Staff Report Item 15
Staff Report Item 15
To: Ava Community Energy Authority
From: Kelly Brezovec, Sr. Director, Account Services
Subject:
Approve Resolution of the Board of Directors of Ava Community Energy Authority Authorizing On-Bill Credit Allocation of OA Portion of Surplus Revenue from Fiscal Year 2024-2025
Date: December 17, 2025
__________________________________________________________________ Summary/Recommendation
Staff requests that the Board adopt a Resolution regarding proposed Fiscal Year 2024-2025 surplus revenue bill credit methodology based on the 2024-2025 Fiscal Year Budget and the Waterfall Allocations of Surplus Revenues Resolution.
The allocation of surplus revenues from the 2024-2025 fiscal year budget, originally set forth by Resolution R-2024-42, was amended at the September 17, 2025 Board of Directors meeting to allow 90% of the surplus net revenues of the 2024-2025 fiscal year budget actuals as determined by the annual audit to be allocated to the Rate Stabilization Fund, and 10% to on-bill credits for California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) customers to be distributed in the 2025-2026 fiscal year. The 2025 Amendment to the 2024 Resolution, R-2025-42, is attached to this memo for reference.
Based on the FY2024-2025 audit, $13,041,710 is available for CARE/FERA customer bill credits. The CARE/FERA credit will be applied to bills starting in January 2026 and begin appearing on bills later that month and into February 2026.
Staff recommend providing the same credit amount, approximately $80, to all active Ava CARE or FERA customers in order to provide meaningful bill relief to Ava’s lower-income customers.
Financial Impact
Allocation of surplus funds from fiscal year 2024-25 was approved by the Board in September 2025. The financial impact on customer bills is discussed below in the Analysis section.
Staff Report Item 15
Analysis and Context
Staff explored two options for how to distribute funds across CARE/FERA customers, methodologies Option A and Option B. Option A: Share the total available amount equally among all eligible customers. Option B: Since customers in Stockton and Lathrop received Ava generation service for only the final three months of the 2024-2025 fiscal year, customers in these communities receive a prorated amount.
A. All customers receive the same amount of credit. ($80) B. Stockton and Lathrop will receive ¼ of the credit ($25) that the other communities receive ($100).
In either scenario, the customer must be an active Ava customer to receive the bill credit; Ava will not apply credits to inactive accounts. Note that the actual credit amount will be determined based on the total eligible customer count prior to application of bill credits.
Key Considerations
1) Historic context: in January 2025, CARE/FERA customers received $100 credits, in November 2023 and August 2022, CARE/FERA customers received $50 credits. A full bill credit history is available in this Board memo from November 2024. 2) Equitable allocation of budget surplus across member cities vs an even distribution across all lower income CARE/FERA customers.
3) The number of months of service is not necessarily the most relevant metric. • Customers pay different amounts to Ava based on their PCIA vintage, usage, and bill amount. Therefore, contributions to the surplus also differ. • For example, April to June 2025, the average CARE customer Ava bill was $100 for customers in Stockton and Lathrop and $50 for other Ava customers. The average CARE customer in Stockon and Lathrop used 580 kilowatt-hours per month, compared to 370 kWh by the rest of Ava communities.
Attachments
A. Resolution on On-Bill Credit Allocation of Surplus Revenue from Fiscal Year 2024-2025 B. Resolution R-2025-42
C. PowerPoint
Attachment Staff Report Item 15A
RESOLUTION NO. R-2025-XX
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING ON-BILL
CREDIT ALLOCATION OF A PORTION 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 a Net Billing Tariff incentives program; and 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; and WHEREAS, staff have completed the financial audit for Fiscal Year 2024-2025, and the Board has approved the audit results; and
WHEREAS, approximately $13 million is available for on-bill credits for CARE/FERA customers, which will be shared through a one-time credit on their Ava bill.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Authorize Staff to apply credits based on a portion of surplus revenue from Fiscal Year 2024-2025 to customer bills with an equal allocation to all active CARE/FERA customers.
ADOPTED AND APPROVED this 17th day of December 2025.
Attachment Staff Report Item 15A
Betsy Andersen, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board
Attachment Staff Report Item 11A
RESOLUTION NO. R-2025-42
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY APPROVING AN ALLOCATION OF NET
REVENUES TO THE RATE STABILIZATION FUND
WHEREAS
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 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 currently maintains a Rate Stabilization Fund (RSF), which allows for the accrual and deferral of excess revenue, identified as budget surplus revenues, to be recognized in successive periods to offset uncontrolled cost variations and preserve positive net position for Ava by mechanisms of accounting governed under the Governmental Accounting Standards Board (GASB).
WHEREAS the RSF
and is used for short-term budget cycle liquidity challenges and other financial matters necessary for maintaining budget stability year-to-year.
WHEREAS the 2025-26 fiscal year (FY) budget approved by the Board of requires amending the allocation of net revenues from FY 2024-25 to allow for a contribution to meet approved expenses as set forth by resolution R-2025-23.
WHEREAS the FY 2024-25 net revenues are forecasted to be near $107 million.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The allocation of surplus revenues from the 2024-2025 fiscal year budget, originally set forth by resolution R-2024-42, is hereby amended to allow 90% of the surplus net revenues of the 2024-2025 fiscal year budget actuals as determined by the annual audit to be allocated to the RSF, and 10% to on-bill credits for CARE/FERA rate-payers to be distributed in the 2025-2026 fiscal year.
Attachment Staff Report Item 15B
Attachment Staff Report Item 11A
ADOPTED AND APPROVED this 17th day of September, 2025.
Betsy Andersen, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board
Attachment Staff Report Item 15B
FY 2024-2025 CARE/FERA
Credit
Kelly Birdwell Brezovec | December 17, 2025
Attachment Staff Report Item 15C
Recommendation: Staff recommend providing the same credit amount, approximately $80, to all active Ava CARE or FERA customers to help provide meaningful bill relief to Ava's lower-income customers.
Executive Summary
2024-2025 fiscal year budget surplus allocation:
● 90% of the surplus net revenues to be allocated to the Rate Stabilization Fund ● 10% to on-bill credits for CARE/FERA customers ($13,041,710) 2 Attachment Staff Report Item 15C
Analysis & Context
Staff explored two options for how to distribute funds across CARE/FERA customers:
3 Option A
Note: The customer must be an active Ava customer to receive the bill credit. Final credit amount depends on the total CARE/FERA customer count at the time credits are applied All customers receive the same
amount of credit. ($80)
Stockton and Lathrop will
receive ¼ of the credit ($25)
that the other communities
receive ($100)
Option A Option B
Attachment Staff Report Item 15C
Key Considerations to Staff Recommendation of a single bill credit amount to all CARE/FERA customers
• Historic context: in January 2025, CARE/FERA customers received $100 credits, in November 2023 and August 2022, CARE/FERA customers received $50 credits. • How to provide an equitable allocation of budget surplus across member cities vs. an even distribution across all lower income CARE/FERA customers • The number of months of service is not necessarily the most relevant metric. ▪ Customers pay different amounts to Ava based on their PCIA vintage, usage, and bill amount, resulting in different contributions to the surplus ▪ The average CARE customer in Stockton and Lathrop used 580 kilowatt-hours per month, compared to 370 kWh by the rest of Ava communities. ▪ In April to June 2025, the average CARE customer Ava bill was $100 for customers in Stockton and Lathrop and $50 for other Ava customers. 4 Attachment Staff Report Item 15C
• Staff Recommendation: $80 credit to all CARE/FERA customers ▪ Alternative: $25 credit to Stockton/Lathrop CARE/FERA customers, $100 credit to remaining CARE/FERA customers
• Credits will be applied to bills in January – February 2026 Options and Next Steps
5 Attachment Staff Report Item 15C
Attachment Staff Report Item 15C