Staff Report Item 9
Staff Report Item 9
To: Ava Community Energy Authority Board of Directors
From: Howard Chang, CEO
Subject: Draft Budget Review for Fiscal Year 2026-2027
Date: 5/20/2026
__________________________________________________________________ Summary/Recommendation
Receive, review, and provide feedback on the Draft Budget for the next fiscal year.
Financial Impact
This is an informational item
Analysis and Context
Ava’s fiscal years (FY) runs from July 1st through June 30th. Staff is presenting a draft version of next fiscal year’s budget for the Board of Directors (the “Board”) to review and provide feedback.
The attached presentation fills out the complete details on staff’s best estimates and provides key discussion points.
Committee Recommendation
This item has been before the Executive Committee on May 6, 2026. Although this meeting was inquorate, any questions regarding clarification of certain details have been addressed in this presentation.
Attachments
A. Appendix A: Draft Budget FY 2026-2027 1-Pager
B. Draft Budget FY 2026-2027 presentation
Staff Report Item 9
APPENDIX A: Draft Budget FY 2026-2027 1-Pager
Fiscal Year 2026-2027
Draft Budget
Howard Chang, CEO | May 20, 2026
Attachment Staff Report Item 9B
Introduction
2 • Every year in June, Ava Board of Directors (the “Board”) approves the following fiscal year’s budget • This draft budget was reviewed by an ad hoc group of the Ex Comm on 5/6 and will be further reviewed by FAP (5/27) and Ex Comm (6/3) with approval scheduled for the meeting on June 17th. • The Budget covers the overall categories of the General Operating Fund:
▪ Revenues from Operations
▪ Energy Operating Expenses (typically 90%+ of total expenses) ▪ Services to Facilitate Energy Operations
▪ Operational Overhead to Energy Operations
▪ Non-Operating Revenues
▪ Non-Operating Expenses, including a Capital Transfer to the Local Development Fund • PG&E issued an updated ERRA filing on May 15 that materially altered the forecast in this presentation and was updated on 5/20, after the first review by ExComm ▪ Staff may consider delaying the first review of the budget draft to post May ERRA filing in future years Attachment Staff Report Item 9B
Current Fiscal Year 2025-2026 Performance
• Details on “Actuals” are settlements through March and updated projections through June.
• Revenue is expected to settle above budget due to Board action on value proposition in December.
▪ Other Operating Revenue is primarily fees and damages to Ava on energy contracts
• Cost of energy is coming in below expectations as
market prices softened and higher than expected large
hydro generation
• Total overhead is currently estimated at $6.5MM below budget due to opex reductions
• Non-operating activity is higher than expected as interest rates remain higher-for-longer and with the reduction of Local Development contributions
▪ Borrowing interest expenses have been moved to General & Administrative overhead due to accounting treatment
changes
• Overall Net Revenues are expected to come in at $83MM above estimates without using $35MM budgeted GASB
62 funds.
3 Attachment Staff Report Item 9B
Fiscal Year 2026-2027 Draft Budget
4 Attachment Staff Report Item 9B
Draft Budget Fiscal Year 2026-2027
• Revenues: Energy prices continue to soften, and with the resolution of Track 1 Ava’s effective PCIA is lowering while PG&E’s rates are increasing due to persistent costs in their portfolio
• Cost of Energy: Lower energy prices reduce open position costs
• Overhead: Increase in G&A is predominantly due to
increased rent, a change in accounting treatment of credit facility fees, and increasing software costs
• Non-Operating Activity: Higher interest income and lower borrowing interest due to a change in accounting
treatment of credit facility. No incremental contributions to Local Development Funding in fiscal year 2026-2 with
current fund balance at $83.6MM
5 Expanded budget view shown in appendix
Attachment Staff Report Item 9B
Draft Budget: Forecast Uncertainty
• May 15, 2026 ERRA filing provided a year-to-date update on a subset of the underlying assumptions that generate the PCIA and rates, but did not provide updated MPBs. Assumptions require additional diligence and validation. This is separate from potential changes that may come from the General Rate Case (GRC) • PCIA Tracks 2 and 3 may have material impacts on PCIA and rate setting methodologies. Track 3 scope and timing presents the greatest uncertainty. 3 pre-scoping workshops have been scheduled for June. • Load forecast uncertainty:
▪ Weather conditions present the greatest impact on actualized load volume and shape ▪ With the addition of SJC, estimates will become more accurate as Ava receives more data beyond initial enrollment ▪ Longer-term: data center and electrification presents significant uncertainty as well • New power generation project online dates may be delayed or moved forward impacting power portfolio expenses
• Energy prices are highly volatile and currently softening in response to a mild winter, accelerated melting snowpack, and new energy capacity coming online.
▪ While forecasted summer prices are softening, actuals may vary greatly based on temperatures and demand • Opaque portfolios with the IOU could lead to materially different MPBs in the October ERRA filing • Interest rates and macroeconomic environment may change 6 Attachment Staff Report Item 9B
May ERRA Addendum Filings
• The May 15 ERRA filing consists of the filing documents and the series of datasets called the “Working Papers”
▪ The filing and working papers can be accessed through the PG&E Azure website here:
https://pgera.azurewebsites.net/Regulation/search
• Select the “ERRA 2027 PGE – Forecase [A.25-05-007]” case from the dropdown menu and click search to see all documents available for download
• Staff is still processing the working papers with consultants to get better color on the details
7 • What is known:
• 2025 RA PCIA reform is in place at a steady state for 2027 • Load appears to be materially lower for PG&E due to milder than expected weather to date and community load departure
• PG&E's revenue requirements remain stable despite the reduction in load, increasing generation rates • What is not known from the ERRA:
• Direction on MPB settlement for all attributes
• A significant portion of the filing is redacted due to market sensitive confidential information and our 3rd party consultant has access to this information, which may be shared on a very limited basis • There were some known errors/inconsistencies that are in the process of being validated and reconciled Attachment Staff Report Item 9B
PCIA & Operating Headroom
8 • Ava’s generation rates to customers are indexed to PG&E’s generation rate • A portion of the generation cost is a charge from PG&E for the Power Charge Indifference Adjustment (PCIA) • The PCIA is how PG&E recovers "stranded costs or credits" for legacy generation resources • PCIA rates are based on an annual mark-to-market
• For Energy, Resource Adequacy (RA), and Renewable Portfolio Standard (RPS) resources, the mark-to-market is against "Market Price Benchmarks" (MPBs)
• Forecasts for MPBs are presented by the Investor-Owned Utilities (IOUs) in May and then updated in October to establish the following year’s rates
• PCIA and rates are "trued up" from forecast to actual, and any over-collection or under-collection is recovered in rates the following year.
• Higher MPBs --> higher rates and lower PCIA = more operating headroom for Ava • Lower MPBs --> lower rates and higher PCIA = less operating headroom for Ava Portfolio
Costs
Portfolio
Value*
Stranded
Costs/credit
*Value calculated using “Market
Price Benchmarks” (MPBs)
Attachment Staff Report Item 9B
PCIA Proceeding & Risk Elements
The CPUC has an ongoing proceeding regarding the PCIA, divided into "Tracks". o Track 1
o CalCCA has appealed CPUC Track 1 decision; appeal is pending o Revised the MPB for RA retroactive through 2025
o Major driver for the much higher PCIA most Ava customers see in 2026 versus 2025 o Track 2
o Proceeding is ongoing; decision expected in time for inclusion in 2027 rates o The CPUC is reviewing the methodology for valuing RECs that PG&E "banked" prior to 2019 but did not actually use for compliance purposes until 2025. An interim methodology values those RECs at $0. This increases the PCIA for most Ava customers versus what the PCIA would be if those RECs were valued at the current market price for RECs
o Outcome indeterminate; CalCCA proposal would use current market prices for REC value, and lower the PCIA for most Ava customers versus status quo; PG&E proposal would make the status quo interim methodology permanent o Track 3
o Scope and timing undetermined
▪ CCAs propose to address reviewing the Track One revisions to MPBs; aligning the RA MPB with the RA Slice of Day framework; revintaging of PCIA resources; PCIA GHG-free methodology; and potentially other structural changes to the PCIA ▪ IOUs propose to prioritize changes to RPS MPBs ahead of any other issues, with changes to the brown power MPB next o Outcome indeterminate; CCA approach would likely reduce PCIA for most Ava customers if adopted while the IOU approach would likely raise the PCIA for most Ava customers if adopted 9 Attachment Staff Report Item 9B
Electricity Product Load & Rates
• Renewable 100:
• Originally set at $0.01/kWh above PG&E and has migrated down as Ava financials improved • Currently priced at $0.0175/kWh above PG&E rates
• Bright Choice:
• Originally set at 1.5% discount to PG&E, reduced to a 1% discount in 2021,increased to a 3% discount in 2022, increased to 5% discount to PG&E rates in 2023. Latest adjustment was to 0.5% discount to PG&E in January of 2026
• The percent load of Bright Choice customers is estimated at ~66% for FY 2027 10 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2023 2024 2025 2026 2027
BC%
Retail MWh
Bright Choice as Percent of Retail Load by Fiscal Year
BC-Res BC-C&I R100-Res R100-C&I BC%
• Growth in Bright Choice in FY 2026 is
due to unincorporated SJC
• Growth in Renewable 100 in FY 2027
is due to Fremont opt up
• Annual load and load shape can
vary materially year to year and
between budget to actuals due to
weather, individual customer usage,
and expansion to new territories
Attachment Staff Report Item 9B
Brown Power Energy Price Volatility
11 • Brown power prices are set by a number of
factors impacting supply and demand, such
weather, natural gas prices, system capacity,
transmission congestion, etc.
• Volatility is high due to these uncertain and
changing factors year to year
• Customer rates (generation and PCIA) are set
based on a forecast while also incorporating a
true up of the prior year's forecasted market
prices with actualized prices
• 2026 rates were set by and 2026 forecasted
prices and truing up 2025 actualized prices.
2027 rates will be set by 2027 forecasted
prices and truing up 2026 actualized prices.
Attachment Staff Report Item 9B
12 Market Price Benchmark Trends 2020-2027
• Forecast MPBs used to develop PCIA and generation rates are calculated in Sept each year:
o Energy: Avg forward price during Sept for delivery the following year o REC: Avg executed contract price in the past 15 months for delivery in following year
o RA: Avg executed contract price in the past 3 years for delivery the following year
• Forecasted vs. Final MPBs vary significantly, reflecting year to year market volatility
• RA MPB in 2025 reflects regulatory changes, no future PCIA reform is assumed in forecasts
• "Final" numbers in 2026 reflect actuals through March and updated forecast as of April
RA Market Price Benchmark
Brown Power Market Price Benchmark
RPS Adder
Attachment Staff Report Item 9B
13 Expected Market Environment & Impact to Gen Rates &
PCIA • Rates increased and PCIA decreased from 2021 to 2025, driven by historic increases in market energy prices • Since then, energy costs softened, setting PCIA higher and rates lower in 2026, in addition to substantive PCIA reform
• Lower prices are expected to continue through 2026 and we are forecasting a modest increase to generation rates and a lower PCIA in 2027, though rates remain stable ▪ Between calendar year 2025 and 2026, customer rates dropped 20%, and between 2026 and 2027 Ava is estimating rates will increase 5.6% (inclusive of PCIA)
▪ Between fiscal year 2025 and 2026, customer rates dropped 2%, and between 2026 and 2027, rates are expected to drop another 10%
13 0.081 0.080 0.066
0.113
0.137 0.141 0.139
0.085 0.101
0.029 0.032 0.043
0.024
0.004 0.010 0.004
0.033
0.025
0.016 0.016
0.003
0.022
0.038 0.035
0.025
-0.011
0.001
-0.04
-0.02
0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
0.16 2019 2020 2021 2022 2023 2024 2025 2026 2027-Base
$/kWh
Calendar Year
Customer Rate Revenue Profile
Ava Average Rates PCIA Fees Operating Expenses Margin
0.078 0.082 0.072 0.083
0.132 0.145 0.129
0.114
0.091
0.026 0.030 0.038
0.037
0.012
0.006
0.006
0.019
0.029
0.017 0.018
0.008 0.011
0.029
0.039
0.016 0.014
0.002 -0.02
0 0.02
0.04 0.06
0.08 0.1
0.12 0.14
0.16 2019 2020 2021 2022 2023 2024 2025 2026 2027-Base
$/kWh
Fiscal Year
Customer Rate Revenue Profile
Ava Average Rates PCIA Fees Operating Expenses Margin
Attachment Staff Report Item 9B
Draft Budget: Revenues
• Revenues from sales of electricity are expected increase as PG&E is expected to raise rates and PCIA is expected to decrease from previous year’s budget
• Value proposition remains unchanged at 0.5% discount to PG&E for Bright Choice and a $0.0175 premium on Renewable 100 products
• Estimated bad debt slightly increased from 1.0% to 1.25% of billings based on rising trends and getting ahead of possible inflation increases due to oil market volatility • Recognition of GASB 62 deferred revenue is not from the Rate Stabilization Fund but is half of the amount deferred from resolution R-2024-26, which allocated $10,504,837 to local, incremental generation and capacity from the 2023 RFO for projects starting in 2027 14 Attachment Staff Report Item 9B
Draft Budget: Base Case Revenue Assumptions
• Base Case Assumptions have MPB’s for calendar year 2026 down to align with market actuals and forwards year to date
• Forward looking prices in cost of energy reflect market price assumptions • In addition to MPB assumptions, revenue requirement inputs directly from PG&E are critical in determining generation rates
o In May ERRA filing, PG&E's revenue requirement stayed relatively flat despite declining load in 2027, which needs further diligence
15 Attachment Staff Report Item 9B
FY 2026-2027 Scenarios & Sensitivities
16 Ava looked at possible alternative MPB/revenue scenarios —High-End and Low-End • High-end: calendar year 2026 prices end up as current MPB forecasts from May ERRA filings, which are unchanged from the October ERRA filing
• Low-end: calendar year 2026 prices are one standard deviation down from current forward averages for brown power and Ava’s base case RPS and RA estimates Base Case Low End High End
Revenues 810,783,000 741,506,000 900,593,000
Cost of Energy 770,723,000 751,537,000 843,483,000
Overhead 53,561,000 53,561,000 53,561,000
Net Non-Op 24,655,000 20,353,000 23,684,000
Net Revenues 11,154,000 (43,239,000) 27,233,000
MPBs 2026 2027 2026 2027 2026 2027
Power 34.05 42.66 23.70 33.28 40.90 47.61
RPS 40.00 25.00 40.00 25.00 62.45 62.45
RA 9.42 9.67 9.42 9.67 11.53 11.53
Base Case Low End High End
Attachment Staff Report Item 9B
Draft Budget: Overview of Operating Expenses
17 Expenses are divided into three overall cost center
categories:
• Energy Operations which includes all energy, energy
attributes, ancillary related costs and required
management services such as scheduling, data
management, and customer billing
• This category comprises 93.5% of Ava’s total
operating expenses
• Overhead Operations which includes all personnel
and staffing needs as well as work function cost
centers required to manage the organization at large,
and is about 6.5% of total operating expenses
• Non-Operating Expenses which are all capital and
capital transfer related costs, including Local
Development Fund contributions. This category is
presented and discussed in a later slide
Attachment Staff Report Item 9B
Draft Budget: Energy Operations
18 Energy Costs
• Costs are generally derived from a blend
of contracted and open position for all
energy attributes
▪ Currently, renewables, carbon free, and RA
are fully procured
▪ Open prices are non-stressed, mean
forecasted
▪ Material increase in PPAs due to reduced
revenue expectations from lower market
prices
PPAs Hedges Open Resource
Adequacy
RECs Carbon Free Transaction
Costs
Other
Fiscal Year Cost of Energy Budget by Attribute
2022 2023 2024 2025 2026 2027
Attachment Staff Report Item 9B
Draft Budget: Renewable & Large Hydro Content
19 • In April 2022, the Board approved the “Path to
Zero by 2030” plan for the Bright Choice
product, as shown in the table to the left
• Periodically, the Board has approved adjusting
targets to fit Ava’s financial position, typically
raising targets
• In December 2025, the Board approved a
compliance period approach across multiple
years instead of single year targets specifically
This table shows where Ava currently stands
with procurement relative to the compliance
period, and annual, targets
Year Renewables Lg. Hydro Total Renewables Lg. Hydro Total Long/Short 2024 52.0% 29.0% 81.0% 62.0% 33.7% 95.6% 14.6%
2025 56.0% 25.0% 81.0% 56.5% 37.6% 94.1% 13.1%
2026 55.6% 21.0% 76.6% 54.7% 18.0% 72.7% -3.9%
2027 64.0% 21.0% 85.0% 58.4% 12.3% 70.8% -14.3%
Period* 57.3% 23.7% 80.9% 57.9% 25.4% 83.3% 2.4%
* Load Weighted
Annual Targets Actuals/Forecast
Attachment Staff Report Item 9B
Draft Budget: Fiscal Year Personnel Details
• FY 2026 Budget was set for 7 additional FTE (105 total) to build more depth and to continue addressing increased workflow in key areas to help scale operations further. ▪ Ava is not filling 2 roles bringing the forecasted end of FY 2026 FTE to 103. • FY 2027 Budget seeks to add 5 FTE (108 total) to provide added expertise and support in key areas and help to meet essential business needs.
▪ 1) Contract Management Analyst 2) Finance Manager / Staff Accountant 3) Contract / Settlements Analyst ▪ 4) Optimization Software Engineer 5) Data Analyst
• Compensation Adjustments:
▪ COLA: 3%; Promotions/Wage Adjustments: 3%; AIP Compensation: 12% ▪ Accounting for increased healthcare premiums and associated benefit costs (realized and expected) • Change to benefits reflects some recategorization of expenses from Salaries & Wages to Health Care/Benefits 20 Attachment Staff Report Item 9B
Public Hearing - AB 2561: Ava FY 25-26 YTD
21 FY 2025 - 2026 Budgeted Headcount
Total Active FTE
Budgeted 105
New FTE Budgeted 7
New FTE Filled to date 5
Average Time to Hire 67 Days
Vacancy Rate 29%
Retention Rate 95%
Average Turnover Rate 5%
*For recruitment, only new budgeted positions are included. This does not account for other roles, like backfill positions.
*Reporting Period: FY 25-26; July ‘25 - April ‘26 (YTD at time of report) *Average Time to Hire: Days from role posted to start date. *FTE: Full-time employee; YTD: Year-to-date
Ava has a strong retention rate of 95%, with only 5
terminations so far this year.
Hiring Decision: Ava elected not to fill 2 positions this FY, bringing the total budgeted FTE down to 103.
Challenges faced in hiring:
• Finding a great fit can take time, but it’s worth it. ▪ We are prudent in our hiring process, strategically
planning the timing of hiring, carefully considering all aspects of the role and desired impact.
• Competition for talent is high, especially in the Bay Area What helps us overcome challenges?
• A strategic and robust hiring approach
• Ava is mission-driven & a certified Great Place to Work! This slide and data presented ensure compliance to AB 2561, which requires local public agencies to present the status of vacancies and recruitment and retention efforts at a public hearing before the governing board of the local agency at least once per fiscal year.
Attachment Staff Report Item 9B
Draft Budget: Marketing & Communications
22 FY 2027 Summary of Adjustments:
• Continued notifications to unincorporated San Joaquin County solar customers • Customer mailings for Fremont commercial Renewable 100 transition • Investment to a brand awareness strategy and launch phase one of a multi-year awareness initiative • Investment in sponsorships, fellow, partners to activate more robust community engagement Attachment Staff Report Item 9B
Draft Budget: Legal, Policy, & Regulatory Affairs
23 FY 2027 Summary of Adjustments
Legal:
• Litigation counsel: funding to cover active litigation; litigation readiness; other potential disputes
• Commercial counsel: all procurement activities other than power resources • Software and implementation: Legal research resources; contract platform Phase 3 rollout Policy and Regulatory Affairs
• Federal and state lobbyists
• Consultants for compliance and CAISO matters
• Potential AI services
Attachment Staff Report Item 9B
Draft Budget: Professional Services
24 FY 2027 Summary of Adjustments:
• Technology Consultants: Expanding operations requires additional engineering and CRM structure and design support
• Other Services: Primarily reflects temporary consultants and contractors, which was recategorized and consolidated this year
Attachment Staff Report Item 9B
Draft Budget: General & Administrative
25 FY 2027 Summary of Adjustments:
• Operational Expenses: Increase is primarily due
to accounting change for fees with line of credit
• Memberships Dues & Sponsorships: Costs
associated with JPAs, trade associations, and
industry associations (CalCCA, CCCFA, CCPower,
CFEE, Veloz, etc.)
• Software & Subscriptions: Increases to cover
additional software needs for IT, Power Resources,
and EAS data and increased cyber security needs
• Rent & Utilities: Increase due to initation of
primary lease agreement from a sub-lease
agreement and no longer receiving TI related
allowance
• HR & Recruiting: Some increase in recruiting costs
for placing temporary consultants
• Board & Director Fees: These are reduced to more
closely align with Board practices of requesting
stipends
Attachment Staff Report Item 9B
Draft Budget: Non-Operating Activity
26 Non-Operating Revenue
• Interest Income: Reflects “higher-for-longer”
FED interest rate policy and expected balance
drawdowns
▪ Rates are estimated to hold at 3.5%
• Other Non-Operating Revenue: is expected
income AT&T tower rent at the 8th Street building
Non-Operating Expenses
• Borrowing Interest: reduced due to changes in
line of credit accounting
• Capital Expenditures: costs estimated for
general improvements at 1999 Harrison St
offices
• Local Development: no planned incremental
contributions in light of the current fund balance
and future planning work that is underway
Attachment Staff Report Item 9B
Draft Budget: Local Development Fund Balance*
27 Program Area Balance
Local Development $2,800,000
BE+EE
Building Electrification $14,600,000
Building Efficiency Accelerator $1,300,000
TE
Vehicle Electrification $8,100,000
Ava Charge $15,900,000
Bike Electric $2,200,000
SmartHome Charging $5,700,000
Resilience
Critical Municipal Facilities (CMF) $5,800,000
SmartHome Battery $10,900,000
Resiliency Hubs $5,600,000
BE+TE Virtual Power Plant DERMS Platform $1,900,000
Grants Community Investment Grants $8,800,00
Total $83,600,000
*Fund balance as of 1/31/26
Attachment Staff Report Item 9B
Local Development – FY27 anticipated spend
28 Program Area FY '27 Spend Committed FY'27 Activities Program Roadmap $500,000 $500,000 Local Development Programs Roadmap Ava Charge $2,640,000 $6,750,000 Development, Operations and Marketing for 5 Sites Critical Municipal Facilities $2,000,000 N/A - 25 yr PPA Complete Projects, Establish operating reserves, bill customers
Grants $600,000 $1,900,000 Issue new solicitation, select at least three grantees and Payments for contracted grants
SmartHome Battery
incentives $1,250,000 $10,900,000 Upfront and ongoing payments for SHB Resilience Hub
TA/Incentives $1,500,000 $5,600,000 Upfront incentives and Technical Assistance costs Building Efficiency
Accelerator $1,000,000 $1,000,000 Incentives for Commercial Heat Pump Water Heaters Ava Bike Electric incentives $2,200,000 $2,200,000 Bike Electric will add $4M from ACTC Ava SmartHome Charging
incentives $300,000 $600,000 Enrollment incentives and VPP dispatch payment for SmartHome Charging program Total $11,990,000 $29,450,000
Attachment Staff Report Item 9B
Draft Budget: Deferred Revenues & Reserve Funds
29 • Current reserve fund balance
covers 40.1% of projected
operating expenses for FY 2027
• Current FY surplus estimate of
$83MM not included in
balances
• Staff will bring
recommendations for
allocation of the surplus to the
Board after completion of the
annual audit in November
• Budget includes a release of
$5.2MM, equal to 50% of the
deferred revenues related to
Clean Energy Investments
Deferred Revenue Usage Balance Guidance
Rate Stabilization Fund 162,546,828
R-2025-23 authorizes recognition of ~$35MM to balance FY25-26 budget R-2025-41 authorizes conversions from previous budget deferrals R-2025-42 & R-2025-51 authorizes RSF funding allocations Clean Energy Investments 10,504,837
R-2023-37 authorizes deferral for specified use.
R-2024-26 authorizes recognition in 2027
Contribution Year Contribution Withdraws Balance Operating Expenses* OpEx Year PctCoverage 2018-2019 40,513,687 40,513,687 - 410,686,000 FY 2019-2020 9.9% 2019-2020 49,704,640 90,218,327 - 383,045,000 FY 2020-2021 23.6% 2020-2021 - 90,218,327 - 471,897,000 FY 2021-2022 19.1% 2021-2022 65,655,073 155,873,400 - 562,667,000 FY 2022-2023 27.7% 2022-2023 75,000,000 230,873,400 - 732,885,000 FY 2023-2024 31.5% 2023-2024 100,000,000 330,873,400 - 814,123,000 FY 2024-2025 40.6% 2024-2025 - - 330,873,400 899,393,000 FY 2025-2026 36.8% 2025-2026** - 330,873,400 - 824,284,000 FY 2026-2027 40.1% *Operating Expenses are fiscal year ahead for coverage purposes: 2025-26 contribution year aligns with 2026-2027 OpEx **Expected contribution with current policy as of 5/6/2026 Note: If $0 are contributed from 2025-2026 surplus, the balance of $330.9MM is 40.1% of FY 2026-27 OpEx Attachment Staff Report Item 9B
Draft Budget: Next Steps & Expected Updates
• Staff to incorporate additional diligence and updates based on the recent May ERRA filing • Staff is working to update a 5-year forecast view for future board review, which was removed from the prior draft presentation due to the late May ERRA filing o Note that the reliability of any 5-year forecast on Generation rates is limited due to limited visibility into key PG&E inputs, such as revenue requirements
• Additional review by FAP (5/27) and Ex Comm (6/3) as needed • Final delivery to Board (6/17) for approval
• Further review with the board mid-year to account for 2026 actuals and final 2027 rate setting o PG&E's October ERRA filing will provide a meaningful update • To the extent the budget forecast materially changes following the October ERRA filing and AET, staff will consider mid-year budget adjustments as needed
Note: These budget scenarios are indicative and will change based on energy market conditions, developments in CPUC proceedings, and updates to PG&E ERRA and GRC filings Staff is seeking feedback on any matters in preparation for June board approval 30 Attachment Staff Report Item 9B
Appendix A: FY 2026-2027 Draft Budget Expanded View
31 Attachment Staff Report Item 9B
Staff Report Item 10
Staff Report Item 10
To: Ava Community Energy Authority Board of Directors
From: Alex DiGiorgio, Sr. Manager, Public Engagement
Subject: City of San Leandro’s request for default service plan change (Informational) Date: May 20, 2026
__________________________________________________________________ Summary/Recommendation
This staff report proposes to 1) update Ava’s Board of Directors regarding a recent San Leandro City Council Resolution requesting a citywide default rate product change from Ava’s Renewable 100 (the current default option) to Bright Choice; and 2) provide historical background and potential next steps for this request within the context of Ava’s Default Rate Product Change Policy. This item is informational for the Board of Directors.
Financial Impact
Staff is currently conducting analyses to forecast the financial impacts of transitioning San Leandro’s citywide default service from Renewable 100 to Bright Choice, as well as evaluate operational procedures and customer communications. These analyses will be presented at a future Board meeting, along with recommended options to mitigate potential negative impacts to the agency, its customers, and communities.
Analysis and Context
On April 6, 2026, the San Leandro City Council passed a Resolution (attached) requesting Ava’s Board approve a citywide default transition from Renewable 100 (San Leandro’s current default option) to Bright Choice service, per Ava’s updated Default Rate Product Change Policy.
Staff Report Item 10
On September 22, 2021, Ava’s Board approved San Leandro City Council’s request to change the City’s default service option from Bright Choice to Renewable 100. At that time, the City’s primary stated reason for requesting a default service transition to Renewable 100 was to help achieve the City’s Climate Action Plan (CAP) goals. In accordance with the City Council’s previous request, and the previous terms of Ava’s Default Rate Product Change Policy, the City’s residential customers transitioned from Bright Choice as the default option to Renewable 100 service in March of 2022, while the City’s non-residential customers transitioned in October of that same year.
The City’s municipal accounts started service in 2017 on (now sunsetted) Brilliant 100 service and have been on Renewable 100 service since September 2021. This service plan transition did not require Board action, as the City requested this change for their own accounts.
Currently, all of San Leandro’s residential and non-residential (e.g., commercial and industrial) customers default to Renewable 100 service, unless they fall within a specifically exempted category. These include the following:
• Residential customers on discount programs for income qualified households (e.g., CARE/FERA) and/or medical devices (e.g., Medical Baseline); • Residential customers that started service while enrolled in an income qualified or medical device program; or
• Customers that have opted out of Ava service for either PG&E or Direct Access service; The City’s proposed transition from Renewable 100 to Bright Choice service would apply to approximately 21,500 residential customers and 3,500 non-residential customers. This corresponds to approximately 275 GWh of annual electric load (excluding the City’s municipal accounts, which represent an additional 6 GWh of annual electric load, and were not included in the City’s 4/6 Resolution), or 3% of Ava’s total load, including unincorporated San Joaquin County. If approved by the Board, customers would be provided an opportunity to remain on Renewable 100 prior to the citywide default transition to Bright Choice.
Per Ava’s Default Rate Product Change Policy, requests by Ava’s JPA member-jurisdictions to change the default service option must be approved by Ava’s Board by May 31 of a given year in order to be implemented by March of the following year. However, the policy allows for a different implementation schedule if one can be mutually agreed upon by Ava’s Chief Executive Officer (CEO) and the JPA member, provided the CEO notifies the Board of the agreed upon schedule.
Once staff has completed its analyses, staff will bring an item to the Board with a recommendation and request for Board action. Currently, staff anticipate sbringing an item to the Board later this calendar year.
Attachments
A. Ava’s Default Rate Product Change Policy (2024)
B. City of San Leandro City Council Resolution
C. City of San Leandro City Council Staff Report and attachments (B, C, D) Staff Report Item 10
D. Presentation
Ava COMMUNITY ENERGY
DEFAULT RATE PRODUCT CHANGE POLICY
Policy Number: 15.1
Approval Date: 3/20/24
Agenda Item: Consent Item 17
Approved by Resolution: R-2024-24
The purpose of this Default Rate Product Change Policy is to specify a process for a Joint Powers Authority (JPA) member agency (“Member”) to change its Default Rate Product1 and to ensure that Ava Community Energy (Ava) is provided with sufficient notice and time to prepare for the change.
When approving a request from a Member to change the Default Rate Product (“Default Rate Product Change”) after the Member’s initial service enrollment, the Ava Board (“Board”) and Member shall adhere to this Policy, which requires specific cooperation from the Member. This Policy shall not apply to a change in the Default Rate Product which is the result of a rate product closure.
Under this Policy, the Default Rate Product Change request from a Member and subsequent implementation must comply with the following requirements:
1. Timeline for Board Approval and Implementation: Any request for a Default Rate Product Change must be approved by the Board. The Board will consider Members’ requests for Default Rate Product changes in the spring based on the following schedule:
a. If the Board approves a Member’s request for a Default Rate Product Change by May 31 the Default Rate Change will be implemented in March of the following year.
b. Notwithstanding the foregoing, the Ava Chief Executive Officer (“CEO”) and the Member may mutually agree upon a different implementation schedule, provided that the CEO provides the Board with notification of the agreed-upon schedule.
Board Approval By Implementation Month
May 31 of Year A March of Year A+1
2. Exceptions to Implementation of Default Rate Product Change:
Notwithstanding anything contained in this Policy, in no event shall a Member’s Board-approved Default Rate Product Change affect the following:
1 For purposes of this Policy, the “Default Rate Product” is the AVA rate product option that each Member selected as the default for AVA customers within the Member’s jurisdiction.
Attachment Staff Report Item 10A
a. Prior customer enrollment actions. Any customer account that has affirmatively taken action to change its rate product will remain on the selected product.
b. Prior customer opt-out actions. Any customer account that has affirmatively taken action to opt out of Ava service will remain opted out.
3. Frequency of Default Rate Product Change by a Member: A Member may not change its Default Rate Product more than one (1) time every two (2) years.
4. Ava Agency Requirements: Upon the Board’s approval of a Member’s request for a Default Rate Product Change, Ava staff may engage in any of the following activities:
a. Purchase or prepare to purchase the appropriate amount of resources to meet the expected change in demand associated with the Default Rate Product Change;
b. Complete or prepare to complete additional regulatory compliance and reporting requirements, if any;
c. Coordinate with Ava’s data and call center services manager to make necessary operational adjustments;
d. Evaluate fiscal impacts of the Default Rate Product Change; e. Examine Ava rates and any rate impacts;
f. Coordinate and work with PG&E on billing considerations, if any; g. Prepare for and deploy customer communication efforts; h. Identify and address any other operational impacts or issues and take steps to mitigate those impacts/issues; or,
i. Take any other action necessary to effectuate the Member’s approved Default Rate Product Change.
5. Member Requirements: The Member requesting a Default Rate Product Change must commit to the following conditions for the change to be implemented:
a. Collaboration. The Member shall work with Ava staff to develop and implement a customer communication plan;
b. Co-Branding. The Member must agree to co-brand customer notifications with the Member’s seal; and,
c. Cost Coverage. Ava will cover the cost of any operational adjustments and the required customer notices, as detailed in Section 6.a, for the Member’s first approved Default Rate Product Change. Costs associated with any subsequent Default Rate Product Changes will be charged to the Member.
6. Customer Communication: Ava will notify customers subject to a Member’s approved Default Rate Product Change. Ava will lead, with support from the Member, the development and dissemination of customer notices. a. Required Notifications. Any customer accounts subject to a Member’s approved Default Rate Product Change shall be sent a minimum of two Attachment Staff Report Item 10A
(2) notifications. A minimum of one (1) notice shall be sent prior to the change going into effect.
b. Optional Additional Notifications. In addition to the two (2) required notices referenced in Section 6.a., above, Ava staff will coordinate with a Member who wishes to develop and distribute additional customer notices and/or conduct additional communications such as social media campaigns, jurisdictional newsletters, Member press release, etc. The Member shall be responsible for the costs of such additional communications.
7. A customer may take an enrollment action to change their Ava rate product, to opt in to Ava service, or to opt out of Ava service at any time by notifying Ava through the standard channels of phone, interactive voice recording, or online form.
Attachment Staff Report Item 10A
RESOLUTION THE CITY COUNCIL OF THE CITY OF SAN LEANDRO
RESOLUTION NO. 2026-033
RESOLUTION SELECTING BRIGHT CHOICE AS THE DEFAULT PRODUCT FOR SAN LEANDRO
CUSTOMERS SERVED BY AVA COMMUNITY ENERGY
WHEREAS, the San Leandro City Council demonstrates its commitment to an environmentally sustainable future through its policy goals and actions, including energy reduction, clean energy programs, and the expansion of local renewable power supply; and WHEREAS, in November 2016, the City of San Leandro City Council adopted Resolution No. 2016-160 authorizing San Leandro’s participation in Alameda County’s Community Choice Energy program known as East Bay Community Energy (EBCE); and
WHEREAS, in October 2023 EBCE announced and began operating under its new name, Ava Community Energy (Ava); and
WHEREAS, Ava offers two product choices with different emission-related profiles to customers:
Bright Choice and Renewable 100, with the latter priced at a premium to Pacific Gas and Electric Company (PG&E) pricing and the former priced at a discount to PG&E prices; and WHEREAS, in 2021 the San Leandro City Council selected Renewable 100 as the default choice for residents and businesses, with an exception for San Leandro customers that are income-qualified and enrolled in the California Alternate Rates for Energy (CARE), Family Electric Rate Assistance (FERA), and Medical Baseline programs remained at the Bright Choice rate; and WHEREAS, the less expensive Bright Choice product was only 55% and 60% carbon-free in 2020 and 2021, respectively; and
WHEREAS, aSeptember 18, 2024 resolution adopted by the Ava Board of Directors will result in Bright Choice being over 90 percent carbon-free in 2025 due to the addition of nuclear power into the Bright Choice power mix; and
WHEREAS, the significant improvement of Bright Choice’s carbon-free profile, combined with the material deficit of San Leandro median household income when compared to the Alameda County median household income, make it in the public interest to replace Renewable 100 with Bright Choice attribute the default service plan provided by Ava to its customers based in San Leandro; and WHEREAS, if approved, this would save the average residential customer approximately 45 dollars per year, or in aggregate approximately one million dollars per year for residents; and WHEREAS, San Leandro Ava customers will continue to have the choice to change their enrollment to the higher-priced Renewable 100 product and also have the ability to opt out of purchasing electricity from Ava altogether.
Attachment Staff Report Item 10B
RESOLUTION NO. 2026-033 2
NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE to select Bright Choice as its preference for the default product for San Leandro residential, commercial/industrial, and CARE/FERA/Medical Baseline accounts served by Ava.
Introduced by Mayor González and passed and adopted this 6th day of April 2026 by the following vote:
AYES: Councilmembers J. Aguilar, V. Aguilar, Boldt, Simon, Viveros-Walton, and ( 6) Mayor González
NOES: None ( 0)
ABSENT: Councilmember Bowen ( 1)
ATTEST: __________________________
Sarah K. Bunting
City Clerk
Attachment Staff Report Item 10B
Staff Report (April 6, 2026)
Title
Adopt a Resolution Selecting Bright Choice as the Default Product for San Leandro Customers Served by Ava Community Energy
Staffreport
SUMMARY
Per a request from the Mayor, City staff presents for the City Council’s consideration the attached draft Resolution that, if adopted by majority vote of the Council, would revert the default energy plan provided to San Leandro Ava Community Energy customers to be “Bright Choice” (BC), instead of “Renewable 100” (R-100). The Ava Bright Choice plan is the least expensive option. San Leandro residents or business owners who wish to purchase an energy package that is wholly derived from renewable sources would still retain the ability to opt-in to the Renewable 100 plan.
BACKGROUND
Ava Community Energy (formerly East Bay Community Energy) is a local, not-for-profit electricity provider, functioning as a Community Choice Aggregator throughout Alameda County that supplies cleaner power than PG&E by sourcing generation from renewable sources and reinvests some of its net operating revenue back into the community. PG&E delivers the power and manages the grid.
Below is a comparison of available energy plans as currently posted on the Ava Community Energy public website:
Ava Renewable 100 (R-100) - 100% renewable sources (e.g. wind & solar), priced at 1 ¾ cent per kWh above PG&E rates.
Ava Bright Choice (BC) - 62% renewable sources, priced at 0.5% below PG&E rates.
PG&E - 23% renewable sources, priced at 0.5% above Ava Bright Choice rates.
MAYOR’S ANALYSIS
The primary intent of the proposed City Council resolution is to balance sustainability goals with economic equity for all San Leandro residents and businesses. According to the state of California, the City is officially designated as a disadvantaged community, with a median household income that lags Alameda County’s median by more than $20,000 per year. When the City Council voted in 2021 to opt-up the entire community’s default power mix to R-100, it shifted the financial burden of that action to local residents and business owners.
Attachment Staff Report Item 10C
Moreover, the above action exceeded the intent of the relevant strategies referenced later in this staff report that are included in the City’s adopted Climate Action Plan (CAP). More specifically, rather than merely encouraging local energy customers to opt-up to R-100, the Council’s action served as a de facto requirement for them to opt-up in the absence of taking proactive action to opt-down to a less expensive energy mix.
Additionally, it is important to note that in the greater than five years that has passed since that 2021 action occurred, the renewable power portions of Ava Community Energy’s Bright Choice plan have markedly improved. As a result, if San Leandro residents and businesses were defaulted to the Bright Choice plan, their resulting default power mix would be substantively improved as compared to what it otherwise would have been in 2021. Similarly, the Bright Choice renewable percentage is materially higher than that offered by PG&E. More specifically, it is approximately 2.7 times PG&E’s renewable power mix percentage according to the above-referenced data that is publicly listed on Ava’s website. Most importantly, according to the 2024 power content label, Bright Choice was at least 96% GHG-free in 2024. That is the last year for which a power content label has been published. 2025 is expected to be greater than 90% GHG-free according to Ava Energy’s draft FY 2025-26 budget.
Lastly, because the City separately opted into the R-100 power mix plan, adoption of the proposed Resolution would have no impact on the power being used at City-owned municipal facilities and buildings. As a result, the City would continue to be able to lead by example through the usage of 100 percent renewable power at all City facilities.
STAFF ANALYSIS
On July 19, 2021, the City Council unanimously adopted the 2021 Climate Action Plan (CAP). The CAP is San Leandro’s comprehensive strategy to reduce greenhouse gas (GHG) emissions and adapt to changing climate conditions. San Leandro’s adopted General Plan also directs the preparation, ongoing implementation, and update of the CAP, providing the framework for San Leandro to reduce its community-wide GHG emissions in a manner consistent with State reduction targets through 2030 and longer-term goals for 2050. This document outlines both the City’s successes to date in promoting environmental responsibility and provides a blueprint for continued sustainability.
Additionally, the CAP includes Renewable Energy Strategy (RE-1), which states: “Encourage San Leandro households and businesses to switch from PG&E electricity supplies to East Bay Community Energy (now Ava), and commit to defaulting to Renewable 100 tier for 100-percent renewable energy”.
On September 7, 2021, the City Council subsequently voted to upgrade the citywide default plan for all residences and businesses to the Renewable 100 (R-100) tier, using 100-percent renewable energy. Prior to the implementation date of the above action, the City of San Leandro Department of Public Works was also collaborating with EBCE to update the default power mix for all City-owned municipal facilities to R-100, consistent Attachment Staff Report Item 10C
with City Council direction. That latter change to the power mix for city facilities came into effect on October 1, 2021.
Nuclear Power Added to Bright Choice Energy Mix
In September 2024, the Ava Board of Directors voted to accept PG&E’s Diablo Canyon Nuclear Power Plant energy allocation of greenhouse gas-free (GHG-free) power attributes into the Bright Choice product. This nuclear allocation lowered the overall carbon/GHG content in the Bright Choice power mix in 2025.
Unlike wind and solar power, nuclear power is considered by the State of California to be a non-renewable energy source despite not generating GHGs because of the following reasons:
According to the California Energy Commission’s Renewables Portfolio Standards Certification, a renewable resource is a natural resource that can be replenished naturally in a short period of time, or otherwise can be reused at a rate that keeps up with its consumption; and
It relies on finite resources such as uranium.
Community Cost Savings
If the attached City Council Resolution is approved, it is anticipated that the change to the default power mix for San Leandro residents and businesses would become effective in March 2027, thereby allowing residential customers to realize an average savings of approximately $46 per year by March 2028. Customers that had already separately opted-in to the R-100 tier would stay in that tier after the proposed default change. As a result, City-owned municipal facilities would also remain in the R-100 fully renewable power mix.
Alameda County Green Business Program
Per the requirements of the Alameda County Green Business program, any business in the County seeking to become certified as a “Green Business” must opt into Ava Community Energy’s R-100 plan. As a result, if the City Council were to adopt the proposed action, any businesses seeking such a certification or a renewal of such a certification would need to ensure that they are opted-up to R-100, rather than defaulting to other power mixes. Additionally, it is worth noting that the City of San Leandro Department of Public Works is currently in the process of certifying municipal facilities as Green Businesses to ensure city operations conserve energy, water, and materials resources wherever possible. This certification effort would not be directly impacted by adoption of the proposed Council Resolution, as noted above.
Fiscal Impacts
None. Given that municipal operations would retain the opted-in R-100 plan after the change, the proposed action would have no impact to the City’s General Fund budget.
ATTACHMENTS
A: Draft Resolution
Attachment Staff Report Item 10C
B: FY 2024 Analysis
C: FY 2025 Analysis
D: Ava Community Energy rate comparisons
Prepared by:
Kimberly Anderson, Management Analyst II, Public Works Department Eric Engelbart, Deputy City Manager, City Manager’s office Attachment Staff Report Item 10C
San Leandro Renewable 100 and Bright Choice Analysis
- To capture a full year with the current value proposition by Ava, the time period for analysis is from July 1, 2023 to June 30, 2024 - Analysis excludes Opted Out customers
- Bright Choice Savings and R100 Premium are compared to PG&E unless stated otherwise Table 1 - Annual Overview by Customer Class
Enrolled
Customers as of
Sept 2024
Annual
Billed Usage (kWh)
Annual Bright
Choice Savings
Enrolled Customers as of
Sept 2024
Annual
Billed Usage (kWh)
Annual R100
Premium
Commercial and Industrial 120 20,330,835 $ 119,259 3,517 189,905,066 $ 474,765 Municipal 24 2,126,530 $ 16,053 250 6,279,263 $ 15,700
Residential 8,366 42,223,650 $ 338,299 20,797 97,665,449 $ 244,184 Total 8,510 64,681,015 $ 473,611 24,564 293,849,777 $ 734,650 Table 2 - Annual Overview for CARE/FERA and Medical Baseline Customers Product
Enrolled
Customers as of
Sept 2024
Annual
Billed Usage (kWh)
Annual Bright
Choice Savings Annual R100 Premium
Bright Choice 5,955 21,730,552 $ 177,578 -
Renewable 100 2,756 8,535,167 - $ 21,345
Table 3 - Estimated Bright Choice Savings for R100 Customers Customer Class
Enrolled
Customers as of
Sept 2024
[C]
Estimated BC Savings
Compared to PG&E
[A]
Billed R100
Premium
Compared to PG&E
[B]
Estimated
Bill Difference
Between R100 and BC
[A + B]
Estimated Annual Bill
Difference R100 and BC
per Customer
[A + B] / [C]
Commercial and Industrial 3,517 $ 1,463,711 $ 474,765 $ 1,938,477 $ 551 Municipal 250 $ 46,806 $ 15,700 $ 62,506 $ 250
Residential 20,797 $ 784,924 $ 244,184 $ 1,029,108 $ 49 Note: CARE/FERA and Medical Baseline customers are defaulted to Bright Choice, but if a customer enrolls in these programs post-start of service, they may be on Renewable 100
- Customer groups are based on the most current customer enrollment information. Some customers in the BC or R100 groups may not have been on that product for the whole year
Customer Class
Bright Choice Renewable 100
Attachment Staff Report Item 10C
San Leandro Renewable 100 and Bright Choice Analysis 2025 - To capture a full year with the current value proposition by Ava, the time period for analysis is from July 1, 2024 to June 30, 2025 - Analysis excludes Opted Out customers
- Bright Choice Savings and R100 Premium are compared to PG&E unless stated otherwise Table 1 - Annual Overview by Customer Class
Currently
Enrolled
Customers
Annual
Billed Usage (kWh)
Annual Bright
Choice Savings
Currently Enrolled
Customers
Annual
Billed Usage (kWh)
Annual R100
Premium
Commercial and Industrial 129 26,789,458 $ 167,013 3,558 186,007,923 $ 465,022 Municipal 26 2,583,572 $ 18,519 252 6,226,527 $ 15,568
Residential 7,897 40,643,595 $ 305,390 21,486 97,791,217 $ 245,403 Total 8,052 70,016,625 $ 490,921 25,296 290,025,667 $ 725,993 Table 2 - Annual Overview for CARE/FERA and Medical Baseline Customers Product
Currently
Enrolled
Customers
Annual
Billed Usage (kWh)
Annual Bright
Choice Savings Annual R100 Premium
Bright Choice 5,449 28,144,109 $ 212,712.23 -
Renewable 100 3,459 19,239,069 - $ 48,190.62
Table 3 - Estimated Bright Choice Savings for R100 Customers Customer Class
Currently
Enrolled
Customers
[C]
Estimated BC Savings
Compared to PG&E
[A]
Billed R100
Premium
Compared to PG&E
[B]
Estimated
Bill Difference
Between R100 and BC
[A + B]
Estimated Annual Bill
Difference R100 and BC
per Customer
[A + B] / [C]
Commercial and Industrial 3,558 $ 1,360,911 $ 465,022 $ 1,825,932 $ 513 Municipal 252 $ 43,589 $ 15,568 $ 59,157 $ 235
Residential 21,486 $ 736,301 $ 245,403 $ 981,703 $ 46
- Customer groups are based on the most current customer enrollment information. Some customers within groups may not have been on CARE/FERA, Bright Choice or Renewable 100 for the whole year
Customer Class
Bright Choice Renewable 100
Note: CARE/FERA and Medical Baseline customers are defaulted to Bright Choice, but if a customer enrolls in these programs post-start of service, they may be on Renewable 100
Attachment Staff Report Item 10C
AVERAGE MONTHLY COST COMPARISON BY PLAN
(RESIDENTIAL ELECTRIC 2025)
This comparison is for an average residential E-TOU-C (Time of Use) customer using 360 kWh/month. Due to rounding, the rate components may not sum exactly to the total. Figures reflect Ava’s actual power mix from 2024 (most recently published). Power mixes are published annually each summer for the preceding year.) Per Ava Community Energy Website
RENEWABLE 100 BRIGHT CHOICE PG&E
100% renewable energy
Electric generation:
$51.48
Electric delivery:
$94.29
Additional non-Ava fees:
$3.26
TOTAL: $148.91
62% renewable energy
Electric generation:
$47.89
Electric delivery:
$94.29
Additional non-Ava fees:
$3.26
TOTAL: $145.32
45% renewable energy
Electric generation:
$50.58
Electric delivery:
$94.29
Additional non-Ava fees:
$3.26
TOTAL: $148.01
Attachment Staff Report Item 10C
City of San Leandro's Request
for Default Service Plan Change
(Informational)
May 20, 2026 | Alex DiGiorgio
Attachment Staff Report Item 10D
Background: San Leandro Citywide Default Service
2 • On April 6, 2026, the San Leandro City Council passed a Resolution requesting Ava's Board to approve a citywide default service transition from Renewable 100 (the City's current default option) to Bright Choice, per Ava's Default Rate Product Change Policy. • Previously, on September 22, 2021, Ava’s Board approved the San Leandro City Council’s request to change the City’s default service option from Bright Choice to Renewable 100.
• In March of 2022, San Leandro's residential customers transitioned from Bright Choice as the default option to Renewable 100, while the City's commercial & industrial customers transitioned in October of 2022, per the timeline determined by the Council's 2021 Resolution and Ava's Policy at that time.
o Exempted customers included: Income qualified (CARE/FERA); Medical Baseline; opt-outs o Customers also had an opportunity to remain on Bright Choice during the Renewable 100 default enrollment
Attachment Staff Report Item 10D
Background: San Leandro by the Numbers
• San Leandro has about 21,500 residential and 3,500
non-residential customers
• Annual load 275 GWh, or 3% of Ava's load
oMunicipal facilities, 6 GWh, would remain on Renewable 100
• Note: Prior to the transition to Bright Choice,
customers will be provided an opportunity
to remain on Renewable 100.
3 Attachment Staff Report Item 10D
Ava Default Rate Product Change Policy
• Per Ava’s updated 2024 Default Rate Product Change Policy, requests by JPA member-jurisdictions to change their default service option must be approved by Ava’s Board by May 31 to be implemented by March of the following year.
• The policy allows for a different implementation schedule if agreed upon by Ava’s CEO and the JPA member.
• Procedurally, following a request to change a citywide default service option, Ava staff conduct analyses to evaluate the impact of the requested change to Ava's service area-wide customer base and internal operations. • Customers who wish to remain on Renewable 100 will have the opportunity to do so.
4 Attachment Staff Report Item 10D
Next Steps
• Staff is currently conducting analyses to forecast the financial impacts of transitioning San Leandro’s citywide default service from Renewable 100 to Bright Choice as well as operational procedures.
• Results and options will be presented at a future Board meeting oIncluding recommended options to mitigate potential negative impacts to the agency, its customers, and communities.
5 Attachment Staff Report Item 10D
Attachment Staff Report Item 10D