CAC Chair Report – BOD Meeting, 6/18/25
FY2025-26 Budget
• Staff presented the draft budgets—including both the upside and base case—along with an overview of the PCIA “Reform” adjustments, which are projected to reduce Ava’s calendar year revenues by $187 million.
CAC engaged in follow-up discussions, raising concerns about the financial impact on key programs, such as the Heat Pump Water Heater initiative and the Local Development Business Plan, which faces a $15 million reduction.
• The CAC recommends accepting staff’s recommendation to approve the Base Case budget, while ensuring Ava takes proactive (and aggressive) measures to challenge the PCIA "Reform" adjustments and future phases, including legislative efforts. Additionally, should favorable financial outcomes arise, Ava will prioritize fully funding the LDBP, restoring it to the previous $25M upside budget.
Drivers of PG&E Rate and Cost Growth
• Staff presented findings on rising costs, highlighting uncontested increases in transmission expenses and wildfire-related spending as primary drivers of higher charges for Ava customers. o Many of these costs were deemed "reasonable" by the PUC, but effective advocacy efforts will be critical to challenging these charges, ensuring transparency and a clearer understanding of the rates imposed on customers.
o PUC remains understaffed, according to Ava staff, contributing to a lack of strong public advocacy from the agency.
• CAC members recommend collaborative action, advocating for efforts with other CCAs to challenge rising costs for all customers. Potential strategies include:
• Exploring a buyout of the PCIA for Ava customers
• Launching a public relations campaign—similar to Marin Clean Energy’s initiative—to highlight unchecked cost increases, lack of transparency, and the complexity of PG&E’s expenditures Ad Hoc Committee Update
• The Energy Affordability Ad-Hoc Committee met to discuss the PCIA challenges affecting Ava and its customers. Members emphasized the need to collaborate with CalCCA in advocating for greater transparency and legislative action to improve energy affordability for all customers, referencing the JPA framework as a basis for collective advocacy.
• The Local Development Business Plan (LDBP) Ad-Hoc Committee reviewed concerns about transparency in Ava’s initiatives, particularly regarding public access to key information. Discussions included potential strategies such as Virtual Power Plants, On-Bill Electrification resources, and alternative revenue streams—including asset development and out-of-territory subcontracting—to strengthen Ava’s financial position while protecting ratepayers.
• Additionally, the LDBP Ad-Hoc Chair identified that some original LDBP documents had not been migrated to the Ava Community Energy website, instead remaining on the East Bay Community Energy portal. • The CAC voted to have these documents migrated, with staff agreeing to support the transition.