Draft Minutes
Executive Committee Meeting
Wednesday, June 4, 2025
3:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison St., Suite 2300
Oakland, CA 94612
Or from the following locations:
Hayward City Hall, 777 B St, Hayward, CA 94541
City of Pleasanton – Council Office - 123 Main Street, Pleasanton, CA 94566 Via Zoom:
https://avaenergy-org.zoom.us/j/88267670367
Or join by phone:
Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 301 715 8592 or +1 312 626 6799 or 877 853 5257 (Toll Free) or 888 475 4499 (Toll Free) Webinar ID: 882 676 70367
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906- 0491 or [email protected].
If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting. • Welcome & Roll Call
Present: Members: Marquez (Alameda County), Roche (Hayward), Balch (Pleasanton), Vice-Chair Gonzalez (San Leandro), and Chair Andersen (Piedmont) Not Present: Members Fugazi (Stockton)
• Public Comment
This item is reserved for persons wishing to address the Executive Committee on any Ava Community Energy-related matters that are not otherwise on this meeting agenda. Public Ava Community Energy
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comments on matters listed on the agenda shall be heard at the time the matter is called.
As with all public comment, members of the public who wish to address the Committee are customarily limited to three minutes per speaker and must complete an electronic speaker slip. The Executive Committee Chair may increase or decrease the time allotted to each speaker.
There were no speakers for public comment.
• Approval of Minutes from May 7, 2025
Member Balch motioned to approve the minutes. Member Gonzalez seconded the motion, which was approved 5/0/0/0/1 (yes/no/abstain/recuse/not present) Yes: Members: Marquez, Roche, Balch, Vice-Chair Gonzalez and Chair Andersen No: none
Abstain: none
Recuse: none
Not Present: Members: Fugazi
• Draft Ava Budget for Fiscal Year 2025-2026 (Informational Item) Provide further information on the upcoming fiscal year budget CEO Howard Chang presented updates to Ava’s FY 2025–2026 budget, highlighting the impact of CPUC’s proposed PCIA reform and recent market price data. These changes result in a projected $42 million deficit under the base case scenario, which staff recommends offsetting through use of the rate stabilization fund. The proposed budget also includes savings from implementing a compliance period procurement strategy and conservative hiring assumptions. CEO Chang stated that Ava remains financially strong, with significant reserves and a projected surplus in the current fiscal year. He asked the Executive Committee to provide feedback on whether staff should proceed with using the rate stabilization fund to balance the upcoming budget.
Selected Topics raised by Executive Committee Members:
• Member Roche spoke in support of waiting for midyear actuals before considering pulling additional levers to reduce the deficit.
• Member Marquez asked about policies for replenishing the rate stabilization fund in the future.
• Member Marquez asked about the legal requirements for communicating the Power Content Label to customers.
• Chair Andersen asked for clarification on the distinction between the rate stabilization fund and the general reserve fund.
• Chair Andersen suggested adding an asterisk or clarification to the board slide comparing Ava and PG&E’s power content labels due to PG&E's ability to selectively report resources.
• Member Balch asked if use of the rate stabilization fund is a one-time fix or whether operational changes should be considered for longer-term financial health. • Member Gonzalez asked for clarification on the purpose, origin, and appropriate use of the rate stabilization fund.
Ava Community Energy
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Prepay Follow Up (Informational Item)
Provide further information on prepay structure and risks CFO Russell Mills gave an overview of Ava’s upcoming Prepay #4 transaction with Morgan Stanley and previewed a potential Prepay #5 transaction with Goldman Sachs.
He explained how tax-exempt financing helps reduce Ava’s power supply costs and outlined the mechanics of the prepay structure. CFO Mills also discussed the role of Green Bonds and spoke about the importance of diversifying financing partners to minimize counterparty risk. He concluded by walking through the key documents that will be brought to the Board for approval.
Selected Topics raised by Executive Committee Members:
• Member Gonzalez asked for clarification on whose tax-exempt status—Ava’s or CCCFA’s—enables the benefits of the prepay transaction. • Chair Andersen suggested that staff offer primers to board members to better understand the structure of the transaction.
• Chair Andersen asked what would happen to an existing prepay transaction if Ava lost its tax-exempt status.
• Committee Member and Staff Announcements including requests to place items on future Executive Committee Agendas
There were no committee or staff announcements.
• Adjourned at 11:30am.
The next Executive Committee meeting will be held on Wednesday, July 2, 2025 at 3pm.