Staff Report Item 4
Staff Report Item 4
To: Ava Community Energy Authority Executive Committee
From: Kelly B Brezovec, Sr. Director, Account Services
Subject: Providing an informational item regarding the proposed 2026 value proposition options
Date: December 3, 2025
__________________________________________________________________ Summary/Recommendation
This item both informs the Executive Committee on the public comment period and invites feedback on the proposed updates to the 2026 Ava value proposition.
Analysis and Context
At the May 18, 2022 Board of Directors meeting the Board adopted an update to the Rate Setting Protocol. The protocol identifies a series of public meetings and public workshops required prior to an update to the value proposition, including a presentation to the Executive Committee.
Staff presented a schedule at the November 19, 2025 Board of Directors meeting, including a schedule for public comment.
Staff Report Item 4
Figure 1: Value Proposition Update Schedule, taken from the November 19, 2025, Ava Board of Directors meeting
Staff began sharing information about the public process via Ava’s website, email, and social media on November 20, following the Board of Directors meeting. The first public webinar was on November 25, 2025. Ten customers registered, though none of them attended. The video recording of the webinar will be posted to the website so the public can access the information and educate themselves on the proposed changes. Customers can then participate at a future meeting, such as the December 4, 2025 public webinar, share written comments, or provide comment at the Community Advisory Committee or the December 17, 2025 Board of Directors meeting. Public comments shared prior to December 8, 2025 will be included in the Board documents regarding the value proposition update at the December 17, 2025 meeting.
The public webinar materials are included in the attached presentation.
Attachments
A. Power Point Presentation (PPT)
2026 Value Proposition
Update Proposal:
Discussion and Review of
Public Materials
Executive Committee Meeting
December 3, 2026
Kelly Birdwell Brezovec
1 Attachment Staff Report Item 4A
Context
• As part of the Rate Setting Protocol, most recently updated in 2022, Staff will provide at least two public webinars and a set time period for the public to respond to a proposed change to the Ava value proposition
• The webinar is intended to allow for customers to provide public comment on the value proposition change
▪ The following slides were presented to the public on November 25 and will be presented again on December 4
▪ Comments are recorded and will be included in the Board item regarding the value proposition in December
▪ Webinars are recorded and posted to the Ava website
▪ The public may also provide written comment to Staff, due Monday, December 8. Comments are also included in Board item
2 Attachment Staff Report Item 4A
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 4A
January 2026
Ava Value Proposition:
Public Comment
Attachment Staff Report Item 4A
About Ava
5 Attachment Staff Report Item 4A
Public Meeting
Reminders
6 ● The video and audio from this meeting will be
posted on our website
● We will provide a brief introduction to the proposed
policy and then allow for your comments
● Everyone will be muted until the public comment
period
● Please be prepared to provide:
○ Your name
○ Organization, if applicable
○ City of residence or business location
○ Your comment
Thank you for participating in our public meeting!
Attachment Staff Report Item 4A
What is Ava Community Energy?
Ava Community Energy (Ava) is a local community choice
power supplier committed to providing Alameda County and the Cities of Lathrop, Stockton, and Tracy with clean, green electricity at competitive rates.
As a not-for-profit public agency, Ava reinvests revenue back into the community through local electrification programs, clean power projects, and community organizations.
7 Attachment Staff Report Item 4A
How It Works
Ava buys from, and is building,
clean power plants. Ava sells
the power to customers at
competitive rates.
8 1. Ava buys and generates
clean power
2. PG&E delivers the power
to homes and businesses
Ava’s power is delivered to
customers by PG&E.
Customers pay PG&E for
delivery as they always have.
3. Customers get the
power and local benefits
Customers benefit from
clean energy, local
governance, and innovative
programs.
Attachment Staff Report Item 4A
$174 million
Total customer savings
since 2018
$115 million
Reinvested in our
communities since 2018
through programs:
● Local infrastructure
● Programs
● Local sponsorships
● Community grants
● Local vendor spending
Ava Customer Savings and Value
$40 million
Paid for local generation,
driving economic
development, local union
jobs, and tax revenue:
● Scott Haggerty Wind
Energy Center
● Kola Battery Storage
System
Attachment Staff Report Item 4A
Definitions
10 Attachment Staff Report Item 4A
Current Service Plan Options
62% eligible renewable
energy priced at 5% below
PG&E rates.
11 Bright Choice Renewable 100
100% renewable energy
priced at 1/4 cent per kWh
above PG&E rates
vs.
PG&E
23%
renewable
Renewable:
■ Wind
■ Solar
■ Biomass & Biowaste, Eligible
Hydroelectric, Geothermal
Other:
■ Hydro
■ Nuclear
■ Other or Unspecified
Figures reflect our actual power mix from 2024 (most recently published). Power mixes are published annually each summer for the preceding year.
Attachment Staff Report Item 4A
Default Service Plan
12 Jurisdiction Residential Commercial CARE/FERA/
Medical Baseline
Albany, Berkeley, Dublin, Emeryville,
Hayward, Pleasanton, San Leandro Renewable 100 Renewable 100 Bright Choice Piedmont Renewable 100 Bright Choice Bright Choice
Lathrop, Livermore, Newark, Oakland,
Stockton, Tracy, Union City, and
Unincorporated Alameda County
Bright Choice Bright Choice Bright Choice
Fremont Renewable 100
Bright Choice
In August 2026:
Renewable 100
Bright Choice
Attachment Staff Report Item 4A
Rates and Value Proposition
Rates
● What Ava charges customers for electricity,
currently updated when PG&E changes their
generation rates or fees
(Rate) Value proposition
● The cost comparison to PG&E rates based on
Ava product
○ Ava brings additional value to our
community. This is only about the direct
financial value to our customers.
13 Ava has saved
customers over $174
million since 2018
through lower rates and
bill credits
Attachment Staff Report Item 4A
PCIA
Power Charge Indifference
Adjustment (PCIA): A per kilowatt-hour fee that PG&E assesses to a customer that allows PG&E to
recuperate costs for long-term above-market costs electricity generation contracts.
● Ava’s value proposition includes
the PCIA, since it is added as line
item on the PG&E page of the bill.
14 Total Rate
Attachment Staff Report Item 4A
2026 Context and Proposal
15 Attachment Staff Report Item 4A
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 delivery 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%
16 Attachment Staff Report Item 4A
2026 Value Proposition Proposals
● Historically, when rates are high, Ava’s Bright Choice discount has increased. When rates are low, the discount has decreased. ● 2026 rates are forecast to be 40–50% lower than 2025
○ 30% lower for customers, when PCIA is included
● Staff seeks to maintain a balanced budget for the agency through an updated value proposition, among other budget actions
● At the November Board meeting, staff recommended Option 1 17 Bright Choice Generation Rate
Discount to PG&E
Renewable 100 Generation Rate
Premium to PG&E, per kWh
Option 1 1% 1.25¢
Option 2 0% 1.5¢
Attachment Staff Report Item 4A
Sample Residential Customer Ava Bill
18 2025 Rates 2026 Proposed Rates
Bright Choice
discount: 5%
R100 premium:
0.25¢/kWh
Bright Choice
discount: 0%
R100 premium:
1.5¢/kWh
Percent
Difference from
2025 Rates
Bright Choice
discount: 1%
R100 premium:
1.25¢/kWh
Percent
Difference from
2025 Rates
Average Residential
Bright Choice
Generation Cost
$50 $35 -29% $35 -30%
Average Residential
Renewable 100
Generation Cost
$53 $41 -24% $40 -25%
Based on an average residential (ETOU-C) customer using 350 kWh per month Renewable 100 in 2026 is approximately 20% lower than Bright Choice in 2025.
Attachment Staff Report Item 4A
Value Proposition Proposals vs. 2025 Rates
Including this slide for the Executive Committee to highlight rate differences, in addition to bill differences
19 Average 2025
residential rate
(¢/kWh)
Proposed for 2026
BC discount: 0%
R100 premium: 1.5¢
BC discount: 1%
R100 premium: 1.25¢
BC discount: 0.5%
R100 premium: 1.5¢
Bright Choice
avg residential rate
(¢/kWh)
14.2 10.1 10.0 10.1
Renewable 100
avg residential rate
(¢/kWh)
15.2 11.6 11.4 11.6
BC % decrease
vs. avg 2025 rate - 29% 29% 29%
R100 % decrease
vs. avg 2025 rate - 24% 25% 24%
Added for Executive Committee
Attachment Staff Report Item 4A
Ava Value Proposition History
20 Historically, the value
proposition has been
inversely related to rates
● Relatively high rates
are correlated with an
ability to offer a
higher discount
● Lower rates typically
mean a lower
discount
Attachment Staff Report Item 4A
Public Comment Period
21 Attachment Staff Report Item 4A
Please note:
• Everyone on the call will see what you type into the chat box. • We will call on each speaker in the order we received the chat, we’ll then disable the mute feature for each speaker.
• Please be conscientious of the time. Every speaker will be allowed three minutes.
• This webinar is being recorded and will be posted to our website.
How to
Participate
Instructions
1. Click on the “Q&A” bubble to start
2. Enter your name, city, and organization into the text box
3. Click the "Send" button to Submit your request for comment 22 Attachment Staff Report Item 4A
Thank You for Participating
Ava staff’s next steps:
● Post this webinar, including the audio recording of your comments, on our website at:
AvaEnergy.org/your-energy-options/plans-and-rates/rates ● Summarize all public comments in the staff report to Board ● Present summary and value proposition recommendation
at Board of Directors meeting on December 17th, 2025 as part of the update to next year's budget.
Additional comment opportunities:
● Written comments may be emailed to:
[email protected]
23 All comments are due by
Monday, December 8th,
2025 at 8:00 AM
Attachment Staff Report Item 4A
24 3 Minute Countdown timer (Minimal)
This is a 3 minutes countdown timer with no extra stuff, suitable for professional use. 3-Minute Public
Comment Timer
Attachment Staff Report Item 4A
Online
Phone
Email
Social
AvaEnergy.org
833-699-3223
[email protected]
PoweredWithAva
Online
Phone
Email
Social
Comments Welcome at:
[email protected]
25 Thank you!
Attachment Staff Report Item 4A
Next Steps • Staff will compile comments on the
proposed value proposition from
▪ Executive Committee meeting,
▪ Comments made during webinars, and
▪ Written public comments received via email
through Monday, December 8
• Comments will be included in the staff report
for the December Board of Directors
regarding the value proposition and 2026
budget management
26 Attachment Staff Report Item 4A
Measures to Consider for 2026 Budget Management
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 $211.2MM
Reduce REC procurement $4-12MM $215.2MM to
$223.2MM
• As presented at the 11/19 board meeting, the projected deficit for July 2025 through Dec 2026 is ($247MM) • Additional measures and scenarios to offset the deficit will be presented at the 12/17 board meeting for discussion & action. Adjustments to the value proposition will be included in this board item.
Attachment Staff Report Item 4A
Adjustments to Value Proposition
Service Plan Start Service
2018
July 2020 July 2022 July 2023 -
Current
Bright Choice % below PG&E 1.5% 1% 3% 5%
Renewable 100 Premium 1¢ 0.75¢ 0.25¢
Ava has updated the value proposition three times. Bright Choice was at a 1% savings 2020-2022 years.
Generation
Rate Discount
to PG&E
2026 Revenue
Contribution - Bright
Choice ($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 4A
29 Attachment Staff Report Item 4A