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

Board of Directors Meeting
Wednesday, November 19, 2025
6:00 pm
In Person:

Board Room
Ava Community Energy
1999 Harrison St, Ste 2300
Oakland, CA 94612
Or from the following locations:
• One Embarcadero Center, Suite 1050, San Francisco, CA 94111 • Clipper Club – 5 Captain Dr. Emeryville, CA 94608
• AC Hotel Salt Lake City Downtown – 225 West 200 South, Salt Lake City, UT 84101
• 35653 Scarborough Dr., Newark, CA 94560
• 1100 Webster St, 2nd Floor Conference Room, Oakland, CA 94607 • Larch Clover Community Center – 11157 West Larch Road, Tracy, CA 95376 • 1755 Harvest Landing Ln., Tracy, CA 95376
Via Zoom:
https://avaenergy-org.zoom.us/j/87023071843
Or join by phone:

Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free)
Webinar ID: 870 2307 1843
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906- 0491 or [email protected].

If you have anything that you wish to be distributed to the Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting.

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

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.

CONSENT AGENDA

4. Approval of Minutes from October 22, 2025

5. Contracts Entered Into (Informational Item)

6. Appointing Certain Ava Positions to Serve in the Role of “Prosecuting Authority.” Appoint specified Ava staff members and General Counsel to serve as Ava’s Prosecuting Authority for purposes of prosecuting any violations of the California False Claims Act.

REGULAR AGENDA

7. CEO Report

8. CAC Report

9. Fiscal Year 2024-25 Financial Audit, Budget to Actuals, and Deferred Revenues (Informational Item)
Review of FY 2024-25 financial audit, budget to actuals, and allocation of surplus

10.2026 Financial Forecast and Adjustments (Action Item) Review 2026 Financial Forecast and approve recommended adjustments to surplus allocation, value proposition, and other measures

11.CSA for Customer Programs Roadmap Consultant (Action Item) Approve Consulting Services Agreement for consultant to support the Customer Programs Roadmap

13.2025 Legislative Wrap-up and 2026 Preview (Informational Item) Review the California 2025 legislative session and a preview of the 2026 session

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

15.Adjourn
The next Ava Board of Directors meeting will be held on Wednesday, December 17, 2025 at 6pm.

Board Meeting Access Instructions
If you need help finding or accessing the building, please call our Ava representative who is stationed in the building lobby: 510-393-0492.

Directions
Directions via BART
If you are taking BART: the 19th Street station is the closest stop to our office and is about a 5 minute walk away. Use the 20th St / Thomas L. Berkeley Way station exit.

Directions via Bike
Bike riders wanting to park their bike inside the parking garage can enter through the main building lobby. Bike parking is available on the parking garage first level right in front of the garage elevators.

Directions to Parking Garage via Car
The entrance to the building’s attached garage is located on Harrison Street. If you’re driving northbound on Harrison Street, as soon as you cross 19th St. the garage entrance is 3/4 down on your left-hand side. If you’re heading east on Thomas L Berkeley Way/20th St.

Continue East then make a right turn on Harrison
Street, and the garage entrance is a quarter block up
on your right-hand side.

When you arrive, enter via the gate labeled “Public
Parkers”. There are four floors of the parking garage,
and you will need to take the elevator in the parking
garage to the first floor. The parking attendant or
an Ava representative will provide access into the
building lobby.

The parking garage entry gate will be open until 8pm
for CAC and BOD meetings. Attendees can exit the
parking garage until 11pm.

Note that the garage’s parking fee is $30 per use.

Street parking is widely available near the building
and free after 6pm.

Check-in at Security Desk
When you arrive at our building, please check in with the security desk in the lobby to get access to the elevators.

If you have questions or need assistance, an Ava representative will be stationed and identifiable in the lobby. They can be reached at: 510-393-0492.

Public Parkers entrance
1999 Harrison Street, Suite 2300, Oakland, CA 94612

Draft Minutes
Corrected Agenda (10/20/25)
Board of Directors Meeting
Wednesday, October 22, 2025
6:00 pm
In Person:

Board Room
Ava Community Energy
1999 Harrison St, Ste 2300
Oakland, CA 94612
Or from the following locations:
• Clipper Club - 5 Captain Dr. Emeryville, CA 94608
• 34250 Whitehead Lane, Fremont, CA 94555
• 35653 Scarborough Dr Newark, CA 94560
• 2180 Milvia Street, 5th Floor, Berkeley, CA 94704
• 1100 Webster St. Conference Room 2nd Fl., Oakland, CA 94607 • Larch Clover Community Center - 11157 West Larch Road, Tracy, CA 95376 • Stockton City Hall - 425 N El Dorado St., Stockton, CA 95202 Via Zoom:
https://avaenergy-org.zoom.us/j/87023071843
Or join by phone:

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. (15:00) Welcome & Roll Call

Present: Members: Marquez (Alameda County), Lopez (Albany), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Keng (Fremont), Roche (Hayward), Barrientos (Livermore), Del Catancio (Newark), Brown (Oakland), Balch (Pleasanton), Rickman (San Joaquin County), Fugazi (Stockton), Nygard (Tracy), Sakakihara (Union City), CAC Vice-Chair Souza (Community Advisory Committee), Vice-Chair Gonzalez (San Leandro) and Chair Andersen (Piedmont)
Not Present: Members: Diallo (Lathrop)

2. (17:07) Pledge of Allegiance
Chair Andersen led the body in reciting the Pledge of Allegiance.

3. (17:27) 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.

4. (19:08) Closed Session Public Comment
There were no speakers for public comment.

5. (19:50) Closed Session
CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION (under Paragraph (1) of subdivision (d) of Section 54956.9)
AVA COMMUNITY ENERGY AUTHORITY v. EDWARDS SOLAR 1B, LLC Case No. 24CV074431

6. (1:10:32) General Counsel Report Out of Closed Session There were no items to report out of closed session.

CONSENT AGENDA

7. (1:10:31) Approval of Minutes from September 17, 2025

8. Contracts Entered Into (Informational Item)

9. Fiscal Year 2025-2026 Q1 Treasurer’s Report
Reports on Ava’s cash balances as of Sept 30, 2025
Ava Community Energy
Board of Directors Page | 3
Member Barrientos motioned to approve the Consent Agenda. Member Nygard seconded the motion, which was approved 16/0/0/0/2 (yes/no/abstain/recuse/not present).

Yes: Members: Marquez, Lopez, Morada, Kaur, Keng, Roche, Barrientos, Del Catancio, Brown, Balch, Rickman, Fugazi, Nygard, Sakakihara, Vice-Chair Gonzalez and Chair Andersen
No: none
Abstain: none
Recuse: none
Not Present: Members: Tregub and Diallo

REGULAR AGENDA

10.(1:13:11) CEO Report
CEO Chang presented the CEO Report. The written report is available in the October 22, 2025 agenda packet.

There were no speakers for public comment.

11.(1:19:51) CAC Report
CAC Vice-Chair Souza presented the CAC Report.
(1:25:28) Public Comment: Dohee Kim discussed the minutes and the Local Development Business Plan.

12.(1:31:05) 2024 Power Content (Informational Item)
Update on final 2024 power content
Izzy Carson, Senior Power Resources Manager, introduced the item and addressed questions from Board members.

There were no speakers for public comment.
.

13.(1:41:20) Administrative Procurement Policy (Action Item) R-2025-44 Updates to Ava’s policy governing non-energy purchases
John Perkins, Legal Director, introduced the item and addressed questions from Board Members.

Member Balch motioned to approve the staff recommendation, with the exception that the maximum contract term does not exceed five years. Vice-Chair Gonzalez seconded the motion, which was approved 16/0/0/0/2 (yes/no/abstain/recuse/not present)
Ava Community Energy
Board of Directors Page | 4
Yes: Members: Marquez, Lopez, Tregub, Morada, Kaur, Keng, Roche, Barrientos, Del Catancio, Brown, Balch, Fugazi, Nygard, Sakakihara, Vice-Chair Gonzalez and Chair Andersen
No: none
Abstain: none
Recuse: none
Not Present: Members: Diallo and Rickman

14.(2:33:13) Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas
Announcements were made by Members Morada, Marquez, Balch and Tregub.

15.Adjourn
The meeting was adjourned at 8:29pm.

The next Ava Board of Directors meeting will be held on Wednesday. November 19, 2025 at 6pm.

Consent Item 5
Consent Item 5
To: Ava Community Energy Authority
From: Howard Chang, Chief Executive Officer
Subject: Contracts Entered Into
Date: November 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 October 15, 2025 through November 12th; Consent Item 5
Counterparty
Name
Record
Name Contract Purpose Contract Value
Not To
Exceed
Expiration
Date
Counterparty
City
Counterparty
State
Ironclad
Id
Build
Momentum
dba
Momentum
September
2025
Purchase
Rider
Technical and
strategic support
to assist in
preparing and
submitting a
waiver request
under the Build
America, Buy
America (BABA)
requirements.
$ 10,000 $10,000 September
8, 2026 Sacramento California IC-2021
BCal LMP
Harrison
Property LLC
Tenant
Change
Order
Authorizati
on
Paying permit fees
for millwork for
Board setup.
$ 7,190.07 N/A N/A Oakland California IC-2073
Adam
Goldstein
October
2025
Purchase
Rider
Videography
services. $ 35,000 $35,000 June 30, 2026 Oakland California IC-2087 Consent Item 5
Andy Smith,
LLC
October
2025
Purchase
Rider
Photography
and/or
videography
services.
$ 35,000 $35,000 June 30,
2026 Oakland California IC-2088
US Bank
Appendix
A-1: New
Account/Ch
ange in
Authorized
Account
Signers
Adds Chief
Financial Officer
and Director of
Accounting &
Controller as
authorized
account signers.

N/A N/A N/A Minneapolis Minnesota IC-2092
US Bank
Appendix
B-1:

Change in
Authorized
Treasury
Manageme
nt Signer(s)
Adds Chief
Financial Officer
and Director of
Accounting &
Controller as
treasury
management
signers.

N/A N/A N/A Minneapolis Minnesota IC-2093
US Bank
Master
Services
Agreement
1: contract
signer(s)
change
Adds Chief
Financial Officer
as contract signer.

N/A N/A N/A Minneapolis Minnesota IC-2094

Consent Item 6
Consent Item 6
To: Ava Community Energy Authority
From: Jim Dorrance, Director of Power Resources
Subject: Appointing Ava General Counsel and members of Ava’s senior management to serve in the statutory role of prosecuting authority for purposes of prosecuting any violations of the California False Claims Act.

Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
Adopt a resolution formally designating the General Counsel and certain members of Ava’s senior management, specifically the Chief Executive Officer (“CEO”), Chief Financial Officer (“CFO”), and the Senior Vice President of Power Resources, as the prosecuting authority within or for Ava as that term appears in California Government Code § 12650(b)(8). The primary reason for this is to conform strictly with the Government Code in connection with claims relating to the California False Claims Act (“CFCA”).

Financial Impact
Not Applicable/None.

Analysis and Context
Cal. Govt. Code § 12650(b)(8) within the CFCA requires public entities to designate a prosecuting authority within or for the public entity that is “charged with investigating, filing, and conducting civil legal proceedings on behalf of, or in the name of, a particular political subdivision.” (Cal. Govt. Code § 12650(b)(8)). Normally this position is held by an agency’s primary legal counsel (City Attorney, County Counsel, or General Counsel) unless others are also designated in this role, for example, senior management. Consistent with the statute, the Consent Item 6
proposed resolution expressly designates Ava’s General Counsel, the CEO, the CFO, or the Senior Vice President of Power Resources to serve in this role.

Attachments
A. Resolution
Attachment Consent Item 6A
RESOLUTION NO. R-2025-xx

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY DESIGNATING AVA

GENERAL COUNSEL, CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL

OFFICER, OR THE SENIOR VICE PRESIDENT OF POWER RESOURCES AS AVA’S PROSECUTING AUTHORITY TO PROSECUTE CLAIMS UNDER THE

CALIFORNIA FALSE CLAIMS ACT
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 Government Code § 12650(b)(8) provides that only the prosecuting authority of a local agency can prosecute violations of the California False Claims Act; and
WHEREAS the Board of Directors wishes to expressly designate the General Counsel, Chief Executive Officer, Chief Financial Officer, or the Senior Vice President of Power Resources as Ava’s prosecuting authorities in order to avoid any doubt as to which positions may serve in this role.

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

Section 1. The Board hereby designates Ava General Counsel, the Chief Executive Officer (“CEO”), the Chief Financial Officer (“CFO”) or the Senior Vice President of Power Resources, as Ava’s prosecuting authority pursuant to California Government Code § 12650(b)(8). Any person serving in the position of prosecuting authority may prosecute claims under the California False Claims Act, at Government Code §§ 12650, et seq.

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

Attachment Consent Item 6A
Betsy Andersen, Chair
ATTEST:
_____________________________
Adrian Bankhead, Clerk of the Board
CEO Report Item 7
CEO Report Item 7
TO: Ava Community Energy Board of Directors
FROM: Howard Chang, Chief Executive Officer
SUBJECT: CEO Report (Informational Item)
DATE: November 19, 2025
________________________________________________________________________ Recommendation
Accept Chief Executive Officer (CEO) report on update items below.

Executive Committee Meeting
An Executive Committee Meeting was held on Wednesday, November 5, 2025. Members received updates on proposed JPA amendments, the SmartHome Battery and Resilience Hub Programs, and a review of the selection process for the Customer Programs Roadmap consultant. The next meeting will be held on Wednesday, December 3, 2025 at 3 pm.

Financial, Administrative and Procurement Subcommittee Meeting A Financial, Administrative and Procurement Subcommittee Meeting was held on Friday, November 7, 2025. A quorum was not present for this meeting and items were presented on an informational basis. The next Financial, Administrative and Procurement Subcommittee meeting will be held on Wednesday, January 28, 2026 at 3:30 pm.

Community Sponsorship Deadline – November 30
To encourage and support community engagement, Ava awards local organizations with community sponsorships. Funding areas include, but aren’t limited to, sports, art, music, and STEM. The maximum award amount is $2,500 per organization per award round, with as many as 20 recipients funded per round, depending on the number of qualified applicants.

Applications for the latest round of funding close on November 30. Learn more and apply for a sponsorship on the Ava Community Energy website.

New Employees
Ellen Kwok – Machine Learning & Operations Associate Engineer CEO Report Item 7
Ellen joined Ava on October 16th, 2025, as the Machine Learning & Operations Associate Engineer. She will be supporting the EAS team by taking ownership of various data pipelines and improve overall operations to align with machine learning operations best practices.

Prior to Ava, Ellen worked as a software engineer at Wells Fargo for 3 years, where she led refactoring and optimization of legacy data processing workflows and developed natural language processing models to streamline complaint processing. During this time, Ellen also obtained the Google Cloud Digital Leader certificate. Before Wells Fargo, Ellen explored several disciplines and worked in an EdTech non-profit and a fintech SaaS, where she contributed to various workflow optimization.

Ellen holds a bachelor's degree in Cognitive Science with a concentration on computational modelling and data science from the University of California, Berkeley.

Nadiyah Helal – Power Resources Analyst
Nadiyah joined Ava on November 13, 2025, as a Power Resources Analyst. She will be supporting Renewable Electricity Credit (REC) commodity portfolio management, procurement, and compliance.

Prior to Ava, Nadiyah worked on supply chain risk modeling for energy technologies at the Lawrence Berkeley National Laboratory. She also has experience in critical minerals research, sustainability consulting, and climate resilience planning. She maintains pro bono involvement with Engineers Without Borders USA in the San Francisco Professional Chapter.

Nadiyah holds an M.S. in Civil Engineering with a concentration in Energy, Civil Infrastructure, and Climate from the University of California, Berkeley, and a B.S. in Civil Engineering from the University of California, Davis.

Local Development Update
Given the high number of local development activities and varied status of design, implementation, and operations, we will aim to provide a summary update of all programs and services on a quarterly basis via the CEO report. The purpose is to keep the Board appraised of Local Development Programs and activities at a summary level. Action items and deep dives will continue to be brought forth on an as needed basis.

CEO Report Item 7
Program Name Status Description Key Metrics Key Upcoming Dates Planning
Customer
Programs
Roadmap
In
Development
Define Ava's customer programs
roadmap for 2027-2032 N/A
Consultant Contract authorization
request at November Board
Meeting
Transportation
Electrification
Ava Charge Operational
Developing portfolio of EV fast
charging sites on City land across
Ava's service territory with a focus
on locating near underserved multi-family dwellings
Oakland City Center West
garage with 31 chargers is now
in operation
Ribbon cutting November 19
Additional sites to launch in
2026/27
Ava SmartHome
Charging Operational
Program to shift home EV charging
away from peak hours while
helping customers lower their cost
of home EV charging.
>2,200 EVs enrolled, VPP KPIs
are being met Additional enrollment ongoing
Ava Bike Electric Operational
Program to provide incentives for
customers to purchase electric
bikes, CARE customers receive
higher incentives and 40% of
allocated funds
Over 12,000 applications
received, 6,716 vouchers
distributed, and 1,440 e-bikes
purchased. CARE customers
redeeming 2.5x faster than non-income qualified customers Drawing on 4th Tuesday of each
month. Ava will not proceed with
a lending program and has
allocated all funds to the
incentive program
Building
Electrification
Health-e
Communities
Pilot Operational
Direct installation program to
replace gas stoves with induction
for CARE customers and complete
indoor air quality monitoring to
evaluate air quality impacts. Installed 162 induction cooktops Ava is reviewing the results of the
pilot and will come back to the
Board with a recommendation.

Applications closed in September
Building
Efficiency
Accelerator Operational
CPUC funded program to complete
energy efficiency and building
electrification projects on
commercial and industrial
customers, like LED lighting and
heat pump water heaters
On target to reduce
consumption by 13 GWh, 14
customers engaged in 48
unique projects
Program enrollment ends April
2026
CEO Report Item 7
SolarApp Heat
Pump Water
Heater permitting Canceled
Contract with SolarApp to add heat
pump water heaters to their online
permitting application
Solar App will deliver lessons
learned from permitting
departments, HPWH installers
and manufacturers on the value
of expedited permitting
Contract cancelled due to
Federal withdrawal of IRA
funding and SolarApp needing to
focus on core solar permitting
business. Ava collaborating with
BAAD and other CCAs on
pending HPWH regulations.

Resilience
Critical Municipal
Facilities
In
Development
Program to provide resilience on
critical municipal sites. Eight
projects across four cities will
provide bill savings
Installing 258kW of PV and

1.34MWh of batteries
generating 778k kWh of clean
energy in year 1.

On target to achieve mechanical
completion by the April 15,
2026th NEM2.0 deadline
SmartHome
Battery
In
Development
Program to provide $15M in upfront
and ongoing incentives for
residential solar and storage
projects and community resilience
hubs
Enroll and manage 21MW of
solar paired batteries for
residential and low- income
customers and community
resilience hubs.

Action item to the November
Board meeting to approve the
budget and program design
Community
Grants
EV Charging Operational
Both parties have identified multiple
sites and are evaluating feasibility
studies.
2 grants of $300k over 3 years
Green the Church has installed
their first project at Glad Tidings
Church in Hayward
Interfaith Power and Light and
Green the Church continues to
work on identifying sites to build
community owned level 2 EV
charging stalls.

Youth Training Operational
Rising Sun Center for Opportunity
and AGAPE (a partnership
between Cypress Mandela Training
Center and Revalue.io)
Grant of $300k over 3 years
trained over 150 youth in
electrification trades
Students are beginning to
matriculate into the job market.

Rising Sun is developing an
online jobs platform to help
graduates find work in the trades
Community
Resilience Hubs Operational Emerald Cities Collaborative Grant of $300k over 1.5 years
completed three community
workshops with over 170
participants and 26 unique
community-based organizations
ECC and Ava staff have
developed a definition and
eligibility criteria for Community
Resilience Hubs that we will
present to the Ava Board in
November.

Board of Directors Meeting
Wednesday, November 19, 2025
6:00 pm
In Person:

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
Ava Community Energy
Board of Directors Page | 2

2. Pledge of Allegiance

CONSENT AGENDA

4. Approval of Minutes from October 22, 2025

5. Contracts Entered Into (Informational Item)

REGULAR AGENDA

7. CEO Report

8. CAC Report

9. Fiscal Year 2024-25 Financial Audit, Budget to Actuals, and Deferred Revenues (Informational Item)
Review of FY 2024-25 financial audit, budget to actuals, and allocation of surplus

10.2026 Financial Forecast and Adjustments (Action Item) Review 2026 Financial Forecast and approve recommended adjustments to surplus allocation, value proposition, and other measures

11.CSA for Customer Programs Roadmap Consultant (Action Item) Approve Consulting Services Agreement for consultant to support the Customer Programs Roadmap
CAC Action: Recommend rejection of CSA due to lead consultant’s DHS/ICE ties; support roadmap concept with emphasis on expanded public engagement.

12.SmartHome Battery and Resilience Hub Budget Approval and Program Design (Action Item)
Adopt a Resolution Authorizing the Use of Previous Budget Allocation and Program Design for the SmartHome Battery Program
CAC Action: Recommend approval of budget and program design, noting public input on Ava Community Energy
Board of Directors Page | 3
Resilience Hub funding and prioritization of residential energy benefits.

13.2025 Legislative Wrap-up and 2026 Preview (Informational Item) Review the California 2025 legislative session and a preview of the 2026 session

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

15.Adjourn
The next Ava Board of Directors meeting will be held on Wednesday, December 17, 2025 at 6pm.

Staff Report Item 9
Staff Report Item 9
To: Ava Community Energy Authority
From: Russell Mills, Chief Financial Officer
Subject Fiscal Year 2024-2025 Annual Financial Audit and Budget to Actual Results Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
Accept and file the audited financial statements for fiscal year 2024-2025. Review the Budget to Actual statement and Deferred Revenue Allocations.

Financial Impact
This report has no financial impact.

Analysis and Context
Each year, Ava has an audit of its fiscal year-end financial statements conducted. The annual audit is conducted by Sorren CPAs, P.C., formerly Pisenti and Brinker, LLP, an independent, external auditing firm.

The audit consists of four general sections – the Independent Auditor’s Report, the Management Discussion and Analysis (MD&A), the Basic Financial Statements, and the Notes to the Basic Financial Statements. The following is a general discussion of each section and any pertinent findings.

This is followed by a discussion and comparison of Ava’s Actual results with our Budget set by the Board, and a reconciliation to the audited statements.

Staff Report Item 9
FY 2024-25 Annual Financial Audit and Results
The Independent Auditor’s Report concludes their opinion of the financial statements as materially accurate with no significant deficiencies or material weakness in internal controls identified. The auditors focus on financial activities related to revenue recognition, cash, accrued costs, renewable energy expenses, supplier security deposits, and financial statement note disclosures among other areas of Ava’s financial operations. Importantly, the auditors proposed no adjustments to the financial statements and found no unusual transactions or applications of accounting principles.

The Management Discussion and Analysis provides an overview of Ava’s financial activities for the fiscal years reported and gives information on financial position, reporting protocols, and overall economic factors that relate to Ava activities.

Specifically, this section provides a narrative of Ava’s operational history, a summary of financial position, a detailed analysis of financially relevant activities, and currently known facts and conditions of risk elements related to Ava’s operations.

The Basic Financial Statements provide an independently verified, accurate portrait of Ava’s financial position as of June 30, 2025. The three statements are the Statement of Net Position, Statement of Revenues, Expenses, and Changes in Net Position, and Statement of Cash Flow. Specific high-level details to these statements are:
• Annual Operating Revenues: $797,446,180 (gross operating revenue was $905,543,988 and net revenue transferred to the Rate Stabilization Fund was $108,097,808)
• The net revenue transfer to the Rate Stabilization Fund of $108,097,808 reflects $22,319,294 of revenue transferred from prior year deferrals and 2025 FYE revenue transfer of $130,417,102 to the Rate Stabilization Fund. • Annual Net Nonoperating Revenues: $24,587,957
• Annual Operating Expenses: $803,470,302
• Net position increase by $18,563,835 to $553,897,866
Notes to the Basic Financial Statements discuss several aspects of the Basic Financial Statements and provide greater details on areas such as accounting policies, cash and capital positions, risk management, commitments, and known subsequent events.

FY 2024-2025 Budget to Actual Results
Budget to Actual StatementOverall, actual revenues outperformed expectations while operating expenditures were in line with budget estimates. The reason revenues Staff Report Item 9
outperformed was that rates for 2025 were set higher than expected at the time of budget approval in June 2024.
• Electricity sales were 2.4% higher than expected, or about $21.5MM • Ava recognized about $22.3MM from previously deferred revenues for customer on-bill credits in January of 2025
• Uncollectibles (bad debt) were higher than expected due to true-up in accounts receivables across multiple periods
• Overall energy costs were slightly down relative to Budget by about 1.4%, or $11MM
• Total Operating Expenditures were slightly lower than Budget by -0.6% • Overhead items were materially under Budget by -27.6% on average, or $12.4MM
• Other Sources outperformed Budget by about $25.4MM due to higher-than-expected investment income as interest rates stayed higher for longer, and the collection of performance and delay of resource damages from contractual agreements
• Approximately $130.4MM of net revenues were deferred to the RSF Staff Report Item 9
Budget Net Revenues to Audited Net Position Reconciliation The budget is an internal proforma document set at the discretion of the Board. The financial statements in the audit are standardized by Generally Accepted Accounting Principles (GAAP) and have additional rules set forth by the Governmental Accounting Standards Board (GASB).

Ava drafts each budget in accordance with industry best practices and makes best efforts to align with GAAP and GASB rules, but fundamental differences exist and reconciliation between the budget actual net revenues and the audited change in net position.

REVENUES Budget Actuals
Electricity Sales 881,671,000 903,222,917 2.4%
Revenue Recognized from Previous Deferrals* - 22,319,294 Uncollectable (8,817,000) (12,850,000) 45.7%
Total Revenue and Other Sources 872,854,000 912,692,211 4.6%

EXPENDITURES & OTHER USES

OPERATING EXPENDITURES
Cost of Energy 760,248,000 749,266,364 -1.4%
Data Management/Customer Service 8,057,000 8,480,433 5.3% PG&E Service Fees 2,820,000 2,815,289 -0.2%
CAISO Scheduling Coordinator 731,000 723,146 -1.1%
Personnel 26,592,000 20,387,169 -23.3%
Marketing & Communications 6,168,000 3,711,163 -39.8%
Legal, Policy, & Regulatory Affairs 4,104,000 1,689,641 -58.8% Other Professional Services 2,136,000 1,742,950 -18.4%
General & Administrative 5,868,000 4,972,203 -15.3%
Total Current Expenditures 816,724,000 793,788,358 -2.8%

OTHER SOURCES & USES
Investment Income 11,400,000 24,813,379 117.7%
Other Income 399,000 523,852 31.3%
Liquidated Damages - 10,825,198 100.0%
Interest & Financing Costs (2,796,000) (1,282,356) -54.1% Local Development Transfer (22,400,000) (22,400,000) 0.0% Capital Expenditures ** (499,000) (966,824) 93.8%
Total Other Sources & Uses (13,896,000) 11,513,249 -182.9% GROSS INCREASE (DECREASE) 42,234,000 130,417,102 208.8% Revenue Deferred to RSF and Credits* - (130,417,102) 0.0% NET INCREASE (DECREASE) 42,234,000 - -100.0%
* Amount not determinable at time of budget approval
** Depreciation has been removed from Operations and is expressed as Capital Expenditures Staff Report Item 9
The following table starts with the audited change in net position and reconciles to budget-actual net revenues.

Balances of Deferred Revenue
The above audited financial statements and the net revenues to net position reconciliation determined that $130,417,102 is to be deferred to the Rate Stabilization Fund (RSF) as approved by the Board on September 17, 2025 by resolution R-2025-41.

At the same meeting, the Board also adopted resolution R-2025-42 allocating 90% of fiscal year 2024-25 net revenues to be deferred to the RSF and 10% to on-bill credits for CARE/FERA customers for distribution in the 2025-26 fiscal year.

The following table provides the total deferred balances with resolution defined usages.

Please note that the RSF balance includes the $35MM authorized to balance the current fiscal year’s budget, as there have not yet been any recognitions of deferrals this year.

Committee Recommendation
The audited financial statements were presented to the Finance, Administrative, and Procurement Subcommittee on November 7, 2025.

The budget-actuals, reconciliation, and deferred revenue balances were also presented to the Finance, Administrative, and Procurement Subcommittee on November 7, 2025.

Reconciled Item Details Amount Balance
Audited Net Position Includes net deferred revenues 18,563,835 Loss on Disposition of Assets Accrued depreciation of discarded assets (80,978) 18,644,813 LD Actual Expenses Actual FY 24/25 Program expenses (8,213,268) 26,858,081 LD Budget Allocation Budgeted capital transfer to Programs 22,400,000 4,458,081 LD Revenue from Grants FY 24/25 grant revenue in Programs 3,822,021 636,060 LD Interest Income Interest on development loans 115,326 520,734 Capital Outlay Capital reconcilliation 43,494 477,240
GASB 87 Lease Lease obligations outstanding as of 6/30/2025 477,240 - Usage Balance Guidance
RSF 149,505,118
R-2025-41 authorizes conversions from previous budget deferrals.

R-2025-23 authorizes recognition of ~$35MM to balance FY25-26 budget.

On-bill Credits 13,041,710 R-2025-42 authorizes deferral for specified use and recognition in FY 2025-26 Renewables 10,504,837
R-2023-37 authorizes deferral for specified use.

R-2024-26 authorizes recognition in 2027
Solar/Storage Incentives 14,963,130 R-2024-2 authorizes deferral for specified use.

Total Deferrals 188,014,795
Staff Report Item 9
Attachments:

A. Presentation from the Auditor, Sorren CPAs, P.C.

B. Ava Community Energy Audited Financial Statements for Fiscal Year 2024-2025 C. Presentation on Budget to Actuals and RSF Balances
sorren.com
Ava Community Energy
Report to the Board of Directors
November 19, 2025
Attachment Staff Report Item 9A
Introduction
Kellin Gilbert, CPA
Audit Partner
17 years in public accounting and performing audits of government entities Currently working with several CCA’s throughout California Aliandra Schaffer
Engagement Supervisor
6 years in public accounting and performing audits of governments (CCA’s) Alauna Rico
Audit Senior Associate
4 years in public accounting and performing audits of governments (CCA’s) Attachment Staff Report Item 9A
Transition to Sorren CPAs P.C.

As of May 2025, legacy Pisenti & Brinker combined practices with several other like-sized firms and rebranded as one unified firm “Sorren.” By combining resources with the strategic merger, we can make even greater investments in technology as well as our greatest assets, our people and clients.

Sorren is a new national top 50 firm and currently has twenty-three office locations and almost a thousand employees.

The Santa Rosa office will continue to be the lead office for Ava Community Energy.

No changes to the current engagement team, costs or timing of the services we provide to Ava.

Attachment Staff Report Item 9A
Results of Current Year Audit
The audit is complete. We reported the following:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• No significant deficiencies or material weakness in internal control noted.

Attachment Staff Report Item 9A
Audit of the year ended June 30, 2025
Financial Statements
Relative Roles & Responsibilities
• Management is responsible for preparing the Financial Statements and establishing a system of internal control.
• Auditor is responsible for auditing the Financial Statements • Considering risks of material misstatement in the Financial Statements • Considering internal controls relevant to the Financial Statements • Performing tests of year-end balances based on risk assessment • Evaluating adequacy of disclosures
Attachment Staff Report Item 9A
Risk Assessment for the year ended June
30, 2025
Our audit is a risk-based audit. Risk assessment procedures include:
• Gain understanding of the entity’s operating characteristics, practices, and procedures.
• Compare to our knowledge of similar entities, industry and professional guidance.
• Review procedures and controls surrounding significant transaction cycles and business processes.

Attachment Staff Report Item 9A
Risk Assessment for the year ended June
30, 2025
Significant areas of focus for the audit:
• Revenue recognition
• Accounts receivable and accrued revenue
• Test a sample of customer billings
• Relate total cash received during the year to revenue • Review revenue recognition through year-end and method for determining (accrued revenue)
• Cash & Investments
• Confirmations sent to financial institutions
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Financial Statement Note Disclosures – Complete and without bias Attachment Staff Report Item 9A
Required Board Communications
• As discussed in Note 13, Ava adopted GASB 102 through 104 which did not have a material effect on the financial statements.
• We did not propose any audit adjustments to the financial statements. • We did not identify any significant or unusual transactions or applications of accounting principles where a lack of authoritative guidance exists.
• There have been no disagreements with management concerning the scope of our audit and we have not encountered any difficulties in dealing with management during the performance of our audit.
• We issued a letter to the board dated November 14th detailing these required communications.

Attachment Staff Report Item 9A
Attachment Staff Report Item 9A
Financial Statements
Years ended June 30, 2025 and June 30, 2024
with Independent Auditor’s Report
Contact us
[email protected]
1-833-699-3223
Visit and follow us
AvaEnergy.org
@PoweredbyAva
Attachment Staff Report Item 9B

TABLE OF CONTENTS
Independent Auditor’s Report ………………………………………………….......... 1 Management’s Discussion and Analysis ……………………………………………... 4 Basic Financial Statements:

Statements of Net Position …………………………………………………… 9
Statements of Revenues, Expenses and Changes in Net Position …................ 10 Statements of Cash Flows ……………………………………………………. 11
Notes to the Basic Financial Statements ……………………………………… 13 Attachment Staff Report Item 9B
Ph: (707) 542-3343 sorren.com
3562 Round Barn Cir, #200, Santa Rosa, CA 95403
Independent Auditor's Report
To the Board of Directors
Ava Community Energy Authority
Opinion
We have audited the accompanying financial statements of Ava Community Energy Authority (Ava), which comprise the statements of net position as of June 30, 2025 and 2024, the related statements of revenue, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Ava as of June 30, 2025 and 2024, and the results of its operations and cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Ava and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Ava’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued, including any currently known information that may raise substantial doubt shortly thereafter.

Attachment Staff Report Item 9B
Independent Auditor's Report (continued)
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Ava’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Ava’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Attachment Staff Report Item 9B
Independent Auditor's Report (continued)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion and analysis be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Santa Rosa, California
November 14, 2025
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
4 The purpose of management’s discussion and analysis (MD&A) is to help stakeholders and other readers understand what the financial statements and notes in this report say about Ava Community Energy Authority’s (Ava) financial health and why it has changed since last year. It contains information drawn from other parts of the report, accompanied by explanations informed by the finance staff’s knowledge of Ava’s finances.

If you have any questions about this report or require further information, please contact Ava at [email protected].

Overview of the Financial Statements
Ava’s financial report contains basic financial statements, which include:
o The Statements of Net Position include all of Ava’s assets, liabilities, deferred inflows of resources and net position and provide information about the nature and amounts of resources and obligations at a specific point in time.
o The Statements of Revenues, Expenses, and Changes in Net Position report all of Ava’s revenue and expenses for the years shown.
o The Statements of Cash Flows report the cash provided and used by operating activities, as well as other sources and uses, such as capital and investing activities. o The notes to the Basic Financial Statements provide additional details and information related to the basic financial statements.

Attachment Staff Report Item 9B

If you have any questions about this report or require further information, please contact Ava at [email protected].

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
5 Financial Summary
AVA’S NET POSITION
2025 2024 2023
Current assets $ 574,541,753 $ 786,712,612 $ 494,447,975 Noncurrent assets:

Capital assets, net 21,080,775 10,367,342 9,600,031
Other noncurrent assets 302,948,264 1,480,246 1,422,185 Total noncurrent assets 324,029,039 11,847,588 11,022,216 Total assets 898,570,792 798,560,200 505,470,191
Current liabilities 144,780,099 179,709,182 85,012,415
Noncurrent liabilities 11,878,032 3,600,000 4,787,500
Total liabilities 156,658,131 183,309,182 89,799,915
Deferred inflows of resources 188,014,795 79,916,987 53,014,000 Net position
Net investment in capital assets 9,202,743 10,367,342 9,600,031 Restricted for collateral - 1,000,000 -
Unrestricted 544,695,123 524,966,689 352,056,245
Total net position $ 553,897,866 $ 535,334,031 $ 362,656,276 As of June 30, 2025, Ava’s total net position was approximately $553,898,000, an increase of $18,564,000 or 3.5% as compared to June 30, 2024. See the discussion in the following section about the changes in the various components.

AVA’S CHANGES IN NET POSITION
2025 2024 2023
Operating revenues $ 797,446,180 $ 909,536,352 $ 817,931,312 Nonoperating revenues 24,928,705 13,149,786 6,659,918
Total income 822,374,885 922,686,138 824,591,230
Operating expenses 803,470,302 749,942,231 693,785,891
Nonoperating expenses 340,748 66,152 678,679
Total expenses 803,811,050 750,008,383 694,464,570
Change in net position 18,563,835 $ $ 172,677,755 $ 130,126,660 The decrease in operating revenues in 2025 is the result of a voluntary net deferral in the Rate Stabilization Fund of $108,098,000. The cost of electricity, the largest component of operating expenses, increased from fiscal year 2024 to 2025 due to increases in renewable energy and resource adequacy. See the following section for further discussion.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
6 Detailed Analysis
Current assets decreased from $786,713,000 at the end of 2024 to $574,542,000 at the end of 2025, a decrease of approximately $212,171,000. The decrease primarily resulted from Ava’s strategy of using current assets to purchase long-term investments. At June 30, 2025, current assets consisted mainly of cash and cash equivalents of $378,494,000, accounts receivable of $92,647,000, accrued revenue of $61,177,000, and short-term investments of $30,099,000.

Included in cash and cash equivalents is $188,015,000 held in the Rate Stabilization Fund, which Ava uses to defer revenue to future years to allow Ava to mitigate potential future volatility in energy procurement costs and maintain stable and competitive customer rates. By comparison, the Rate Stabilization Fund balance at June 30, 2024 was $79,917,000. Also included in cash and cash equivalents is $3,691,000 that is restricted for grant purposes. Ava’s current assets at the end of 2025 include prepaid assets of $5,201,000 and other receivables of $6,777,000, both of which increased from the prior year. Prepaid assets include purchases of energy products in advance of delivery, and other receivables include interest receivable and receivables from energy settlements.

Noncurrent assets totaled $324,029,000 at June 30, 2025, up from $11,848,000 in the previous year. The increase reflects $299,652,000 in new investments, as there were no noncurrent investments in the prior year, and $21,081,000 in capital assets compared to $10,367,000 previously. The growth in capital assets is attributable to the capitalization of leased assets in accordance with Governmental Accounting Standards Board (GASB) Statement 87.

Current liabilities decreased from $179,709,000 at June 30, 2024 to $144,780,000 at June 30, 2025, a reduction of $34,929,000 (19.4%). The primary driver was lower accrued cost of electricity, which totaled $119,425,000 at the end of 2025, compared to $149,300,000 at the end of 2024.

These balances fluctuate annually based on the timing of energy purchases and payments, as well as wholesale market conditions.

Noncurrent liabilities increased from 2024 to 2025 by approximately $8,278,000. Noncurrent liabilities primarily represent supplier security deposits and the portion of the lease liability for Ava’s office premises due after one year.

Total net position increased from $535,334,000 in 2024 to $553,898,000 in 2025, an increase of $18,564,000 (3.5%). Of the net position at the end of 2025, $9,203,000 represents Ava’s net investment in capital assets, while the remaining $544,695,000 is unrestricted and available to support future operating activity, programs and rate stabilization efforts.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
7 Detailed Analysis (continued)
Operating revenues were $797,446,000 in 2025, down from $909,536,000 in 2024 (12.3% decrease) and slightly down from $817,931,000 in 2023. With revenue from electricity sales down slightly from 2024 to 2025, Ava directed a net of $108,098,000 into its Rate Stabilization Fund in 2025. In 2024 the net transfer was $26,903,000. The net deferral refers to the combined amount recognized as revenue from funds set aside in the previous year and current year revenue deferred for use in future periods. Operating revenue also includes liquidated damages received from suppliers for nonperformance and revenue from grantors. Grant revenue totaled $3,822,000 in 2025 compared to $1,441,000 in 2024. Changes in grant revenue correspond with the amount of eligible grant related expenses Ava incurred.

Investment income increased significantly to $24,929,000 in 2025, compared to $13,150,000 in 2024, due to both higher interest rates and growth in invested balances.

Total operating expenses rose from $749,942,000 in 2024 to $803,470,000 in 2025, an increase of $53,528,000 (7.1%), following an increase of $55,156,000 (8.1%) from 2023 to 2024. The primary driver continues to be the cost of electricity, which was $749,266,000 in 2025 compared to $707,476,000 in 2024 and $658,205,000 in 2023. Rising costs in the energy market played a major role in driving this increase as did increased volume of energy purchased due to expansion into new territories. Contract services and staff compensation also grew to a combined $44,496,000 in 2025 (up from $35,250,000 in 2024), reflecting continued program expansion and workforce growth.

Significant Capital Asset and Long-Term Financing Activity Ava does not own assets used for electric generation or distribution. Included in capital assets are an office building and land, and furniture and equipment.

Assets that are leased by Ava, such as office premises, are reported in the Statement of Net Position with a related liability for future obligations. The most significant capital asset acquired and liability incurred related to a new office lease entered into in April 2025. See notes 5 and 6 in the financial statements for details.

Ava does not have any outstanding financing debt.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY
MANAGEMENT’S DISCUSSION AND ANALYSIS
YEARS ENDED JUNE 30, 2025 AND 2024
8 Currently Known Facts, Decisions, or Conditions
California Independent System Operator (CAISO) system power prices experienced volatility through the year ended June 30, 2025. Price variability is a normal phenomenon in electricity markets driven by seasonal and annual weather changes. In Ava’s fiscal year 2025, the CAISO energy prices decreased somewhat compared to the previous fiscal year.

It is also worth noting that during Ava’s fiscal year 2025, CAISO market pricing for On-Peak and Off-Peak products experienced price convergence as compared to fiscal year 2024, due in part to milder weather occurring compared to previous years, where periods of price divergence between markets occurred during extreme weather events. The convergence of prices around the clock is a phenomenon that has been developing in recent years.

Energy hedges Ava has in place offset much of the CAISO market price volatility impacts. After a couple of years of rising prices, we are currently experiencing a softening price environment, driven by price volatility in Resource Adequacy and renewable energy certificates compliance products, as well as for the carbon-free energy attribute. After expanding its service territory into Stockton and Lathrop during the current year, Ava plans for further expansion into the unincorporated areas of San Joaquin County in 2026.

Ava has in place a formal risk management policy that includes guidance on target hedge levels.

Energy hedging is intended to reduce the financial risk of unexpected price surges by procuring a significant portion of future energy at fixed prices. The target hedge percentages depend on factors including time and the hedge pricing relative to historical energy costs. In general, Ava targets hedging 60-100% of its exposure in energy products on a short-duration basis of under a year and as a policy, targets to hedge greater than 90% of its exposure going into any particular month. Ava has complied with its risk management policy and regulations.

Year-over-year, Ava has retained a strong customer base with low opt-out levels, while experiencing growth from expansion into additional service territories, Stockton and Lathrop. Ava continues to be actively engaged in legislative and regulatory matters that can impact Ava's energy procurement requirements and, therefore, energy-related expenditures. This provides a level of additional support for Ava revenue retention and long-term viability as an electricity provider.

Attachment Staff Report Item 9B

BASIC FINANCIAL STATEMENTS
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

STATEMENTS OF NET POSITION
AS OF JUNE 30, 2025 AND 2024
9 The accompanying notes are an integral part of these financial statements. 2025 2024
Current assets
Cash and cash equivalents - unrestricted $ 374,802,685 $ 622,533,920 Cash and cash equivalents - restricted 3,691,237 9,052,151 Accounts receivable, net of allowance 92,646,802 84,962,803 Accrued revenue 61,177,258 60,952,393
Other receivables 6,776,630 242,447
Prepaid expenses 5,200,855 2,825,541
Deposits 147,000 6,143,357
Investments 30,099,286 -
Total current assets 574,541,753 786,712,612
Noncurrent assets
Deposits 1,230,512 1,193,774
Investments 299,651,534 -
Loans receivable 2,066,218 286,472
Capital assets, net of depreciation and amortization 21,080,775 10,367,342 Total noncurrent assets 324,029,039 11,847,588
Total assets 898,570,792 798,560,200
Current liabilities
Accrued cost of electricity 119,424,612 149,299,510
Accounts payable 5,956,470 5,352,155
Advances from grantors 3,691,237 9,052,151
Other accrued liabilities 2,228,542 4,231,931
User taxes and energy surcharges due to other governments 8,455,238 7,444,637 Security deposits - energy suppliers 5,024,000 4,328,798 Total current liabilities 144,780,099 179,709,182
Noncurrent liabilities
Security deposits - energy suppliers - 3,600,000
Lease liability 11,878,032 -
Total noncurrent liabilities 11,878,032 3,600,000
Total liabilities 156,658,131 183,309,182
Rate Stabilization Fund 188,014,795 79,916,987
Net investment in capital assets 9,202,743 10,367,342
Unrestricted 544,695,123 524,966,689
Total net position $ 553,897,866 $ 535,334,031

NET POSITION
ASSETS

LIABILITIES

DEFERRED INFLOWS OF RESOURCES
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

STATEMENTS OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2025 AND 2024
10 The accompanying notes are an integral part of these financial statements. 2025 2024

OPERATING REVENUES
Electricity sales, net $ 890,372,917 $ 919,222,939
Revenue transferred from Rate Stabilization Fund 22,319,294 10,504,837 Revenue transferred to Rate Stabilization Fund (130,417,102) (37,407,824) Liquidated damages 10,825,198 15,330,202
Grant revenue 3,822,021 1,440,935
Other operating revenues 523,852 445,263
Total operating revenues 797,446,180 909,536,352

OPERATING EXPENSES
Cost of electricity 749,266,364 707,476,247
Contract services 24,108,447 18,980,445
Staff compensation 20,387,169 16,269,116
Other operating expenses 8,784,992 6,517,092
Depreciation and amortization 923,330 699,331
Total operating expenses 803,470,302 749,942,231
Operating income (loss) (6,024,122) 159,594,121

NONOPERATING REVENUES (EXPENSES)
Loss on disposition of assets (80,977) -
Investment income 24,928,705 13,149,786
Interest expense (259,771) (66,152)
Nonoperating revenues (expenses), net 24,587,957 13,083,634 CHANGE IN NET POSITION 18,563,835 172,677,755
Net position at beginning of year 535,334,031 362,656,276 Net position at end of year $ 553,897,866 $ 535,334,031

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2025 AND 2024
11 The accompanying notes are an integral part of these financial statements. 2025 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 918,096,102 $ 939,057,618
Receipts from grantors 3,822,021 4,564,468
Other operating receipts 34,412,876 17,226,004
Receipts of supplier security deposits and damages 27,293,537 6,804,858 Payments to suppliers for electricity (830,969,018) (611,040,073) Payments for other goods and services (32,527,414) (23,378,083) Payments for staff compensation (19,841,560) (15,937,300) Payments of deposits and collateral (8,700,878) (7,212,418) Payments of taxes and surcharges to other governments (34,621,451) (35,743,923) Net cash provided by operating activities 56,964,215 274,341,151

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Payments of lease liability (737,014) (433,780)
Purchases of capital assets (115,333) (359,262)
Net cash used by capital and related financing activities (852,347) (793,042)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 144,786,083 - Loan principal received 13,474 204,549
Investment income received 24,502,449 12,784,180
Purchase of investments (476,448,679) -
Loan issued (2,057,344) -
Net cash provided (used) by investing activities (309,204,017) 12,988,729 Net change in cash and cash equivalents (253,092,149) 286,536,838 Cash and cash equivalents at beginning of year 631,586,071 345,049,233 Cash and cash equivalents at end of year $ 378,493,922 $ 631,586,071 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted $ 374,802,685 $ 622,533,920 Cash and cash equivalents - restricted 3,691,237 9,052,151 Cash and cash equivalents $ 378,493,922 $ 631,586,071
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

STATEMENTS OF CASH FLOWS (CONTINUED)
YEARS ENDED JUNE 30, 2025 AND 2024
12 The accompanying notes are an integral part of these financial statements. 2025 2024
Operating income (loss) $ (6,024,122) $ 159,594,121
Adjustments to reconcile operating income to net
cash provided by operating activities
Depreciation and amortization expense 923,330 699,331
(Increase) decrease in:

Accounts receivable (7,683,996) (764,144)
Other receivables (3,957,601) 756,904
Accrued revenue (224,865) (15,185,064)
Prepaid expenses (2,375,314) 15,562,543
Deposits (5,134,894) (5,995,042)
Increase (decrease) in:

Accrued cost of electricity (29,874,898) 84,163,375
Accounts payable 543,662 1,130,355
Other accrued liabilities 663,336 254,156
Advances from grantors (5,360,914) 4,564,468
Deferred revenue (1,853,207) 1,721,004
User taxes due to other governments 1,010,601 39,959
Security deposits from energy suppliers 8,215,289 896,198 Rate Stabilization Fund 108,097,808 26,902,987
Net cash provided by operating activities $ 56,964,215 $ 274,341,151

NONCASH INVESTING ACTIVITIES
Change in fair value of investments $ (2,091,494) $ -
Change in interest receivable $ 2,517,750 $ 102,612

NONCASH CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of lease asset $11,646,661 $1,076,246

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
13 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY
Ava Community Energy Authority (Ava) is a California joint powers authority created on December 1, 2016. As of June 30, 2025, parties to its Joint Powers Agreement (JPA) consist of the following local governments, plus one representative (non-voting) from the Community Advisory Committee:

Counties Cities
Alameda Albany Newark
San Joaquin Berkeley Oakland
Dublin Piedmont
Emeryville Pleasanton
Fremont San Leandro
Hayward Stockton
Lathrop Tracy
Livermore Union City
Ava is separate from and derives no financial support from its members. Ava is governed by a Board of Directors (Board) whose membership is composed of elected officials representing the member governments.

A core function of Ava is to provide electric service that includes the use of renewable sources under the Community Choice Aggregation Program under California Public Utilities Code Section 366.2.

Ava began its energy delivery operations in June 2018. Electricity is acquired from electricity suppliers and delivered through existing physical infrastructure and equipment managed by Pacific Gas and Electric Company.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
14 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

BASIS OF ACCOUNTING
Ava’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements.

Ava’s operations are accounted for as a governmental enterprise fund and are reported using the economic resources measurement focus and the accrual basis of accounting – similar to business enterprises. Accordingly, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Enterprise fund-type operating statements present increases (revenues) and decreases (expenses) in total net position. Reported net position is segregated into three categories – investment in capital assets, restricted and unrestricted.

When both restricted and unrestricted resources are available for use, it is Ava’s policy to use restricted resources first, and then unrestricted resources as they are needed.

CASH AND CASH EQUIVALENTS
For purposes of the Statements of Cash Flows, Ava defines cash and cash equivalents to include cash on hand, demand deposits, and short-term investments with an original maturity of three months or less. For the purpose of the Statements of Net Position, restricted cash balances are presented separately. Restricted cash reported on the Statements of Net Position includes advance funding from grantors.

ACCRUED REVENUE
Accrued revenue reflects the estimated value of electricity delivered to customers during the reporting period for which invoices had not been issued by the end of the fiscal year.

PREPAID EXPENSES
Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid expenses.

DEPOSITS
Contracts to purchase energy may require Ava to provide the supplier with advanced payments or security deposits. Deposits are generally held for the term of the contract and are classified as current or noncurrent assets depending on the length of time the deposits will be outstanding.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
15 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

INVESTMENTS
Investments are stated at fair value based on prices listed on a national exchange for debt securities. Ava intends to hold its securities to maturity. Investments with a maturity of less than one year are shown as current assets in the Statement of Net Position. Investments with a maturity of one year or more are shown as noncurrent assets in the Statement of Net Position.

Ava’s Investment Policy permits the following types of investments, consistent with local, State, and Federal governing codes for the investment of public funds.

U.S. Treasury instruments Asset-backed securities
Federal agency securities Commercial paper
Supranational obligations Local Agency Investment Fund (LAIF) Municipal debt Local Government Investment Pools (LGIP) Medium-term notes Money market funds
Negotiable CDs Bank deposits
Placement service deposits

LEASE ASSET AND LEASE LIABILITY
Ava recognizes an asset and liability when it enters into certain leasing arrangements. The leased asset is amortized over the term of the lease. The lease liability is the present value of payments expected to be paid to the lessor during the lease term. Ava’s only leased asset and liability relate to its office premises.

CAPITAL ASSETS AND DEPRECIATION
Ava’s policy is to capitalize furniture and equipment valued over $1,000 that is expected to be in service for over one year. Depreciation is computed according to the straight-line method over estimated useful lives of three years for electronic equipment, seven years for furniture and leasehold improvements, unless limited by the length of the original lease term. Ava does not own any electric generation assets.

ADVANCES FROM GRANTORS
Ava received grant funding from various grantors. The amount in this category represents funds received by Ava but not yet expended to carry out specific goals. See Note 8 for additional information related to grants administered by Ava.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
16 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) SECURITY DEPOSITS – LIABILITY
Various energy contracts entered into by Ava require the supplier to provide Ava with a security deposit. Security deposits are held by Ava for the duration of the contract or until certain milestones are met. Deposits are classified as current or noncurrent depending on the length of time the deposits will be held.

RATE STABILIZATION FUND
Ava created a Rate Stabilization Fund to allow a deferral of revenue in years when financial results are strong to be used in future years when financial results are stressed. In accordance with GASB Statement No. 62 and GASB Statement No. 65, the amount recognized as an addition to the fund is shown as a reduction of operating revenues and reported on the statements of net position as a deferred inflow of resources.

Ava directed revenue of $130,417,102 and $37,407,824 to the Rate Stabilization Fund for the years ended June 30, 2025 and 2024, respectively. Ava recognized revenues of $22,319,294 and $10,504,837 from the Rate Stabilization Fund for the years ended June 30, 2025 and 2024, respectively. The accumulated balance in the Rate Stabilization Fund as of June 30, 2025 and 2024 was approximately $188,015,000 and $79,917,000, respectively.

NET POSITION
Net position is presented in the following components:

Net Investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation and amortization and reduced by a lease obligation that is attributable to the acquisition, construction, or improvement of those assets.

Unrestricted: This component of net position consists of net position that does not meet the definition of “investment in capital assets” or “restricted.” Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
17 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

OPERATING AND NONOPERATING REVENUES
Operating revenues include energy sales to retail and wholesale customers, grant revenue earned from the delivery of program activities, and liquidated damages from suppliers that fail to meet delivery commitments.

Investment income and grants that are not earned from the delivery of program activities are considered “nonoperating revenues.”

REVENUE RECOGNITION
Ava recognizes revenue on an accrual basis. This includes invoices issued to customers during the reporting period and electricity estimated to have been delivered but not yet invoiced.

Management estimates that a portion of the invoiced amounts will be uncollectible. Accordingly, an allowance for uncollectible accounts has been recorded.

OPERATING AND NONOPERATING EXPENSES
Operating expenses include the costs of electricity, services, administrative expenses, and depreciation of capital assets. Operating expenses are expenses other than nonoperating expenses.

Nonoperating expenses include expenses related to financing.

COST OF ELECTRICITY
During the normal course of business, Ava purchases electrical power from numerous suppliers.

Electricity costs include the cost of energy and capacity arising from bilateral contracts with energy suppliers as well as generation credits, and load and other charges arising from Ava’s participation in the California Independent System Operator’s centralized market. The cost of electricity and capacity is recognized as “Cost of electricity” in the Statements of Revenues, Expenses and Changes in Net Position.

To comply with the State of California’s Renewable Portfolio Standards (RPS) and self-imposed benchmarks, Ava acquires RPS eligible renewable energy evidenced by Renewable Energy Certificates (Certificates) recognized by the Western Renewable Energy Generation Information System. Ava obtains Certificates with the intent to retire them and does not sell or build surpluses of Certificates with a profit motive.

Ava purchases capacity commitments from qualifying generators to comply with the California Public Utilities Commission’s Resource Adequacy (RA) Program. The goals of the RA Program are to provide sufficient resources to the California Independent System Operator to ensure the safe and reliable operation of the electrical grid in real-time and to provide appropriate incentives for the siting and construction of new resources needed for reliability in the future.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
18 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

STAFFING COSTS
Ava pays employees semi-monthly and fully satisfies its obligation for health benefits and contributions to its defined contribution retirement plan. Ava does not provide post-employment healthcare or other fringe benefits and, accordingly, no related liability is recorded in these financial statements.

Ava provides compensated absences, including paid time off, which are accrued when earned and recorded as part of accrued liabilities. The liability includes leave that is attributable to services already rendered, accumulates, and is more likely than not to be used or paid. The liability is measured using the employee’s pay rate as of the financial statement date.

INCOME TAXES
Ava is a joint powers authority under the provision of the California Government Code and is not subject to federal or state income or franchise taxes.

ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

RECLASSIFICATIONS
Certain amounts in the prior year financial statements have been reclassified for comparative purposes to conform to the presentation of the current year’s financial statements. These reclassifications did not result in any change in the previously reported net position.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
19 2. CASH AND CASH EQUIVALENTS
Ava maintains its cash in both interest-bearing and non-interest-bearing deposit accounts in several banks. Ava’s deposits are subject to California Government Code Section 16521, which requires banks to provide collateral of 110% of balances in excess of the $250,000 insurance coverage by Federal Deposit Insurance Corporation. Accordingly, the amount of risk is not disclosed for bank deposits. The risk disclosures in Note 4 address the risks related to certain short-term investments with original maturities of less than three months that are classified as cash and cash equivalents in the statements of net position and statements of cashflow. Ava monitors its risk exposure on an ongoing basis.

3. ACCOUNTS RECEIVABLE
Accounts receivable were as follows as of June 30:
2025 2024
Accounts receivable from customers 131,096,802 $ $ 110,562,803 Allowance for uncollectible accounts (38,450,000) (25,600,000) Net accounts receivable $ 92,646,802 $ 84,962,803
The majority of account collections occur within the first few months after a customer is invoiced.

Ava estimates that a portion of the billed accounts will not be collected. Ava continues collection efforts on accounts in excess of de minimis balances regardless of the age of the account. Although collection success generally decreases with the age of the receivable, Ava continues to have success collecting older accounts.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
20 4. INVESTMENTS
During the year ended June 30, 2025 Ava held investments with original maturities of three months or more. As of June 30, the fair value of investments was as follows:
2025 2024 Level
Current Investments:

U.S. Treasury securities $ 32,300,630 $ 1 -
Corporate bonds 9,545,954 - 2
Adjust for U.S. Treasury securities above
presented as cash equivalents on the
Statements of Net Position (11,747,298)
Total current investments $ 30,099,286 $ -
2025 2024 Level
Noncurrent Investments:

U.S. Treasury securities $ 88,529,207 $ 1 -
U.S. agency obligations 71,563,407 2
Corporate bonds 138,743,447 - 2
Municipal bonds 815,473 - 2
Total noncurrent investments $ 299,651,534 $ -

FAIR VALUE MEASUREMENT
GASB Statement No. 72, Fair Value Measurement and Application, sets forth the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, and Level 3 inputs are significant unobservable inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. Ava’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
-
-
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
21 4. INVESTMENTS (continued)

CREDIT RISK
Credit risk is the risk an issuer or other counterparty to an investment will not fulfill its obligations. Certain investments, such as obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are considered to have no credit risk. As of June 30, 2025, all investments were rated between A3 and Aaa by Moody’s.

Ava’s investment policy addresses this risk by limiting investments to those allowed by Section 53601 of the California Government Code.

CUSTODIAL CREDIT RISK
Cash and cash equivalents
Custodial credit risk is the risk that in the event of a financial institution failure, Ava’s deposits may not be returned to Ava. Ava’s deposits are fully insured or collateralized.

As of June 30, 2025, none of Ava’s bank balances are known to be exposed to credit risk.

Investments
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, Ava would not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. All of Ava’s investments are exposed to credit risk.

Ava’s investment policy addresses custodial credit risk. All investments owned by Ava shall be held in safekeeping by a third-party custodian, acting as an agent for Ava under the terms of a custody agreement.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
22 4. INVESTMENTS (continued)

INTEREST RATE RISK
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Duration is a measure of the price sensitivity of a fixed income portfolio to changes in interest rates. It is calculated as the weighted average time to receive a bond’s coupon and principal payments. The longer the duration of a portfolio, the greater its price sensitivity to changes in interest rates. Ava manages its exposure to declines in fair values by limiting the weighted average maturity of its investments.

Following is a summary of investment maturities as of June 30, 2025:

Investment Type Fair Value Less Than 1 1-5 Years
U.S. Treasury securities $ 109,082,539 $ 20,553,332 $ 88,529,207 U.S. agency obligations 71,563,407 - 71,563,407
Corporate bonds 148,289,401 9,545,954 138,743,447
Municipal bonds 815,473 - 815,473
$ 329,750,820 $ 30,099,286 $ 299,651,534
Investment Maturities

CONCENTRATION OF CREDIT RISK
Concentration of credit risk is the risk of loss to the magnitude of Ava’s investment in a single issuer. Ava manages the concentration of credit risk by diversifying its portfolio so that reliance on any one issuer will not place an undue burden on Ava.

As of June 30, 2025, Ava’s investment portfolio was concentrated as follows:

Percentage
of Portfolio
Issuer Investment Type 2025
Federal Home Loan Mortgage
Corporation (Freddie Mac)
U.S. agency -
implicitly guaranteed 19.7%
Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
23 5. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025, was as follows:

Beginning
balance Increases Decreases Ending balance
Capital assets not being depreciated:

Building - not in service $ 5,131,484 $ - $ - $ 5,131,484 Land 4,255,380 - - 4,255,380
Total capital assets not being depreciated 9,386,864 - - 9,386,864 Capital assets being depreciated and amortized:

Furniture and equipment 800,303 71,079 (355,079) 516,303 Leasehold improvements 71,911 (71,911) - -
Lease asset 1,076,246 11,646,661 (1,076,246) 11,646,661 Total capital assets being depreciated and amortized: 1,948,460 11,717,740 (1,503,236) 12,162,964 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (429,859) (153,821) 346,013 (237,667) Lease asset (538,123) (769,509) 1,076,246 (231,386)
Total accumulated depreciation and amortization (967,982) (923,330) 1,422,259 (469,053) Total capital assets, net of depreciation and amortization 10,367,342 $ $ 10,794,410 $ (80,977) $ 21,080,775 Capital asset activity for the year ended June 30, 2024, was as follows:

Beginning
balance Increases Decreases
Ending
balance
Capital assets not being depreciated:

Furniture and equipment 481,818 318,485 - 800,303
Leasehold improvements 71,911 - - 71,911
Lease asset 1,076,246 - - 1,076,246
Total capital assets being depreciated and amortized: 481,818 1,466,642 - 1,948,460 Less accumulated depreciation and amortization:

Furniture, equipment and leasehold improvements (268,651) (161,208) - (429,859) Lease asset (538,123) - - (538,123)
Total accumulated depreciation and amortization (268,651) (699,331) - (967,982) Total capital assets, net of depreciation and amortization 9,600,031 $ $ 767,311 -$ 10,367,342 $

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
24 6. LEASE
A lease asset is reported in accordance with Governmental Accounting Standards Board No. 87 (GASB No. 87). In July 2023, Ava entered into two lease agreements, one a sublease and one a main lease, for its office premises. Both agreements are for the same office space and each lease runs in succession over the period September 1, 2023 through October 31, 2032. The sublease was in effect until April 2025 when the main lease became active. The lease includes several periods of abated rent, which is reflected in the table below.

As of June 30, 2025, future minimum lease payments under the sublease were projected as follows:

Principal Interest Total
Year ending June 30,
2026 $ 905,088 - $ $ 905,088
2027 415,767 977,408 1,393,175
2028 543,969 891,001 1,434,970
2029 635,830 842,189 1,478,019
2030 734,003 788,357 1,522,360
2031-2035 5,572,008 2,816,673 8,388,681
2036-2038 3,976,455 397,458 4,373,913
Total $ 11,878,032 $ 7,618,174 $ 19,496,206

7. DEBT
In October 2022, Ava closed its revolving credit agreement with Barclays Bank and entered into a new agreement with U.S. Bank (formerly Union Bank). The available credit line under the new agreement is $200,000,000. The credit agreement enhances Ava’s overall liquidity for potential working capital needs and collateral requirements. This agreement terminates in October 2025.

The borrowing rate on the credit facility is 1.4%.

Ava had no debt outstanding under either line of credit agreement as of June 30, 2025 or 2024.

However, Ava did issue standby letters of credit secured by the line of credit agreement. As of June 30, 2025 and 2024, these letters of credit reduce the available portion of the line by approximately $39,800,000 and $34,000,000, respectively, but are not considered debt to Ava.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
25 8. GRANTS
Ava participates in various grants from the California Public Utilities Commission (CPUC), Bay Area Air Quality Management District, and other sources.

The Disadvantaged Communities Green Tariff (DAC-GT) grant provides bill discounts for eligible customers. The Energy Efficiency grant provides incentives for customers to install various energy-saving equipment in their homes or businesses. Ava also receives other grants for miscellaneous purposes, including those related to vehicle electrification projects.

The following is a summary of grant revenue for the years ended June 30:
2025 2024
Energy Efficiency - CPUC 1,912,129$ 64,834$
DAC-GT 1,349,301 1,241,705
Miscellaneous 560,591 134,396
Total grant revenue $ 3,822,021 1,440,935$

9. DEFINED CONTRIBUTION RETIREMENT PLAN
The Ava 401(a) Plan (the Plan) is a defined contribution retirement plan administered by LT Trust. As of June 30, 2025, there were 96 plan members. Ava is required to contribute a match up to 6% of annual covered payroll to the Plan and contributed $2,077,000 and $1,697,000 during the years ended June 30, 2025 and 2024, respectively. Ava has elected out of the Social Security system for employees eligible for the Plan. As part of this election, Ava makes required “replacement” contributions to the Plan. Plan provisions are established and may be amended by the Board.

10. RISK MANAGEMENT
Ava is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; and errors and omissions. During the years, Ava purchased insurance policies from investment-grade commercial carriers to mitigate risks that include those associated with earthquakes, theft, general liability, errors and omissions, and property damage. Deductible limits range from $0 to $1,000. Settled claims have not exceeded coverage in the last two years. There were no significant reductions in coverage compared to the prior year. From time to time, Ava may be party to various pending claims and legal proceedings. Although the outcome of such matters cannot be forecasted with certainty, it is the opinion of management and Ava’s legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on Ava’s financial position or results of operations.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
26 10. RISK MANAGEMENT (continued)
Ava maintains risk management policies, procedures and systems that help mitigate credit, liquidity, market, operating, regulatory and other risks that arise from participation in the California energy market. Credit guidelines include a preference for transacting with investment-grade counterparties, evaluating counterparties’ financial condition and assigning credit limits as applicable. These credit limits are established based on risk and return considerations under terms customarily available in the industry. In addition, Ava enters into netting arrangements whenever possible and where appropriate obtains collateral and other performance assurances from counterparties.

11. PURCHASE COMMITMENTS
In the ordinary course of business, Ava enters into various power purchase agreements in order to acquire renewable and other energy and electric capacity. The price and volume of purchased power may be fixed or variable. Variable pricing is generally based on the market price of either natural gas or electricity at the date of delivery. Variable volume is generally associated with contracts to purchase energy from as-available resources such as solar, wind, and hydroelectric facilities.

The following table details the obligations on existing energy, renewable, and resource adequacy contracts as of June 30, 2025:

Year ending June 30,
2026 847,400,000 $
2027 740,000,000
2028 669,300,000
2029 605,600,000
2030 603,600,000
2031-2049 6,071,800,000
Total $ 9,537,700,000

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
27 12. JOINT VENTURE
Ava participates in a JPA through the California Community Choice Financing Authority (CCCFA). CCCFA was formed as a conduit issuer to assist its members by undertaking the financing or refinancing of energy prepayments that can be financed with tax-advantaged bonds on behalf of one or more of the members by issuing or incurring bonds and entering into related contracts with its members. Any debt or liability incurred by CCCFA on behalf of a member to prepay for renewable energy is not a debt or liability of that member. Furthermore, the assets of CCCFA in the form of prepaid energy or reserves held by the respective bond trustees for any prepayment transaction undertaken on behalf of a member does not constitute an asset or reserve of that member.

CCCFA issued bonds which are to be used to finance energy purchases that will be delivered to Ava. No debt, liability, or obligation of CCCFA is a debt, liability, or obligation of Ava. Ava will purchase energy from CCCFA in the same manner as it purchases energy from other suppliers.

Ava purchased approximately $54,201,000 and $56,436,000 from CCCFA during fiscal years 2025 and 2024, respectively. The outstanding purchase commitments related to these financing facilities are included in Note 11.

The financial statements of CCCFA are available online at http://www.cccfa.org/key-documents.html.

13. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS
Ava implemented GASB Statement No. 102, Certain Risk Disclosures, which requires additional disclosures regarding concentrations and constraints that could impact Ava’s financial position or results of operations. Implementation of this statement did not have a material effect on the financial statements.

Ava also implemented GASB Statement No. 103, Financial Reporting Model Improvements, which establishes revised guidance for the presentation of financial statements by state and local governments. The adoption of this statement did not have a material effect on Ava’s financial statements.

In addition, Ava adopted GASB Statement No. 104, Disclosure of Certain Capital Assets.

Implementation of this statement did not have a material effect on the financial statements.

Attachment Staff Report Item 9B

AVA COMMUNITY ENERGY AUTHORITY

NOTES TO THE BASIC FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2025 AND 2024
28 14. SUBSEQUENT EVENTS

NEW MEMBERS
The County of San Joaquin (County) has voted to join Ava, and Ava’s Board has approved the County’s admission. An implementation plan has been filed with the CPUC and is currently being evaluated. If certified, service to the County would be expected to begin sometime in the 2026 calendar year.

NEW CREDIT FACILITY
In October 2025, Ava ended its existing $200,000,000 revolving credit agreement with US Bank and entered into a new three-year revolving credit agreement with PNC Bank for $300,000,000.

Attachment Staff Report Item 9B
FY 2024-2025 Budget to
Actual Performance and
Deferred Revenue Allocation
Rusty Mills| November 19, 2025
Attachment Staff Report Item 9C
FY 2024-25 Budget to Actuals
2 Overall, actual Revenues out-performed expectations while Operating Expenditures were in line with budgeted estimates.
• Electricity Sales were 2.4%, or $21.5MM, above budget expectations • Ava recognized about $22.3MM from previously deferred revenues for customer on-bill credits in January of 2025
• Uncollectables were higher than expected due to true up in accounts receivables across multiple periods
• Overall energy costs were slightly below Budget by 1.4%, or $11MM • Total Operating Expenditures were slightly below Budget by -0.6% • Overhead items were materially under Budget by -27.6%, or $12.4MM • Other Sources outperformed by $25.4MM due to higher-than-expected investment income as interest rates stayed higher for longer, and the collection of performance and delay of resource damages from contractual agreements
• Approximately $130.4MM of net revenues were deferred to the RSF and on-bill credits
REVENUES Budget Actuals
Electricity Sales 881,671,000 903,222,917 2.4%
Revenue Recognized from Previous Deferrals* - 22,319,294 Uncollectable (8,817,000) (12,850,000) 45.7%
Total Revenue and Other Sources 872,854,000 912,692,211 4.6%

EXPENDITURES & OTHER USES

OTHER SOURCES & USES
Investment Income 11,400,000 24,813,379 117.7%
Other Income 399,000 523,852 31.3%
Liquidated Damages - 10,825,198 100.0%
Interest & Financing Costs (2,796,000) (1,282,356) -54.1% Local Development Transfer (22,400,000) (22,400,000) 0.0% Capital Expenditures ** (499,000) (966,824) 93.8%
Total Other Sources & Uses (13,896,000) 11,513,249 -182.9% GROSS INCREASE (DECREASE) 42,234,000 130,417,102 208.8% Revenue Deferred to RSF and Credits* - (130,417,102) 0.0% NET INCREASE (DECREASE) 42,234,000 - -100.0%
* Amount not determinable at time of budget approval
** Depreciation has been removed from Operations and is expressed as Capital Expenditures Attachment Staff Report Item 9C
Budget Net Revenues to Audit Net Position Reconciliation The Budget is an internal proforma document set at the discretion of the Board. The financial statements in the Audit are standardized by Generally Accepted Accounting Principles (GAAP) and have additional rules set forth by the Governmental Accounting Standards Board (GASB).

Ava drafts each budget in accordance with industry best practices and does best efforts to align with GAAP and GASB standards, but fundamental differences exist and reconciliation should be defined.

The table below reconciles the audited Net Position increase to the budget actuals Net Revenues 3 Reconciled Item Details Amount Balance
Audited Net Position Includes net deferred revenues 18,563,835 Loss on Disposition of Assets Accrued depreciation of discarded assets 18,644,813 (80,978) LD Actual Expenses Actual FY 24/25 Program expenses (8,213,268) 26,858,081 LD Budget Allocation Budgeted capital transfer to Programs 22,400,000 4,458,081 LD Revenue from Grants FY 24/25 grant revenue in Programs 3,822,021 636,060 LD Interest Income Interest on development loans 115,326 520,734 Capital Outlay Capital reconcilliation 43,494 477,240
GASB 87 Lease Lease obligations outstanding as of 6/30/2025 477,240 - Attachment Staff Report Item 9C
Deferred Revenue
• September 17, 2025, the Board of Directors (the “Board”) approved resolution R-2025-41 adopting the Rate Stabilization Fund (RSF) Policy to allow surplus revenues to be deferred for later uses. • The Board also adopted resolution R-2025-42 allocating 90% of fiscal year 2024-25 net revenues to be deferred to the RSF and 10% to on-bill credits for CARE/FERA customers for distribution in the 2025-26 fiscal year.
• Based upon the audited financial statements and the net revenues to net position reconciliation, it is determined that $130,417,102 comprises 100% of net revenues for the fiscal year, of which $13,041,710 will be allocated to on-bill credits and the remainder to the RSF Note: RSF Balance includes the ~$35MM authorized to balance the current year’s budget as $0 have yet been recognized from deferrals 4 Usage Balance Guidance
RSF 149,505,118
R-2025-41 authorizes conversions from previous budget deferrals.

R-2025-23 authorizes recognition of ~$35MM to balance FY25-26 budget.

On-bill Credits 13,041,710 R-2025-42 authorizes deferral for specified use and recognition in FY 2025-26 Renewables 10,504,837
R-2023-37 authorizes deferral for specified use.

R-2024-26 authorizes recognition in 2027
Solar/Storage Incentives 14,963,130 R-2024-2 authorizes deferral for specified use.

Total Deferrals 188,014,795
Attachment Staff Report Item 9C
Staff Report Item 10
Staff Report Item 10
To: Ava Community Energy Authority
From: Howard Chang, CEO
Subject:

Calendar Year 2026 Budget Forecast & Adjustments
Date: November 19, 2025
__________________________________________________________________ Summary
Staff is presenting on the financial forecast for calendar 2026 and reviewing recommended measures to offset a forecasted deficit of $247MM from July 2025 to December 2026. This memo relies upon the comprehensive presentation detailing the calendar year 2026 financial forecast and measures available to allow Ava to reduce customer bills, remain competitive to PG&E, and offset a forecasted financial deficit.

Important context for this review is that Fiscal year 2024-25 actualized with a strong budget surplus of ~$130.4MM serving to provide a significant Rate Stabilization Fund. Additionally, 2026 residential generation rates (Ava generation + PG&E PCIA charges) are forecasted to decrease by ~30% from 2025 levels. Reducing Ava’s rates has been a critical focus to address affordability concerns in the face of rising electricity prices, primarily driven by PG&E’s transmission & distribution charges.

Staff is seeking approval to:
• Direct 100% of the 2024-25 budget surplus to RSF
• Reduce local development funding by $10MM from non-earmarked funding • Move forward on the process to adjust the value proposition, effective January 2026 to:
o 1% savings for Bright Choice and Renewable 100 at a 1¼¢ premium to PG&E o To be formally voted out by Board on Dec 17, 2025 following public comment • Utilize up to the full Rate Stabilization Fund in 2026 to manage the financial deficit Staff Report Item 10
• Staff is recommending future consideration of adjustments to 2027 procurement levels This memo serves as a very succinct summary and reference should be made to the presentation for further details.

Attachments
A. Resolution #1: On-bill credit update
B. Resolution #2: Local Development budget update
C. PowerPoint Presentation
Attachment Staff Report 10A
RESOLUTION NO. R-2025-xx

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY ON ON-BILL CREDIT
ALLOCATION OF SURPLUS REVENUE FROM FISCAL YEAR 2024-2025 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 June 12, 2024, the Board of Directors (the “Board”) approved a plan to allocate Fiscal Year 2024-2025 net position surplus money to reserve funds, a CARE/FERA customer on-bill credit, and to Net Billing Tariff incentives program; WHEREAS, on September 17, 2025 the Board approved an amendment to allocate 90% of the Fiscal Year 2024-2025 net position surplus money to a Rate Stabilization Fund and 10% to a CARE/FERA customer on-bill credit; WHEREAS, staff have completed the financial audit for Fiscal Year 2024-2025, and the Board has received the final audit results;
WHEREAS, Structural reform to the Power Charge Indifference Adjustment in 2025 and energy market changes created a material and detrimental impact on revenue, (the “Fiscal Impact”);
WHEREAS, due to the Fiscal Impact, the forecast for 2026 shows a significant budget deficit which would be aided by the inclusion of the full Fiscal Year 2024-2025 surplus into the Rate Stabilization Fund.

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

Section 1. Allocate 100% of Fiscal year 2024-2025 net position surplus to a Rate Stabilization Fund, superseding a Board amendment made on September 17, 2025 ADOPTED AND APPROVED this 19th day of November 2025.

Attachment Staff Report 10A
Betsy Andersen, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Attachment Staff Report Item 10B
RESOLUTION NO. R-2025-xx

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY TO AMEND THE LOCAL

DEVELOPMENT BUGDET
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 approved nearly $105M towards Local Development funding from Fiscal Year (FY) 2020 through FY 2025;
WHEREAS As presented to the Board in March 2025, some of the Local Development budget allocation from FY 2020 through FY 2025 has not been assigned to specific work or programs;
WHEREAS On June 18, 2025, the Board approved an additional $10,190,000 to be allocated to Local Development work as part of the FY 2026 budget for the agency, of which $4M was assigned to “Future Roadmap Funding”;
WHEREAS, Structural reform to the Power Charge Indifference Adjustment in 2025 and energy market changes created a material and detrimental impact on revenue, (the “Fiscal Impact”)
WHEREAS, due to the Fiscal Impact, the forecast for 2026 shows a significant budget deficit, which would be aided by a $10MM reduction in Local Development Funding.

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

Section 1. The Board approves a reduction of the Local Development budget allocation from FY 2020 through FY 2025 by $6M from unassigned funding.

Section 2. The Board approves a reduction of the Local Development budget allocation for FY 2026 by $4M by eliminating the budget for “Future Roadmap Funding." Attachment Staff Report Item 10B
ADOPTED AND APPROVED this 19th day of November, 2025.

Betsy Andersen, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Calendar Year 2026
Financial Forecast &
Adjustments
November 19, 2025
Attachment Staff Report Item 10C
Introduction
● Fiscal year 2024-25 actualized with a strong budget surplus of ~$130.4MM ● 2026 residential generation rates (Ava generation + PG&E PCIA charges) are forecasted to decrease by ~30% from 2025 levels
● Review calendar year 2026 financial forecast and consider different measures to allow Ava to reduce customer bills, remain competitive to PG&E, and offset a forecasted financial deficit of $247MM from July 2025 to December 2026
○ 2025 PCIA and energy market price changes
○ Historical generation rates
○ 2026 Financial Forecast
○ Measures to consider
● Staff is recommending a number of measures for board consideration, some of which require action in Nov/Dec: Adjustments to value proposition, changes to 2024-25 budget surplus allocation, and changes to local development funding
● With the established RSF, substantial Reserves, Compliance Period Procurement Method, $300MM line of credit, and the value that we have created for our customers since launching in 2018, we are well positioned to work through challenges in 2026 and significantly reduce customer rates Attachment Staff Report Item 10C
PCIA and Market Price Changes
June 2025 CPUC PCIA Reform (Track 1)
● CPUC adopted a decision (D.25-06-049) under an accelerated 4-month schedule revising how Market Price Benchmarks (“MPBs”) are calculated for Resource Adequacy (“RA”).
○ Note: Ava and CalCCA’s requests for rehearing to the CPUC were denied (D.25-10-061). ● RA MPBs now use multi-year averaging instead of single-year data, among other changes. This smooths the effect of price volatility, lowers MPBs for 2025 and 2026, and increases the Power Charge Indifference Adjustment (“PCIA”). ● This change is being implemented to 2026 rates and includes a retroactive true-up on 2025 rates ● Track 2 (2026-27) will examine potential changes to renewable and brown power MPB calculations PG&E PCIA Adders Forecast
2025**
Final
2025**
Forecast
2026**
% Δ 2025
Forecast vs. Final
RA ($/kW-month)
System RA
Local RA (PG&E)
Flex RA
$42.54
$13.29
$14.16
$11.21
$11.21
$11.21
$11.53
$11.53
$11.53
(73.6%)
(15.7%)
(20.8%)
Renewables ($/MWh) $71.24 $63.86 $62.45 (10.4%)
Brown Power ($/MWh)
On Peak
Off Peak
$55.02
$53.18
$50.20
$52.31
(9.6%)
(1.6%)
October 2025 PG&E ERRA Filing
● PG&E’s Energy Resource Recovery
Account (ERRA) filing provided revised
revenue requirements, PCIA MPBs, and
2026 rates
● RA MPBs decrease materially due to PCIA
reform while Renewables and Brown
Power decrease due to softening prices
**Source: PG&E-06, [2024] Fall Update Testimony, (A.24-05-009), Table A & B, pp. 10–11; Exhibit PG&E-06, [2025] Fall Update Testimony, (A.25-05-011), Table A & B, pp. 16-17.

Attachment Staff Report Item 10C
Historic Generation Rates
● Ava is seeking to reduce its
2026 Bright Choice
generation rates by ~40-50%
from 2025 levels
● 2026 generation rates
(including PCIA) are
expected to decrease by
~32% from 2025 levels
● PG&E’s 2026 T&D rates are
projected to increase ~4%
from 2025 levels
● 2026 overall electricity bills
are projected to decrease by
~11% from 2025 levels Ava value proposition July update -32%
Note: Chart reflects 2018 PCIA vintage TOU-C
(Ava’s most common residential rate)
-49%
Attachment Staff Report Item 10C
• Cal Year 2026 deficit of ($364MM), net with 2nd half 2025 surplus of $117MM = ($247MM) • FY 2025-2026 estimates are updated from the board approved budget on June 18, 2025 ▪ Actuals: July to September; Updated projections: October to June • FY 2026-2027 budget has the following assumptions:
▪ Energy market forecasts are based on October ERRA and industry derived forward prices ▪ 4% increase in operating expenses
▪ $0 allocated to Local Development
2025 to 2026 Forecasted Budget Impacts
= (246,795,000)
2025 2026 2026
OPERATING ACTIVITY Jul-Dec Jan-Jun Jul-Dec
TOTAL OPERATING REVENUE 597,713,000 251,746,000 350,605,000

EXPENSES & OTHER USES
Total Energy Operating Expenses 461,757,000 392,265,000 533,546,000 Total Overhead Operating Expenses 21,368,000 24,185,000 25,158,000 NET NON-OPERATING POSITION 2,618,000 2,003,000 6,799,000 TOTAL NET REVENUES 117,206,000 (162,701,000) (201,300,000) Attachment Staff Report Item 10C
Measures to Consider
Measure Approximate Value Cumulative Value
Rate Stabilization Fund (RSF) $149.5MM $149.5MM
Value Proposition Change in January 2026
Bright Choice: 5% → 1% and Renewable 100: 0.25¢ →1.25¢ per kWh $51.7MM $201.2MM
2024-25 Budget Surplus On-bill credits moved to RSF $13.0MM $214.2MM 2025-26 Local Development budget reduction (non
earmarked funding) $10.0MM $224.2MM
Reduce REC procurement $4-12MM $228.2MM
• Projected deficit for July 2025 through Dec 2026 is ($247MM) ▪ ~$20MM deficit remains following all recommended actions • Staff recommends very prudent management of expenses and close monitoring of actuals & liquidity
▪ Consider further action in 2026 as 2nd half carries the largest proportion of deficit Attachment Staff Report Item 10C
Summary of RSF and Reserve Balances
• Staff recommends utilization of RSF in full in 2026 to offset the deficit • Staff does not recommend any material use of Reserves ▪ Maintain sufficient liquidity and credit stability
• Utilization of RSF will lead to a significant reduction in cash levels ▪ Ava has a $300MM line of credit for short-term liquidity needs, if necessary ▪ $257MM is available, net of planned posted letters of credit As of June 30, 2025 Added Current
RSF 32,129,726 117,375,392 149,505,118
Reserves 330,873,400 - 330,873,400
Totals 363,003,126 117,375,392 480,378,518
Attachment Staff Report Item 10C
Adjustments to Value Proposition
Service Plan Start Service
2018
July 2020 July 2022 July 2023 -
Current
Bright Choice % below PG&E 1.5% 1% 3% 5%
Renewable 100 Premium 1¢ 0.75¢ 0.25¢
Ava has updated the value proposition three times. Bright Choice was at a 1% savings 2020-2022 years.

Generation
Rate Discount
to PG&E
2026 Revenue
Contribution - Bright
Choice ($MM)
4% 6.3
3% 12.6
2% 18.8
1% 25.1
0% 31.4
¢ per kWh
Adder to PG&E
2026 Revenue
Contribution -
Renewable 100 ($MM)

0.5 6.6

0.75 13.3

1.0 19.9

1.25 26.5

1.5 33.2
Bright Choice
Discount, Renewable
100 Adder
2026 Revenue
Contribution
($MM)
4%, 0.5¢ 12.9
3%, 0.75¢ 25.8
2%, 1.0¢ 38.7
1%, 1.25¢ 51.7
0%, 1.5¢ 64.6
Bright Choice and Renewable 100 value proposition adjustments scenarios Attachment Staff Report Item 10C
Recommended Adjustments to Value Proposition
Staff recommends adjusting the value proposition, effective January 2026 to:
• 1% savings for Bright Choice
• Renewable 100 at a 1.25¢ premium to PG&E
Note:
• Historically, when rates are high Ava's Bright Choice discount has increased and when rates are low, the discount has decreased
• Renewable 100 at a 1.25¢ premium in 2026 is 20% lower than 2025’s Bright Choice rate Ava Generation
Plus PCIA
Average Residential Rate ($/kWh) Percent Rate Decrease
2025 2026,
Current
2026,
Proposed
2025 to 2026,
Current
2025 to 2026,
Proposed
Bright Choice 0.1422 0.0969 0.1003 32% 29%
Renewable 100 0.1522 0.1038 0.1138 32% 25%
Attachment Staff Report Item 10C
Value Proposition Update Schedule
Protocol Event Schedule (approx)
Present to Full Board (Added step to the required protocol) 11/19 Present rates to Executive Committee 12/3
Two community webinars 11/24 - 12/5
Receive written comments. 11/20 - 12/8
Presentation to Community Advisory Committee 12/15
Present findings & feedback from Exec Committee, CAC, public webinar, and written comments to the Board prior to a decision 12/17
Protocol adopted on 5/18/2022
Ava follows the Board-adopted protocol in updating the Ava value proposition:

Attachment Staff Report Item 10C
Ava Customer Savings and Value
$174 million
Total customer savings since 2018
$115 million
Reinvested in our communities since 2018 through
programs, such as:
• Local Infrastructure
▪ Critical Municipal Facilities
▪ Ava Charge
• Programs
▪ Ava Bike Electric
▪ SmartHome Charging
▪ Health-e Communities
• Local sponsorships
• Community grants
• Local vendor spending
$40 million
Paid to date for local generation, driving economic
development, local union jobs, and tax revenue
• Scott Haggerty Wind Energy Center
• Kola Battery Storage System
In 2024, Bright Choice was 60% eligible renewable
energy (96% carbon-free) at lower rates than PG&E
Bright Choice Renewable 100 PG&E
Attachment Staff Report Item 10C
2024-25 Budget Surplus On-bill credits moved to RSF
Staff recommends directing 100% of the 2024-25 budget surplus to RSF Fiscal Year 2024-25 budget surplus allocation was amended at Sept 17, 2025 Board meeting ● 90% of surplus net revenues to be allocated to the Rate Stabilization Fund ● 10% to on-bill credits for CARE/FERA customers $13,041,710 ○ Potential for one-time $80 on-bill credit
Previous on-bill credits provided to CARE/FERA customer bills:
● $100 in January 2025
● $50 in November 2023 and August 2022
Generation rates (inclusive of PCIA) are expected to decrease by 30% in 2025 ● Avg monthly CARE Ava generation charges in 2025: $54
● Avg monthly CARE Ava generation charges in 2026 (@ 1% discount): $38 ● Estimated annual generation bill reduction in 2026: $192 ● Customer savings is greater through rate reduction compared to a one-time bill credit ● Note: This does not account for any changes in PG&E’s T&D charges Attachment Staff Report Item 10C
Local Development Budget reduction
• Staff recommends reducing Local Development funding by $10MM, ▪ $6MM from previously non-earmarked funding
▪ $4MM from 2025-26 non-earmarked budget
• Ava has allocated a total of $104.5MM historically 2019-2025 ▪ ~$17.1MM has been fully expensed, the remainder to be spent over the life of the program
▪ Larger budget programs are in execution or late stages of design with most program dollars to be fully spent in next 5-10 years
▪ ~$9.5MM of funding is currently not earmarked for a specific program ▪ Detailed Fund accounting was provided in the March 2025 Board meeting • 2025-2026 budget includes an allocation of $10.2MM to Local Development with $4MM that was not earmarked to a specific program, but intended for future programs Attachment Staff Report Item 10C
Renewable Energy Procurement Adjustments
Base Case:
• Renewable + Hydro = 70.6%
• Utilizes excess procurement
from 2024/2025 to meet target
• Retains ~5% excess hydro for
2027
Estimated savings: n/a
5% Renewable Energy Reduction:
• Renewable + Hydro = 65.6%
• Fully utilizes excess
procurement from 2024/2025
• Requires 5% additional
renewables in 2027
Estimated savings: $8MM
2026 (Base Case)
Renewable 52.7%
Hydro 17.9%
Nuclear 6.5%
Unspecified 22.9%
GHG Emis. intensity 299
2026 (5% RE/Hydro Reduction)
Renewable 47.7%
Hydro 12.9%
Nuclear 6.5%
Unspecified 27.9%
GHG Emis. intensity 352
Excess '24 RE applied 7.3%
Excess '24 Hydro applied 3.1%
Excess '24 RE applied 7.3%
Excess '24 Hydro applied 8%
• Staff recommends future
consideration of adjustments to
lower 2027 procurement targets
• Ava Compliance Period Procurement
covers 2024-2027
• 2024/25 excess procurement = 15.3%
o RE: 7.3% (in 2026 volumes)
o Hydro: 8% (in 2026 volumes)
• 2026 RE + Hydro Ava target: 81%
• 2027 RE + Hydro Ava target: 85%
• A 5% reduction in 2027 renewable
procurement is ~$6MM savings
Note: Scenarios are estimates; exact
savings, PCL %, & emissions to be
determined by actual transactions
Attachment Staff Report Item 10C
Conclusion
• Ava is seeking to reduce overall generation charges by 25-30% in 2026 with Ava's generation component going down 40-50%
• Such a significant rate reduction is projected to lead to a forecasted deficit of ~$247MM for the July 2025 to Dec 2026 timeframe
• Staff is recommending several measures to allow Ava to reduce customer bills and remain competitive to PG&E, while offsetting the forecasted financial deficit • Staff is seeking approval to:
o Direct 100% of the 2024-25 budget surplus to RSF
o Reduce local development funding by $10MM from non-earmarked funding o Move forward on the process to adjust the value proposition, effective January 2026 to:
▪ 1% savings for Bright Choice and Renewable 100 at a 1.25¢ premium to PG&E ▪ To be formally voted out by Board on Dec 17, 2025 following public comment o Utilize up to the full Rate Stabilization Fund in 2026 to manage the financial deficit (a formal review and authorization to come with the 2026-27 budget cycle) o Consider future adjustments to 2027 energy procurement targets Attachment Staff Report Item 10C
Attachment Staff Report Item 10C
Staff Report Item 11
Staff Report Item 11
To: Ava Community Energy Authority
From: Annie Henderson, Chief Customer Officer
Subject: Approving a Resolution Authorizing the CEO to Negotiate and Execute a Consulting Services Agreement with Deloitte & Touche LLP Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
This Staff Report proposes authorizing the CEO to negotiate and execute a contract with Deloitte & Touche LLP to develop Ava’s Customer Programs Roadmap in order to establish a strategic framework that guides program design, prioritization, and investment decisions aligned with Ava’s long-term decarbonization goals.

Financial Impact
The proposed contract term is 1 year with a not-to-exceed budget of $560,000. The funding for this contract is proposed to be $500,000 allocated for a Customer Programs Roadmap consultant in the FY 25/26 budget and up to an additional $60,000 from previously allocated non-earmarked Local Development funds.

Analysis and Context
Ava Community Energy has allocated over $100M to Fund Local Development activities that support beneficial energy programs within our community. Ava has offered a wide variety of energy-related programs and services to our customers and municipal members since launch in 2018, and currently has active programs in the market and under development for near-term launch, including Ava Bike Electric (e-bike rebate program), SmartHome Charging (EV managed charging program), Ava Charge (DC fast charging sites), Critical Municipal Facilities, Health-e Communities Pilot, Building Efficiency Accelerator, SmartHome Battery (a solar & Staff Report Item 11
storage incentive program), and Resilience Hub initiative. While some of these programs will remain active for many years to come, staff have identified the need to initiate a strategic planning process to determine how customer programs and services should look during the next 5 years (2027-2032). A strategic plan is necessary to a) identify key goals and priorities, b) support resource planning, and c) promote collaboration with stakeholders such as our member cities and counties, regional energy networks, and other community stakeholders.

Request for Proposals
In September 2025, Ava issued a Request for Proposals (RFP) seeking a consultant team to develop the Customer Programs Roadmap, the name for Ava’s strategic planning effort for customer programs. The Roadmap will establish a long-term strategic planning framework to guide program design and deployment for the 2027-2032 period. The outcome of this Roadmap will be to align Ava’s customer program portfolio with its long-term decarbonization goals.

The RFP outlined a scope of work which included internal and external assessments, stakeholder engagement, program concept development, portfolio development, metrics design, and development of the final Roadmap. The consultant teams were expected to provide technical expertise in decarbonization programs and also facilitation and strategic planning capabilities to help translate stakeholder input into an actionable plan.

Procurement and Evaluation Process
The RFP was open from September 6-September 29, 2025. Seven proposals were received, of which five met all minimum required qualifications and moved forward to the full review. Staff evaluated all conforming proposals using the scoring rubric that was included in the RFP, which included six categories:
● Understanding of scope and goals
● Technical expertise and methodology
● Project management and facilitation experience
● Stakeholder engagement approach
● Cost
● Alignment with Ava’s procurement preferences
Three bidders were selected for interviews based on the strength of their proposed approach and qualifications in line with the scoring rubric.

Interview Process
The interviews were conducted in mid-October 2025. Each bidder was asked to prepare a presentation with the following items
● Overview of proposal: Highlight understanding of Ava’s goals, proposed methodology, schedule, and team structure
● Portfolio development process: Demonstrate full methodology using examples ● Stakeholder engagement strategy: Describe the engagement approach, integration with portfolio development, managing conflicting priorities, and aligning with Ava’s existing public meeting structure.

Staff Report Item 11
After these interviews, staff requested additional details from two of the highest-ranked teams to clarify project management structure, stakeholder engagement scope, and program concept development processes.

Selection
Based on the written evaluations, interviews, and clarification responses, staff recommends moving forward with the Deloitte team as the consultant to develop the Customer Programs Roadmap.

Deloitte is a global consulting firm with extensive experience in strategic planning and decarbonization program development for utilities and government agencies. They advise 92% of Fortune 1000 power and utility companies and have supported more than 1000 public-sector entities nationwide. Deloitte’s recent work includes developing implementation guidance for Virginia’s $160 million Solar for All award and designing customer-focused electrification and efficiency programs in Wyoming. In California, their clients include Southern California Edison, Los Angeles Department of Water and Power, Sacramento Municipal Utility District, the City of Stockton, and San Jose Clean Energy.

The Deloitte team includes:
● Powerhouse Innovations: An Oakland-based consulting firm that provides real-time insights into emerging clean energy technologies to accelerate decarbonization goals.

Powerhouse will play a critical role on the market assessment for the Roadmap, identifying technology trends and opportunities. Their expertise will help Ava not only take inventory of existing programs but also understand the next wave of technologies. ● Kearns & West (KW): A Bay-Area based firm with deep expertise in designing and executing comprehensive stakeholder and community engagement strategies across California. KW brings extensive experience working with communities in the San Joaquin Valley, including rural and agricultural regions, as well as Alameda County, with clients such as the Bay Area Air Quality Management District, ensuring engagement efforts are inclusive, credible, and locally grounded.
● E/J Solutions (EJ): An Oakland-based firm that specializes in equitable community engagement, planning, and program implementation. EJ brings a strong understanding of East Bay communities and has a proven record of developing engagement processes with diverse voices. Recent work includes conducting focus groups on behalf of the California Energy Commission's Tactical Gas Decommissioning project, and executing an equitable community engagement process for the City of Oakland’s 2030 Climate Action Plan.

During both the proposal and interview phases, Deloitte clearly demonstrated a deep understanding of Ava’s objectives and the complexity of aligning customer programs with organizational and stakeholder priorities.

Their approach stood out in the following ways:
● Strategic portfolio development: Deloitte’s proposed methodology begins with establishing clear organizational objectives and measurable goals before moving to program concept development. Their approach anchored on getting clarity and Staff Report Item 11
alignment by incorporating feedback from engagement activities and clearly integrating it into the Roadmap.
● Comprehensive stakeholder engagement: Deloitte presented a robust engagement strategy led by their local partners, K&W, and E/J Solutions who bring deep experience in both Alameda and San Joaquin counties. See more below on the engagement approach.
● Strong project management and delivery capacity: Deloitte’s project delivery team is highly experienced, with proven track records of managing large-scale planning efforts with accelerated timelines. Their proposed schedule delivers the Roadmap by August 2026, several months ahead of Ava’s target of October 2026, which allows for flexibility. ● Depth of expertise: The proposed team has more than 100 years of collective experience with strategic planning, market assessments, program design, and stakeholder engagement. Each organization and associated team member’s role is clearly defined across all workstreams, and staff with relevant expertise are committed to the Roadmap.

Overall, Deloitte offered the most complete strategic approach to a complex planning context, identified an experienced team, and proposed a clear plan to deliver the Roadmap informed through engagement on schedule.

Stakeholder Engagement Approach
The Deloitte team proposed a relationship-based, locally-grounded engagement strategy that is designed to incorporate input across Ava’s service territory. Their approach leverages trusted local organizations as “engagement anchors” which include groups in Alameda County and San Joaquin Valley.

Their partners KW and E/J Solutions bring deep experience with engaging communities in the East Bay and San Joaquin regions. The team proposed to collaborate with community-based organizations and advocacy networks to conduct focus groups, informational listening sessions, and a multilingual survey to gather input. Their engagement model emphasizes culturally responsive and multilingual communications that will allow the team to meet communities where they are.

The team also proposed integrating Ava’s Community Advisory Committee (CAC) into the process to provide feedback, to ensure alignment between one of Ava’s key stakeholders and Roadmap development.

Stakeholder Engagement and Budget Considerations
To address the need for stakeholder engagement in the Customer Roadmap, Deloitte proposed two scenarios of stakeholder engagement (Baseline and Enhanced) that differ in cost, number of engagement activities, and level of effort across activities such as:
● Focus groups: small, topically-focused discussions with community organizations and key stakeholders.
● Community listening sessions: Broader sessions to hear the voice of customers directly in their own words, providing context on Ava and the intent of the Customer Roadmap. ● Survey: General customer survey to provide an additional channel for customers to provide information to Ava, enhancing direct customer engagement beyond customers who can attend listening sessions.

Staff Report Item 11
● Synthesis and integration: Time to identify and analyze information across all engagement channels and uncover themes to inform program concepts and portfolio design, and develop approaches to incorporate key findings into the Roadmap.

Table 1: Stakeholder Engagement Budget Comparison
Scenario Total NTE
Amount
Engagement Activities
Baseline $500,000 ● 5 focus groups (one dedicated to ad-hoc CAC) ● 2 community listening sessions (includes 2
facilitators and translation)
● Stakeholder Map and Engagement Strategy
● Development and integration of findings from
engagement into Roadmap
Enhanced
(Staff
recommended)
$560,000 ● 5 focus groups (one dedicated to ad-hoc CAC) ● 2 community listening sessions (includes 2
facilitators and translation)
● Stakeholder Map and Engagement Strategy
● Additional specialists to develop and integrate
findings from engagement into Roadmap
● General Customer Survey and survey findings
analysis (English and two other languages
supported)
● Additional engagement with Ava SME’s and
expanded internal workshop ensuring
coordination on Roadmap delivery
● Dedicated time to integrate additional input
across internal and external stakeholders
Rationale for Enhanced Approach
Staff recommends proceeding with the Enhanced scenario (NTE $560k). This approach builds on the Baseline scenario by strengthening the breadth and depth of stakeholder input, as well as how stakeholder input is collected. As a result, stakeholder input will contribute more to the final product given additional work on synthesizing and translating stakeholder input into actionable insights for the Customer Programs Roadmap.

Specifically, the additional scope:
● Broadens the representation of community members not engaged in live sessions through the general survey.
● Improves the integration of feedback into the plan by dedicating additional time to analyze the inputs across all engagement channels, and allows for the development of approaches to leverage input into Roadmap actions.
● Creates stronger internal alignment by adding targeted engagement with Ava’s SMEs and an expanded internal workshop, giving staff dedicated time to collectively interpret Staff Report Item 11
stakeholder input and build organizational consensus before integrating it into the Roadmap.

While the Roadmap could still be completed with the Baseline scenario, it would leave little flexibility in the schedule and constrain the time available for synthesizing stakeholder input, which would risk important feedback not being fully integrated into the final Roadmap.

This approach represents up to a $60,000 increase above Ava’s existing $500,000 FY25/26 allocation for this effort. However, staff recommends the additional spend given the importance of stakeholder engagement in this process. The additional $60,000 would come from previously allocated non-earmarked Local Development funding.

Committee Feedback
Staff has presented to the Community Advisory Committee and Executive Committee in July and September on the development of the Customer Programs Roadmap RFP and general updates on status.

On November 5th, staff presented an update to the Executive Committee on the process, focused on the proposal responses related to engagement for the Roadmap, but did not include the final bidder selection. The Executive Committee was supportive of Ava’s progress on this effort.

Attachments
A. Resolution Authorizing the CEO to Negotiate and Execute a Consulting Services Agreement with Deloitte & Touche LLP
B. Customer Programs Roadmap PowerPoint Presentation
C. Ava Consulting Services Agreement template with draft scopes of work for Baseline and Enhanced Scenarios
Attachment Staff Report Item 11A
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 CONSULTING SERVICES AGREEMENT

WITH DELOITTE & TOUCHE LLP
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 in 2018, Ava established its Local Development Business Plan (LDBP) which identified strategies and priorities for local programs and investments through 2023, and
WHEREAS since launching, Ava has developed and implemented a wide variety of programs and services, including Ava Bike Electric, SmartHome Charging, Ava Charge, Critical Municipal Facilities, Health-e Communities, Building Efficiency Accelerator, SmartHome Battery, and the Resilience Hub Initiative, and WHEREAS while some of these programs will continue to operate for several years, staff have identified the need for a strategic planning process to guide the next five years of customer programs to ensure Ava’s programs are aligned with its long-term decarbonization goals, and WHEREAS the Customer Programs Roadmap will serve as a strategic framework to (a) identify key goals and priorities, (b) inform future resource planning, and (c) promote coordination and collaboration with stakeholders such as member agencies, regional energy networks, and community-based organizations, and WHEREAS in Fiscal Year 2025-2026, the Board approved a budget allocation of $500,000 to support consultant services for the development of the Customer Programs Roadmap, and in September 2025 staff issued a Request for Proposals (RFP) seeking qualified consultants for this work, and
Attachment Staff Report Item 11A
WHEREAS after a competitive review process, staff recommend contracting with Deloitte & Touche LLP to develop the Customer Programs Roadmap based on their expertise in strategic planning for utilities and government entities, their robust stakeholder engagement approach, and their ability to deliver on an actionable portfolio that is aligned with Ava’s goals.

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

Section 1. The CEO is hereby authorized to negotiate and execute a Consulting Services Agreement with Deloitte & Touche LLP for consulting services for the Customer Programs Roadmap for the amount not-to-exceed $560,000 over a 1-year contract period.

ADOPTED AND APPROVED this 19th day of November 2025.

Betsy Andersen, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
Customer Programs
Roadmap: Consultant
Selection
Attachment Staff Report Item 11B
Summary & Recommendation
2 Recommendation
● Authorize CEO to negotiate and execute a contract with Deloitte to develop Ava’s Customer Programs Roadmap
Purpose
● To establish a strategic framework that guides future program design, prioritization, and investment decisions aligned with Ava’s long-term decarbonization goals Proposed Term
● 1 year (through October 2026)
Total NTE
● Up to $560,000
○ $500,000 allocated in FY 25/26
○ $60,000 to be drawn from previously allocated non-earmarked Local Development funding
■ Additional $60,000 supports expanded stakeholder engagement scope Attachment Staff Report Item 11B
Context
3 Ava manages a Local Development Fund (~$100 M) which supports energy-related programs across its service territory.

Since 2018, Ava has launched and managed programs including:
▪ Ava Bike Electric, SmartHome Charging, Ava Charge, Building Efficiency Accelerator, Resilience Hub Initiative, Health-e Communities, SmartHome Battery, and others.

Some programs will continue over the next several years, but a strategic roadmap for 2027-2032 is needed to:
▪ Identify goals and priorities
▪ Support resource planning
▪ Enhance alignment with member agencies, regional energy networks, and community partners
Attachment Staff Report Item 11B
RFP Overview
4 Issued
● September 2025
Purpose
● Develop a Customer Programs Roadmap for 2027–2032
Scope Included
● Internal and external assessments
● Stakeholder engagement
● Program concept and portfolio development
● Metrics design and final roadmap
Total Responses
● 7 proposals (5 conforming)
Attachment Staff Report Item 11B
Evaluation Process
5 Proposal Evaluation Rubric
● Understanding of scope and goals
● Technical expertise and methodology
● Project management and facilitation
● Stakeholder engagement approach
● Cost
● Alignment with Ava’s procurement preferences
Process
● Staff review of 5 conforming proposals
● 3 shortlisted teams invited to interviews in mid-October 2025 ● Interviews evaluated on methodology, portfolio development approach, and engagement strategy
Attachment Staff Report Item 11B
Recommended Consultant: Deloitte
Team
6 Why Deloitte?
● Proven experience in strategic planning and decarbonization program development for utilities and governments nationwide
● Integrated approach that clearly aligns objectives, program concepts, and portfolio design
● Robust stakeholder engagement strategy led by local partners ● Clear and achievable schedule–roadmap completed by October 2026 ● Qualified, well-resourced delivery team
Additional Team Members
▪ Powerhouse Innovations (Oakland): Provides insight on emerging clean energy technologies and trends and will play a critical role in the market assessment development
▪ Kearns & West (Bay Area): Designs and executes community engagement across California and has experience in the San Joaquin Valley ▪ E/J Solutions (Oakland): Specializes in equitable, community-based engagement with deep East Bay expertise
Attachment Staff Report Item 11B
Stakeholder Engagement Approach
7 Locally-grounded, relationship-based model acknowledging trusted “engagement anchors” in Alameda and San Joaquin counties
Multiple engagement formats
▪ Focus groups: small, topically-focused discussions with community organizations and key stakeholders designed to gather deeper qualitative insights and nuanced perspectives
▪ Community listening sessions: Broader sessions to hear the voice of customers directly in their own words, providing context on Ava and the intent of the Roadmap ▪ General customer survey: General customer survey to provide an additional channel for customers to provide information to Ava, enhancing direct customer engagement beyond customers who can attend listening sessions.

Strong emphasis on synthesizing stakeholder inputs and creating structured time for Ava staff to interpret feedback, ensuring insights directly shape program concepts and portfolio design.

Attachment Staff Report Item 11B
Stakeholder Engagement Scenario Options
8 Scenario Total NTE
Amount
Engagement Activities
Baseline $500,000 ● 5 focus groups (one dedicated to ad-hoc CAC) ● 2 community listening sessions (includes 2 facilitators and translation) ● Stakeholder Map and Engagement Strategy
● Development and integration of findings from engagement into Roadmap Enhanced
(Recommended)
$560,000 ● 5 focus groups (one dedicated to ad-hoc CAC) ● 2 community listening sessions (includes 2 facilitators and translation) ● Stakeholder Map and Engagement Strategy
● General Customer Survey and survey findings analysis (English and two other languages supported)
● Additional specialists to develop and integrate findings from engagement into Roadmap
● Additional engagement with Ava SME’s and expanded internal workshop ensuring coordination on Roadmap delivery
● Dedicated time to integrate additional input across internal and external stakeholders
Outside of the Consultant scope, Ava will regularly update and engage the Board and CAC throughout the Roadmap process.

Attachment Staff Report Item 11B
Scenario Recommendation
9 Staff recommend the Enhanced scenario, as it allows for:
• Broader outreach: Adds a general customer survey to capture input from residents who may not participate in live sessions (3 total languages)
• Stronger synthesis: Improves the integration of feedback into the plan by dedicating additional time to analyze the inputs across all engagement channels, and allows for the development of approaches to leverage input into Roadmap actions. • Better internal alignment: Creates structured time for Ava’s cross-functional teams to review and interpret stakeholder input before it is incorporated into the Roadmap, , ensuring organizational consensus needed to deliver on the Roadmap. • Schedule flexibility: Adds buffer that the Baseline does not provide, reducing the risk of rushing the synthesis and ensuring critical input is fully incorporated The Enhanced Scenario requires up to an additional $60,000 above the existing $500,000 allocation. These funds that would come out of the FY 25/25 future programs budget. Staff recommends this investment given the importance of robust stakeholder engagement.

Attachment Staff Report Item 11B
Next Steps
10 November 2025
● Finalize contract terms and scope
● Execute agreement
December 2025
● Project kickoff and stakeholder mapping
Early 2026
● Present more detailed stakeholder mapping and engagement plan Attachment Staff Report Item 11B
Attachment Staff Report Item 11B
1 2025 Consulting Services Agreement
Ava Community Energy
Authority (“Ava”)
Signature: [companySignerSignature_KPpknIy]
By: [companySignerName_F4OqAwu]
Date: [companySignerDateField_kADuwEz]
Approval as to
Form:
[approvalAsToFormSignature_yPxy4LU]
Address: 1999 Harrison Street, Suite 2300
Oakland, CA 94612
Ava Notice Emails: [email protected] with a cc to:

Relationship
Manager:
(“Consultant”)
Signature: [counterpartySignerSignature_xbAWUWT]
By: [counterpartySignerName_CDDO66l]
Date: [counterpartySignerDateField_vztquxC]
Notice Attn:

Phone:

Notice Address: 1999 Harrison Street, Oakland, California 94612, United States
Notice Email(s):

Effective Date This Agreement is effective as of the date of signature by Ava.

Expiration Date This Agreement expires one (1) year after the Effective Date.

Not To Exceed (“NTE”)
Summary
June 2025 template.

This Consulting Services Agreement (the “Agreement”) is made by and between Ava Community Energy Authority, a joint powers authority formed under the laws of the State of California (“Ava”), and the counterparty set forth above (“Consultant”) as of the Effective Date. Ava and Consultant are herein referred to as “Parties” or individually as a “Party.”

1. Recitals
Draft Attachments Staff Report Item 11C
2 1.1. Ava Recitals. Ava is an independent joint powers authority duly organized under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) with the power to conduct its business and enter into agreements.

1.2. Consultant Recitals. Consultant possesses the skill, experience, ability, background, certification and knowledge to complete the Work described in Section 3 of this Agreement pursuant to the terms and conditions described herein.

NOW THEREFORE, for good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the Parties to this Agreement, agree as follows:

2. Term. The term of this Agreement begins as of the Effective Date of this Agreement ends as of the Expiration Date, unless terminated earlier pursuant to Section 8 (Termination).

3. Scope of Work/Compliance with Laws and Regulations.

3.1. Work. Consultant agrees to perform the scope of work (the “Work”) in Exhibit A in accordance with the schedule in Exhibit B.

3.2. Requirements. Consultant represents and warrants that it has the skill and expertise to perform the Work. Consultant agrees to obtain any and all necessary licenses, approvals or permits necessary to perform the Work.

3.3. Legal Compliance. Consultant and its contractors, consultants, sub-suppliers, affiliates, agents and any other person or entity with whom the Consultant contracts in furtherance of this Agreement (collectively “Subconsultants”) must comply with all federal, state and local laws and regulations in performing the Work under this Agreement. Without limiting the foregoing, if work required to be performed by the Consultant is a “public work” as defined in California Labor Code Section 1720, then pursuant to the provisions of Labor Code Sections 1725.5 and 1771, the Consultant shall be registered with the Department of Industrial Relations (“DIR”), and will pay and require subcontractors to pay the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to perform this Agreement, as established by the DIR. As of the execution of this Agreement, these rates may be obtained at:
http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. Consultant shall provide a copy of prevailing wage rates to any staff, contractor and/or Subconsultant hired by Consultant for this Agreement and shall pay the adopted prevailing wage rates as a minimum. Consultant shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code.

Pursuant to the provisions of 1775 of the Labor Code, Consultant shall forfeit to Ava, as a penalty, the sum of $200.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, is paid less than the applicable prevailing wage rates for any work done under this Agreement, by them or by any subcontractor under them, in violation of the provisions of the Agreement.

4. Consultant Staffing. Exhibit C contains a list of Consultant’s principal and all team members. Consultant will not change or substitute the principal or any team members or add additional team members without consultation with Ava.

5. Subconsultants.

5.1. Approved Subconsultants. Consultant agrees to use only those Subconsultants listed on Exhibit D.

Consultant shall notify Ava within a reasonable period of time of any changes, additions, or removals of a Subconsultant.

5.2. Subconsultant Compliance. Consultant agrees to require all Subconsultants to comply with the terms of this Agreement, including without limitation, the public works requirements in Section 3.3, the insurance obligations under Section 9, the confidentiality requirements under Section 11, and the requirement to indemnify Ava as provided in Section 12.

6. Invoicing and Payment.

6.1. Time and Materials. If the Work under this Agreement is to be performed on a time and materials basis, Consultant must submit invoices to Ava on a monthly basis, complete with the name of the individual that conducted the Work, the time spent, and a brief description of the tasks performed Draft Attachments Staff Report Item 11C
3 during that time. If requested by Ava, Consultant must include the contract number provided by Ava and the total compensation remaining on the Agreement on each monthly invoice. Notification to Ava should be provided once the contract budget has been used up by 80% (including invoiced work and work that may not have been invoiced yet) the amount of which is set forth in Exhibit E. Invoices must be submitted to Ava by the 20th of the month following the month in which Consultant performed the Work.

6.2. Milestone. If the Work under this Agreement is to be performed on a task or project basis, the Consultant will submit an invoice within thirty (30) days of completing the project to the satisfaction of Ava for full payment, unless other arrangements have been made.

6.3. Markups. Ava will not agree to pay any markups on Subconsultant services or supplies unless such markups are included in Exhibit E, Compensation/Budget and such markups were included in Consultant’s bid, if applicable.

6.4. Payment Processing. The following are conditions on Ava’s obligation to process any payments under this Agreement:

6.4.1. If the Consultant is a U.S. based person or entity, the Consultant must provide to Ava a properly completed Internal Revenue Service Form W-9 before Ava will process payment. If the Consultant is a U.S based person or entity but has neither a permanent place of business in California nor is registered with the California Secretary of State to do business in California, the Consultant must provide Ava with a properly completed California Franchise Tax Board form related to nonresident withholding of California source income before Ava will process payment.

6.4.2. If the Consultant is not a U.S. based person or entity, the Consultant must provide Ava with the applicable Internal Revenue Service form related to its foreign status and a California Franchise Tax Board form related to nonresident withholding before Ava will process payment.

6.5. Payment. Ava agrees to pay undisputed invoices within forty-five (45) days of receipt. Invoices may be sent to Ava by U.S. mail or electronic mail to [email protected]. Invoices will be deemed received on the next business day following the date of receipt via electronic mail or three days after receipt via U.S. mail. Notwithstanding anything to the contrary in this Agreement or any related document, Ava shall have no obligation to remit payment for fees in excess of the NTE.

6.6. Members. Ava, as a joint powers authority, is a separate public entity from its constituent members and will be solely responsible for all debts, obligations and liabilities accruing and arising out of this Agreement. Consultant acknowledges that it will have no rights and agrees not to make any claims, take any actions or assert any remedies against any of Ava’s constituent members in connection with this Agreement.

7. Records Retention and Ownership of Work Product.

7.1. Records. The Consultant must retain all ledgers, books of accounts, invoices, vouchers, cancelled checks, background materials, or other records relating to its performance under this Agreement for a period of three (3) years following termination of this Agreement.

7.2. Ownership. Ava owns all rights, including without limitation, all licenses, copyrights, service marks and patents, in and to all Work Product(s), whether written or electronic, without restriction or limitation upon their use and immediately when and as created by the Consultant, any Subconsultants, or any other person engaged directly or indirectly by the Consultant to perform under this Agreement. “Work Product(s)” means all writings, reports, drawings, plans, data, video, media, photographs, renderings, plans, software, models, and other similar documents and materials developed or created by Consultant or its Subconsultants on behalf of or for use by Ava under this Agreement. All Work Product(s) will be considered “works made for hire,” and together with any and all intellectual property rights arising from their creation will be and remain the property of Ava without restriction or limitation upon their use, duplication or dissemination by Ava. Consultant agrees not to obtain or attempt to obtain copyright protection in its own name for any Work Product.

8. Termination.

Draft Attachments Staff Report Item 11C
4 8.1. Upon Notice. Ava may terminate this Agreement for any reason by giving Consultant written notice.

The termination notice may set the date of termination, but if no such date is given, termination is effective seven (7) days following the date of the written notice.

8.2. For Breach. Ava may terminate this Agreement immediately upon written notice for any material breach of this Agreement by Consultant or any of its Subconsultants. If Ava terminates this Agreement for cause and obtains the same services from another consultant at a greater cost, the Consultant is responsible for such excess costs in addition to any other remedies available to Ava.

8.3. Completion Option. Upon termination for any reason, Ava has the option of requiring the Consultant to complete work up to the date of termination or to cease work immediately. Ava has the further option to require Consultant to provide Ava any finished or unfinished Work or Work Product prepared by the Consultant up to the date of termination.

8.4. Payment. Ava will pay Consultant the reasonable value of services satisfactorily rendered by the Consultant to Ava up to the date of written notice of termination. If Ava authorizes Consultant to continue performing the Work through the date of termination, Ava will pay Consultant the reasonable value of services satisfactorily rendered up through the date of termination, providing such services are in compliance with the Compensation/Budget in Exhibit E.

8.5. Return of Work Product. Upon termination of this Agreement, and at no cost to Ava, Consultant, its Subconsultants and anyone working for Ava under control of Consultant must return all Work Product to Ava and cooperate with any subsequent consultant during any transition. Consultant may only retain copies of the Work Product by express written permission of Ava.

9. Insurance

9.1. Proof of Insurance. Consultant must procure, maintain and comply with the insurance requirements in Exhibit F throughout the full term of this Agreement. Consultant must provide proof of insurance either in the form of a certificate of insurance or, if requested by Ava, a copy of the insurance policy, prior to performing any work under this Agreement.

9.2. Ongoing Coverage. Consultant agrees to stay in compliance with the insurance coverage requirements during the term of this Agreement. Consultant must give Ava ten (10) days written notice and obtain Ava’s written approval prior to making any modifications that would reduce its insurance coverage.

9.3. Subconsultant Coverage. Consultant must either include Subconsultants under its insurance policies or require each Subconsultant to comply with the insurance obligations in Exhibit F.

10. No Discrimination or Conflict of Interest

10.1. Non-Discrimination. Consultant represents and warrants, on behalf of itself and its Subconsultants, that it has not and will not discriminate against anyone based on his/her age, color religion, sex, sexual orientation, disability, race, national origin, or any other protected category under state or federal law.

10.2. Conflict of Interest. Consultant represents and warrants, on behalf of itself and its Subconsultants, that it is familiar with local, state and federal conflict of interest laws, that in entering into this Agreement it is not violating any of the conflict of interest laws, that it will avoid any conflicts of interest during the term of this Agreement, and that it will notify Ava immediately if it identifies any conflicts of interest Consultant understands that violations of this Section 10 could result in immediate termination of this Agreement and disgorgement of compensation.

11. Confidentiality

11.1. Non-Disclosure. Except as authorized by Ava or as otherwise required by law, Consultant shall not disclose to any third party any draft or final Work Product, discussions or written correspondence between Consultant and its Subconsultants or discussions or written correspondence between Consultant and Ava staff. In the event Consultant receives a request from any third party requesting disclosure of any Work Product, discussions, communications or any other information Consultant is Draft Attachments Staff Report Item 11C
5 prohibited from disclosing, Consultant will immediately notify Ava and wait for direction from Ava before disclosing the information.

11.2. Third Parties. For the purposes of this Section 11, “third party” refers to any person or group other than Ava staff and Board members. For example, “third parties” include community groups, Board advisory groups, other governmental agencies, other consultants or members of the community.

11.3. Confidentiality Survival. This Section 11 will survive the expiration or termination of this Agreement.

11.4. Public Records Act. The Parties understand and agree that (1) this Consulting Services Agreement is subject to public disclosure under the California Public Records Act (“CPRA”); (2) a request pursuant to the CPRA may obligate Ava to disclose this Agreement, in whole or in part, to the requestor; and (3) Consultant is solely responsible for the inclusion of any information herein that Consultant may consider sensitive and should not include sensitive information within this Agreement.

12. Indemnity

12.1. General Indemnity. Except with regard to any matter involving professional negligence, Consultant agrees, at its sole cost and expense, to indemnify, defend with counsel reasonably approved by Ava, and protect and hold harmless Ava, its officers, directors, employees, agents, attorneys, designated volunteers, successors and assigns, and those Ava agents serving as independent contractors in the role of Ava staff (collectively “Ava Indemnitees”) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, penalties, judgements, liens and losses of whatever nature (“Claims”) that arise, directly or indirectly, in whole or in part, out of or are in any way related to Consultant’s or Subconsultant’s performance or failure to perform the Work under this Agreement, regardless of whether the Consultant or its Subconsultants acted or failed to act intentionally, willfully, recklessly or negligently. Consultant agrees that its indemnity and defense obligations include all costs and expenses, including all attorney fees, expert fees, mediation, arbitration, or court costs in connection with the defense. Consultant further agrees to indemnify, defend, protect and hold harmless Indemnitees from and against any breach of this Agreement and any infringement of patent rights, trade secret, trade name, copyright, trademark, service mark or any other proprietary right of any person(s) caused by Ava’s use of any services, Work Product or other items provided by Consultant or its Subconsultants under this Agreement.

12.2. Professional Negligence. With regard to any matter involving professional negligence, Consultant agrees, at its sole cost and expense, to indemnify, defend with counsel reasonably approved by Ava, and protect and hold harmless the Ava Indemnitees from and against any and all Claims to the extent arising out of or resulting from Consultant’s or Subconsultant’s negligence, recklessness, or willful misconduct. In no event shall the cost to defend charged to Consultant exceed the Consultant’s proportionate percentage of fault.

12.3. Exceptions. Consultant’s obligations in Subsections 12.1 and 12.2 do not apply to the extent any Claim results from the negligence or willful misconduct of the Ava Indemnitees.

12.4. Indemnitees. Except as limited by Subsection 12.2, Consultant’s obligation to defend Ava applies to the maximum extent allowed by law and includes defending Indemnitees as set forth in California Civil Code sections 2778 and 2782.8.

12.5. Insurance. The Consultant’s obligations under Section 12 apply regardless of the existence or amount of insurance the Consultant carries or has made available to Ava.

12.6. Indemnification Survival. The Parties agree that this Section 12 survives the expiration or earlier termination of the Agreement.

13. Consultant is an Independent Contractor

13.1. Relationship of the Parties. Consultant and its Subconsultant(s) are and at all times will be independent contractors. Consultant has complete control over its operations and employees and is not an agent or employee of Ava and must not represent or act as Ava’s agent or employee.

Draft Attachments Staff Report Item 11C
6 Consultant agrees, on behalf of itself and its employees and Subconsultants, that it does not have any rights to retirement benefits or other benefits accruing to Ava employees, and expressly waives any claim it may have to any such rights.

13.2. Relationship of Subconsultants. As an independent contractor, Consultant has complete control over its Subconsultants. Subject to the requirements of Section 5 of this Agreement, Consultant is solely responsible for selecting, managing and compensating its Subconsultants, and for ensuring they comply with this Agreement.

14. Miscellaneous Terms and Conditions

14.1. Ava Authority. The Chief Executive Officer or his/her designee is authorized to take all actions under this Agreement, including without limitation, amendments that fall within the Chief Executive Officer’s signing authority, termination or modification of terms.

14.2. Waiver. Waiver by either party of any one or more conditions, Sections, provisions or performance of this Agreement will not be a waiver of any other provision; nor will failure to enforce a provision or Section in one instance waive the right to enforce such provision or Section in the future.

In no event will payment by Ava to Consultant constitute or be construed as a waiver by Ava of any breach or default of this Agreement, nor will such payment prejudice any of Ava’s other rights or remedies.

14.3. Governing Law. Consultant and Ava agree that this Agreement will be interpreted under the laws of the State of California.

14.4. Venue. Any litigation resulting from this Agreement will be filed and resolved by a state court in Alameda County, California, or if appropriate, the federal courts in the Northern District of California located in San Francisco.

14.5. Audit Rights. All records or documents required to be kept pursuant to this Agreement must be made available for audit at no cost to Ava, at any time during regular business hours, upon written request by Ava. Copies of such records or documents shall be provided to Ava at Ava’s offices unless an alternative location is mutually agreed upon.

14.6. Recitals and Exhibits. The Recitals in Section 1 above are intentionally made a part of this Agreement. All Exhibits and any other documents incorporated by reference are a part of this Agreement.

14.7. Notices. Notices to Ava shall be effective upon delivery to all email addresses in Ava Notice Emails, above. .Any notices required to be given to Contractor under this Agreement must be made in writing and may be delivered a) personally, in which case they are effective upon receipt; b) by U.S.

Mail, in which case they are effective three (3) days following deposit in the U.S. Mail, unless accompanied by a return receipt in which case, they are effective upon the date on the receipt; or c) by electronic mail, in which case they are effective upon confirmation of receipt, and if no confirmation of receipt, they are effective one day after transmission. All notices to Contractor must be sent to the Notice Address or Notice Email(s).

14.8. Assignment. Except to the extent this Agreement authorizes Consultant to use Subconsultants, Consultant will not assign any part of this Agreement without Ava’s prior written consent. Ava, at its sole discretion, may void this Agreement if a violation of this provision occurs.

14.9. Integrated Agreement. The Recitals, this Agreement and the Exhibits attached to this Agreement contain the complete understanding between Ava and Consultant and supersedes any prior or contemporaneous negotiations, representations, agreements, understandings and statements, written or oral respecting the Work up through the Effective Date of this Agreement.

14.10. Amendments. Any and all amendments or modifications to this Agreement must be made in writing and signed by each Party before such amendment will be effective.

14.11. Government Claims Act. Nothing in this Agreement waives the requirements to comply with the California Government Claims Act (Government Code Section 810 et seq.), where applicable.

Draft Attachments Staff Report Item 11C
7 14.12. Severability. If a court of competent jurisdiction holds any Section or part of this Agreement to be invalid or unenforceable for any reason and the Work can still be performed, the Parties agree to sever the invalid or unenforceable Section from this Agreement and that all remaining Sections or parts of this Agreement will continue to be enforceable.

14.13. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together will constitute one and the same instrument and each of which will be deemed an original.

14.14. No Party Deemed Drafter. This Agreement will be considered for all purposes as prepared through the joint efforts of the Parties and will not be construed against one Party or the other as a result of the preparation, substitution, submission, or other event of negotiation, drafting or execution hereof.

14.15. Supplier Diversity. Ava is required to report to the California Public Utilities Commission (“CPUC”) on their diverse suppliers, as defined by CPUC General Order 156. Consistent with the California Public Utilities Code and California Public Utilities Commission policy objectives, Consultant agrees to document and provide information to Ava regarding Consultant’s status and any engagement of women, minority, disabled veteran, persons with disabilities, and LGBT owned business enterprises in its completion of the Work under this Agreement. Specifically, Consultant agrees to complete Ava’s Supplier Diversity questionnaire, which may be updated or revised during the term of the Agreement, and otherwise reasonably cooperate with Ava to provide the information described above. Consultant shall provide such information in the timeframe requested by Ava and in no event later than January 31 of the year following the Effective Date of this Agreement.

LIST OF EXHIBITS
EXHIBIT A: ENHANCED OR BASELINE SCOPE OF WORK
EXHIBIT B: SCHEDULE
EXHIBIT C: CONSULTANT STAFFING
EXHIBIT D: SUBCONSULTANTS
EXHIBIT E: COMPENSATION/BUDGET
EXHIBIT F: INSURANCE REQUIREMENTS
Draft Attachments Staff Report Item 11C
1 DRAFT Enhanced Scenario Scope of Work (Staff Recommended) Task 1: Project Management and Internal Stakeholder Engagement The Consultant will provide overall project management and strategic internal facilita8on for the longterm planning process, ensuring the work is completed on 8me, within budget, and in alignment with Ava’s organiza8onal goals. The Consultant will:
● Oversee the en8re planning effort to make sure all planning strategy aligns with Ava’s broader goals and ini8a8ves.
● Oversee consultant team and coordinate with Ava staff to deliver inputs needed in this process. ● Iden8fy, recommend approaches for, and manage the process to arrive at key decisions and stakeholder engagement approach.
● Facilitate a project Kickoff mee8ng with Ava staff to align on process, milestones, communica8on, and roles.
● Develop and circulate a project Workplan detailing the Consultant’s approach for comple8ng each of the following tasks. The Workplan is due within two weeks of the Kickoff mee8ng. ● Lead two to three 30-minute mee8ngs with Ava’s core “Tiger Team” to review progress, address barriers, and discuss next steps.
● Conduct two phases of 5-7 interviews with Ava staff and leaders to beRer understand how their role supports customer programs and solicit their inputs on the objec8ve of the Customer Program Roadmap (see Tasks 2 and 11 for more detail).
● Oversee delivery of key milestones on 8me, to complete the final work product by August 2026 or before.
● Develop and maintain a schedule using Ava’s Asana instance, iden8fying key milestones and dependencies in the process.
● Implement document approval system such that the Consultant will share interim work products with Ava Tiger Team for Ava to upload to their internal document management system (e.g., Teams, Google Drive, etc.) for consolidated commen8ng and streamlined reviews. Review 8melines are subject to final agreement during the Kickoff mee8ng, but proposed to be no longer than 5 business days so the project stays on track. ● Par8cipate in up to two 4-hour working sessions with Ava subject maRer experts (SMEs) and integrate insights across relevant tasks.

Deliverable(s):

1.1 Workplan
Ava’s role: Ava’s core “Tiger Team” will par8cipate in the regular check-ins and provide feedback and relevant internal updates. The Tiger Team will coordinate internal staff and leadership par8cipa8on in all relevant decision-making points. Tiger Team will also confirm and provide contact informa8on for the 5- Attachments Staff Report Item 11C
2 7 individuals selected for interviews. The selected 5-7 Ava staff will par8cipate in interviews. Relevant Ava team members will prepare all content for the working sessions with Ava SMEs.

Task 2: Refine Customer Programs Roadmap ObjecAve
The purpose of this task is to document a clear objec8ve for Ava’s long-term roadmap by synthesizing exis8ng work and interviewing 5-7 key Ava staff and leaders (as noted in Task 1). The result of this iden8fica8on will enable the dra`ing of a broad set of poten8al performance metrics.

Consultant will:
● Review Ava’s exis8ng work that supports the defini8on of the key objec8ve for the Customer Programs Roadmap and discuss comments and ques8ons with Ava’s Tiger Team. Develop a memo that synthesizes this work to be used as a guidance document throughout the Customer Programs Roadmap process.
● Conduct interviews with 5-7 Ava staff and leaders, to be selected during the Kickoff with the Tiger Team
● Review Ava’s exis8ng and poten8al program performance metrics and propose a “long list” of poten8al program performance metrics that we may want to use to es8mate the performance of program concepts and track performance of programs in the 2027-2032 period based on our objec8ve and focus areas, leveraging the metrics we have already collected.

Deliverable(s):

2.1 Customer Programs Roadmap Key Objec8ve Memo

2.2 “Long List” of Poten8al Program Performance Metrics Ava’s role: Ava staff will provide the Consultant with the relevant background materials that inform the agency’s strategic objec8ve. Ava’s Tiger Team will par8cipate in review discussions and provide feedback on the Consultant’s synthesis.

Task 3: Internal Assessment
The purpose of this task is to document Ava’s organiza8onal capacity and advantages in order to inform program concepts and porbolio design.

Attachments Staff Report Item 11C
3 ○ Budget and funding pathways
○ Staffing and internal exper8se
○ Appe8te for risk and innova8on
○ Implementa8on constraints (e.g. asset ownership, direct customer financing, cross-CCA program development, etc.)
• Review Ava’s compe88ve advantage assessment and discuss comments and ques8ons with Ava’s Tiger Team.
• Use insights gleaned from internal interviews (see Task 1) to supplement the reviews detailed in the prior two bullets.
• Prepare an Internal Assessment Memo, summarizing organiza8onal capacity, opera8onal envelope, and compe88ve advantages to provide input to program concepts, metric development, and porbolio development Deliverable(s):

3.1 Internal Assessment Memo
Ava’s role: Ava will provide the Consultant with the relevant background materials that inform the agency’s strategic objec8ve (including Ava’s compe88ve advantage assessment). Ava’s Tiger Team will par8cipate in review discussions and provide feedback on the Consultant’s synthesis.

Task 4: Community & External Stakeholder Engagement Support The objec8ve of stakeholder engagement in this planning and strategy development effort is to gather input on stakeholder priori8es to inform the 5-year plan. Engagement will be structured to gain insights on guiding values and strategic direc8on.

Consultant will develop and implement a strategy for ongoing engagement with external stakeholders throughout the strategic planning process. Key ac8vi8es include stakeholder mapping, advising on a comprehensive stakeholder engagement strategy, hos8ng two General Listening Sessions, and five virtual focus groups that provide informa8on early in the roadmap development process to consolidate an understanding of stakeholder priori8es across Ava's service area. The first General Listening Session will be scheduled to provide informa8on early in the roadmap development process, followed by the focus groups and a survey, all of which will consolidate an understanding of stakeholder priori8es across Ava's service area. The second General Listening Session will occur during the second half of delivery to provide an update on the process and outcomes towards the conclusion of the project.

The Consultant’s stakeholder engagement approach will be finalized in the Stakeholder Engagement Strategy and Timeline deliverable (Deliverable 4.2).

Consultant will:
• Integrate stakeholder insights into project deliverables and make recommenda8ons for how feedback should inform each phase of the plan.

Attachments Staff Report Item 11C
4 • Review Ava’s dra` Stakeholder Engagement Map that iden8fies and segments key external stakeholder groups and their roles in the process and with respect to roadmap implementa8on. • Prepare an Engagement Strategy and Timeline that details the Consultant’s approach for external engagement, including 8ming, par8cipants, and objec8ves. • Prepare materials for and conduct two General Listening Sessions with a maximum of 100 par8cipants each. For each session, write a summary that details input received and how inputs can be used to inform the Roadmap.
• Prepare materials for and conduct up to five Focus Groups (with a maximum of 15 par8cipants).

For each focus group, write a summary that details input received and how inputs can be used to inform the Roadmap.
• Administer and manage one mul8lingual survey (transla8on in up to two languages other than English), post-process inputs, and incorporates insights across all relevant deliverables.

Deliverable(s):

4.1 Stakeholder Engagement Map

4.2 Engagement Strategy and Timeline

4.3 Engagement Materials for General Listening Session #1

4.4 Summary of General Listening Session #1

4.5 Engagement Materials for General Listening Session #2

4.6 Summary of General Listening Session #2

4.7 Survey Ques8ons
Ava’s role: Ava will support the stakeholder mapping exercise, review and provide feedback on dra` engagement materials, lead internal alignment efforts, procure licensing for survey so`ware, and gather the CAC Ad Hoc CommiRee.

Task 5: Market Assessment on External Landscape
The purpose of this task is to provide a strategic landscape analysis to inform Ava’s program concept development and priori8za8on, which includes iden8fying unmet needs, innova8on opportuni8es, and implementa8on barriers across Ava’s service territory. The Consultant will:
• Use insights gleaned from internal interviews (see Task 1) to inform relevant components of the Market Assessment, namely 5.3 and 5.5.

Attachments Staff Report Item 11C
5 5.1 Program Landscape and Gap Analysis
Consultant will develop an inventory electrifica8on programs and incen8ves throughout Ava’s service territory across en88es including ci8es, coun8es, u8li8es, and Regional Energy Networks (REN) to iden8fy gaps by Ava’s programma8c focus areas: 1) building electrifica8on including energy resilience, 2) energy efficiency, 3) load management, and 4) transporta8on electrifica8on.

For each exis8ng program, Consultant will include informa8on such as (data to be finalized in the Workplan):
● Program overview
● Target customer segment
● Key outcomes
● Implementa8on barriers or successes
Deliverable:

5.1.1 Ava Service Area Program Inventory

5.2 Na5onal and Global Program Inventory
Consultant will iden8fy successful programs beyond Ava’s service area that advance Ava’s objec8ve.

Include a range of jurisdic8ons and program models (u8lity, municipal, rate-based, etc.). Program examples should include informa8on such as, but not limited to (data to be finalized in this task’s work plan):
● Context and target customer group
● Goal and structure
● Performance metrics and outcomes
● Notable lessons or barriers
● Funding structure
Deliverable:

5.2.1 Na8onal and Global Program Inventory

5.3 Ava Opera5onal Context Market Assessment
Consultant will examine how changes across the various contexts in which Ava operates may impact program implementa8on from 2027-2032. Ava operates as a community choice aggregator (CCA), a joint powers authority (JPA), and a load-serving en8ty (LSE), each with unique opportuni8es and constraints.

Attachments Staff Report Item 11C
6 Analyzing how evolving regulatory, technology, and customer trends will affect these roles is cri8cal to designing programs that are feasible and aligned with Ava’s vision for long-term success. Topical areas (e.g., regulatory, future customer needs, technology change, etc.), Ava’s role(s) in each (e.g., CCA, LSE, JPA, etc.) and Ava’s programma8c focus areas (building electrifica8on including energy resilience, energy efficiency, load management, and transporta8on electrifica8on) should be used to frame this analysis.

5.4 Internal Workshop (#1)
Design and facilitate an internal workshop with Ava staff responsible for program delivery across departments with the goals of valida8ng insights from the Market Assessment with Ava’s internal exper8se and iden8fying considera8ons to inform future tasks. During this Workshop, the Consultant and Ava staff will discuss the preliminary findings and outcomes from the Objec8ves Refinement (Task 2), the Internal Assessment (Task 3), and External Assessment analyses completed to date (Tasks 5.1, 5.2, and

5.3).

Deliverable:

5.4.1 Workshop Agenda and Materials

5.4.2 Memo on Workshop Findings and Recommenda8ons

5.5 Programma5c Gaps
Based on outcomes from previous work in this task, Consultant will iden8fy programma8c gaps in Ava’s service area and contextualize these gaps with Ava’s unique market posi8on, as well as findings from the Program Inventory.

Deliverable:

5.5.1 Programma8c Gaps and Opportuni8es Summary
The Consultant will prepare a summary of Deliverables 5.1.1, 5.2.1, and 5.5.1 (Ava Service Territory Program Inventory, Na8onal and Interna8onal Program Inventory, Programma8c Gaps and Opportuni8es Summary) into a consolidated document.

Deliverable:

5.0.1 Market Assessment Memo
Ava’s role: Ava will provide the Consultant with relevant exis8ng documents and data to inform the Market Assessment. Ava staff will iden8fy subject maRer experts or other par8es to par8cipate in this task.

Attachments Staff Report Item 11C
7 The conclusion of Task 5 coincides with the end of Phase 1: Refine Objec;ves and Conduct Landscape Assessments, which is the first of three milestones.

Task 6: Develop Program Concepts
The purpose of this task is to develop a set of high-level program concepts that build on the findings from previous tasks. The development of these concepts does not include detailed program design or opera8onal plans.

To confirm program concepts are rooted in the needs of Ava’s customers, the stakeholder engagement ac8vi8es (see Task 4) will gauge stakeholder perspec8ve and needs regarding program concepts.

Based on findings from previous tasks, Consultant will develop a “long list” of program concepts that Ava could pursue across its four focus areas. Program concepts will provide informa8on such as the following (data to be finalized in the Workplan):
○ Focus area addressed
○ Delivery mechanism, dura8on and structure
○ Target audience
○ Poten8al program outcome(s)
○ Budget range
○ Key implementa8on dependencies or challenges
Deliverables

6.1 Program Concept “Long List”
Ava’s role: Ava will share its internal concept list with the Consultant, provide clarifying context on priori8es, and review and give feedback on the dra` “long list” of program concepts.

Task 7: Program Metrics Development
The purpose of this task is to define a set of high-level metrics that will help Ava evaluate the poten8al impacts resul8ng from the implementa8on of individual program concepts.

Consultant will develop dra` metrics to measure the poten8al impact of program concepts developed in Task 6. To confirm the metrics accurately track impact on Ava’s customers, the engagement ac8vi8es conducted as part of Task 4 will also include content pertaining to metrics to efficiently and comprehensively capture the insights of a diverse range of Ava’s stakeholders. The Consultant will avoid highly detailed or overly granular metrics that risk leading to over analysis, and metrics will be on par with the level of detail in the program Attachments Staff Report Item 11C
8 concept. A`er workshopping these metrics with Ava staff (Task 8), metrics will be refined for use over the 2027-2032 period to measure progress.

Deliverable(s):

7.1 Program Concept Metrics
Ava’s role: Ava will provide the Consultant with an ini8al list of dra` metrics as a star8ng point.

Task 8: Internal Workshop (#2)
The purpose of this task is to refine dra` program concepts and evalua8on metrics developed in Task 6 and 7 through a comprehensive workshop with Ava’s internal subject maRer experts.

The Consultant will:
• Host a workshop with Ava’s subject maRer experts to review the ini8al set of program concepts and metrics, receive further feedback on the relevant given metrics, and use the es8mated performance results to illustrate how program metrics track performance against proposed program concepts.
• Solicit feedback on refining the program concepts and metrics based on the applica8on of the metrics to the concepts.
• Develop a Workshop Summary that summarizes the workshop and includes a proposed approach to refinement of program concepts, program concept metrics, and priori8za8on approach.

Deliverable(s):

8.1 Workshop Agenda and Materials

8.2 Workshop Summary
Ava’s Role: Ava staff will iden8fy and schedule all mee8ngs with the Consultant team and staff, review dra` materials, and support the Consultant in shaping discussion topics.

Task 9: Refine Program Concepts
The purpose of this task is to refine the ini8al set of program concepts based on internal feedback and updated metrics, which will result in a “short list” of concepts that are ready for considera8on as a part of the porbolio.

Consultant will:
• Refine program concepts based on the informa8on gathered in the Workshop #2, and other Ava staff input.

Attachments Staff Report Item 11C
9 • Refresh es8mates of program performance using final program concept metrics. • Develop a Program Concept “Short List” that includes associated es8mated performance across program metrics.

Deliverable:

9.1 Program Concept “Short List”
Ava’s role: Ava staff will review the proposed refinements and coordinate internal feedback needed and confirm the shortlist aligns with the roadmap’s objec8ve.

Task 10: PorVolio Development & Internal Workshop (#3)
The purpose of this task is to translate program concepts into a balanced porbolio that reflects Ava’s broader organiza8onal priori8es.

Consultant will:
● Develop a porbolio of program concepts for inclusion in the roadmap. A porbolio of program concepts is expected to contain program concepts across Ava’s focus areas, and the construc8on of a porbolio should allow Ava to incorporate organiza8onal priori8es into its roadmap. ● Work with Ava staff to iden8fy and catalogue organiza8onal priori8es to develop sample porbolios that are achievable based on Ava’s opera8onal envelope and deliver value in terms of market need and decarboniza8on poten8al.
● Convene a workshop (Internal Workshop #3) with Ava staff to propose an overarching set of targets that will be used to incorporate priori8es about how Ava implements affordable decarboniza8on, present program concept porbolios, discuss how decarboniza8on and addi8onal organiza8onal goals are achieved differently based on each porbolio, and demonstrate how porbolio performance sets up Ava to perform beyond the roadmap period (2027-2032).
● Prepare a preliminary porbolio of program concepts as part of the Workshop Materials and include proposed approach to refinement of program concepts and program concept metrics in the Workshop Summary.

Deliverable(s):

10.1 Workshop Agenda and Materials

10.2 Workshop Summary

10.3 Final Program Concept Porbolio
Attachments Staff Report Item 11C
10 Ava’s role: Ava staff will provide organiza8onal goals, priori8es, and context for constraints and opportuni8es. Ava will also provide feedback on dra` porbolios, par8cipate in workshop #3, and confirm the proposed targets and porbolio designs incorporate organiza8onal objec8ves.

The conclusion of Task 10 coincides with the end of Phase 2: Develop Concepts, Metrics, and PorJolio, which is the second of three milestones.

Task 11: Customer Programs Roadmap & Internal Workshop (#4) The purpose of this task is to synthesize the outputs of all prior tasks into an ac8onable roadmap that reflects Ava’s long-term goal, priori8es, strategic advantages, and opera8onal constraints while also providing guidance for implementa8on over 8me.

Addi8onal documents to be included in the roadmap include program concept assessment templates, porbolio target realignment template, program assessment templates for use while programs are opera8ng, and implementa8on guidance.

Implementa8on guidance will include recommenda8ons on an approach to support internal alignment, stakeholder communica8on, and ongoing reinforcement of roadmap priori8es.

Consultant will:
● Conduct a final interview with 5-7 of Ava’s func8onal team leads to iden8fy other considera8ons that may inform the roadmap and associated implementa8on guidance. ● Convene Internal Workshop #4 for maximum of four hours midway through the Roadmap development process so that key Ava stakeholders are informed and can provide input. The Dra` Final Presenta8on (.PPT) & Roadmap (.DOC) will serve as the interim work product to be discussed during Internal Workshop #4.
● Produce a short Final Summary Report of Process (maximum 2 pages) capturing the overall process, key decisions, and outcomes for future reference. ● Prepare and Deliver a Final Presenta8on of Customer Programs Roadmap to Ava’s Tiger Team, leadership, and other Ava subject maRer experts (to be finalized with Ava during the Kickoff) ● Prepare an ac8onable roadmap that includes program assessment and alignment templates for use while programs are opera8ng, along with implementa8on guidance that includes recommenda8ons on an approach to support internal alignment, stakeholder communica8on, and ongoing reinforcement of roadmap priori8es by August 2026.

Deliverable(s):

11.1 Summary Report of Process

11.2 Customer Programs Roadmap
Attachments Staff Report Item 11C
11 11.3 Final Presenta8on of Customer Programs Roadmap
Ava’s role: Selected Ava staff will par8cipate in workshop #4 and provide feedback on the Roadmap progress to date. Tiger Team will also support coordina8on and scheduling for the 5-7 internal interviews. The selected 5-7 Ava staff will par8cipate in interviews. Ava’s Tiger Team will par8cipate in review discussions for the final Roadmap.

Attachments Staff Report Item 11C
12 DRAFT Baseline Scenario Scope of Work
Task 1: Project Management and Internal Stakeholder Engagement The Consultant will provide overall project management and strategic internal facilita8on for the longterm planning process, ensuring the work is completed on 8me, within budget, and in alignment with Ava’s organiza8onal goals. The Consultant will:
● Oversee the en8re planning effort to make sure all planning strategy aligns with Ava’s broader goals and ini8a8ves.
● Oversee consultant team and coordinate with Ava staff to deliver inputs needed in this process. ● Iden8fy, recommend approaches for, and manage the process to arrive at key decisions and stakeholder engagement approach.
● Facilitate a project Kickoff mee8ng with Ava staff to align on process, milestones, communica8on, and roles.
● Develop and circulate a project Workplan detailing the Consultant’s approach for comple8ng each of the following tasks. The Workplan is due within two weeks of the Kickoff mee8ng. ● Lead twice monthly project check-ins with Ava’s core “Tiger Team” to review progress, address barriers, and discuss next steps.
● Conduct two phases of 5-7 interviews with Ava staff and leaders to beRer understand how their role supports customer programs and solicit their inputs on the objec8ve of the Customer Program Roadmap (see Tasks 2 and 11 for more detail).
● Oversee delivery of key milestones on 8me, to complete the final work product by August 2026 or before.
● Develop and maintain a schedule using Ava’s Asana instance, iden8fying key milestones and dependencies in the process.
● Implement document approval system such that the Consultant will share interim work products with Ava Tiger Team for Ava to upload to their internal document management system (e.g., Teams, Google Drive, etc.) for consolidated commen8ng and streamlined reviews. Review 8melines are subject to final agreement during the Kickoff mee8ng, but proposed to be no longer than 5 business days so the project stays on track.

Deliverable(s):

1.1 Workplan
Ava’s role: Ava’s core “Tiger Team” will par8cipate in the regular check-ins and provide feedback and relevant internal updates. The Tiger Team will coordinate internal staff and leadership par8cipa8on in all relevant decision-making points. Tiger Team will also confirm and provide contact informa8on for the 57 individuals selected for interviews. The selected 5-7 Ava staff will par8cipate in interviews.

Attachments Staff Report Item 11C
13 Task 2: Refine Customer Programs Roadmap ObjecAve
The purpose of this task is to document a clear objec8ve for Ava’s long-term roadmap by synthesizing exis8ng work and interviewing 5-7 key Ava staff and leaders (as noted in Task 1). The result of this iden8fica8on will enable the dra`ing of a broad set of poten8al performance metrics.

Deliverable(s):

2.1 Customer Programs Roadmap Key Objec8ve Memo

Task 3: Internal Assessment
The purpose of this task is to document Ava’s organiza8onal capacity and advantages in order to inform program concepts and porbolio design.

Consultant will:
• Review Ava’s exis8ng work on organiza8onal capacity and future opera8onal envelope to implement programs, and discuss comments and ques8ons with Ava’s Tiger Team on topics such as:
○ Budget and funding pathways
○ Staffing and internal exper8se
○ Appe8te for risk and innova8on
Attachments Staff Report Item 11C
14 ○ Implementa8on constraints (e.g. asset ownership, direct customer financing, cross-CCA program development, etc.)
• Review Ava’s compe88ve advantage assessment and discuss comments and ques8ons with Ava’s Tiger Team.
• Use insights gleaned from internal interviews (see Task 1) to supplement the reviews detailed in the prior two bullets.
• Prepare an Internal Assessment Memo, summarizing organiza8onal capacity, opera8onal envelope, and compe88ve advantages to provide input to program concepts, metric development, and porbolio development Deliverable(s):

Consultant will develop and implement a strategy for ongoing engagement with external stakeholders throughout the strategic planning process. Key ac8vi8es include reviewing Ava’s stakeholder map and providing addi8onal stakeholders, advising on a comprehensive stakeholder engagement strategy, reviewing Ava’s dra` survey and incorpora8ng insights from the survey into the Roadmap, hos8ng two General Listening Sessions, and conduc8ng five virtual focus groups. The first General Listening Session will be scheduled to provide informa8on early in the roadmap development process, followed by the focus groups and survey, all of which will consolidate an understanding of stakeholder priori8es across Ava's service area. The second General Listening Session will occur during the second half of delivery to provide an update on the process and outcomes towards the conclusion of the project.

The Consultant’s stakeholder engagement approach will be finalized in the Stakeholder Engagement Strategy and Timeline deliverable (Deliverable 4.2).

Consultant will:
• Integrate stakeholder insights into project deliverables and make recommenda8ons for how feedback should inform each phase of the plan.
• Review Ava’s dra` Stakeholder Engagement Map that iden8fies and segments key external stakeholder groups and their roles in the process and with respect to roadmap implementa8on.

Attachments Staff Report Item 11C
15 • Prepare an Engagement Strategy and Timeline that details the Consultant’s approach for external engagement, including 8ming, par8cipants, and objec8ves. • Prepare materials for and conduct two General Listening Sessions with a maximum of 100 par8cipants each. For each session, write a summary that details input received and how inputs can be used to inform the Roadmap.
• Prepare materials for and conduct up to five Focus Groups (with a maximum of 15 par8cipants).

For each focus group, write a summary that details input received and how inputs can be used to inform the Roadmap.
• Review ques8ons for one mul8lingual survey (to be administered by Ava staff) and incorporate survey insights into the Roadmap process.

Deliverable(s):

4.1 Stakeholder Engagement Map

4.2 Engagement Strategy and Timeline

4.3 Engagement Materials for General Listening Session #1

4.4 Summary of General Listening Session #1

4.5 Engagement Materials for General Listening Session #2

4.6 Summary of General Listening Session #2

4.7 Survey Ques8ons
Ava’s role: Ava will support the stakeholder mapping exercise, review and provide feedback on dra` engagement materials, lead internal alignment efforts, administer a survey, and gather the CAC Ad Hoc CommiRee.

Attachments Staff Report Item 11C
16 5.1 Program Landscape and Gap Analysis
Consultant will develop an inventory electrifica8on programs and incen8ves throughout Ava’s service territory across en88es including ci8es, coun8es, u8li8es, and Regional Energy Networks (REN) to iden8fy gaps by Ava’s programma8c focus areas: 1) building electrifica8on including energy resilience, 2) energy efficiency, 3) load management, and 4) transporta8on electrifica8on.

5.1.1 Ava Service Area Program Inventory

5.2 Na5onal and Global Program Inventory
Consultant will iden8fy successful programs beyond Ava’s service area that advance Ava’s objec8ve.

5.2.1 Na8onal and Global Program Inventory

Attachments Staff Report Item 11C
17 Analyzing how evolving regulatory, technology, and customer trends will affect these roles is cri8cal to designing programs that are feasible and aligned with Ava’s vision for long-term success. Topical areas (e.g., regulatory, future customer needs, technology change, etc.), Ava’s role(s) in each (e.g., CCA, LSE, JPA, etc.) and Ava’s programma8c focus areas (building electrifica8on including energy resilience, energy efficiency, load management, and transporta8on electrifica8on) should be used to frame this analysis.

5.3).

Deliverable:

5.4.1 Workshop Agenda and Materials

5.4.2 Memo on Workshop Findings and Recommenda8ons

Deliverable:

Attachments Staff Report Item 11C
18 The conclusion of Task 5 coincides with the end of Phase 1: Refine Objec;ves and Conduct Landscape Assessments, which is the first of three milestones.

To confirm program concepts are rooted in the needs of Ava’s customers, the stakeholder engagement ac8vi8es (see Task 4) will gauge stakeholder perspec8ve and needs regarding program concepts.

Deliverables

6.1 Program Concept “Long List”

Ava’s role: Ava will share its internal concept list with the Consultant, provide clarifying context on priori8es, and review and give feedback on the dra` “long list” of program concepts.

The Consultant will avoid highly detailed or overly granular metrics that risk leading to over analysis, and metrics will be on par with the level of detail in the program concept. A`er Attachments Staff Report Item 11C
19 workshopping these metrics with Ava staff (Task 8), metrics will be refined for use over the 2027-2032 period to measure progress.

Deliverable(s):

7.1 Program Concept Metrics

Ava’s role: Ava will provide the Consultant with an ini8al list of dra` metrics as a star8ng point.

Deliverable(s):

8.1 Workshop Agenda and Materials

8.2 Workshop Summary

Ava’s Role: Ava staff will iden8fy and schedule all mee8ngs with the Consultant team and staff, review dra` materials, and support the Consultant in shaping discussion topics.

Consultant will:

Attachments Staff Report Item 11C
20 • Refine program concepts based on the informa8on gathered in the Workshop #2, and other Ava staff input.
• Refresh es8mates of program performance using final program concept metrics. • Develop a Program Concept “Short List” that includes associated es8mated performance across program metrics.

Deliverable:

Task 10: PorVolio Development & Internal Workshop (#3)
The purpose of this task is to translate program concepts into a balanced porbolio that reflects Ava’s broader organiza8onal priori8es.

Deliverable(s):

10.1 Workshop Agenda and Materials
Attachments Staff Report Item 11C
21 10.2 Workshop Summary

10.3 Final Program Concept Porbolio

Ava’s role: Ava staff will provide organiza8onal goals, priori8es, and context for constraints and opportuni8es. Ava will also provide feedback on dra` porbolios, par8cipate in workshop #3, and confirm the proposed targets and porbolio designs incorporate organiza8onal objec8ves.

The conclusion of Task 10 coincides with the end of Phase 2: Develop Concepts, Metrics, and PorJolio, which is the second of three milestones.

Implementa8on guidance will include recommenda8ons on an approach to support internal alignment, stakeholder communica8on, and ongoing reinforcement of roadmap priori8es.

Consultant will:
● Conduct a final interview with 5-7 of Ava’s func8onal team leads to iden8fy other considera8ons that may inform the roadmap and associated implementa8on guidance. ● Convene Internal Workshop #4 for maximum of two hours midway through the Roadmap development process so that key Ava stakeholders are informed and can provide input. The Dra` Final Presenta8on (.PPT) & Roadmap (.DOC) will serve as the interim work product to be discussed during Internal Workshop #4 and this will serve as the primary point for input on the Roadmap for Ava staff.
● Produce a short Final Summary Report of Process (maximum 2 pages) capturing the overall process, key decisions, and outcomes for future reference. ● Prepare and Deliver a Final Presenta8on of Customer Programs Roadmap to Ava’s Tiger Team, leadership, and other Ava subject maRer experts (to be finalized with Ava during the Kickoff) ● Prepare an ac8onable roadmap that includes program assessment and alignment templates for use while programs are opera8ng, along with implementa8on guidance that includes recommenda8ons on an approach to support internal alignment, stakeholder communica8on, and ongoing reinforcement of roadmap priori8es by August 2026.

Attachments Staff Report Item 11C
22 Deliverable(s):

11.1 Summary Report of Process

11.2 Customer Programs Roadmap

11.3 Final Presenta8on of Customer Programs Roadmap
Ava’s role: Selected Ava staff will par8cipate in workshop #4 and provide feedback on the Roadmap progress to date. Tiger Team will also support coordina8on and scheduling for the 5-7 internal interviews. The selected 5-7 Ava staff will par8cipate in interviews. Ava’s Tiger Team will par8cipate in review discussions for the final Roadmap.

Attachments Staff Report Item 11C
9 Exhibit B

SCHEDULE
[Schedule - can be detailed or as simple as “As directed by Ava.”] Draft Attachments Staff Report Item 11C
10 Exhibit C

CONSULTANT STAFFING
[Include names of all team members who will be providing Ava services.]

Draft Attachments Staff Report Item 11C
11 Exhibit D

SUBCONSULTANTS
[If subconsultants are authorized in advance, they should be listed here, otherwise it can state either of these:
“Subconsultants are not authorized under this Agreement.” or “Subconsultants must be authorized in advance, in writing by Ava.”]
Draft Attachments Staff Report Item 11C
12 Exhibit E

COMPENSATION/BUDGET
[If the compensation is hourly, a table of hourly rates by title should be included. If fixed fee, describe what amounts are to be paid based on what milestones]
For the purposes of Section 6.1 (Time and Materials), 80% of the total compensation under this agreement (see NTE on page 1) is [$$$$]
Draft Attachments Staff Report Item 11C
13 Exhibit F

INSURANCE REQUIREMENTS
A. Minimum Scope and Limits of Insurance. Consultant must procure, and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of Two Million Dollars ($2,000,000.00) per project or location. If Consultant is a limited liability company, the commercial general liability coverage must be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds. 2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.
3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of One Million Dollars ($1,000,000.00) per accident for bodily injury or disease. If Consultant has no employees while performing the Work under this Agreement, workers’ compensation policy is not required, but Consultant must execute a declaration that it has no employees. 4) Professional Liability/Errors & Omissions Insurance with minimum limits of Two Million Dollars ($2,000,000.00) per claim and in aggregate.

B. Acceptability of Insurers. The insurance policies required under this Exhibit F must be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide.

C. Additional Insured/Additional Named Insured. The automobile liability policies must contain an endorsement naming Ava, its officers, employees, agents and volunteers as additional insureds. The commercial general liability policy must contain an endorsement naming Ava, its officers, employees, agents and volunteers as additional named insureds.

D. Primary and Non-Contributing. The insurance policies required under this Agreement must apply on a primary non-contributing basis in relation to any other insurance or self-insurance available to Ava. Any insurance or self-insurance maintained by Ava, its officers, employees, agents or volunteers, will be in excess of Consultant’s insurance and will not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Agreement will not prohibit Consultant and Consultant’s employees, agents or Subconsultants from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against Ava.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by Ava. At Ava’s option, Consultant must either reduce or eliminate the deductibles or self-insured retentions with respect to Ava, or Consultant must procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Consultant agrees not to cancel any insurance coverage during the term of this Agreement. Consultant further agrees not to reduce or otherwise modify the insurance policies required by this Agreement during the term of this Agreement, without the prior written approval of Ava. The commercial general and automobile liability policies required under this Agreement must be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail thirty (30) days’ prior written notice to Ava. If any insurance policy required under Agreement is canceled or reduced in coverage or limits, Consultant must, within two (2) business days of notice from the insurer, phone and notify Ava via electronic mail and certified mail, return receipt requested, of the cancellation of or reductions to any policy.

Draft Attachments Staff Report Item 11C
14 H. Ava Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Agreement in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements of this Exhibit F, Ava may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, Ava may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant must promptly reimburse Ava for any premium paid by Ava or Ava, in its sole discretion, may withhold amounts sufficient to pay the premiums from payments due to Consultant.

I. Evidence of Insurance. Prior to the performance of the Work under this Agreement, Consultant must furnish Ava with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Agreement. The endorsements are subject to Ava’s approval. Ava may request, and Consultant must provide complete, certified copies of all required insurance policies to Ava Consultant must maintain current endorsements on file with Ava. Consultant must provide proof to Ava that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant must furnish such proof at least two (2) weeks prior to the expiration of the coverages.

J. Indemnity Requirements not Limiting. Procurement of insurance by Consultant will not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify Ava under Section 12 of this Agreement.

K. Subconsultant Insurance Requirements. Consultant’s insurance coverage must include its Subconsultants or Consultant must require each of its Subconsultants that perform Work under this Agreement to maintain insurance coverage that meets all the requirements of this Exhibit F.

Draft Attachments Staff Report Item 11C
1 Staff Report Item 12
Staff Report Item 12
To: Ava Community Energy Authority
From: JP Ross, Vice President Local Development
Subject:

Adopting a Resolution Authorizing the Use of Previous Budget Allocation and Program Design for the SmartHome Battery and Resilience Hub Programs
Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
Adopt a Resolution authorizing the use of previous budget allocations to a new solar photovoltaic (“PV”) and battery system incentive program, called SmartHome Battery (“Program”), with 50% of the incentives for single family homeowners and 25% for low-income customers and 25% to resilience hubs, planned to launch in early 2026. Authorize staff to adjust Program design based on market and customer feedback with the approval of the Chief Executive Officer.

Financial Impact
Fiscal impacts will result from three separate sources: upfront and ongoing incentive payments for Program participants, administration and virtual power plant (“VPP”) costs, and Ava lost revenues from the solar PV and battery systems.

The upfront incentive payments, ongoing incentive payments, and Program administration costs will be funded by $14.96M previously allocated to the Local Development Fund and $500k allocated for SmartHome Battery performance payments in the FY 2024-2025 Local Development budget, totaling $15.46M.

Operational costs for the VPP – which include fees for the distributed energy resource management system (“DERMS”), storage dispatch fees, and inverter and battery connection API fees – will be funded by the previously approved $2M contract with Lunar Energy, which can be extended for up to five years. VPP expenses are highly dependent on enrollment and participation rates and are currently forecast to be less than the approved amount over the 2 Staff Report Item 12
current contract term, which runs through March 2027. Staff will report on the value and costs of the Program, as well as the performance of the DERMS provider, to evaluate additional resources required to administer this Program at the end of the first year of operation of the Program.

In addition to direct project costs, Ava is also financially impacted by this Program, since all new behind-the-meter solar PV and battery system installations reduce electricity revenue to Ava.

Similar to Ava’s traditional approach to Net Energy Metering (“NEM”) 2.0 reduced revenues, the lost revenue from the Program is not funded through a Local Development budget expense. The estimated lost revenue from Program participants is $2.5M over 5 years.

The Program serves both residential customers and resilience hubs, and these two customer segments will be addressed sequentially in each section of the following report.

Budget Authorization
On November 20, 2024, Ava’s Board of Directors received a report on the actual FY 2023-2024 surplus of $14,963,130 to support solar PV and battery system installations. This funding will help both residential customers (market rate and CARE/FERA customers) and community-benefiting resilience hubs, which are facilities designed to provide backup power during outages.

This decision followed an earlier resolution, Resolution R-2024-2, in January 2024 that defined how Ava’s budget surplus from FY 2023-2024 would be split with:
• 60% of any surplus going back to customers as on-bill credits, with some portion specifically applied to CARE and FERA customers. Bill credits were issued in January 2025.
• 40% going toward solar PV and battery system incentives, with an emphasis on projects that support community resilience.

Part 1: Context
In April 2023, the California Public Utilities Commission (“CPUC”) voted to phase out the NEM

2.0 program. Under NEM 2.0, customers with solar PV systems received full retail credit on their bill for every unit of electricity exported to the grid. Beginning in 2023, new solar PV systems are instead enrolled in the Solar Billing Plan (SBP), which provides lower credits for excess electricity sent back to the grid. The Ava Board of Directors adopted the Solar Billing Plan (SBP) Tariff Policy in April 2024.

Under SBP, new solar PV-only installations are less financially beneficial to participating customers than they were under NEM 2.0 because electricity from the solar systems exported to the grid is now credited at “avoided cost” value, which averages 4¢ per kilo-Watt hour (“kWh”) during solar PV production hours versus the retail rate compensation approach used by NEM

2.0, valued at 26-65 ¢/kWh. Ava offers export bonus credits to help offset some of this loss for its SBP customers.
3 Staff Report Item 12
Ava is now proposing a new solar PV and battery system incentive for customers who install both solar PV and battery systems. The incentives will cover a portion of the lost export value from NEM 2.0 to SBP and help offset the costs associated with installing a battery.

Initial Draft Program Design
In April 2024, Ava staff presented an initial draft program design for SmartHome Battery to the Ava’s Board of Directors, which included the following information:
• Budget: $14.96M: 50% of budget (~$7.5M) for upfront incentives for CARE/FERA residential customers and resilience hubs to install solar PV and battery systems. o 50% of budget (~$7.5M) for upfront incentives for market rate residential customers to install solar PV and battery systems.
• Upfront Incentives to be paid when the solar PV and battery system is approved to operate:
o $10,000 per battery for CARE/FERA customers.
o $400/kWh of battery capacity for resilience hubs.
o $1,250 per battery for market rate residential customers. • Ongoing Performance Payments: All customers receive $2 per kWh of battery capacity per month for VPP participation.
• Program Term: Customers would have five years to enroll, and performance payments for VPP participation would last for five years.
• Eligibility:
o Must be an Ava customer and own the home where the solar PV and battery system is installed.
o To receive the upfront incentive, customers must install a battery, either with a new solar PV system or retrofitting with an existing solar PV system. Customers who already have both solar PV and battery system installed are eligible for the ongoing incentive only.
o Must connect the battery to Ava’s DERMS and participate in grid optimization events.

Program Design Development and Feedback
Residential Customers
Since Ava presented the initial draft Program design, Ava staff have continued to perform Program impact modeling and conducted multiple market focus groups with professionals in the solar PV and battery industry to refine the proposed Program design.

Some of the discoveries from this process by key topic include:
• Incentive sizing:
o Ava should base incentives on battery size to align with standard practices used by other similar programs across the country.
o Ava should ensure that the ongoing payments are sufficient to keep customers enrolled in the Program.
• Customer choice: Ava should allow customers to choose the battery capacity that participates in the VPP and pro-rate the incentive accordingly. 4 Staff Report Item 12
• Third-party ownership of batteries: Currently, about 70% of residential customers in Ava’s territory that install solar PV and battery systems finance them through a third-party owner, or “aggregator.”1 Ava should ensure customers who finance their solar PV and battery systems through third-party owners can still participate, through their aggregator.

Resilience Hub Customers
Ava’s support for resilience hubs is broader than the Program, and components of the broader Resilience Hub Initiative were leveraged to support program design for the Program. Emerald Cities Collaborative (“ECC”) is funded through a $300,000 Ava community grant to partner with Local Clean Energy Alliance (“LCEA”) and Collective Resilience to engage communities to support Ava’s efforts to define and create eligibility criteria for resilience hubs and foster awareness of Ava’s Resilience Hub offerings.

Grantees provided case study research on resilience hubs, conducted two resilience hub definition workshops to gather feedback on Ava’s proposed resilience hub definition, developed a standardized intake form, called the Resilience Readiness Tool, for potential hub sites to engage with technical assistance, and plan to conduct at least two community outreach workshops to educate Community-Based Organizations (“CBOs”) on resilience hubs and promote Ava’s technical assistance and the Resilience Hub incentives. Community feedback has been used by Ava to inform the development of the Program’s approach to resilience hubs.

Resilience Hub Research
Given that resilience hubs are relatively new concepts, and approaches to how they provide community resilience varies widely, Ava performed research to characterize the current state of resilience hubs.

To better understand the types of facilities that may serve as resilience hubs supported by solar PV and battery systems, staff evaluated five data sources to understand resilience hub services, solar PV and battery system requirements and associated costs.

These five data sources included:
• Ava sample sites – Ava’s independent engineer, NV5, modeled a set of potential resilience hub sites under different resilience scenarios for costs and payback periods in our service area.
• Non-profit developer sites with installed solar PV and battery system projects at community-serving facilities in California.
• Ava’s technical assistance pilot sites – sites in our service area piloting the technical assistance process supported by ECC.
• Collective Resilience, as a part of the ECC grant team, completed a case study of resilience hubs, including examples of operating sites and potential resilience hubs in Ava’s service territory.
• Critical Municipal Facilities (“CMF”) and other CCA sites - Ava’s CMF sites and similar CCA resilience projects in California.
1 Not all third-party owners operate as aggregators. For the purposes of this program, any reference to third-party owners is assumed to be an aggregator.
5 Staff Report Item 12
Across all sources, there are few fully operational resilience hubs, but we see a growing list of community-serving facilities interested in becoming resilience hubs. These facilities include churches, nonprofit centers, schools, gyms, and community centers, which are the types of sites already involved in their communities and providing routine public services.

Across these potential sites, they span the gamut between:
• Smaller sites:
o Limited space for solar PV and battery infrastructure. These sites use standard available solar PV and battery systems to maintain existing services during outages and may be capable of adding additional resilience services during emergencies.
• Larger sites:
o May consist of multiple facilities across a property or campus that require more customized solar PV and battery systems that could provide multiple public resilience services over a multi-day outage.

Cost: Given that sites serving different functions will need to plan for resilience differently, we observe that estimated costs to install solar PV and battery systems can range widely, with small projects costing $100,000 and large sites costing $700,000 or more.

Financial Capacity: Resilience hub host organizations’ financial capacity is also diverse, and we have observed loans and incentives as two tools that current sites use to support carrying out their solar PV and battery system projects.

Timeline: Given the range of project cost and size, as well as supporting financial resources, resilience hubs can take months to multiple years to build their solar PV and battery system projects.

Based on these findings, Ava staff have sought to support the widest range of resilience hubs possible by designing definitions, requirements, and an incentive level that would allow for wide participation. This is a challenge, given the wide variety of site- and entity-specific characteristics of potential resilience hubs across our service area.

We have sought to balance the need for high levels of resilience - for example, in the case of a major earthquake that disrupts the provision of public services for multiple days - with the realities of cost and feasibility. Our minimum backup requirement standards are designed to be achievable for smaller sites, while allowing larger projects to pursue higher levels and longer durations of energy resilience.

Resilience Hub Definition
Ava developed a proposed definition for participating in Ava’s Resilience Hub initiative as a basis for informing desired outcomes from technical assistance and Program incentives. 6 Staff Report Item 12
The proposed definition was reviewed in focus groups conducted by ECC through an Ava community investment grant. There was community input to significantly broaden the definition beyond Ava’s proposal. Ava staff reviewed the proposed language and determined that retaining the proposed specificity related to the provision of clean backup power for resilience services is important to manage clear expectations on the purposes and services provided in the program.

Ava’s proposed definition for participating in the Resilience Hub initiative is below:

Resilience hubs are physical, community-serving facilities that provide essential services, distribute critical resources during emergencies, and integrate clean energy solutions to maintain operation during power outages. They also serve as year-round community spaces, where local residents regularly gather and access everyday services.

Although Ava’s definition is focused on the provision of clean backup power for resilience services, Ava’s definition does not constrain sites or organizations from operating resilience hubs in accordance with community input, which is a key component to ensure resilience hubs are providing relevant services to communities in appropriate manners.

Part 2: Updated Program Proposal
Following the Program design feedback and further research, staff is recommending several changes to the Program design. These changes are described in each of the following sections.

Some features, like the eligibility requirements for residential customers, remain unchanged.

Program Budget:

Ava staff proposes a total Program budget of $15.46M. This amount comes from two sources:
$14.96M from the previously approved 4 budget allocated to the Local Development Fund and $500,000 that was previously approved for the Program in the FY 2024-2025 Local Development budget. The Program budget will be allocated to incentives and administration costs as shown in Figure 1 below, with 50% of the allocated budget being devoted to market rate residential incentives, 25% allocated for CARE/FERA residential incentives, and 25% allocated for resilience hubs incentives.
7 Staff Report Item 12
Figure 1: SmartHome Battery Budget Allocation
Program Incentive Structure:

Residential Customers
The Program will offer customers two types of financial incentives:

1. upfront payments to reduce the initial cost of installing batteries, and

2. ongoing payments to encourage customers to keep their batteries enrolled and responding to grid reliability events.

Staff proposes to update the upfront incentive from the originally proposed $1,250/battery for market rate residential customers and $10,000/battery for CARE/FERA customers to $90/kWh nominated capacity and $500/kWh nominated capacity, respectively, and increase the proposed monthly ongoing incentives from $2/kWh to $3/kWh nominated capacity to encourage customer participation in Ava’s VPP. Nominated capacity means that the customer will select, or nominate, a portion of their battery to participate in the program with a maximum nomination of 80%. The CARE/FERA upfront incentive has been set assuming the customer can stack it with California’s Self-Generation Incentive Program (“SGIP”) Residential Solar and Storage Equity (“RSSE”) incentives, which provide up to $1,100/kWh. If CARE/FERA customers are unable to stack incentives with SGIP, then the upfront incentive will increase to $950/kWh nominated capacity for CARE/FERA customers.
2 The total incentive value to the customer will now be higher for customers who install larger batteries compared to the proposed approach. For example, if a customer installs a 10 kWh battery with an 80% nomination, they will receive $2,160 in incentives over five years. These changes are meant to scale with both the size of the battery and level of participation, while also increasing the incentive for participants to remain in Ava’s VPP for the term of the Program.

For residential participants, both the upfront and ongoing incentives will be based on the size of the battery that a customer chooses to make available to Ava, or nominate, for participation in Ava’s VPP. Customers will be able to nominate 40%, 60%, or 80% of their battery’s total capacity for the VPP. Any portion not nominated can be reserved by the customer for personal backup power or other purposes. Customers can choose whether to receive the upfront 2 Ava is awaiting a final vote on this item from the CPUC, which has been delayed twice. 8 Staff Report Item 12
incentive directly as a rebate or have it applied through their installer to lower the initial installation cost. Selecting the second option requires that the installer has participated in Ava’s program training and been added to the program’s approved installer list. Ongoing incentive payments will be made on a quarterly basis directly to the customer.

Customers who already have a solar PV and battery system installed can also participate; however, they will only qualify for the ongoing payments and not the upfront incentive.

Participation for customers with existing systems will be limited to 50% of all enrollments to ensure customers who install new battery systems can access the incentive. Customers that complete an installation with a permit approval after January 1, 2026, will be eligible for the upfront incentive. Customers that install solar PV systems after January 1st will no longer be eligible for the Federal Investment Tax Credit (ITC), so Ava’s incentive will help make up the lost ITC value.

Table 1: Proposed SmartHome Battery Incentive Levels for Residential Customers Assuming 80% of 10 kWh Battery is Nominated
Participant Type Upfront Incentive Monthly Ongoing
Incentive3
Total Incentive
Residential –
CARE/FERA (25% of
allocated budget)
$500/kWh
nominated4
$3/kWh nominated $4,000 upfront +
$72/quarter
Residential – Market
Rate (50% of
allocated budget)
$90/kWh nominated $3/kWh nominated $720 upfront +
$72/quarter
Resilience Hub Customers
For resilience hub participants, the proposed incentive includes an upfront incentive of $1,220/kWh based on nameplate battery storage system size plus $3/kWh based on nominated capacity for monthly ongoing participation in the VPP. This proposal is based on financial analysis of currently operating resilience hubs and potential sites, as well as current external funding sources.

As an example, under this proposal, a resilience hub with 100 kWh of battery storage (nameplate capacity) would receive the following incentives:
• The upfront incentive would be 100 kWh * $1,220/kWh = $122,000. 3 The incentives listed here are only for customers who participate in this Program directly. The ongoing incentive for customers participating through an aggregator is $6 / kW / month paid to the aggregator as the battery owner and based on battery performance during grid services events, as monitored by Ava’s Distributed Energy Resources Management System (DERMS). This alternate incentive structure is set to ensure aggregators meet their VPP performance obligations in their contract. For example, if an aggregator battery delivers 5 kW across a two-hour event, the aggregator would be paid $30 for that month (equal to what a non-aggregator participant would be paid for nominating 10 kWh). 4 Provided the customer can stack our incentive with California’s Self-Generation Incentive Program (SGIP) incentive. If a CARE/FERA customer are unable to stack incentives with SGIP the upfront incentive will increase to $950/kWh nominated.
9 Staff Report Item 12
• If 80% of that battery was nominated to participate in the VPP, then the monthly ongoing incentive would be 100 kWh * 80% * $3/kWh = $240.
• The total incentive value across five years of VPP participation would equal $122,000 + ((5 * 12) * $240) = $136,400.

Staff completed a thorough financial analysis of thirteen sample resilience hub sites, including actual installation and operations costs from Ava’s CMF program to inform this incentive level.

We evaluated a variety of backup power requirements and incentive levels to estimate the financial impact of Ava’s incentives for potential resilience hubs. At the proposed incentive levels, we estimate Program incentives would result in simple paybacks between 3 and 15 years for the examined sites. The cost coverage and payback time varies widely based on the size and complexity of the system, as well as site characteristics. For resilience hubs, the value of resilience for the communities served is the primary driver of customer value—not bill savings. However, resilience hubs are not typically able to use the value of resilience as a contribution toward paying down the cost of a solar PV and battery system. As a result, although sites are not driven by financial payback, they may be constrained by it, and Ava’s incentive would support sites to achieve a reasonable payback period.

No tiering of incentive levels has been proposed as resilience hubs are needed at all scales, as well as to support operational simplicity and customer clarity.

To ensure distribution of incentive dollars across multiple sites, staff recommend setting an upfront incentive maximum at 500 kWh or $610,000. The maximum is based on the larger projects identified in our market research. With this cap, a minimum of six sites could be funded through the Program, if all sites reached the maximum incentive level. However, based on current market conditions, staff expect a larger number of resilience hub projects of smaller sizes to be funded. The incentive cap will not be applied to ongoing payments.

Resilience hub projects are complex and require a high level of planning and coordination, often resulting in extended development timelines. To support this, Ava will develop a waitlist process that allows prospective sites to reserve access to incentives for a defined period while their projects are developed.

As part of Program implementation, Ava may also evaluate prioritization criteria – for example, considering factors such as geographic distribution or ownership model – to guide incentive allocation and waitlist management. These considerations will be assessed as the Program evolves.

Incentive Payment and VPP Requirements:

Residential Customers
10 Staff Report Item 12
For upfront payments, customers can choose if they would prefer to receive the upfront incentive directly or have it transferred to their installer. Ava will pay the upfront incentive once the solar PV and battery system is permitted, operational, and connected to Ava’s DERMS.

For ongoing payments, customers who own their battery will receive the ongoing incentive directly every quarter, as long as their battery remains connected to Ava’s DERMS and responds to grid service events with the nominated capacity. Third-party aggregators who enroll batteries on behalf of customers will receive the ongoing incentive every month after Ava has assessed performance in grid service events.

Participating customers must be Ava customers. For residential customers to qualify for upfront or ongoing incentives, Ava’s DERMS must be able to communicate with the battery for VPP participation. To ensure compatibility with our DERMS, enrollees will be required to select a battery system from Ava’s approved vendor list.

Participation in the VPP would require residential customers to participate in one of the following protocols:
• Intermittent: a specified number of battery dispatch events per year over the course of the 5-year program participation term
o SBP or NEM 2.0 customers who nominate at least 4kWh of their battery must allow Ava to dispatch their battery for up to 40 events5 each year and allow Ava to aggregate individual batteries to participate in other programs - such as Demand Side Generation Support (“DSGS”), a state-funded incentive program for load reduction and backup generation to support the state's electrical grid during extreme events - or market-based opportunities. Outside of event windows and during grid outages, customers may use the nominated capacity of their batteries for their own purposes.
• Daily: a daily battery dispatch schedule over the course of the 5-year program participation term
o NEM 2.0 customers who nominate less than 4 kWh of their battery capacity will be placed on a daily dispatch schedule, where their battery is dispatched by Ava daily during peak hours to help reduce peak energy demand on the electrical grid.

Residential customers will be excused from VPP participation when they are subject to a grid outage, PSPS event, or National Weather Service extreme weather alert.

Resilience Hub Customers
Though payment approaches for resilience hubs are still being defined, staff expect to mirror the approach to payment for residential customers, unless customer-specific requirements are identified that would better support incentive payment. 5 This maximum may be higher depending on the equipment installed. 11 Staff Report Item 12
To qualify for upfront incentives, resilience hubs need to meet the proposed general requirements, provide at least one resilience service, and meet a minimum backup power requirement. Eligibility requirements are as follows:
• Ava nonresidential customer
• Property owner signoff (or landlord support for infrastructure changes) • Community-serving or public-benefit facility
• Physical space to accommodate solar PV + battery system • Open to the public during emergencies
• Participate in Ava’s VPP
• Provide battery backup for at least 8 hours/day over 3 days • Operational plan documenting resilience services and operations (plan must include resilience services provided, hours of operation, staffing and financial plan, power management strategy, communications plan, coordination with other hubs / agencies Resilience services, of which hubs would be required to provide at least one, are defined as the following:
• Lighted shelter
• Clean air or climate-controlled space
• Refrigeration
• Device charging
• Electric vehicle charging
• WIFI
• Fresh water access
• Food distribution
• Other essential service, to be approved by Ava
Minimum backup power requirements for resilience hubs are proposed as three days of operation at eight hours per day during business hours, as selected by the site. The rationale for this requirement is that it ensures that communities receive resilience services over a longer duration, as voiced during community feedback, while reducing the cost required to arrive at extended resilience service provision (i.e. bigger, more expensive batteries that provide longer duration power). Small sites can still meet this minimum backup requirement depending on the loads that they plan to support and the size of the solar PV system. In many cases, solar PV systems can generate more kWh per day than the battery can hold, so the solar PV and battery system working together can regenerate energy during the daytime for multi-day operations.

Resilience hubs would be permitted to exceed this minimum, if the community determines additional services or resilience are required.

To qualify for ongoing incentives, Resilience Hub customers will be required to participate in Ava’s VPP. Customers will be required to nominate a share of their battery (40%, 60%, or 80%) to participate in Ava’s VPP, as described in the Residential Customer section above. Resilience hubs will be excused from VPP participation when they are subject to a grid outage, PSPS 12 Staff Report Item 12
event, or National Weather Service extreme weather alert, which is the same as for residential customers.

To ensure compatibility with our DERMS, sites will be required to select a battery system from Ava’s approved vendor list. These systems are already integrated with Ava’s platform and can reliably communicate with the DERMS for VPP participation. If a site chooses equipment not on the approved list, Ava may grant an exception for the upfront incentive, but the system would not be eligible for ongoing VPP payments, since it cannot be integrated into the system.

Ava retains the right to prioritize resilience hubs funded via the Program based on factors such as but not limited to: geographic distribution, proximity and service to disadvantaged communities, proximity to existing resilience hubs, ownership structure, and resilience services provided. The intent of prioritization would be to ensure that Program funding is expended to maximize public benefit. Ava will review the composition and distribution of the initial Resilience Hub sites after the first $1M in projects have been approved for the Resilience Hub waitlist. This will allow Ava to review the types of projects that are being developed and institute additional prioritization criteria, if warranted, without applying unnecessary restrictions in the early stages of the Program.

In alignment with ensuring public benefit from these funds, Ava would also reserve the right to claw back upfront incentives from resilience hub sites that fail to provide resilience services in per operational plan submitted to Ava (as noted in the list of eligibility requirements).

Ava will also align its resilience hub technical assistance with the requirements proposed for the incentive. Receipts of technical assistance from Ava are not required to receive Program incentives.

Part 3: Customer and Ava Impacts
Customer Value Overview
Residential Customers
The transition from NEM 2.0 to SBP represented a significant loss in bill savings potential for solar PV customers. As illustrated in Figure 2 below, part of this loss can be made up by pairing the solar PV with a battery system. This analysis illustrates a bill savings estimate over twenty years under three different scenarios using the same customer load profile and solar PV and battery system sizes using Energy Tool Base, a commonly used solar PV / solar PV and battery system bill savings calculator.
13 Staff Report Item 12
Figure 2: Decrease in customer value transitioning from NEM 2.0 to SBP, 20-year bill savings
The cost of a battery is a substantial investment - typically costing between $10,000 to $20,000.

Batteries allow customers to recover some of the lost savings from NEM 2.0, but the higher upfront cost means it takes longer for the system to pay for itself. Ava’s program provides both upfront and ongoing incentives to help customers defray the cost of a battery.

Figure 3: 5-year customer savings comparison between NEM2.0 and SBP scenarios including PG&E charges.

The SBP export credit and the Program incentive will help cover the additional costs of adding batteries to a home solar PV and battery system and recover the ~$1,400 per year in lost 14 Staff Report Item 12
customer value resulting from the transition from NEM 2.0 to SBP over the first five years. As demonstrated in Table 3 below, the Program incentive for a CARE/FERA customer paired with the SGIP incentive nearly covers the full cost of a $10,000-$20,000 battery system.

Table 3: SmartHome Battery Residential Customer Value Assuming 80% of 10 kWh Battery is Nominated for VPP Participation
Residential – Market Rate Residential – CARE/FERA
Ava SmartHome Battery
Incentives (upfront and
ongoing)
$2,160 $5,440
California SGIP Incentives $0 $11,0006
Bill Savings during 5-year
program term $12,917 $12,917
Resilience Hub Customers
For resilience hubs, the value of resilience for the communities served is the primary driver of customer value. The Program also provides value to resilience hubs as a stackable source of funding for solar PV and battery system project development.

With the expiration of non-residential SGIP funding, Ava’s incentive can help fill this gap and support customers as one component of the funding stack for resilience hub projects.

Ava Revenue Impacts and VPP Value
Residential Customers
Program impact modeling indicates that customers with batteries buy less electricity during expensive peak hours, which reduces Ava’s revenues compared to solar PV-only customers.

Table 4 shows the expected per customer impacts to Ava from residential customers installing solar PV and battery systems and optimizing for bill savings compared to a customer installing a solar PV and battery system and participating in the Program, and also demonstrates that participation in the Program reduces these impacts.

Table 4: Annual Revenue Impacts from Residential Customers Participating in SmartHome Battery ($/yr/customer)7
Solar + Battery SmartHome Battery
Ava Reduced Revenue ($313) ($294)
Ava Export Bonus Credit ($20) ($20)
Reduced Wholesale Energy Cost $69 $75
6 Assuming that CARE/FERA customers can stack SGIP incentives. 7 Revenue impacts are compared to a solar-only customer on SBP 15 Staff Report Item 12
Reduced REC Cost $33 $33
2026 DSGS Incentive $0 $263
Total ($231) $57
Ava can use VPP-participating batteries to reduce some of its procurement costs and potentially earn revenue from the battery dispatch through other programs, such as the DSGS. Note that DSGS revenues are not guaranteed and may not fully offset the revenue losses incurred by the Program.

Resilience Hub Customers
Ava’s revenue will also be impacted by resilience hubs who use their batteries to offset their electricity costs. These impacts have not yet been modeled, but given the low number of expected participants, these impacts could be significantly smaller. Similarly, VPP value from resilience hubs has not yet been evaluated.

Program Budget and Scale
The following table shows the budget allocations for each participant type, along with the estimated number of participants.
8 Table 4: SmartHome Battery Budget Segmentation and Scale Upfront Incentives Ongoing
Incentives
Capacity Estimated
Number of
Participants
Residential –
CARE/FERA $1.05M $2.7M 3 MW 830
Residential –
Market Rate $1.5M $6M 17 MW 3,080
Resilience Hubs $3.5M $0.25M 1 MW ~20
Total $15M 21 MW 3,916
As demonstrated in Table 5 below, the Program may be able to recover some revenue losses resulting from customer adoption of distributed energy resources (“DERs”) through VPP activities over the program period. Staff intends to manage this program to maximize revenue recovery initially through participation in DSGS. Staff will evaluate VPP revenues and evaluate if program expansion is warranted.
8 Final participant numbers will depend on battery storage system sizes and nominated amounts to be selected by participating customers.
16 Staff Report Item 12
Table 5: SmartHome Battery Budget, Reduced Revenue and VPP Value Estimates Incentives Reduced Revenue Potential VPP Value9
$15M $2.5M $2.9M
Part 4: Program Implementation
Ava contracted with a DERMS provider, Lunar Energy, to manage distributed energy resources on Ava’s behalf in 2024. A DERMS is required to support this Program, as it allows Ava to remotely confirm the presence of a battery, monitor battery performance, ensure batteries are operating optimally, and dispatch assets to optimize the battery for customer, grid and Ava benefits.

Residential Customers
Lunar Energy also provides administrative support to enable online Program enrollment, manage and verify approved equipment, calculate and pay upfront and ongoing payments to customers, and provide customer support for enrollment and device connectivity.

Ava will be hosting at least one installer training session for this Program prior to Program launch and additional training sessions after launch. Training sessions will instruct installers on how to educate customers on Ava and the Program, as well as how to ensure that the battery is connected to Ava’s DERMS.

Resilience Hub Customers
Lunar Energy will provide the same support to Resilience Hub customers as residential customers. Ava may engage in additional support if other processes, such as a waitlist, would support potential participation in the Program.

Program Launch timeline:

Ava is planning to open the Program to residential customers in early 2026 for new installation participants, who own their own battery, and residential customers, who own existing battery systems. Customers, whose batteries are owned by aggregators, will be able to participate as soon as Q2 2026, depending on the aggregator’s execution of a participation agreement with Ava.

Staff is still developing the Resilience Hub final administrative approach for the Program, targeting launch later in 2026.

Related Board items:

January 2024: Fiscal Year Budget Surplus Allocation
April 2024: Solar and Storage Program Informational Item May 2024: Approval of Lunar Contract
September 2024: Approval of ICF Contract for Program Manual and Installer Training 9 VPP value is speculative and includes avoided energy costs, avoided REC cost, and revenue from participation in other programs.
17 Staff Report Item 12
Attachments
A. Resolution of the Board of Directors of Ava Community Energy Authority Authorizing the Use of Previous Budget Allocation for the Smarthome Battery Program B. Presentation
Attachment Staff Report Item 12A
RESOLUTION NO. R-202x-xx

A RESOLUTION OF THE BOARD OF DIRECTORS

OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE USE OF

PREVIOUS BUDGET ALLOCATION AND PROGRAM DESIGN FOR THE

SMARTHOME BATTERY PROGRAM
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 is developing a solar and storage incentive program for residential customers and resilience hubs;
WHEREAS Ava has received extensive market feedback on the design and conducted thorough Program impact modeling;
WHEREAS Ava has allocated $14,963,130 from the Fiscal Year (FY) 2023 surplus (Resolution No R-2024-73) and $500k from the FY2024 budget; WHEREAS Ava has proposed to allocate 50% of incentives for single family residential and 25% for income qualified customers and 25% for community resilience hubs and under the Program;
WHEREAS Ava plans to launch the Program in early 2026.

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

Section 1. Approve the allocation of the FY2023 budget surplus to the Program as proposed, with 50% of the incentives for single family residents, 25% for low-income customers and 25% for resilience hubs
Attachment Staff Report Item 12A
Section 2. Authorize staff to launch the Program consistent with the provided memorandum with the ability to adjust program design based on market and customer feedback with the approval of the Chief Executive Officer.

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

Betsy Andersen, Chair
ATTEST:

Adrian Bankhead, Clerk of the Board
SmartHome Battery and
Resilience Hub Program
Proposals
Attachment Staff Report Item 12B
Program Goal
● Deploy $15M in upfront and ongoing incentives
that support community resilience, adding 21MW
of dependable powered batteries to our community
Virtual Power Plant (VPP).

Program Audiences
● Residential Customers
○ CARE/FERA
○ General Market
● Resilience Hubs
Program Learning
● Enhance our understanding of how to reliably
manage and grow battery aggregations
Program Goals, Audience and Learning
2 Attachment Staff Report Item 12B
Solar and Storage as a Part of Ava’s VPP
Ava’s DERMS allows us to leverage distributed energy resources (DERs) to reduce our carbon footprint and support customer savings from DERs by aggregating these technologies and optimizing them to operate in concert. This is known as a “virtual power plant” (VPP).

All solar/battery projects will be part of Ava’s Virtual Power Plant (VPP). 3 *
*Eight CMF projects not
eligible for incentives
Attachment Staff Report Item 12B
SmartHome Battery Impacts on Residential Customers
4 5-year customers savings across various solar customer types including PG&E charges, assuming a 10kWh battery with 80% nomination using Energy ToolBase to estimate bill savings Residential –
Market Rate
Residential –

CARE/FERA
Ava SmartHome
Battery Incentives
$2,160 $5,440
California SGIP
Incentives $0 $11,000
Bill Savings over 5-
year program term $12,917 $12,917
NEM 2.0 transition to SBP led to a significant loss in
customer savings potential unless the solar system
was paired with a battery. Residential batteries cost
$10-20k upfront.

Adding a battery and $20/year Ava export adder
significantly increase total customer bill savings.

Ava’s Solar & Storage program upfront incentive
offsets part of the battery cost. To further reduce
upfront cash burden, customers may also finance their
system through a participating third-party aggregator.

CARE/FERA customers will be able to stack Ava's
incentive with SGIP Residential Solar and Storage
Equity Program, which provides up to $1,100/ kWh.

Attachment Staff Report Item 12B
Budget and Program Enrollment Estimates
5 Program Budget and Enrollments
• New solar paired batteries reduce Ava revenue
by ~$294/year/customer compared to a new
solar system installation
• Batteries store energy during the day when
retail rates are low and send energy to the grid
in the afternoon when rates are high, reducing
Ava revenues
• New SmartHome Battery installations will
result in an additional $2.5M in lost revenue to
Ava over the first 5 years of system operation.
• Ava will enroll systems in Demand Side Grid
Support ("DSGS") to generate grid services
revenue
Additional Ava Revenue Impacts
Upfront Ongoing
BESS
Capacity
# of
Customers*
Residential –

CARE/FERA
$1.05M $2.7M 3MW 830
Residential –
Market Rate $1.5M $6M 17MW 3,080
Resilience
Hubs $3.5M $0.25M 1MW ~20
Total $15M 21MW 3,930
*The number of participants is dependent on the customers nominated battery capacity. Resilience Hubs will be highly dependent on the size of the projects.

Based on an average of 150kWh BESS size there is budget to support 20 resilience hubs
Attachment Staff Report Item 12B
Eligibility and Incentives
6 Attachment Staff Report Item 12B
Customer Eligibility Requirement
7 Eligibility
○ Must be an Ava customer
○ New installations of solar + battery storage, retrofits, existing solar + battery storage ○ No dual enrollment in other battery programs
Program Term
○ Program Enrollment: 5 years (limited by budget)
○ VPP Participation ongoing payments: 5 years
VPP Participation
○ Two-hour dispatches either daily or on an event basis determined by customer type + participating battery capacity
○ Ava may earn revenue by dispatching into DSGS and other programs Attachment Staff Report Item 12B
Community Resilience Hub Initiative Review
8 Objective: Understand the unique needs of community sites and provide them with resources, technical assistance, and incentives to develop local Resilience Hubs.

Community Outreach and
Site Identification ($300k)
✓ Case Studies to inform Resilience
Hub definition
✓ Resilience Readiness Tool
✓ Held 3 workshops with >150
registered participants and 26
CBOs to gather feedback on
definition and RH eligibility and
functional requirements
Technical
Assistance ($2M)
Provide TA to qualified applicants:
• Resilience project sizing and
feasibility assessment
• Contactor bid reviews
• List of available grants and
incentives
• Additional services as needed
include: site visits, technical
contract agreement review, EV
charging assessment
Incentives
($3.75M)
• Upfront and Ongoing incentive
• Waitlist for projects
• Pay out incentive checks
• Resilience Hub Program Manual
❑ Will lead Community outreach to
identify up to 50 interested sites
Attachment Staff Report Item 12B
Resilience Hub Definition
9 The proposed definition was reviewed in focus groups conducted by Emerald Cities Collaborative through an Ava community investment grant. There was community input to significantly broaden the definition beyond Ava’s proposal.

Ava staff reviewed the proposed language and determined that retaining the proposed specificity related to the provision of clean backup power for resilience services is important to manage clear expectations on the purposes and services provided in the Program.

Ava’s proposed definition for Resilience Hub Program participation appears below:

Resilience Hubs are physical, community-serving facilities that provide essential services, distribute critical resources during emergencies, and integrate clean energy solutions to maintain operation during power outages. They also serve as year-round community spaces where local residents regularly gather and access everyday services.

Attachment Staff Report Item 12B
Resilience Hub Eligibility Requirements
10 Resilience Hub Eligibility Requirements
Ava non-residential customer
Property owner signoff (or landlord support for
infrastructure changes)
Community-serving or public-benefit facility
Physical space to accommodate solar and battery storage Open to the public during emergencies
Participate in Ava's VPP
Provide battery backup for at least 8 hrs/day over 3 days Operational plan required to include resilience services provided, operational hours, staffing + financial plan, power management strategy, communications plan, coordination
with other hubs/agencies.

Participate in Ava's VPP for ongoing incentives. Excused from VPP events during grid outage, PSPS event, or NWS
extreme weather alert
A site must provide at least one
critical service to the public during
a resilience event, such as:
• Shelter
• Clean air or climate-controlled
space
• Refrigeration
• Device charging
• EV charging
• WIFI
• Fresh water access
• Food distribution
• Other resilience services with
approval by Ava
Attachment Staff Report Item 12B
Resilience Hub Prioritization
11 Ava will develop a reservation process for resilience hub incentives. After the first $1M (out of $3.75M
total) is reserved, Ava will review projects and
evaluate if further prioritization for projects to get on the waitlist. Additional prioritization criteria could
include the following:
1) Resilience services provided
2) Location of resilience hubs and services to
disadvantaged communities
3) Geographic distribution across Ava territory
4) Proximity to existing resilience hubs
4) Ownership/types of sites
Table 1: Distribution and proposed
services of initial Resilience Hub
sites engaged by ECC and going through
Ava's Technical Assistance pilot
Attachment Staff Report Item 12B
Smart HomeBattery and Resilience Hub Incentives
12 Participant Type Upfront Incentive Ongoing
Incentive**
Example
BESS size
Total incentive
Residential -
Market Rate
$90/kWh**
$3/kWh paid
monthly
10kWh $2,160
Residential -
CARE/FERA*
$500/kWh** 10kWh $16,440
Resilience Hub $1,220/kWh 100kWh $136,400
*SGIP stacking for CARE/FERA customers: +up to $1,100/kWh for full nameplate battery capacity.
**Ongoing incentives for all participants and upfront incentives for residential customers assume 80% of BESS is nominated to participate in Ava's VPP.

Attachment Staff Report Item 12B
SmartHome Battery Implementation
13 Ongoing Efforts
• Development of enrollment web portal ongoing
• Implementation will include installer training and multi-tiered customer support
• To support resilience hubs, Ava will engage additional support if other processes, such as a waitlist, are needed to support potential participation
Enrollment timing
• Early '26: Program opens for customers who own
newly installed and existing solar and battery storage
systems
• Early '26: Community resilience hub awareness raising for to enroll in Technical Assistance
• Q2 2026: Program opens for customers whose batteries are owned by aggregators pending aggregator execution of a
participation agreement with Ava.
• Staff is still refining the Resilience Hub delivery approach for the targeting launch later in 2026.
2024
Funding
Allocation
2024/2025
Program
Design
Q1 2026
Residential
Launch
2026
Resilience Hub
Launch
Attachment Staff Report Item 12B
Recommended
Action
• Approve the allocation of the FY2023 budget surplus to the Program as proposed, with 50% of the incentives for single family residents, 25% for low-income customers
and 25% for resilience hubs
• Authorize staff to launch the Program consistent with the provided memorandum with the ability to adjust program
design based on market and customer feedback with the
approval of the Chief Executive Officer.
14 Attachment Staff Report Item 12B
Appendix
15 Attachment Staff Report Item 12B
Background on
SmartHome
Battery Program
16 FY23/24: Ava’s Board of Directors dedicated 40% of the year’s unallocated excess revenues to a solar and storage program (Resolution No R-2023-2).
• Final allocation to the program was $14.96 M.

April 2024: high-level program design presented to the Board. • 50/50 budget for upfront incentives split between market rate residential and CARE/FERA residential + Resilience Hubs customers.
• Ongoing incentive for all participants, contingent on VPP participation.

May 2024: Ava’s Board of Directors approved Lunar Energy as the provider for Ava’s Distributed Energy Resources
Management System (DERMS) – allowing Ava include batteries in the VPP – and as the SmartHome Battery administrator (Resolution No R-2024-41).

Since then, Ava staff have been working to develop the
SmartHome Battery Program.

Attachment Staff Report Item 12B
Program Design Development Findings
Ava has solicited feedback through multiple stakeholder engagement channels on program design • Ongoing incentives should be high
enough to keep customers enrolled in
the program
• Customers should have options on how
they'd like to participate in a long-term
program
• Currently, about 70% of residential
customers in Ava's territory that install
solar and battery systems finance them
through a third-party owner/aggregator
17 Residential
• Resilience hubs are relatively new
concepts, and approaches to provision
of community resilience varies widely
• Existing resilience hubs are diverse
across many characteristics
• Ava’s program should support the
widest range of resilience hubs possible
by designing definitions, requirements
and incentives that allow for wide
participation
Resilience Hubs
Attachment Staff Report Item 12B
Incentive Example – Residential Customers
18 Residential – Market Rate: If a customer nominates 80% of their 10kWh battery, they will receive:
10kWh * 80% * $90/kWh = $720 upfront
10kWh * 80% * $3/kWh/month * 3months/quarter = $72/quarter for five years Total = $2,160
Residential – CARE/FERA: If a customer nominates 80% of their 10kWh battery, they will receive:
10kWh * 80% * $500/kWh + 10kWh * $1,100 SGIP Incentive = $15,000 upfront (SGIP will cap at total project value) 10kWh * 80% * $3/kWh/month * 3months/quarter = $72/quarter for five years Total = $16,440
Examples
Participant Type Upfront Incentive Ongoing Incentive
Residential - Market Rate $90/kWh nominated battery capacity $3/kWh nominated battery capacity/month Residential - CARE/FERA $500/kWh nominated battery capacity* $3/kWh nominated battery capacity/month Incentives
*SGIP stacking for CARE/FERA customers: +up to$1,100/kWh for full nameplate battery capacity Attachment Staff Report Item 12B
Incentive Example – Resilience Hubs
19 Resilience Hub: If a resilience hub nominates 80% of their 100kWh battery, they will receive:
100kWh * $1,220/kWh = $122,000 upfront
100kWh * 80% * $3/kWh/month = $240/month for five years Total = $136,400
Example
Participant Type Upfront Incentive Ongoing Incentive
Resilience Hub $1,220/kWh nameplate battery
capacity
$3/kWh nominated battery capacity/month
Incentives
To set the incentive Ava completed extensive modeling on potential resilience hub sites with our consultant NV5. Results indicate that sites would have a 5- to 15-year payback based on site and system complexity as well as resilience services and backup power requirements.

Attachment Staff Report Item 12B
As more customers install
batteries, Ava will experience a
loss of revenue.

Through this program, Ava can get
some grid service benefit to help
offset these losses.

Although this program
does impact Ava revenue, program
budget does not include either lost
revenue or grid services income.

Ava staff will evaluate overall
revenue impact during the program
term as a part of program
evaluation.
20 Batteries store solar energy generated during the day for use later in the day, when rates are higher.

Less Ava Revenue
Highest rates
Source: http://bit.ly/4mzrbjj
How DERs Reduce Ava Revenue
Attachment Staff Report Item 12B
SmartHome Battery Impacts on Ava revenue
21 There are impacts to Ava from any solar or solar
and battery system operating in our service area.

As a result of customers adding a battery, Ava
loses about $313/customer/year in revenue (see
Column A) compared to a solar only customer.

These revenue losses are also present when solar
and battery storage systems participate in the
SmartHome Battery program (see Column
B). Estimated revenue losses for participating
customers are $2.5M over a 5-year term.

Some revenue losses may be offset through solar
and battery storage system participation in the
VPP (see Column B).

A: Solar
and Battery not
enrolled in
SmartHome
Battery
B: Solar and
Battery enrolled
in SmartHome
Battery
Ava Reduced Revenue ($313) ($294)
Ava Export Bonus Credit ($20) ($20)
Reduced Day-Ahead
Energy Cost
$69 $75
Reduced REC Cost $33 $33
2026 DSGS Incentive $0 $263
Total ($231) $57
Attachment Staff Report Item 12B
Initial Program Design Tenets
Program Term: Customers have 5 years to enroll for a 5-year program term. Enrollment term may end early upon budget expenditure.

Incentive Allocation: 50% of budget for upfront incentives for CARE/FERA residential customers and Resilience Hubs and 50% of budget for upfront incentives for market rate residential customers.

Upfront Incentives: Must be an Ava customer, install a battery with a new solar system or retrofitting an existing solar system.
• $10,000 per battery for CARE/FERA customers.
• $400/kWh of battery capacity for Resilience Hubs.
• $1,250 per battery for market rate residential customers.

VPP Participation: Must be an Ava customer and connect to DERMS. • All customers to receive $2 per kWh of battery capacity per month for five years. ▪ Customers who already have both solar and battery installed are eligible for the ongoing VPP incentive only.
22 Attachment Staff Report Item 12B
Attachment Staff Report Item 12B
Staff Report Item 13
Staff Report Item 13
To: Ava Community Energy Authority
From: Sam Sadle
Subject: Update on outcomes of the 2025 California legislative session and a look ahead to 2026
Date: November 19, 2025
__________________________________________________________________ Summary/Recommendation
This staff report updates the Board on the outcomes of the 2025 California legislative session to support increased Board visibility into our legislative actions. It also discusses expectations for the 2026 session and associated potential impacts on Ava.

Financial Impact
N/A
Analysis and Context
N/A
Attachments
A. Slide deck “2025 California End-of-Session Legislative Update” Ava 2025
California End-of-Session
Legislative Update
November 19, 2025
Attachment Staff Report Item 13A
2 Agenda
• 2025 California legislative session in review
• Individual bill updates
• Cap and Invest spending breakdown
• 2026 Preview
Attachment Staff Report Item 13A
2025 California Legislative Timeline
3 January
6: Legislature reconvenes
10: Governor submits
budget
February
21: Bill introduction
deadline
March April
May
2: Policy cmtes move
fiscal bills to fiscal cmtes
(1st chamber)
9: Policy cmtes move
non-fiscal bills to floor
(1st chamber)
June
6: Last day for bills to be
passed by 1st house
15: Budget bill must be
passed
July
18: Policy cmtes move
bills to fiscal cmtes or
floor (2nd chamber)
August
29: Fiscal cmtes move
bills to floor (2nd
chamber)
September
12: Last day for each
chamber to pass bills
October
12: Last day for Governor
to sign/veto bills
November December
We are here
Attachment Staff Report Item 13A
2025 Session in Review
4 28 bills flagged for continued
attention
12 positions
(10 support, 2 Support if Amended)
4 signed: SB254,
SB283, SB707, AB39
2 vetoed: AB44,
SB541
AB 1207 and
SB 840 extend
Cap-and-Trade to
2045
• Renamed "Cap-and-Invest"
• Significant changes
to GGRF spending
(see further slides)
• Reallocates some
credits from
gas customers to
electric utilities
Attachment Staff Report Item 13A
5 2025 Session in Review - Wins
SB283 (battery
safety):

Ava language
adopted into
bill
SB541 (load
modification):

Ava language
adopted into
bill
(subsequently
removed)
SB254
(affordability):

Autonomy
threat
removed
AB222 (data
centers):

Hostile
amendment
rejected
Signed into law Veto'd on CalCCA
recommendation Signed into law 2 year bill
Attachment Staff Report Item 13A
6 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Making Electricity More Affordable
AB 99
(Ta-R)
Prohibits an Investor-Owned Utility (IOU) from proposing a rate increase above the level of inflation for any general rate cycle, except for cases related to safety improvements, system upgrades, or increased costs of materials.

Monitor Failed Deadline in Asm
Appr. Suspense File
(2-year bill)
AB 729
(Zbur-D)
AB 1207 (Irwin-D)
Provides bill relief by reallocating the Climate Credit to align with periods of highest statewide energy usage. Rather than a single payment in April, residential customers will receive the electricity Climate Credit in August and September and the natural gas Climate Credit in February.

However, some elements of the concepts above were included below...

AB 729 was later incorporated into AB 1207, which extends and renames the cap-and-trade program and directs the CPUC to spread resulting customer credits across up to four high-billed months, while also adding new outreach requirements and dedicating revenues to the Transmission Accelerator Fund.

Support Failed Deadline in Sen.

E, U, & C Committee
(2-year bill)
AB 1207 Signed into
Law
SB 254
(Becker-D)
Joint Senate and Assembly Affordability package; Establishes the California Transmission Infrastructure Accelerator within GO-Biz and the I-Bank to finance and expedite critical transmission projects. Creates a revolving fund and authorizes bonds and other financial tools to connect developers with public and private capital. Consolidates affordability measures originally split across SB 254 and AB 825, with SB 254 serving as the principal vehicle for infrastructure financing and transmission acceleration.

Support Signed into Law
Attachment Staff Report Item 13A
7 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Protecting Community Choice
Accelerating Decarbonization (Local Permitting)
AB 39
(Zbur-D)
Requires that no later than 2030 cities and counties with over 75,000 residents adopt an electrification / decarbonization / community energy plan or integrate these subjects into their general plan.

Support Signed into Law
AB 306
(Schultz-D, co:Wicks-D)
October 2025 to June 2031, places restrictions on local changes to building standards (including reach codes) for residential units, emphasizing uniformity and the protection of health, safety, and home hardening.

Monitor Language was inserted
into approved budget
bill (AB 130)
SB 282
(Wiener-D)
Requires municipalities to streamline application and certification processes for residential heat pump systems.

Support Failed Deadline in Sen.

Appr. Suspense File
(2-year bill)
Accelerating Decarbonization (Battery Storage)
SB 283
(Laird-D)
Requires BESS developers to consult with local fire departments and undergo inspections before operation. Also directs the State Fire Marshall to "review and consider proposing" changes to the state building codes that restrict the location of storage projects to outdoors or in dedicated use, noncombustible buildings.

Support (originally
Support if Amended)
Signed into Law
Attachment Staff Report Item 13A
8 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Accelerating Decarbonization
AB 915
(Petrie-Norris-D)
Originally introduced as a clean energy siting and funding bill tied to the Clean Energy Reliability Investment Plan (CERIP), AB 915 was amended into a dam safety measure. Its earlier clean energy provisions were absorbed into the SB 254 affordability and infrastructure package.

Monitor (originally
Support)
Vetoed
SB 698
(McNerney-D)
Authorizes CEC to establish Distributed Energy Resources (DER) equipment lists and adopt guidelines to further energy goals including solar systems, energy storage, bidirectional charging, and charging stations.

Support Failed Deadline in Asm
Appr. Suspense File (2-
year bill)
Promoting Local Development (Vehicle Charging)
AB 1423
(Irwin-D) Originally expanded CEC's reliability and uptime regulations to a subset of publicly-funded/utility-funded chargers and provided authority for CEC to impose civil penalties for each violation. Superseded by CEC regulations and amended to focus only on EV charger payment definitions.

Monitor Signed into Law
SB 314
(Padilla-D)
Allows chargers to be self-certified by installers and manufacturers be entered into operation during the state inspection period. Provides exemptions from some state laws for chargers only available to certain individuals.

Support Failed Deadline in Sen.

Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
9 Bill # (Author) Description Ava Position Bill Status
(progress through leg)
Promoting Local Development (Data Centers)
AB 222
(Bauer-Kahan-D)
Requires biannual reporting of power usage effectiveness (PUE) ratios from large data centers to the CEC, and directs the 2027 Integrated Energy Policy Report to include projections of data center load growth and grid impacts.

Mandates a CPUC assessment of potential cost shifts from new data center loads, including procurement and transmission costs, with recommendations to mitigate impacts.

Support if Amended Failed Deadline in Sen.

Appr. Suspense File
(2-year bill)
SB 57
(Padilla-D co:

McNerney-D)
Authorizes the CPUC to prepare an assessment by January 2027 on whether new data center loads are creating cost shifts for other utility customers. The assessment may review procurement, transmission, and distribution costs, and must identify mitigation opportunities if substantial shifts are found.

Monitor Signed into Law
Increasing Bill Transparency and Understanding (Dynamic Rates) AB 44
(Schultz-D)
Requires the CEC to define and publicize load modification protocols by 12/2026, allowing Load Serving Entities (LSEs) to adjust their electrical demand forecasts. The bill aims to improve grid reliability by incorporating flexible demand tools, supporting decarbonization, and helping LSEs manage their resource adequacy obligations.

Support Vetoed
SB 541
(Becker-D)
Requires CEC via the Integrated Energy Policy Report (IPER) to establish load shifting targets allocated to each retail supplier based on its relative share of statewide load and the CEC's estimate of its load shifting potential.

Requires CEC to work with the CPUC to identify barriers to meeting these estimates.

Support if Amended Vetoed
Attachment Staff Report Item 13A
10 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Bills Concerning IOUs
AB 740
(Harabedian-D)
Mandates IOUs report on their efforts to achieve load shifting goals. Directs the CEC to develop a strategic plan to facilitate the large-scale deployment of Virtual Power Plants.

Monitor Vetoed
AB 1117
(Schultz-D)
Requires the implementation of dynamic pricing for all commercial and residential customers by 2030. CCA participation in dynamic pricing is voluntary but requires gen rate alignment with market conditions while preventing cost shifts between bundled and unbundled customers.

Monitor Failed Deadline in Sen.

Appr. Suspense File
(2-year bill)
AB 1167
(Berman-D,
Addis-D)
Prohibits IOUs from using ratepayer funds for activities like political influence or promotional advertising that don't directly benefit customers.

Requires these utilities to disclose whether advertising costs are covered by ratepayers or shareholders.

Monitor Signed into Law
SB 24
(McNerney-D)
Prohibits IOUs from using ratepayer funds to undertake political influence activities, make charitable contributions, or lobby against municipalization.

Mandates utilities to report detailed expense data to ensure compliance and requires service restoration during poor air quality conditions.

Monitor Vetoed
SB 332
(Wahab-D)
Requires the CEC to evaluate the transition of the IOU model to a successor entity, implements disconnection transparency reporting, requires third party equipment audits, and prohibits ratepayer funds to be used for wildfire mitigation infrastructure investment, among other changes.

Monitor Failed Deadline in Asm.

Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
11 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Bills Concerning IOUs (cont.)
SB 500
(Stern-D)
Originally directed the CPUC to develop and track IOU performance metrics and financial incentives to better align utility investments with cost-effective, safe, and reliable service.

Amended to instead allow IOUs to satisfy data sharing requests from energy users to be addressed by sharing aggregated energy usage data via any tool permitted by the CEC.

Monitor Signed into Law
Board Operations
AB 259
(Rubio-D)
Extends Brown Act alternative teleconferencing rules indefinitely (currently scheduled to expire in 2026).

Support Failed Deadline on
Sen. Floor
(2-year bill)
SB 239
(Arreguín-D)
SB 707 (Durazo-D)
SB 707 (supplanting SB 239) shifts from a narrow subsidiary-body teleconferencing bill to a broad Brown Act modernization incorporating elements from SB 239 and AB 259.

Particularly relevant to Ava, the bill extends Brown Act alternative teleconferencing through January 2030 (currently scheduled to expire in January 2026).

Support SB 707 Signed into
Law
Attachment Staff Report Item 13A
12 Bill # (Author) Description Ava Position Bill Status (progress through leg)
Other Ava Priority Bills
AB 13 (Ransom-D)Originally required geographic representation for CPUC Commissioners, a legislative liaison, and annual reports on affordability, case resolutions, and rate decisions. Amended to instead require the Governor and Senate to 'consider' regional diversity in appointments, while retaining the other provisions.

Monitor Failed Deadline in Sen.

Appr. Suspense File
(2-year bill)
AB 942
(Calderon-D)
Repurposed from a NEM reform bill into a Climate Credit bill; now requires GHG allowance revenues to be credited directly to customers, allows up to 15% for clean energy projects, and excludes non-CARE/FERA residential customers with annual bills under $300 from receiving the credit.

Monitor Halted in Senate policy
committee
(2-year bill)
AB 1260
(Ward-D)
Requires the CPUC to modify customer renewable energy subscription programs and requires CEC to evaluate community solar+storage as a load-modifying resource.

Monitor Failed Deadline in Asm.

Appr. Suspense File (2-
year bill)
SB 453
(Stern-D)
Directs CPUC to review the status of unallocated Microgrid Incentive Program funds by January 2026; requires remaining funds to prioritize vulnerable communities and critical infrastructure in areas with repeated deenergization events. Ava-supported SGIP language removed from bill.

Monitor (originally
Support)
Failed Deadline on
Sen. Floor
(2-year bill)
SB 842
(Stern-D)
Directs the CPUC, in coordination with CAISO, to produce a report by 12/26 evaluating opportunities and needs for firm zero-carbon resources to support local and system reliability over the short, mid, and long term. The report must assess key resource attributes, identify barriers, and recommend solutions to better integrate firm zero-carbon resources into California’s energy planning and markets.

Monitor Failed Deadline in Asm.

Appr. Suspense File
(2-year bill)
Attachment Staff Report Item 13A
13 Program Pre extension per year
(≈ $4 billion per year)
2026-2045 per year
High Speed Rail 25% ≈ $1 billion $1 billion
Affordable Housing and Sustainable Communities (AHSC)
Program
20% ≈ $800 million $800 million
Transit and Intercity Rail Capital Program (TIRCP) 10% ≈ $400 million $400 million Low Carbon Transit Operations Program (LCTOP) 5% ≈ $200 million $200 million CalFire Up to $200 mil $200 million
Safe and Affordable Drinking Water Fund in DAC/low-income communities
5% ≈ $200 million; but
no more than $130 mil
$130 million
CARB Community Air Protection Programs $0 $250 million
At the Legislature's discretion $0 $1 billion
Cap and Invest Spending
Attachment Staff Report Item 13A
14 Cap and Invest Spending
Winners:
• The California legislature gains increased discretion • Programs that received funding guarantees
o High speed rail and public transit
o CARB and affordable housing programs
o Wildfire mitigation and climate adaptation
Missed out on fixed GGRF funding:
• EVs and EV infrastructure
• Distributed energy and demand flex incentives
Impact:
• Expect yearly fights over the legislature's $1 billion pot of funding • Limited impact on existing Ava funding streams, but could open new opportunities depending on annual appropriations
Attachment Staff Report Item 13A
2026 California Legislative Timeline
15 January
5: Legislature reconvenes
10: Governor submits
budget
February
20: Bill introduction
deadline
March April
24: Policy cmtes move
fiscal bills to fiscal cmtes
(1st chamber)
May
1: Policy cmtes move
non-fiscal bills to floor
(1st chamber)
29: Last day for bills to be
passed by 1st house
June
15: Budget bill must be
passed
July
2: Policy cmtes move bills
to fiscal cmtes or
floor (2nd chamber)
August
14: Fiscal cmtes move
bills to floor (2nd
chamber)
31: Last day for each
chamber to pass bills
September
30: Last day for Governor
to sign/veto bills
October November December
We are here
Attachment Staff Report Item 13A
16 2026 Expected Issues • Gov Newsom very
defensive of existing
CPUC/CEC authorities
and workload (see vetos)
• IOUs wary of changes to
T&D system (see 541)
• State approach to data
centers remains in flux
• CCAs have growing clout
(see language changes)
2025 Learnings
• Unresolved leg issues from
2025: RA transactability, data
centers, energy efficiency
program oversight, dynamic
rates/load modification
• New issues: Response to Federal
changes, funding gaps left by
new cap-and-trade (DSGS and
others), structural deficits ($17-
25B through 28/29)
• Potential CCA initiatives: T&D
push, PCIA reform
• Possible Senate U&E changes
2026 look forward
Attachment Staff Report Item 13A

Dohee Kim
Local Clean Energy Alliance
339 15th Street Suite 208 Oakland, CA 94612
[email protected]
Subject: Integrate Community Recommendations for the Resilience Hub Initiative Under the SmartHome Battery Program with Ava Community Energy.

November 17, 2025
Dear Board of Directors, the Community Advisory Committee, and All Alternates, The Local Clean Energy Alliance (LCEA) and our community partners with People’s Clean Power Alliance share our sincere appreciation and excitement for the proposed launch of the SmartHome Battery Program introduced in the Executive Committee Meeting on November 5th, 2025. The SmartHome Battery Program, which includes the nascent Resilience Hub Initiative, is a promising start to build real, long-term community resilience for our energy-burdened, pollution-burdened, and historically disinvested communities in Ava Community Energy’s service territory of both Alameda and San Joaquin Counties, including unincorporated areas and the cities of Stockton, Lathrop, and Tracy.

The proposal offers to invest roughly $3.74 million into community resilience hubs with a strong upfront incentive of $1,220/kWh for a prospective solar battery and ongoing incentive of $3/kWh with required enrollment in Ava Community Energy’s Virtual Power Plant (VPP) System, providing a rough cost coverage of up to 80% of their solar and storage infrastructure within a five-year period. This solar and storage incentive is promising given the current state of rooftop solar policies and the devastating funding cuts to clean energy by the current federal administration.

California’s extreme heat is impacting areas such as the San Joaquin Valley as a “silent killer,” a costly and deadly climate change development that is reported to disproportionately impact low-income communities, the elderly, outdoor workers, including Black, Native American, and Hispanic Californians. The threat of local sea level rise, extreme storms, and risk of flooding in the Bay Area – which would endanger hundreds of thousands of Bay Area residents, billions of dollars of economic activity, and key public infrastructure – requires immediate resilience planning and climate adaptation plans in collaboration with municipalities. Our communities are facing an overlap of climate-related hazards, such as dangerously high heat, power outages, extreme wildfires, which exacerbate underlying systemic and structural resource inequities, socioeconomic challenges, and environmental pollution.

Ava Community Energy is a public, clean energy agency that can help pioneer and lead the charge for a more resilient future with our local communities, especially in climate-vulnerable areas. The Resilience Hub Initiative is a program that emerged from years of critical community advocacy by the Local Clean Energy Alliance in collaboration with key stakeholders, including community partners. Over the years, LCEA has demanded a greater surplus budget allocation from our Community Choice Aggregator (CCA) to provide expansive community benefits, increased investments, and clearer pathways for local ownership of clean energy resources.

Currently, LCEA is happy to partner with Emerald Cities Collaborative, Ava’s Technical Engineering Assistant (NV5), and Ava’s Local Development staff to coordinate community engagement and outreach by facilitating workshops, listening sessions, and office hours to socialize, educate, and uplift communities with the Resilience Hub Initiative and connect local resilience hubs who could immediately benefit from this solar and storage incentive as well as maximize their community impact and life-affirming local work.

Resilience Hubs are defined by Ava Community Energy as follows:

Based on the current proposal of the SmartHome Battery Program and Resilience Hub Initiative, the Local Clean Energy Alliance and the People’s Clean Power Alliance offer the following recommendations:
● The SmartHome Battery Program should recognize the months of intentional community outreach and engagement with local resilience hubs to develop a ‘Community Definition of a Resilience Hub’ based on public listening sessions held in the Spring of 2025, facilitated both by the Local Clean Energy Alliance and Emerald Cities Collaborative as shared below:
○ A resilience hub is a trusted, community-led space that provides essential services, resources, and tools for people to access before, during, and after emergencies. A resilience hub is an inclusive and welcoming gathering space that operates year-round for community education and empowerment. A resilience hub is supported by dedicated staff and trained volunteers who are rooted in the care and culture of a community. Resilience hubs help prepare us for disasters, emergencies, recovery, and everyday well-being. Hubs are diverse and designed to be accessible to all generations.
○ While Ava has provided its own definition focused on clean energy solutions, we believe that providing a holistic, community-driven definition of a Resilience Hub is critical in advocating for a community-driven solar and storage incentive program that not only includes clean energy solutions but implements them with community priorities in mind. We aim to integrate both definitions in our continued community outreach, engagement, and support.
● The SmartHome Battery Program should explicitly state the Resilience Hub Initiative in the name for programmatic clarity, public understanding, and clear community outreach.
○ The SmartHome Battery Program is not solely focused on residents and CARE/FERA customers, but the Resilience Hub Initiative is subsumed under a name that misrepresents the focus of targeting community resilience hubs that provide a critical resilience service to community members during a public emergency or climate crisis.
○ Further, the public would benefit from greater clarity around eligibility and other requirements between different incentive offerings and programs from Ava Community Energy, such as the Critical Municipal Facilities Program. ● Based on community surveys and current pilot sites, Ava Community Energy needs to provide more robust funding, grant support, and solar financing assistance to expand unrestricted, flexible funding for community resilience hubs, from small to large scale, which would help with day-to-day operations, staffing capacity, microgrid readiness, programmatic needs, etc.
○ The reality of the resilience hub landscape is that smaller, less-resourced hubs are unable to pay upfront capital costs to install both solar and battery storage.

This solar and storage incentive program also may not be financially viable for resilience hubs that do not already have solar arrays or systems in place. ○ Funding assistance and solar financing opportunities can be modeled after services and programs that already exist, such as BAYREN’S BAMBE, On-Bill Financing, PACE Loans, Low-Income Weatherization Program, SGIP (Self-Generation Incentive Program), Climate Smart Communities Initiative, etc.
○ CA State Grants should also be coordinated with community partners to maximize funding opportunities for eligible local resilience hub sites, with Ava Community Energy as a local agency partner in the applications: e.g. CA Strategic Growth Council’s Community Resilience Centers (CRC) Program, Extreme Heat and Community Resilience Program (EHCRP), and others. ○ Ava Community Energy should consider distributing flexible funding through a community grants program, similar to the Community Clean Energy Grant Program as modeled by the San Diego Community Foundation and San Diego Community Power.
● Ava Community Energy must develop an equity matrix to ensure fair and just prioritization of the solar and storage incentive program within Ava's service territory to ensure that directly-impacted, frontline, and energy-burdened communities can benefit and access this incentive.
○ Rather than a first-come, first-served model, the SmartHome Battery Program for its Resilience Hub Initiative should define and consider equity priorities as vetted by community partners to impactfully distribute solar and storage incentives to historically disinvested, disadvantaged, and marginalized communities, especially for climate-vulnerable, pollution-burdened, and energy-burdened communities. ○ There is no need to reinvent the wheel. We encourage this public agency to also consider available tools from the CA state that use equity matrices and socioeconomic plus demographic proxies:
■ Identify Disadvantaged Communities (DACs) through CalEnviroScreen

4.0. ■ Use the Climate Vulnerability Index (CVI) provided by PSE Health Energy, Communities for Better Environment (CBE), and Asian Pacific Environmental Network (APEN).
■ Analyze the upcoming CEC Energy Affordability Tool.
■ Consider the Office of Land Use & Climate Innovation’s Climate Vulnerability Map.
● We ask the Board, Community Advisory Committee (CAC), and Ava Community Energy to continue upholding the tenets of the Joint Powers Authority Agreement (JPA) and the Local Development Business Plan (LDBP), which includes the recent policy resolution of Ava Community Energy Workforce and Environmental Justice Project Selection Criteria.
○ We encourage staff to consider local contractors with high-road labor partnerships to incorporate local labor partners, build a local green economy, and provide greater cost-effectiveness to all parties involved. ● Finally, we ask Ava Community Energy to set clear expectations, share timely updates, and ensure space for community design and input for the success and longevity of the Resilience Hub Initiative beyond the piloting stage. The Board and CAC should be provided an informational session, or a series of informational sessions, to adequately familiarize themselves with and appropriately assess the Resilience Hub Initiative for its success with communities.

With your guidance, expertise, and insights for Ava Community Energy, your critical input can strengthen financial support of community resilience hubs, ensure community-driven design of the solar and storage incentive program that actually centers community needs, and advance equitable outcomes through fair and just prioritization of diverse resilience hubs to continue their life-saving services for the communities you publicly serve.

Thank you for your vital work to create a more equitable, accessible, and community-designed Resilience Hub Initiative together with us.

Clean Power to the People,
Dohee Kim, Campaign Organizer with the Local Clean Energy Alliance (LCEA) Organizational Sign-Ons
People’s Clean Power Alliance
Kenneth Tang, Oakland Organizing Director for Asian Pacific Environmental Network (APEN)
Susan Silber, Project Director for Collective Resilience Gregory Stevens, Northern California Director for California Interfaith Power & Light

Dohee Kim
Local Clean Energy Alliance
339 15th Street Suite 208 Oakland, CA 94612
[email protected]
Subject: Allocate 10% of Ava Community Energy’s Budget Surplus for Bill Credits to CARE/FERA Ratepayers and Build Long-Term Energy Affordability.

November 17, 2025
Dear Board of Directors, the Community Advisory Committee, and All Alternates, At the previous Board of Directors Meeting on September 17, 2025, the motion to allocate 10% of the projected Ava Budget Surplus of $107 million as bill credits for California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) ratepayers passed nearly unanimously. Both Ava staff and the Board initially emphasized concern for the anticipated financial headwinds as a result of recent reforms to Power Charge Indifference Adjustments (PCIA)
1 that would directly impact Ava Community Energy, as a Community Choice Energy (CCA) provider, through increased market volatility, disparate effects on low-income customers, and potentially 8 to 9 digit fees that the public agency would have to pay out in the near future 2 .

The Board, however, also insisted that in addition to preventing a budget deficit for the years to come, Ava Community Energy is aptly situated to invest the surplus back into our most energy-burdened, low-income, and vulnerable communities. The Local Clean Energy Alliance (LCEA) fully supports the Board’s decision to allocate 10% of the agency’s budget surplus for CARE and FERA customers in Ava service territory, especially during a time of an energy affordability crisis
3 .

A bill credit is one way to ensure affordability for families, especially in our most vulnerable, low-income, and disadvantaged communities who are navigating extremely high living expenses. CARE and FERA recipients receive a monthly discount on their gas 3Governor Signs Berman Bill to Lower Energy Bills and Hold IOUs Accountable. October 11, 2025. 2The Promises and Challenges of Community Choice Aggregation in California, a report by the UCLA Luskin Center for Innovation.
1Power Charge Indifference Adjustment (PCIA) from the CA Public Utilities Commission (CPUC). and/or electric bills and would directly benefit from an additional bill credit, since energy-burdened communities can instead allocate money saved towards other essential needs such as food, healthcare, and housing
4 . Those eligible for CARE and FERA include community
members who are already eligible for public assistance programs (Medicaid; Medi-Cal; Women, Infants, and Children (WIC) Program; Food Stamps; etc.) 5 . Money that is saved from a lower
energy bill can be directed to other essential needs.

Ava staff was tasked with developing a methodology on how the bill credits will be distributed to CARE and FERA customers in Ava service territory, including recently incorporated areas such as Stockton and Lathrop who have been with Ava for around 3-6 months. This transition has notably saved customers $4.4 million in total on their energy bills. Staff returned with a recommendation to the Financial, Aid, Procurement Meeting as an informational item to the subcommittee, which had no quorum, on the day of November 7th, 2025, stating that $13,041,710 is available for CARE/FERA customer bill credits based on the FY 2024-25 audit.

Staff recommends providing the same credit amount, approximately $70, to all active CARE and FERA customers, which would provide meaningful bill relief for Ava’s low-income ratepayers.

As a reminder, this CCA was established to support energy-burdened, low-income, and diverse community members. Ava subscribers from Stockton and Lathrop must be included in the distribution of the upcoming bill credits. Calculating a prorated bill credit for Stockton and Lathrop CARE/FERA customers based on days of received service, as suggested by a prior board meeting, would lead to an inequitable bill credit across your lowest-income customers.

Savings should be shared by giving CARE/FERA customers a $70 bill credit across all the areas for meaningful impact, especially in low-income, energy-burdened communities, which would include around 158,000 Ava Community Energy subscribers.

At the recent Financial, Aid, and Procurement Meeting, however, Ava staff and CEO suggested that this action item may return to the Board to revisit this distribution and potentially re-allocate the entirety of the surplus into the Rate Stabilization Fund out of concern of financial headwinds based on PG&E’s recent 2026 Energy Resource Recovery Account (ERRA). The 2026 rates detailed in this report, according to staff, indicates a significant deficit in 2026 for Ava Community Energy while maintaining the current value proposition. LCEA requests that the staff detail and break-down the impacts of the 2026 PG&E ERRA, the current Ava budget audit and its near future financial projections, and PCIA reform analysis for public clarity and understanding. We urge the Board to conscientiously consider the impact of potentially taking away 10% ($13,041,710) of the budget surplus to current CARE/FERA subscribers in Ava territory.

LCEA and the People’s Clean Power Alliance ask that the Board consider the ramifications of excluding or prorating the bill credits to 158,000 customers who are low-income and 5CARE/FERA Program: Discounts on energy bills for low-income qualified households from the CPUC. 4Understanding Energy Burden: Why Some Communities Pay More by Uche Ajene from Initiative for Energy Justice (IEJ) published on June 12, 2025.
energy-burdened at this time. In fact, for San Joaquin County, nearly 13% of residents live in poverty, children have a poverty rate of over 17%, and more than 1 in 10 residents aged 65 years or older live in poverty
6 . We urge the Board to approve a fair and just methodology for bill credits that would include all 158,000 CARE/FERA customers in Ava service territory that is equitable for those who depend on affordable energy bills. While Stockton and Lathrop customers are our newest members, they will continue to subscribe to Ava Community Energy and will benefit drastically from an equal bill credit for all CARE and FERA ratepayers. We urge Ava staff and the Board of Directors to include Stockton and Lathrop for the CARE/FERA bill credits allocation equally across all Ava service territory and continue to meaningfully support our low-income, energy burdened communities.

The Board’s decision to continue a one-time bill credit, specifically for CARE/FERA customers, is certainly aligned with the the monumental Local Development Business Plan (LDBP) and foundational Joint Powers Authority (JPA) agreement, which holds Ava Community Energy accountable to its original commitment to build community wealth and health, reduce pollution, provide affordable rates, maintain high standards for clean energy jobs, make smart and clean local energy investments, etc. Based on this recent decision, the Local Clean Energy Alliance urges Ava’s Board of Directors to approve staff’s recommendation to provide the same bill credit amount of around $70 to all active CARE and FERA customers in Ava service territory.

LCEA additionally requests that the Board and Ava Community Energy seriously consider long-term energy affordability goals for low-income customers as part of a long-term strategic plan, such as need-based, debt-relief programs that instead rely on local appropriations, provide regular relief, and is accessible to all based on income eligibility, in addition to other policy opportunities as shared this year by RMI. A one-time bill credit is insufficient for the financial headwinds incoming and attacks on affordable clean energy on all fronts, which would adversely impact the most energy-burdened, pollution-burdened, and historically disinvested communities in Ava service territory. Not all those who are eligible for CARE/FERA are successfully enrolled in these low-income assistance programs, due to a real need for ongoing targeted outreach in vulnerable communities. Ava Community Energy would benefit as a CCA to proactively navigate risks, challenges, and opportunities in the energy landscape with the Investor-Owned Utilities (IOUs) and the CA Public Utilities Commission (CPUC) by proactively responding to community needs, fostering community buy-in, and strategically investing in community benefits long-term.

Thank you for your public service and vital support.

Clean Power to the People,
6San Joaquin County 2025 Health Needs Assessment published in April 2025.

Dohee Kim, Campaign Organizer with the Local Clean Energy Alliance (LCEA) Organizational Sign-Ons
People’s Clean Power Alliance
Kenneth Tang, Oakland Organizing Director for Asian Pacific Environmental Network (APEN)
Susan Silber, Project Director for Collective Resilience Gregory Stevens, Northern California Director for California Interfaith Power & Light November 14, 2025
Chair Anderson and Honorable Board of Directors
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612
Subject: CCA Workforce & EJ Alliance Recommendations on SmartHome Battery & Resilience Hub Programs (Nov. 17 CAC Item C5 / Nov. 19 Board Item 12) Dear Chair Anderson and Honorable Directors,
On behalf of the CCA Workforce & Environmental Justice Alliance—a coalition of more than 40 labor, environmental, climate, community, and environmental justice organizations—we appreciate the opportunity to provide input on Ava Community Energy’s proposed SmartHome Battery and Resilience Hubs Programs.

We are grateful for the thoughtful work Ava staff have undertaken to advance these programs and for the agency’s ongoing commitment to clean energy investments that strengthen community resilience, advance equity, and create high-road workforce and community benefits. Ava’s adoption of the Workforce & Environmental Justice Clean Energy Project Selection Criteria last year demonstrated what is possible when community partners and public agencies work together with transparency and shared purpose. We offer the comments below in that same constructive spirit.

As currently designed, the SmartHomes Battery and Resilience Hubs programs represent innovative local development initiatives. Several adjustments are necessary to fully align these programs with Ava’s stated priorities and previously adopted standards:

1. Ensure parity between resilience hub investments and residential battery incentives. The current proposal dedicates most funding to market-rate residential installations, leaving limited resources for resilience hubs. We encourage Ava to bring funding for resilience hubs to a level on par with the residential battery program.

2. Prioritize a majority of funding for equity and the communities most at risk. Program funding allocation is the Board’s most important policy decision. Resilience hubs provide essential public-good infrastructure. Ava should explicitly prioritize funding for frontline, disadvantaged, and socially vulnerable communities when allocating program funds.

3. Support local economic development through local high-road workforce and contractors.

Ava has already set a strong precedent through the Workforce & Environmental Justice Criteria for Clean Energy Projects policy. Using clear qualification standards that encourage local and targeted hire priorities, in addition to basic prevailing wage and apprentice requirements, will strengthen community benefits and project quality.

4. Apply lessons from the Critical Municipal Facilities Program by aggregating projects and using an RFQ structure. Bundling projects and using an RFQ process—approaches that have proven effective at Ava and elsewhere—will establish minimum standards, expand the pool of qualified high-road contractors, improve cost efficiency, and ensure consistent project quality and value for clients and Ava.

The following chart helps illustrate our proposed reprioritization of funding to support the refinements requested above:

These refinements would strengthen the program, align it with Ava’s adopted policies, and ensure that investments meaningfully advance resilience, equity, and economic opportunity across the service area.

Thank you for your commitment to workers and communities. We look forward to our continued collaboration.

Sincerely,
Eric Veium, Tim Frank, & Leslie Austin
Co-directors, CCA Workforce & EJ Alliance

Adrian Bankhead <[email protected]>
item 12/board of directors meeting 11/19
bethw0104 <[email protected]> Tue, Nov 18, 2025 at 10:07 AM To: [email protected]
As a customer and ratepayer of AVA Community Energy and resident of Oakland, I strongly support item 12, the SmartHome Battery & Resilience Hub Budget Approval and Program Design, on the agenda for tomorrow's Board of Directors meeting. Our community needs and deserves this support.

Beth Weinberger
11/18/25, 6:05 PM Ava Community Energy Mail - item 12/board of directors meeting 11/19 https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permmsgid=msg-f:1849152513451848800&simpl=msg-f:1849152513451848800 1/1

Adrian Bankhead <[email protected]>
Public Comment: General Public Comment (Item 3) - Support for Clean Firm Power 1 message
L Finney <[email protected]> Wed, Nov 19, 2025 at 9:57 AM To: [email protected]
Dear Board of Directors,
I am submitting this comment for Item 3 (Public Comment). I am an Oakland resident and an Ava customer. I want to thank the Board for its pragmatic leadership in recently accepting carbon-free nuclear allocations. Prioritizing 24/7 reliability and actual carbon reduction over ideological exclusion is the right choice for our climate and our rates. Please continue to support all carbon-free resources, including nuclear, in the "Bright Choice" portfolio to ensure we meet our climate goals without risking blackouts.

Sincerely
Lecia finney
355 Santa Clara ave
Oakland ca 94610
11/19/25, 10:07 AM Ava Community Energy Mail - Public Comment: General Public Comment (Item 3) - Support for Clean Firm Power https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849242504841860963&simpl=msg-f:1849242504841860963 1/1

Adrian Bankhead <[email protected]>
Please do not contract with Deloitte
1 message
Debbie Notkin <[email protected]> Wed, Nov 19, 2025 at 1:25 PM Reply-To: [email protected]
To: [email protected]
Dear people,
I understand that you are considering hiring Deloitte for various community connection projects. I hope you are fully aware that Deloitte collaborates with DHS and ICE; I think you can be confident that any "community" work they do will be actively terrifying and offensive to immigrants (undocumented, green card holders, and citizens). It is certainly actively offensive to me.

Ava Community Energy should have NOTHING to do with ICE collaborators. Please, please do the right thing.

Debbie Notkin
[email protected]
"Democracy is, in the beginning and in the end, a belief that we can live together despite difference and choose the future together. It is a beautifully reckless idea, because it is hard enough for a family to decide what to have for dinner. But it works; in fact, it works better than all the other systems. ... What is at stake now is whether we can defend the idea, and the lived belief, that you change things by changing people. We must tell this to people. More importantly, we must show it." Anand Giridharadas
11/19/25, 1:35 PM Ava Community Energy Mail - Please do not contract with Deloitte https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849255594878923857&simpl=msg-f:1849255594878923857 1/1

Adrian Bankhead <[email protected]>
Item 11 on agenda, ava board meeting
1 message
bethw0104 <[email protected]> Wed, Nov 19, 2025 at 1:40 PM To: [email protected]
Strongly opposed Ava hiring or contracting with Deloitte or any company that cooperates with ICE or ang government agency that denies basic human rights.

Beth Weinberger
Oakland resident and Ava customer
Sent from my Galaxy
11/19/25, 1:41 PM Ava Community Energy Mail - Item 11 on agenda, ava board meeting https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849256528152736102&simpl=msg-f:1849256528152736102 1/1

Adrian Bankhead <[email protected]>
Re Item 11 on agenda tonite 11/19/25
1 message
'[email protected]' via Clerk of the Board <[email protected]> Wed, Nov 19, 2025 at 2:00 PM Reply-To: "[email protected]" <[email protected]> To: "[email protected]" <[email protected]>
Dear Board ,
Please do not allow staff to hire Deloitte company to be the lead in Community and Customer Surveys, Outreach and Community gatherings for a $560,000 contract.

We were horrified to learn that they do business with ICE and DHS. ·Ava should not do business with companies known to be at the center of immigrant violence, family separation and "efficiency of detention centers." ·Deloitte's own workers have demanded the company cease contracts w/ ICE since the first Trump Admin
· Instead, we recommend the agency hire the subcontractors who are rooted in the Bay Area and include a new lead applicant if they need that support:

EJ Solutions
Kearns & West
Powerhouse
Thank you,
Margie Lewis
AVA customer
11/19/25, 2:11 PM Ava Community Energy Mail - Re Item 11 on agenda tonite 11/19/25 https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849257751168338958&simpl=msg-f:1849257751168338958 1/1

Adrian Bankhead <[email protected]>
Don't Contract with Deloitte for Community Surveys & Gatherings 1 message
Aaron Lehmer <[email protected]> Wed, Nov 19, 2025 at 2:34 PM To: [email protected]
Dear Ava Board of Directors,
As a concerned Ava customer and long-time resident of Oakland, I urge you not to approve a contract with Deloitte for "Community and Customer Surveys, Outreach and Community Gatherings" as recommended in Item 11 on tonight's meeting agenda.

Ava should not do business with companies known to be at the center of immigrant violence, family separation and "efficiency of detention centers." Doing so could greatly compromise the integrity and inclusive participation that such outreach demands.

Deloitte's own workers have demanded the company cease contracts with ICE since the first Trump Administration, only underscoring the unneeded controversy this contractor would bring.

Instead, please hire the subcontractors who are rooted in the Bay Area and include a new lead applicant if they need that support. Here are several alternatives: EJ Solutions, Kearns & West, and Powerhouse Thank you in advance for your consideration in this matter.

Aaron Lehmer
Ava customer since 2019
--
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
11/19/25, 2:44 PM Ava Community Energy Mail - Don't Contract with Deloitte for Community Surveys & Gatherings https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849259943083658947&simpl=msg-f:1849259943083658947 1/1

November 19, 2025
Dear Board of Directors, the Community Advisory Committee, and All Alternates, At the previous Board of Directors Meeting on September 17, 2025, the motion to allocate 10% of the projected Ava Budget Surplus of $107 million as bill credits for California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) ratepayers passed nearly unanimously. Both Ava staff and the Board initially emphasized concern for the anticipated financial headwinds as a result of recent reforms to Power Charge Indifference Adjustments (PCIA)
1 that would directly impact Ava Community Energy, as a Community Choice Energy (CCA) provider, through increased market volatility, disparate effects on low-income customers, and potentially 8 to 9 digit fees that the public agency would have to pay out in the near future 2 .

The Board, however, also insisted that in addition to preventing a budget deficit for the years to come, Ava Community Energy is aptly situated to invest the surplus back into our most 2The Promises and Challenges of Community Choice Aggregation in California, a report by the UCLA Luskin Center for Innovation.
1Power Charge Indifference Adjustment (PCIA) from the CA Public Utilities Commission (CPUC). energy-burdened, low-income, and vulnerable communities. The Local Clean Energy Alliance (LCEA) fully supports the Board’s decision to allocate 10% of the agency’s budget surplus for CARE and FERA customers in Ava service territory, especially during a time of an energy affordability crisis
3 .

A bill credit is one way to ensure affordability for families, especially in our most vulnerable, low-income, and disadvantaged communities who are navigating extremely high living expenses. CARE and FERA recipients receive a monthly discount on their gas and/or electric bills and would directly benefit from an additional bill credit, since energy-burdened communities can instead allocate money saved towards other essential needs such as food, healthcare, and housing
4 . Those eligible for CARE and FERA include community
members who are already eligible for public assistance programs (Medicaid; Medi-Cal; Women, Infants, and Children (WIC) Program; Food Stamps; etc.) 5 . Money that is saved from a lower
energy bill can be directed to other essential needs.

Staff recommends providing the same credit amount, approximately $70, to all active CARE and FERA customers, which would provide meaningful bill relief for Ava’s low-income ratepayers.

At the recent Financial, Aid, and Procurement Meeting, however, Ava staff and CEO suggested that this action item may return to the Board to revisit this distribution and potentially re-allocate the entirety of the surplus into the Rate Stabilization Fund out of concern of financial headwinds based on PG&E’s recent 2026 Energy Resource Recovery Account (ERRA). The 2026 rates detailed in this report, according to staff, indicates a significant deficit in 2026 for Ava 5CARE/FERA Program: Discounts on energy bills for low-income qualified households from the CPUC. 4Understanding Energy Burden: Why Some Communities Pay More by Uche Ajene from Initiative for Energy Justice (IEJ) published on June 12, 2025.
3Governor Signs Berman Bill to Lower Energy Bills and Hold IOUs Accountable. October 11, 2025.

Community Energy while maintaining the current value proposition. LCEA requests that the staff detail and break-down the impacts of the 2026 PG&E ERRA, the current Ava budget audit and its near future financial projections, and PCIA reform analysis for public clarity and understanding. We urge the Board to conscientiously consider the impact of potentially taking away 10% ($13,041,710) of the budget surplus to current CARE/FERA subscribers in Ava territory.

LCEA and the People’s Clean Power Alliance ask that the Board consider the ramifications of excluding or prorating the bill credits to 158,000 customers who are low-income and energy-burdened at this time. In fact, for San Joaquin County, nearly 13% of residents live in poverty, children have a poverty rate of over 17%, and more than 1 in 10 residents aged 65 years or older live in poverty
6 . We urge the Board to approve a fair and just methodology for bill credits that would include all 158,000 CARE/FERA customers in Ava service territory that is equitable for those who depend on affordable energy bills. While Stockton and Lathrop customers are our newest members, they will continue to subscribe to Ava Community Energy and will benefit drastically from an equal bill credit for all CARE and FERA ratepayers. We urge Ava staff and the Board of Directors to include Stockton and Lathrop for the CARE/FERA bill credits allocation equally across all Ava service territory and continue to meaningfully support our low-income, energy burdened communities.

LCEA additionally requests that the Board and Ava Community Energy seriously consider long-term energy affordability goals for low-income customers as part of a long-term strategic plan, such as need-based, debt-relief programs that instead rely on local appropriations, provide regular relief, and is accessible to all based on income eligibility, in addition to other policy opportunities as shared this year by RMI. A one-time bill credit is insufficient for the financial headwinds incoming and attacks on affordable clean energy on all fronts, which would adversely impact the most energy-burdened, pollution-burdened, and historically disinvested communities in Ava service territory. Not all those who are eligible for CARE/FERA are successfully enrolled in these low-income assistance programs, due to a real need for ongoing targeted outreach in vulnerable communities. Ava Community Energy would benefit as a CCA to proactively navigate risks, challenges, and opportunities in the energy landscape with the Investor-Owned Utilities (IOUs) and the CA Public Utilities Commission (CPUC) by proactively responding to community needs, fostering 6San Joaquin County 2025 Health Needs Assessment published in April 2025. community buy-in, and strategically investing in community benefits long-term.

Thank you for your public service and vital support.

November 19, 2025
Dear Board of Directors, the Community Advisory Committee, and All Alternates, The Local Clean Energy Alliance (LCEA) and our community partners with People’s Clean Power Alliance share our sincere appreciation and excitement for the proposed launch of the SmartHome Battery Program introduced in the Executive Committee Meeting on November 5th, 2025. The SmartHome Battery Program, which includes the nascent Resilience Hub Initiative, is a promising start to build real, long-term community resilience for our energy-burdened, pollution-burdened, and historically disinvested communities in Ava Community Energy’s service territory of both Alameda and San Joaquin Counties, including unincorporated areas and the cities of Stockton, Lathrop, and Tracy.

Resilience Hubs are defined by Ava Community Energy as follows:

Thank you for your vital work to create a more equitable, accessible, and community-designed Resilience Hub Initiative together with us.

Clean Power to the People,
Dohee Kim, Campaign Organizer with the Local Clean Energy Alliance (LCEA) Organizational Sign-Ons
People’s Clean Power Alliance
Asian Pacific Environmental Network, Kenneth Tang, Oakland Organizing Director Collective Resilience, Susan Silber, Project Director
California Interfaith Power & Light, Gregory Stevens, Northern California Director Center for Biological Diversity, Meya Saenz Zagar, Energy Justice Campaign Organizer Reclaim Our Power, Emi Yoko-Young, Policy Organizer
California Trade Justice Coalition, Will Jamil Wiltschko, Director Rising Sun Center for Opportunity, Sneha Ayyagari, Director of Policy San Francisco Bay Physicians for Social Responsibility, Robert M. Gould (MD), President San Leandro 2050, Patty Breslin, Executive Director
Public Bank East Bay, Margie Lewis, Board Member
Kehilla Community Synagogue, Beth Weinberger, Greening Committee Individual Sign-Ons
Steven Ongerth, Cofounder of the IWW Environmental Union Caucus Adrian Bankhead <[email protected]>
No on Deloitte and Touche LLP
1 message
Marcia <[email protected]> Wed, Nov 19, 2025 at 3:47 PM To: [email protected]
Alameda county resident here. I'm appalled that your Chief Customer Officer, Anne Henderson, has recommended Deloitte and Touche for the consulting services contract for our decarbonization goals. Particularly pertinent to this contract is D&T's conflict of interest due to their extensive financial ties to this very anti-decarbonization federal government. Any recommendations they might make for this kind of project must be deeply suspect. They will hardly jeopardize tens of millions of dollars in federal contracts by supporting projects that can be seen as anti-administration by the Trump regime.

In these times it is crucial to avoid supporting these companies that are engaged in aiding and abetting the lawlessness at the federal level. Further, if a company is being paid tens of millions of dollars to provide technical support to DHS and ICE we do not want them anywhere near Alameda county utilities. We do not want them getting any of our local tax dollars. We do not trust them with our information. Not our names or home addresses, not our energy use patterns or our payment methods.

Please keep D&T out of Alameda county.
https://app.g2xchange.com/fedciv/posts/deloitte-scoops-up-50m-dhs-ice-analytical-technical-logistical-and-administrative-support-task https://app.g2xchange.com/fedciv/posts/deloitte-obtains-dhs-cbp-program-management-and-data-analytics-services-task Sincerely,
Marcia Crump
94702
11/19/25, 3:53 PM Ava Community Energy Mail - No on Deloitte and Touche LLP https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849264484037350870&simpl=msg-f:1849264484037350870 1/1

Adrian Bankhead <[email protected]>
No Ava funding for ICE-complicit companies or organizations! 1 message
Aaron Reaven <[email protected]> Wed, Nov 19, 2025 at 4:23 PM To: "[email protected]" <[email protected]>
Dear Ava Board:

You MUST cut through the appearance of normality to perceive that any company or government agency that is cooperating with a truly police-state-like entity like ICE MUST be opposed and defunded. It is disgraceful for any person, organization or agency of government at any level to be complicit with an organization of goons. For people in the community, especially vulnerable immigrants or people of color, there is not even a way of knowing for sure if their kidnappers are Proud Boy goons dressed up in army surplus costumes, or authorized agents of ICE.

Even if they are the latter, they are violating laws and ethics with impunity. Not with our dollars, votes or voices.

Please terminate any contract with or compensation for entities that are collaborating with ICE agents.

Sincerely,
Aaron Reaven
11/19/25, 4:28 PM Ava Community Energy Mail - No Ava funding for ICE-complicit companies or organizations! https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849266755777301732&simpl=msg-f:1849266755777301732 1/1

Adrian Bankhead <[email protected]>
No contract with Deloitte
1 message
Kyoko Takayama <[email protected]> Wed, Nov 19, 2025 at 4:57 PM To: [email protected]
Cc: Alex DiGiorgio <[email protected]>
We should be united not to use any company working for ICE & DHS.

Thank you for understanding.

Respect, Empower, Include, Organize!
Kyoko Takayama
Community Organizer (she/her)
Alameda County Coalition for Fair Redistricting Facebook/Instagram/@alco4fairmaps All On The Line/OFA East Bay Central Facebook/@OFA_EBC
Indivisible Tri-Valley [email protected]
text/mobile: 925-290-7124
Connect with me through Instagram/Facebook/@Kyoko4US/@Kyoko4US.bsky.social 11/20/25, 12:27 PM Ava Community Energy Mail - No contract with Deloitte https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849268919310571555&simpl=msg-f:1849268919310571555 1/1

Adrian Bankhead <[email protected]>
Oakland Resident
1 message
ilm ilm <[email protected]> Wed, Nov 19, 2025 at 5:22 PM To: [email protected]
As an Oakland resident I would like to reduce my cost in heating and other utilities.It's very concerning that you are doing business with a company that is doing business with ICE.

While federal dollars are being cut to feed , families and put their health care in jeopardy.

If we continue to promote and support the behavior in directly or directly it sends a message to our community that we are out of touch or just don't care.

Our community has suffered and paid the price and continues to pay the price and the stakes get higher, while we watch how we pump money into the billionaires that are oppressing all of us.

Please do your homework make sure that you understand who you're doing businesand that.

It's not anyone that brings harm to our communities.

We hope you reconsider your vote tonight and pull the item.

Thank you,
Iris
Oakland Resident
94603
11/20/25, 12:29 PM Ava Community Energy Mail - Oakland Resident https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849270485999912147&simpl=msg-f:1849270485999912147 1/1

Adrian Bankhead <[email protected]>
Recommendation to NOT Hire Deloitte for a $560,000 contract 1 message
Susan Silber <[email protected]> Wed, Nov 19, 2025 at 5:24 PM Reply-To: [email protected]
To: [email protected]
Like the Community Advisory Committee, I am horrified that Ava Community Energy would hire Deloitte (item 11 on the agenda) because they also work for ICE:

Ava should not do business with companies known to be at the center of immigrant violence, family separation and "efficiency of detention centers." Deloitte's own workers have demanded the company cease contracts w/ ICE since the first Trump Admin
Instead, we recommend the agency hire the subcontractors who are rooted in the Bay Area and include a new lead applicant if they need that support.

Thank you,
Susan Silber
11/20/25, 12:30 PM Ava Community Energy Mail - Recommendation to NOT Hire Deloitte for a $560,000 contract https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849270628338236960&simpl=msg-f:1849270628338236960 1/1

Adrian Bankhead <[email protected]>
Agenda Item #11
1 message
Audrey Ichinose <[email protected]> Wed, Nov 19, 2025 at 5:28 PM To: [email protected]
Cc: Jessica Tovar <[email protected]>
Please note this submission, Adrian. Thank you!
November 19, 2025
To: Board of Directors, CAC members, and Staff, Ava Community Energy From: Audrey Ichinose, People’s Clean Power Alliance (PCPA) and the California Alliance for Community Energy (CACE)
Re: Agenda Item #11
As an early supporter of EBCE/now Ava, I am shocked that Ava would consider contracting with any entity in Deloitte’s loosely structured global network for any of its services, however “neutral” one considers an accountant or planner/manager to be.

Apart from DeLoitte’s purported association with services rendered to the Trump administration’s ICE operations, Ava Community Energy should for their accounting services simply on the basis of Ava’s founding intent. EBCE, and now Ava pledged to foster local development and the local economy. Are the local companies listed for contracting truly local? Are we opting for price and ease of subcontracting at the expense of developing truly local labor and small business? I think more discussion is in order before any contracts are signed.

Thank you.
11/20/25, 12:31 PM Ava Community Energy Mail - Agenda Item #11 https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849270881372882886&simpl=msg-f:1849270881372882886 1/1

Adrian Bankhead <[email protected]>
Deloitte choice from Ava
1 message
Jean Woo <[email protected]> Wed, Nov 19, 2025 at 7:53 PM To: [email protected]
Cc: Jessica Tovar <[email protected]>
This does appear to be a bad choice if Deloitte has ties with ICE and Homeland Security forces.

Were there no qualified local candidate companies that could do this work? Also there should be no additional charge for the basic general survey-that makes no sense. This should be a basic first step. Doing only focus groups one of which is Ava Community members does not seem to be a wise or broad approach.

Thanks,
Jean
Jean Woo
Ava customer
Albany Climate Action Coalition
CONFIDENTIALITY NOTICE:

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If you received this message by mistake, please contact the sender immediately. 11/20/25, 12:33 PM Ava Community Energy Mail - Deloitte choice from Ava https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849279967590025222&simpl=msg-f:1849279967590025222 1/1

Adrian Bankhead <[email protected]>
Public Comments from the Board of Directors Meeting
1 message
Susan Silber <[email protected]> Wed, Nov 19, 2025 at 9:16 PM Reply-To: [email protected]
To: [email protected]
Cc: JP Ross <[email protected]>
My name is Susan Silber and I am a resident of Berkeley, with the nonprofit organization Collective Resilience, and have been working for the past several years to support and develop resilience hubs here, including helping to write the case study about resilience hubs for Ava Community Energy. I am also a member of the People’s Clean Power Alliance.

As a leader in this field of resilience hubs, I want to emphasize that Ava Community Energy is one of the many governmental agencies, nonprofit organizations and who are ready to prioritize and invest in resilience hubs. The Alameda County Food Bank, StopWaste, Bay Area Climate Adaptation Network, Healthcare without Harm and mutual aid groups are just a few of the many organizations I have met or collaborated with around resilience hubs. I have made this request before and I would like to ask it again: please look at this initiative and your agency as part of a potential network that is supporting the development of resilience hubs. Clean energy is but one aspect of resilience hubs.

I personally believe that Ava Community Energy could and should lead the charge in asking a plethora of organizations, as well as private funders, to fund and support both the resilience hubs sites and the development of a network to support their capacity building, their infrastructure, their programming.

I also want to offer some other recommendations:

First, we ask that instead of your own definition of resilience hubs, that you honor the hard work of community partners with the one that they provided, which is focused not just on clean energy solutions but is more holistic and centers other community priorities as well.

As well, we ask that you develop an equity matrix to ensure that this program prioritizes frontline, and energy-burdened communities, rather than a first-come, first-serve model.

Lastly, based on the huge enthusiasm for resilience hubs, Ava Community Energy needs to provide much more funding assistance, accessible solar financing options and flexible funding for hubs of all sizes, including considering a community grants program which San Diego Community Power has successfully implemented.

Sincerely,
Susan Silber
11/20/25, 3:01 PM Ava Community Energy Mail - Public Comments from the Board of Directors Meeting https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849285210085794485&simpl=msg-f:1849285210085794485 1/1

Nov. 19, 2025
To: Ava Board of Directors, CAC members and Staff
From: Audrey Ichinose, People’s Clean Energy Alliance and the CA Alliance for Community Energy
RE: Resilence Hubs Program
The CAC’s discussion Monday night of Ava’s proposed SmartHome Battery and Resilience Hub Programs was very useful. Staff cannot be commended enough for regarding solar battery power as an unequivocal bright spot for Ava customers in this fractious time for clean energy progress.

Like PG&E, Ava has felt the financial burden of CA’s enthusiastic embrace of rooftop solar. But unlike PG&E, which seeks to suppress rooftop solar, Ava advances ways to make rooftop solar work for all its customers.

There is a part of the Resilience Hub proposal that needs deeper thought, however. It was exciting to hear about the work done so far by the Emerald Cities Collaborative. Nine candidate Resilience Hubs have been identified so far. These existing hubs provide many valuable services, but most, if not all, already have solar systems and can take advantage of the Battery incentive program. And only four are in Disadvantaged Communities.

But there is one--and potentially others in Ava service territory--that provides critical services and support to the community that has no rooftop solar at all. West Side Missionary Baptist Church near the West Oakland BART station offers safe overnight parking for people living out of their vehicles, the chance for a weekly shower, food distribution, and much more. The church is led by the Rev.

Ken Chambers, who incidentally was a member of Ava’s original Community Advisory Committee. West Side has not yet been able to secure for itself a solar system. It is in a DAC.

Can the Resilience Hub Program be modified to make it possible for an invaluable center like West Side to acquire a rooftop solar system so that it could benefit from the Battery Incentive Program? I’m sure that Ava’s resourceful and dedicated staff could come up with a viable solution.

Thank you very much.

Adrian Bankhead <[email protected]>
no to Deloitte
1 message
t_vandemark via Clerk of the Board <[email protected]> Thu, Nov 20, 2025 at 9:33 AM Reply-To: [email protected]
To: [email protected]
I am shocked you would recommend bringing in Deloitte. They are unaccountable to say the least.

Will big money always rule the game?
Tom Van Demark
Oakland
11/20/25, 3:03 PM Ava Community Energy Mail - no to Deloitte https://mail.google.com/mail/u/0/?ik=703fa6ea73&view=pt&search=all&permthid=thread-f:1849331599727914870&simpl=msg-f:1849331599727914870 1/1

Ava Community Energy Board of DirectorsNovember 19, 2025

Ava Community Energy Board of Directors
November 19, 2025