19, 2025
From: Claire Broome, MD AVA customer
26 Northgate Berkeley 94708
Representing: 350 Bay Area, Advocates for environment, equity and ratepayers Request: agenda item 17: vote to oppose SB 540
At a minimum, delay vote on action Item 17 (proposing that AVA should support SB540) until there is time for real analysis and discussion
350 Bay Area opposes SB 540 because the purported benefits are non-existent, and California could lose control of costs and clean energy content of our electricity.

A study funded by proponents of Pathways – the Brattle 2025 study –shows that the most likely scenario results in increased emissions in the Western region. Pathways/SB 540 will also increase ratepayer costs. The minimal savings claimed for energy purchase will be dwarfed by the cost of building transmission to get that energy to California. Transmission is currently the most rapidly increasing part of our high electricity bills.

SB540 language does NOT guarantee what proponents claim. There is a substantial risk that California would over time lose control over the California Independent System Operator (CAISO). Currently CAISO operates under California law requiring it to consider the costs to California customers, and California policies accelerating renewable energy as part of our electricity. The Regional Organization proposed under SB540 would make California interests just one voice among many Western utilities from other states. Several of these utilities generate power using coal; many of these coal plants are fully paid off, so that coal power will appear to be “cheap”. When the costs of the carbon emissions and the cost of the transmission to get dirty energy to California are considered, the energy will NOT be cheap.

Please support your customers and the environment and oppose SB540.

Clean Energy Team Lead
--
[email protected]
Berkeley, CA 94708
Raissa Arielle Kasa Ngoma <[email protected]>
Item 17. SB 540 Support Letter - Vote Against
1 message
bekka <[email protected]> Wed, Mar 19, 2025 at 4:01 PM
Reply-To: bekka <[email protected]>
To: [email protected]
To the Clerk of the Board: Please share this email with the Ava Community Energy Board, their alternates, and Community Advisory members before 6:00 PM this evening.

Thank you,
Rebecca Franke
-----------------------------------------------------
Please DO NOT approve the resolution supporting California Senate bill 540.

As the Staff Report acknowledges, for California to relinquish control of the western energy market to a federal government that is aggressively pro-fossil fuel is a "very real concern." Implementation of SB 540 would increase the power of FERC and the western coal states to pull California backwards by reducing the state's authority to regulate and control its own electricity market. As a state, we are doing fine acting in our own best interest to phase out fossil fuels and increase the share of renewable energy and storage. If operating under a regional organization, why would a coal producing state not act in its own best interest, in the process undermining California's clean energy future? And why encumber California's success by diminishing our power and influence, especially in the current environment, when this state needs to stand out as an example in the absence of federal support? There are so many reasons to reject this dangerous bill - but of all the times to bring it up, why now under the Trump Administration, where the drive is in full force to weaken the administrative state - those structures on which this bill would rely for implementation?
We will have plenty of more pressing issues to confront over the next four years. Those years will also give us time to understand better the value of distributed energy resources and the necessity of increasing locally generated and distributed energy. Please don't support SB 540. Vote no on this resolution.

Raissa Arielle Kasa Ngoma <[email protected]>
do not endorse SB540
1 message
Jack Lucero Fleck <[email protected]> Wed, Mar 19, 2025 at 4:15 PM To: [email protected]
Dear Ava Board,
I'm writing regarding Item 17. SB 540 Support Letter (Action Item.

SB 540 is a VERY controversial proposal that could threaten California's progress on climate. Giving any of California's authority to FERC and the Trump administration is a dangerous action. At the very least you should delay taking a vote. After all, what's the hurry? The legislative year goes until September.

There are actually several very good bills: SB 332, SB 222, and SB684/AB1243--all of which should be higher priority than SB540.

Please delay any action on SB540 until full public scrutiny is scheduled.

Jack Lucero Fleck
Oakland

Raissa Arielle Kasa Ngoma <[email protected]>
Oppose California's SB 540 bill
1 message
Susan Silber <[email protected]> Wed, Mar 19, 2025 at 4:36 PM Reply-To: [email protected]
To: [email protected], [email protected]
As a Berkeley resident, I am asking you to please vote to OPPOSE the 540 bill. This is an important action Item has not been brought to the Board before as an information item.

Such a measure would expose California to federal administration oversight (an administration that has already made steps to kill renewable energy), and distracts from Ava's focus on investing in a local clean energy economy. If this bill passes in the Senate, this would be a huge blow to localized renewable clean energy. This bill cannot pass, and Ava should not be supporting it.

Thank you for supporting renewable energy by OPPOSING this bill.

Sincerely,
Susan Silber
Susan Silber
supporting resilience sites - hubs, spaces and neighborhoods - to evolve and flourish Project Director: www.collectiveresiliencenow.org
Calendly appointment link

Raissa Arielle Kasa Ngoma <[email protected]>
Item 17. SB 540 Support Letter (Action Item)
1 message
[email protected] <[email protected]> Wed, Mar 19, 2025 at 4:39 PM To: [email protected]
To Whom It May Concern:

Please share my email today to the entire Ava Community Energy board, their alternates, and Community Advisory members.

I am asking you to OPPOSE SB 540.

Opening up California to a regional grid might seem like a sensible idea, but given the market fundamentalist nature of spot markets, especially under the lawless, corrupt, grifting Trump administration, it will almost certainly be dominated by fossil fuels from states like Wyoming.

Worse still, it is fundamentally antithetical to the very principles of local clean energy.

Do not make the wrong decision. Vote *NO* and do not give in to this scam. -In Solidarity,
Steve Ongerth (he/him)
Cell & Signal - 510-459-6586
Social Media – “That Green Union Guy”
BlueSky - https://bsky.app/profile/thatgreenunionguy.bsky.social Facebook - https://www.facebook.com/ThatGreenUnionGuy/
Mastadon - https://union.place/@GreenSyndicalist
X - https://x.com/1BigUnion
-In Solidarity,
Steve Ongerth (he/him)
Cell & Signal - 510-459-6586
Social Media – “That Green Union Guy”
BlueSky - https://bsky.app/profile/thatgreenunionguy.bsky.social Facebook - https://www.facebook.com/ThatGreenUnionGuy/
Mastadon - https://union.place/@GreenSyndicalist
X - https://x.com/1BigUnion
Raissa Arielle Kasa Ngoma <[email protected]>
item 17 SB 540 letter to present in today's meeting
1 message
Laura Rosenberger Haider <[email protected]> Wed, Mar 19, 2025 at 4:55 PM
To: [email protected], [email protected]
I oppose SB 540 because it would expose Californians to federal administration oversight. Trump does not care about stopping climate change nor protecting the environment. If nobody opposes the planned repeal of NEPA, fossil fuel companies would continue to allow methane gas to escape (as shown by Flir Camera). Trump; would demand fossil fuels, I want more local renewable clean energy including rooftop solar. It gives ratepayers more control and distributes local jobs equally and adds power close to where people live and work. SB 540 would require more fire resistant transmission lines

Raissa Arielle Kasa Ngoma <[email protected]>
Item 17 . SB 540 Support Letter (Action Item) - Oppose SB 540 1 message
'Tom Kunhardt' via Clerk of the Board <[email protected]> Wed, Mar 19, 2025 at 5:40 PM Reply-To: Tom Kunhardt <[email protected]>
To: [email protected], [email protected], [email protected] Please share this email with the Ava Board prior to 6pm tonight 3/19/2025.

Dear Ava Board,
Please Oppose SB 540 or at least delay a rushed vote recommended by your staff. Loretta Lynch has the right idea and made an excellent case for opposing SB 540. She is an expert with total independence from all current stakeholders.

SB 540 would open up California to a larger grid regionalization system, meaning Californian energy market participants would be buying and selling power on a larger market that includes New Mexico, Arizona, Oregon, and Washington. This is concerning for a lot of reasons. Such a measure would expose California to federal administration (FERC) oversight (an administration that has already made steps to kill renewable energy), and distracts from Ava's focus on investing in a local clean energy economy.

If this bill passes in the Senate, this would be a huge blow to localized renewable clean energy. This bill cannot pass, and Ava should not be supporting it. Not only that, but this Action Item has not been brought to the Board before as an information item. Why is Ava pushing a vote on a serious, complex issue when there are a lot of new Board members, and when this is the first time the Board is seeing this item? At the very least, the Board deserves more time to consider this fully.

Please oppose support for SB 540 or delay the vote to allow the board more time to consider this important issue. We should not give up California control to a new entity that could be ultimately controlled by the Trump FERC.

Tom Kunhardt
Oakland CA
Sierra Club Energy Committee
415-306-1243

Raissa Arielle Kasa Ngoma <[email protected]>
Oppose SB 540
1 message
Alvaro Ramos <[email protected]> Wed, Mar 19, 2025 at 6:00 PM To: [email protected]
Hi,
SB 540 exposes California to federal administration oversight and distracts from Ava's focus on investing in a local clean energy economy. If this bill passes in the Senate, this would be a huge blow to localized renewable clean energy. This bill cannot pass, and Ava should not be supporting it.

Oppose SB 540 and at minimum delay a rushed vote that Ava staff is recommending they support.

Sincerely,
Alvaro Ramos

Adrian Bankhead <[email protected]>
bodpubliccomment - avaenergy.org admins: Message Pending [{IMzmseTg_MTATSoCb2kwAIWRBwFI5xd00}]
BODPublicComment <[email protected]> Wed, Mar 19, 2025 at 3:49
PM
A message has been sent to the bodpubliccomment group and is awaiting approval. We've included this message for your review.

The message requires moderation because the user does not have permission to post.

You can approve or reject this message or you can approve this message by replying to this email.

Start your own group, visit the help center, or report abuse. ---------- Forwarded message ----------
From: Ann Harvey <[email protected]>
To: [email protected]
Cc:

Bcc:

Date: Wed, 19 Mar 2025 15:49:20 -0700
Subject: Opposition to Item 17. SB 540 Support Letter (Action Item) Please share my comment with the entire Ava Community Energy Board of Directors, including alternates.

Dear Ava Community Energy Board of Directors,
I am a member of 350 East Bay, the California Alliance for Community Energy, and Physicians for Social Responsibility - San Francisco Bay Chapter. I am a retired safety-net family doctor gravely concerned about the public health crises of climate disruption and air pollution and their universal but inequitable tolls. I am a strong supporter of CCAs and the mission of providing renewable electricity affordably and democratically. I was happy to be a pilot EBCE customer, before it was rolled out to everyone.

I write today to urge you to seriously investigate the support arguments, reject the staff proposal, and join with at least 56 organizations in expressing OPPOSITION to the Pathways Bill, SB540 by signing on to the opposition letter you have each received.

I believe it would be a grave mistake to cede California's authority over our electricity market to the Regional Operator, in which California, with by far the largest population and energy market, would have no more say than each of several small states with a history of aggressively promoting fossil fuels and opposing California's climate and environmental initiatives. For example:

Utah, Wyoming, Idahor, and Montana are plaintiffs in a lawsuit suing California over the Advanced Clean Fleets rule (Nebraska v. Cliff, filed May 2024).

The Utah legislature in 2024 passed SB224 "Energy Independence Amendments," making coal plants the state's preferred power source, defined as least cost/least risk unless proven otherwise by challengers.

The SB540 proponents make numerous very attractive promises on behalf of the bill, but the promises don't hold water.The support letter presented by staff for your endorsement relies heavily on a report by the Brattle Group to make wildly optimistic claims that are not factually supported by the report. It promises, for example, "reducing emissions in California." The Brattle Group report actually predicts that Pathways would result in increased emissions in other states that would outweigh decreases in California. We could burn less gas in California but we import more electricity produced by fossil fuels, including coal. Pacificorps is ready, having recently canceled plans to retire old Rocky Mountain coal plants in Utah and Wyoming.
3/24/25, 2:17 PM Ava Community Energy Mail - bodpubliccomment - avaenergy.org admins: Message Pending [{IMzmseTg_MTATSoCb2kwAIWRBw… https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827064599819714040&simpl=msg-f:1827064599819714040 1/2 I hope that you will at least postpone the vote so that each of you can study this complex bill and the Brattle Group's report -- and view former California Public Utilities Commission Chair Loretta Lynch's clear presentation explaining the propoents' flawed reasoning, including their conclusions concerning costs to California customers, emissions, and the actual bill language that could make it impossible for California to withdraw from the RO. It is available on YouTube:
https://www.youtube.com/watch?v=_EAbwTq3fbg.

Please don't jump to lend your support for this wolf in sheep's clothing. We will all regret it if you do. Please postpone the vote, take time to study it, and strongly oppose.

Sincerely,
Ann Harvey,MD
Oakland
3/24/25, 2:17 PM Ava Community Energy Mail - bodpubliccomment - avaenergy.org admins: Message Pending [{IMzmseTg_MTATSoCb2kwAIWRBw… https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1827064599819714040&simpl=msg-f:1827064599819714040 2/2 Adrian Bankhead <[email protected]>
SB 332 - IOU Accountability Act
1 message
Jessica Tovar <[email protected]> Wed, Mar 19, 2025 at 9:17 PM To: Adrian Bankhead <[email protected]>
Hello Adrian,
Please share this with the CAC, Board and their Alternates.

We need Ava Community Energy to support good bills that benefit their community/ratepayers.

This bill would hold Investor Owned Utilities like PG&E accountable to public safety vs profits at all costs.

State Senator Dr. Aisha Wahab Introduces the Investor-Owned Utility Accountability Act | California Senate District 10
https://sd10.senate.ca.gov/news/state-senator-dr-aisha-wahab-introduces-investor-owned-utility-accountability-act Jessica Guadalupe Tovar,
Local Clean Energy Alliance, Executive Director
339 15th Street Suite 208 Oakland CA, 94612
[email protected] 415-766-7766
Phone Call or Virtual Meeting Schedule
Check out LCEA's 2024 Year in Review & Support our work with a donation.

Community Choice, Community Power video, Community vision for Solutions video, EBCE fund asthma prevention now! Twitter Instagram Facebook Youtube
Book: Energy Democracy Advancing Equity in Clean Energy Solutions 3/24/25, 2:20 PM Ava Community Energy Mail - SB 332 - IOU Accountability Act https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1827085289946651538&simpl=msg-f:1827085289946651538 1/1

Ava Community Energy Board of DirectorsMarch 19, 2025

Ava Community Energy Board of Directors
March 19, 2025