Ava Community Energy Financial, Administrative and Procurement Subcommittee
September 9, 2026

Long-Term Renewable
Energy Deal for Pre-Pay
FAP | Jim Dorrance| September 9th, 2026
Proposed Renewable Energy Deal - Overview
2 • RPS renewable transaction: Ava is seeking Board approval to enter into a renewable energy transaction with another CCA using a standard deal form • Purpose: The parties will swap renewable energy to enable each CCA to assign the power into its respective Energy Pre-pay transaction
• Customer savings: Ava currently has seven Energy Pre-pay transactions that provide customer savings by leveraging Ava’s ability as a tax-exempt entity to access tax-exempt bond financing • Term & Approval: The transaction has a term greater than 10 years and will be presented to the Board as a Consent Item at the October meeting for approval Proposed Renewable Energy Deal – Deal Structure
3 • Contract Type/Structure: The transaction will be structured as two contracts using the standard WSPP Agreement form for renewable energy purchases and sales ▪ WSPP Agreement: WSPP (Western Systems Power Pool) provides a standardized contract form commonly used for wholesale power transactions
▪ Two Contracts: (1) Ava sells renewable energy to another CCA and (2) Ava purchases an equivalent quantity of renewable energy from the same CCA at the same price, creating an exchange or swap ▪ Cost: No incremental cost to Ava beyond the underlying transaction supporting the swap ▪ Quantity and Term: Approximately 175,000 MWh of renewable energy annually, with a term beginning in 2027 or 2028 and ending concurrently with the supporting transaction, which will have a term greater than 10 years
• Risk Assessment: Limited risk with administrative efficiencies from working directly with another CCA rather than multiple suppliers and financing parties Proposed Renewable Energy Deal - Summary
4 • Purpose: Swap renewable energy with another CCA to facilitate assignment into Ava’s Energy Pre-pay transaction and support customer savings • Structure: Two WSPP contracts for equivalent renewable energy purchases and sales, with approximately 175,000 MWh annually and no incremental cost to Ava • Risk & Approval: Limited risk and administrative complexity with Board approval required as a Consent Item due to the transaction’s term of greater than 10 years Questions?
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