Consent Item 6
Consent Item 6
To: Ava Community Energy Authority Board of Directors
From: Alex DiGiorgio, Sr. Manager, Public Engagement
Subject:
Approval of Resolution of the Board of Directors of Ava Community Energy Authority Authorizing Changing the Default Rate Product to Bright Choice for Accounts Served by Ava Within the City of San Leandro (Action) Date: September 16, 2026
__________________________________________________________________ Summary/Recommendation
This staff report provides an update from the discussion item staff presented to the Board of Directors on May 18, 2026, regarding a San Leandro (“City”) City Council (“City Council”) Resolution (attached) to change the Citywide default service from Ava’s Renewable 100 (the current default option) to Bright Choice, per Ava’s Default Rate Product Change Policy. This item requests action by the Board to proceed with responding to the City Council’s request and approve a resolution changing the default rate product to Bright Choice for accounts served by Ava within the City. As part of this Board approval, recommends the Board adopt an implementation schedule to be determined by Ava’s Chief Executive Officer (CEO) in consultation with the City.
Context and Analysis
Context
On April 6, 2026, the City Council passed a Resolution (attached) requesting Ava’s Board approve a citywide default transition from Renewable 100 (City’s current default option) to Bright Choice service, per Ava’s updated Default Rate Product Change Policy. Among the City’s primary stated reasons for the requested change were 1) the high carbon-free content of Ava’s Bright Choice option (over 90% in 2025); and 2) customer cost savings due to the discount of Bright Choice rates compared to Renewable 100 and PG&E’s standard service.
Consent Item 6
Previously, on September 22, 2021, Ava’s Board approved the City Council’s request to change the City’s default 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.
For additional context, the City’s municipal accounts started service in 2017 on Brilliant 100 service (which has since sunsetted) 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 its own electricity accounts.
Currently, all of the City’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 categories 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 Council’s most recent Resolution to switch the citywide default back to Bright Choice identified that the transition should apply “...residential, commercial/industrial, and CARE/FERA/Medical Baseline accounts served by Ava.” 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. Thereafter, they would retain the option of choosing Renewable 100 on an individual account basis. Customers that previously opted out of Ava service would not be included. Customers that proactively chose Renewable 100 before it became the citywide default in 2022 are exempted.
Analysis
The City’s proposed transition from Renewable 100 to Bright Choice service would apply to approximately 21,500 residential customers (out of 29,300 total) and 3,500 non-residential customers currently on Renewable 100. In 2025, this corresponded 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). In total, San Leandro represents less than 5% of Ava’s overall load, including the recent launch of service to unincorporated San Joaquin County.
As always, timing is a critical factor in terms of the operational considerations, customer experience, and financial impacts of implementing a default service option change. If approved by the Board, the City’s default transition will require updates to technology systems, specifically Consent Item 6
the billing engine and customer relationship management (“CRM”) system, as well as customer communications. Communications will include two notifications to all eligible customer accounts, as required by the Default Rate Product Change Policy. Additional outreach and communications will be determined based on coordination with City staff.
To help ensure an optimal customer experience, Ava must consider the timing of customer communications—specifically the two notifications sent to each account ahead of the transition—relative to that of other agency operations (e.g., Ava’s annual budgeting cycle). For example, if the default transition were to occur in July, customer notifications would typically be sent in May/June. Thereafter, if Ava’s value proposition (i.e., the Bright Choice discount and the Renewable 100 premium compared to PG&E standard rates) were to be adjusted as part of the June budgeting process, the notices would become out-of-date soon after they were sent. For this reason, from an operations/customer communication perspective, it would be advisable to implement the City’s default transition well after the budgeting cycle is completed in June 2027.
This timing is also advisable to help mitigate the anticipated financial impacts of the transition, if approved by the Board. Based on Ava’s internal financial and power procurement analyses, staff anticipates the City’s default transition to result in net revenue reductions compared to baseline scenarios (i.e., compared to the City maintaining Renewable 100 as the city-wide default service throughout 2027). Staff estimates an average revenue reduction of approximately $360,000/month following the transition. This includes potential savings due to avoided procurement costs.
For this reason, the total amount of default transition-related reduced revenues for 2027 depends on the timing of implementation during the calendar year; and Ava can mitigate the amount of reduced revenues by implementing the transition in late Q3 or Q4 of 2027.
Table 1 below summarizes the operational considerations and estimated financial impacts of four potential implementation scenarios in 2027.
Scenario Implementation
Month 2027
Operational Considerations 2027 Estimated Net
Revenue Impact
(~$360,000/month)
1 April Impacts current 2026-2027 budget
cycle
$3,240,000
2 July Customer communications
impacted if FY27-28 budget cycle
includes changes to Ava’s value
proposition (i.e., Bright Choice
discount and/or Renewable 100
premium), as customer notifications
would begin as early as May 2027
$2,160,000
3 Sept No operational issues; value
proposition up-to-date; San
Leandro default transition included
in FY27-28 budget
$1,440,000
Consent Item 6
4 Nov No operational issues; value
proposition up-to-date; San
Leandro default transition included
in FY27-28 budget
$720,000
Table 1: Potential Implementation Scenarios re San Leandro’s Citywide Default Transition to Bright Choice
In conclusion, staff is seeking the Board’s approval to 1) accommodate the City of San Leandro’s default rate product change request from Renewable 100 to Bright Choice; and 2) to provide staff flexibility to coordinate with the City and determine the specific implementation schedule. Given the operational and financial considerations presented above, Ava staff intends to pursue an implementation schedule that occurs no earlier than Q3 or Q4 of 2027.
Recommendation
Staff recommends approval of the Resolution of the Board of Directors of Ava Community Energy Authority authorizing changing the default rate product to Bright Choice for accounts served by Ava within the City of San Leandro at a date to be determined by the Chief Executive Officer in consultation with the City.
Attachments
A. Ava Resolution
B. Ava’s Default Rate Product Change Policy (2024)
C. City of San Leandro City Council Resolution
D. City of San Leandro City Council Staff Report and attachments (B, C, D) E. Presentation
Attachment Consent Item 6A
RESOLUTION NO. R-2026-xx
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING CHANGING THE
DEFAULT RATE PRODUCT TO BRIGHT CHOICE FOR ACCOUNTS SERVED BY
AVA WITHIN THE CITY OF SAN LEANDRO
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 Ava’s updated Default Rate Product Change Policy provides a process and schedule for JPA member-jurisdictions to change their constituents’ default service option(s), while helping to ensure Ava has sufficient notice and time to prepare for the change.
WHEREAS on September 22, 2021, Ava’s Board approved the San Leandro (“City”) City Council’s (“City Council”) request to change the City’s default service option from Bright Choice to Renewable 100, 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/or Medical Baseline programs, all of whom remained on the Bright Choice service option.
WHEREAS in accordance with the City Council’s 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.
WHEREAS since adopting the original Default Rate Product Change Policy in March of 2021, Ava has approved and implemented default service option changes to Renewable 100 for at least seven member-jurisdictions, in addition to the City of San Leandro.
Attachment Consent Item 6A
WHEREAS Ava currently offers customers two service options with separate rates and corresponding electricity products: Bright Choice, which is currently offered at a discount compared to Pacific Gas and Electric’s (“PG&E”) standard rates and included more than 60% renewable energy and more than 90% carbon-free energy in 2025; and 2) Renewable 100, which offers 100% renewable energy at a premium above PG&E’s standard rates;
WHEREAS on April 6, 2026, the San Leandro City Council passed Resolution 2026-033 requesting Ava’s Board approve a citywide default transition from Ava’s Renewable 100 to its Bright Choice service.
WHEREAS, if the City Council’s request is approved, Ava customers in the City will continue to have the choice to change their enrollment to Renewable 100 and have the ability to opt out of Ava service.
WHEREAS Ava staff conducted thorough financial and power resource procurement analyses to evaluate the agency-wide and rate-related impacts of approving the City’s request to transition its default service from Renewable 100 to Bright Choice.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Ava’s Chief Executive Officer or his/her designee shall take all necessary actions to change the default rate product to Bright Choice for residential, commercial/industrial/agricultural, and CARE/FERA/Medical Baseline accounts served by Ava within the City of San Leandro.
Section 2. The change to the City of San Leandro’s default rate product as described herein shall occur according to a schedule to be determined by the Chief Executive Officer, or his/her designee, in consultation with the City; and shall comply with the Default Rate Product Change Policy as approved by the Board.
ADOPTED AND APPROVED this 16
th day of September, 2026.
Betsy Andersen, Chair
ATTEST:
Attachment Consent Item 6A
Adrian Bankhead, Clerk of the Board
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 Consent Item 6B
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 Consent Item 6B
(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 Consent Item 6B
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 Consent Item 6C
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 Consent Item 6C
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 Consent Item 6D
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 Consent Item 6D
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 Consent Item 6D
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 Consent Item 6D
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 Consent Item 6D
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 Consent Item 6D
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 Consent Item 6D
City of San Leandro's Request
for Default Service Plan Change
(Action)
July15, 2026 | Alex DiGiorgio
Attachment Consent Item 6E
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 Consent Item 6E
Background: San Leandro by the Numbers
• San Leandro has about 21,500 residential and 3,500 non-residential (commercial/industrial) customers currently on Renewable 100
o7,800 residential & 137 non-residential customers are currently on Bright Choice
• Annual load 275 GWh (on Renewable 100), or less than
5% 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 Consent Item 6E
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. Those who have previously selected Renewable 100 will be unaffected by the default transition to Bright Choice, pending Board approval. 4 Attachment Consent Item 6E
Potential 2027 Enrollment Scenarios/Schedules
Scenario Implementation
Month (2027)
Operational Considerations
2027 Estimated
Net Revenue Impact (~
$360,000/month)
1 April Impacts current 2026-2027 budget cycle $3,240,000 2 July
Customer communications impacted if FY27-28 budget
cycle includes changes to Ava’s value proposition, as
customer notifications would begin as early as
May 2027
$2,160,000
3 Sept No operational issues; San Leandro default transition included in FY27-28 budget
$1,440,000
4 Nov
No operational issues; San Leandro default transition
included in FY27-28 budget $720,000
5 Summary
• September 2027 provides the earliest implementation scenario that avoids key operational considerations, such as Ava's annual budget cycle & potential changes to Ava's rates and 'value proposition' (i.e., the Bright Choice discount and/or Renewable 100 premium, compared to PG&E standard rates). • Later months (e.g., October to December 2027) provide correspondingly lower estimated net revenue impacts.
Attachment Consent Item 6E
Next Steps/Recommendations
• Adopt Resolution approving City of San Leandro's default rate product change request from Renewable 100 (current default option) to Bright Choice oThe schedule of the default transition in 2027 will be determined by Ava's CEO in consultation with the City of San Leandro based on operational and financial considerations.
• Per Sec. 1b of Ava's Default Rate Product Change Policy, the schedule of the default transition will require approval by the San Leandro City Council. • Pending approval by Ava's Board and the City Council, two notices will be sent to all eligible customers before/during the default transition. • Ava staff will coordinate with San Leandro's City staff on communications. 6 Attachment Consent Item 6E
Attachment Consent Item 6E