CEO Report Item 13
TO: Ava Community Energy Board of Directors
FROM: Howard Chang, Chief Executive Officer
SUBJECT: CEO Report (Informational Item)
DATE: July 15, 2026
________________________________________________________________________ Recommendation
Accept Chief Executive Officer (CEO) report on the update items below.
Executive Committee Meeting
An Executive Committee meeting was held on Wednesday, July 1, 2026. Members received a preview of the FY 2025-2026 audit process and an overview of the Integrated Resource Planning (IRP) process. The next Executive Committee meeting will be held on Wednesday, September 2, 2026 at 3 pm.
Rate Comparison Mailer Update
A rate comparison mailer, technically called the Joint Rate Mailer (JRM), is a required customer communication, which is sent once a year as a joint effort of Ava and PG&E. It is required by the CPUC in a prescribed template. The rate comparison mailer includes a rate cost comparison of standard PG&E, Bright Choice, and Renewable 100 services for five different rate tariffs:
ETOUC (Residential), B1 (Small Commercial), B19S (Large Commercial) and either ETOUC or E1 CARE (Residential Income Qualified Discount). The mailer also includes a comparison of the power content between PG&E and Ava Community Energy for calendar year 2025. The annual rate comparison was mailed and emailed to all current customers at the end of June.
Ava created two groups based on PCIA vintage years 2018 and 2025. Customers in unincorporated San Joaquin County received the vintage 2025 versions and E1 CARE while all other customers received the vintage 2018 version and ETOUC CARE. There is a significant difference between these vintage PCIA fees – vintage 2025 PCIA being about negative 1 cent and vintage 2018 being about positive 3.5 cents. Therefore, it was in the interest of providing the most accurate information to customers that Ava issued two groups by vintage for this year’s rate comparison mailer.
Copies of all rate comparison mailers can be found on our Key Documents page:
https://avaenergy.org/about-ava/key-documents/
CEO Report Item 13
Additional information explaining the rate comparison mailer can be found on our Insights page:
https://avaenergy.org/insight/ava-and-pges-annual-rate-comparison-mailer/ Example of the rate comparison mailer
CEO Report Item 13
New Web Content
Ava regularly publishes educational content on our website to help customers understand their energy choices, navigate their bills, and participate in our programs. Below is a curated list of recent content. For additional resources, visit AvaEnergy.org/insights.
Title Link Description
Ava and PG&E’s
Annual Rate
Comparison Mailer
https://avaenergy.org/insight/ava-and-pges-annual-rate-comparison-mailer/ Explanation of annual
communication sent to all
eligible customers about their
service plan options
PSPS Events:
What They Are
and How To
Prepare
https://avaenergy.org/insight/psps-events-what-they-are-and-how-to-prepare/ Explanation of Public Safety
Power Shutoff (PSPS) events,
including Ava vs. PG&E’s role
in them
Battery Options for
Your Home Solar
System
https://avaenergy.org/insight/battery-options-for-your-home-solar-system/ Overview of different battery
system types and set-ups
Energy Prepay Transactions Update
Last month the Board approved Ava entering into two prepay transactions. Just after receiving CCCFA approval, the market was in an optimal condition for us to immediately enter the market the next day. On June 26, our underwriters at Morgan Stanley successfully priced the first prepay bonds and the sale closed on July 9, providing exceptional results.
Market conditions were very favorable; thus, we increased the amount of bonds offered to the $1.25 billion maximum approved. Morgan Stanley obtained $2.2 billion of orders overall. This allowed us to improve yields by 2 basis points and increase our savings better than expectations. The transaction resulted in Ava locking in a 13.9% discount on 5,100,624 MWh’s over the next 10 years providing an estimated $88.1 million in cash flow savings.
Power deliveries on this prepay will begin in November 2026 and will provide savings of $2.6 million in the 2026-27 fiscal year. Volumes will continue to ramp up and provide $7.7 million in the 2027-28 fiscal year and then approximately $9.6 million per year for the remaining 8 years, until the Series 2026F bonds need to be repriced and savings levels redetermined.
We will keep the Board informed of progress on the second transaction, which is nearing a point that we will be in a position to sell those bonds.
Ava in the Community - July
To raise awareness of Ava’s service, support our community, and connect customers to our offerings, Ava sponsors and staffs events throughout our service territory all year long.
Additionally, we also deliver presentations to community groups. Below is a list of upcoming events we’ll be attending between 7/15 and 8/31. Learn more at https://avaenergy.org/about-ava/meetings-events/events/ CEO Report Item 13
Date Event Type Location
7/18/2026 Family Fun Festival Tabling and Sponsoring Stockton 7/24/2026 Dublin Leprechauns vs Bakersfield Tabling and Sponsoring Dublin 7/31/2026 Stockton Ports vs. Lake Elsinore Tabling and Sponsoring Stockton 8/1/2026 San Leandro Induction Cooking
Demo Tabling San Leandro
8/1-8/2/2026 Fremont Festival of the Arts Tabling and Sponsoring Fremont 8/2/2026 Oakland Ballers vs RedPocket
Mobiles Tabling and Sponsoring Oakland
8/8/2026 Hack the Town Sponsoring Oakland
8/23/2026 Tri-City Ecology Center Volunteer
Picnic Tabling Fremont
8/29/2026 Black August Arc of Liberation Sponsoring Oakland 8/29/2026 Hidden Jewels Unleashed Sponsoring Hayward
8/29/2026 Oakland Roots Back to School
Night Tabling and Sponsoring Oakland
Fremont Non-Residential Customer Transition to Renewable 100 Staff is preparing for Fremont's non-residential (commercial) transition from Bright Choice to Renewable 100 in August. Customer outreach is progressing well, with just over 20% of eligible load (approximately 250 customers) electing to remain on Bright Choice. Eligible load refers to customers who are currently enrolled with Ava and receiving service under our Bright Choice option. These customer elections indicate that customers are receiving the information they need to make informed choices about their service options.
Customers have until July 23 to request to remain on Bright Choice and avoid being automatically transitioned to Renewable 100 in August. Requests may be submitted through Ava's online webform, by phone, or by email.
In addition to direct outreach to the City's largest commercial customers, outreach has included a marketing toolkit for City staff, information in the City's Climate Ready Fremont newsletter, participation in the June 18 Future of Fremont event, a July 8 customer webinar, and a presentation at the July 9 Economic Development Advisory Commission meeting.
CEO Report Item 13
The first customer notice is currently being distributed by mail and email. A second notice will be sent in August–September after customers have transitioned to Renewable 100, reminding them that they may return to Bright Choice at any time.
Local Development Update
Ava had previously been awarded a grant from the California Energy Commission (CEC) to develop a Medium- and Heavy-Duty Zero-Emission Vehicle Infrastructure Blueprint, and earlier this year the CEC released a follow-up solicitation for implementing those previously developed Blueprints. Ava and Prologis worked together on a proposal to that solicitation, which has been awarded $8M in CEC grant funding. Prologis is also committing over $22M in match funding and will lead the implementation to install and own a total of at least 12 MW of charging capacity to serve medium- and heavy-duty EVs that utilize a Prologis logistics facility in Tracy CEO Report Item 13
Program Name Status Description Key Metrics Key Upcoming Activities Planning
Customer Programs
Roadmap In Development
Define Ava's customer
programs roadmap for 2027-
2032 N/A
Staff plans to bring a revised
proposal and timeline to the
September Board meeting
Transportation
Electrification
Ava Charge Operational
Developing EV fast charging
sites on City lots and garages
across Ava's service territory
with a focus on locating near
multi-family dwellings
Oakland City Center West garage
with 31 chargers is now in operation
Ava's contracted counterparty,
Calibrant Energy, has notified Ava
of a likely change and a delay in
project installation.
Ava SmartHome Charging Operational
Program to shift home EV
charging away from peak
hours while helping customers
lower their cost of home EV
charging.
>2,700 EVs enrolled, Virtual Power
Plant performance metrics are being
met
Identifying additional channels to
enroll more customers in the
Program
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 26,000 applications received,
5,783 e-bikes purchased from 29
participating bike shops. 55% of
rebate funding has been for CARE
customers
Staff recommending an additional
year and $2M in funding for the
Program at the July Board
meeting
Building Electrification
Health-e Communities Pilot Closed
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 has closed the program and
is evaluating energy and bill
impacts to customers and drafting
a white paper to share learnings
among key stakeholders.
CEO Report Item 13
Building Efficiency
Accelerator Closed
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
12.8 GWh, 14 customers engaged
in 100 unique projects
Program enrollment ended April
2026, Ava now evaluating energy
savings for CPUC reporting
SolarApp Heat Pump Water
Heater (HPWH) permitting Canceled
Contract with SolarApp to add
heat pump water heaters to
their online permitting
application
SolarApp 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
Heat Pump Water Heater
Market Support In Development
Programs to support Heat
Pump Water Heater
installations and market
development
TBD based on implementation
timing of Air District Regulations
Staff developing program
proposals for heat pump water
heater permit streamlining,
workforce development, and
customer incentives
Resilience
Critical Municipal Facilities In Development
Program to provide resilience
on critical municipal sites.
Eight projects across four
cities will provide bill savings
Installing eight projects across four
Cities totaling 258kW of PV and
1.34MWh of batteries generating
778,000 kWh of clean energy in
year one.
All 7 NEM2.0 projects have
received electrical sign-off.
Projects will become operational
in August/September. Ava
coordinating trainings with Staff
for operational readiness and
preparing to bill participants.
Planning ribbon cuttings with staff.
SmartHome Battery Operational
Program to provide $11.25M in
upfront and ongoing incentives
for residential solar and
storage projects
Manage 21MW of solar paired
batteries for residential and low
income customers.
39 projects totaling 450kWh of
BESS capacity have been
enrolled. Ava has completed the
first dispatch of assets.
Community Resilience Hubs Operational
Provide $5.75M in funding for
Technical Assistance and
incentives for the development
of Community serving
Resilience Hubs
Provide technical assistance for up
to 50 Resilience Hubs sites and
provide incentives for Resilience
Hubs
Currently providing Technical
Assistance to cohort of 14 sites
that will be eligible to apply for an
incentive this summer. Additional
sites can enroll in Technical
Assistance.
CEO Report Item 13
Community Grants
Community Grant Program Operational
$8M budgeted for Community
Grants to work with
Community Based
Organizations across four
strategic focus areas Award ~24 grants through 2033
Staff hosted Community Grants
public workshop to solicit ideas for
next round of community grants.
Staff compiling results and will
develop next round of grant RFPs
for issuance in 2026 with
community input
EV Charging Operational
Provided grants to local non-profits to install up to twelve level 2 EV chargers at multiple
places of worship
Two grants of $300k over 3 years to
Green the Church and Interfaith
Power and light to install community
owned EV chargers
Green the Church has installed
their first project at Glad Tidings
Church in Hayward. Both grantees
continue to work on identifying
sites
Youth Training Operational
Empowering young individuals
through education and
exposure to employment
opportunities and hands-on
training in clean energy
technologies through
Two grants of $300k over 3 years to
Rising Sun and AGAPE to train over
150 youth in electrification and
clean energy 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 $350k over 2 years, ECC
has completed three community
workshops with over 170
participants and 26 unique
community based organizations
ECC planning additional
Community engagement
workshops in 2026 to educate
groups about Resilience Hubs and
get potential sites into Ava's
Technical Assistance Program