Consent Item 10
Consent Item 10
To: Ava Community Energy Authority
From: Eleanor Smith, Account Rates and Equity Sr. Manager Subject: Approve Ava’s revised Net Energy Metering Policy Tariff which updates terminology and clarifies the treatment of Net Energy Metering Fuel Cell customers
Date: 10/21/2026
__________________________________________________________________ Summary/Recommendation
Staff proposes revisions to the Net Energy Metering (NEM) tariff to update terminology and clarify the billing treatment of NEM Fuel Cell customers. These revisions do not change existing policy or practice.
Financial Impact
N/A
Analysis and Context
Ava has revised the terminology in its NEM tariff to clarify its existing NEM policies and reduce customer confusion. The terms “monthly billing plan” and “annual billing plan” replace “monthly true-up” and “annual true-up,” respectively. All customers, regardless of their billing plan, undergo an annual true-up, and the term “NEM cash-out” is no longer used in the tariff. These changes align the NEM tariff with updates to customer-facing materials.
Ava’s NEM tariff is also updated to clarify the treatment of NEM Fuel Cell customers, specifying that they are ineligible to receive net surplus electricity compensation, consistent with California Public Utilities Code Section 2827.10(f)(3).
Consent Item 10
These revisions are intended solely to update terminology and clarify existing practices.
Attachments
A. Resolution to Adopt a Revised Net Energy Metering Policy Tariff B. Seventh Amended and Restated Net Energy Metering Service Policy Tariff (Redlined)
Attachment Consent Item 10A
RESOLUTION NO. R-202x-XX
A RESOLUTION OF THE BOARD OF DIRECTORS
OF THE AVA COMMUNITY ENERGY AUTHORITY ADOPTING A REVISED
NET ENERGY METERING POLICY TARIFF
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 The Board of Directors approved an initial Net Energy Metering (“NEM”) Policy on February 21, 2018, and amended Policies on December 5, 2018, February 20, 2019, December 16, 2020, May 17, 2021, October 19, 2022, and March 19, 2025; WHEREAS Ava is updating customer-facing NEM materials to improve clarity around Ava's existing NEM policy; and
WHEREAS The Net Energy Metering Policy tariff is revised to update terminology and to clarify the billing treatment of NEM Fuel Cell customers
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Board of Directors hereby adopts the Seventh Revised Net Energy Metering Policy tariff, which updates terminology and clarifies the billing treatment of NEM Fuel Cell customers.
ADOPTED AND APPROVED this 21st day of October 2026.
Attachment Consent Item 10A
Betsy Andersen, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25, 10.16.25 Attachment Consent Item 10B
Ava Community Energy Net Energy Metering Policy
6.57.0 ELECTRIC SCHEDULE NEM ‐ NET ENERGY METERING SERVICE SixthSeventh Amended and Restated Net Energy Metering Service Policy APPLICABILITY:
This net energy metering (NEM) schedule is applicable to a customer who uses an eligible Renewable Electrical Generation Facility, as defined in PG&E’s Electric Schedule NEM (http://www.pge.com/tariffs), within the capacity limits described in PG&E’s Electric Schedule NEM that is located on the customer’s owned, leased, or rented premises, is interconnected and operates in parallel with PG&E’s transmission and distribution systems, and is intended primarily to offset part or all of the customer’s own electrical requirements (hereinafter “eligible customer generator” or customer”).
This rate schedule is available on a first‐come, first‐served basis to customers that provide PG&E with a completed PG&E NEM Application and comply with all PG&E NEM requirements as described in PG&E Electric Schedule NEM. This includes customers served by NEMV (Virtual Net Energy Metering), NEMVMASH (Virtual Net Energy Metering for Multifamily Affordable Housing), NEMA (NEM Aggregation) and Multiple Tariff facilities as described by PG&E Electric Schedule NEM.
DEFINITIONS:
Original Jurisdictions: Cities of Albany, Berkeley, Dublin, Emeryville, Fremont, Hayward, Livermore, Oakland, Piedmont, San Leandro, Union City and the unincorporated area of Alameda County
Customer type definitions:
Standard Ava NEM: All NEM customers who do not fall into the below groups.
Legacy Municipal NEM: All mMunicipal NEM customers from Ava's original jurisdictions that had an interconnection date between 6/1/2018 and 4/1/2021.
CARE/FERA Ava NEM: All CARE/FERA NEM customers with an interconnection date after beginning electric service under Ava. whose systems were interconnected after Ava began providing electric service in the jurisdiction where they are located.
Rates: All rates charged under this schedule will be in accordance with the eligible customer generator’s otherwise‐applicable Ava rate schedule (OAS), which includes their rate schedule and Ava service level (i.e. Bright Choice or Renewable 100). An eligible customer‐generator served under this schedule is responsible for all charges from its OAS including monthly minimum charges, customer charges, meter charges, facilities charges, demand charges and surcharges, and all other charges owed to Ava or PG&E. Charges for energy (kWh) supplied by Ava, will be Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25, 10.16.25 Attachment Consent Item 10B
based on the net metered usage in accordance with this tariff.
Billing: Customers with NEM service will be billed as follows:
a) Standard Ava NEM customers may choose between a monthly or annual true-up option.billing plan.
Standard Ava NEM customers will be defaulted to a monthly true-up, billing plan where they pay monthly for any net charges not covered by their NEM credits. Those who prefer to pay once a year can opt into the annual billing plan where any net charges are due as part of the April true-up. andCustomers may select their preferred true-up cyclebilling plan once per year before March 1, effective following the next April cash-out/ true-up period.
CARE/ FERA Ava NEM and Legacy Municipal NEM customers must be enrolled in athe monthly true-up cycle billing plan.
b) For a customer with Non‐Time of Use (TOU) Rates:
Any net consumption or production shall be valued monthly asfollows:
If the eligible customer‐generator is a “Net Consumer,” having overall positive usage over a billing cycle, the eligible customer‐generator will be billed or debited in accordance with the eligible customer‐generator’s OAS.
If the eligible customer‐generator is a “Net Generator,” having overall negative usage over a billing cycle, any net energy production shall be valued at the OAS plus any additional incentive payment as applicable (e.g. for new installations for CARE/ FERA Ava NEM accounts). The calculated value of any net energy production shall be credited to Ava customers as described in Section (cd).
c) For a customer with TOU Rates:
Any net consumption or production shall be valued monthly asfollows:
If the eligible customer‐generator is a Net Consumer (as defined above) during any discrete TOU period, the net kWh consumed during such period shall be billed or debited in accordance with applicable TOU period‐specific rates/charges, as described in the eligible customer‐generator’s OAS.
If the eligible customer‐generator is a Net Generator (as defined above) during any discrete TOU period, the net kWh produced during such period shall be valued in consideration of the applicable TOU period‐specific rates/charges, as described in the eligible customer‐ generator’s OAS, plus any additional incentive payment as applicable (e.g. for new installations for CARE/ FERA Ava NEM accounts). The calculated value of any net energy production during a specific TOU period shall be credited to Ava customers as described in Section (cd).
d) Settlement of Ava Charges/Credits:
NEM customers will receive a statement in their monthly PG&E bills indicating any accrued Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25, 10.16.25 Attachment Consent Item 10B
charges for their usage during the current billing cycle. Customers who have accrued credits during previous billing cycles will see these credits applied against current charges.
1. Monthly True-Up
For customers on a monthly true-up cycle, any remaining balance is due and must be paid during each monthly billing cycle.
Annual True-Up
For customers on an annual true-up cycle, any remaining balance will appear as a debit on the bill and roll over, until the annual true-up in April.
For customers on a monthly billing plan, any remaining balance is due and must be paid each monthly billing cycle. For customers on an annual billing plan, any remaining balance will appear as a debit on the bill and roll over until the annual true-up in April.
When a customer’s net energy production results in a net bill credit over a billing cycle, the value of any net energy production, during the billing cycle,shall be noted on the customer’s bill and carried over as a bill credit for use in subsequent billing period(s).
Monthly credits are valuedcalculated as follows based on customer definitiontype:
Customer Type Bill Credit per kWh
Standard Ava NEM Customer Retail*
Legacy Municipal NEM Customer Retail* + $0.01
CARE/FERA Ava NEM Customer Retail* + $0.01
*Equivalent to the generation rate you are charged for powerreceived from Ava e) Ava Annual True-Up and Cash‐Out:
Customers on an annual true-up cycle are eligible for the annual true-up and/or cash-out.
Customers on a monthly true-up are eligible for the cash-out.
1. Annual True-Up
Standard Ava NEM customers on an annual true-up cycle may owe Ava money during the April true-up period. Any amount owed will be tracked monthly on the customer’s bill, as a debit, and will be due at the true-up period. Customers on an annual true-up that have surplus kWh are eligible for the cash-out as described in section (e)2.
2. Cash-Out
During the April billing cycle of each year, all current NEM customers with a cash-out credit balance of more than $100 will be offered a direct payment by check for this balance. Any cash-out credit balance will be determined as of the final date of the customer’s March‐ April billing Cycle (i.e. the first bill period ending on or after April 1). Customers who participate in the Ava Cash‐Out or transfer process will have an equivalent credit removed from their NEM account balance at the time of check issuance or transfer. In the event that a customer’s credit balance is less than $100, such credits will continue to be tracked by Ava and will remain on the customer’s account for future use (i.e., reduction of future Ava charges).
Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25, 10.16.25 Attachment Consent Item 10B
During the April billing cycle of each year, all Ava NEM customers will undergo an annual true-up to reconcile their Ava generation charges and credits.
Customers whose energy consumption exceeds their available NEM credits will owe Ava for any outstanding charges. Customers on the annual billing plan will pay all outstanding charges accrued during the year at the April true-up, while customers on the monthly billing plan will owe only the charges incurred during the current billing cycle.
Customers who generated more electricity than they consumed during the preceding 12 months are eligible for an annual true-up credit for their surplus kWh.
Customers who close their electric account through PG&E or move outside of the Ava service area prior to the April billing cycle of each year are also eligible for the annual Ava true-up and cash‐out process.
Ava will, at least once each year, conduct an audit of the CARE/FERA NEM customers to ensure that eligible CARE/FERA NEM customers are included in the CARE/FERA NEM program.
Cash-OutAnnual true-up credits are valuedcalculated as follows based on customer type:
Customer Type Annual Payout Credit per kWh
Standard Ava NEM Customers PG&E Net Surplus Compensation (NSC) Legacy Municipal NEM Customers Retail* + $0.01
CARE/FERA Ava NEM Customers Retail* + $0.01
*Equivalent to the generation rate you are charged for power received from Ava The credit balance will be determined as of the final date of the customer’s March-April billing cycle (i.e. the first bill cycle ending on or after April 1). Customers with a credit balance of less than $100 will receive a rollover credit that will remain on their accounts for future use toward Ava generation charges. Customers with a credit balance of $100 or more will receive a direct payment for the balance. Once the customer’s annual surplus kWh are reconciled and converted to an annual credit, either as a rollover credit or direct payment, the customer’s accumulated NEM balance from monthly credits is reset to zero.
Customers who close their electric account through PG&E or move outside of the Ava service area prior to the April billing cycle of each year are also eligible for the annual Ava true-up process.
Ava will, at least once each year, conduct an audit of the CARE/FERA NEM customers to ensure that eligible CARE/FERA NEM customers are included in the CARE/FERA Ava NEM program.
f) Return to PG&E Bundled Service:
Ava customers with NEM service may opt out and return to PG&E bundled service at any time. Customers should be advised that PG&E will perform a true‐up of their account at the time of return to PG&E bundled service and that PG&E’s standard terms for transitional rates apply to customer returns with less than a six‐month advance notice, if they have been an Ava customer for 60 days or more.
If any Ava NEM customer opts out of the Ava program and returnsto PG&E bundled service, Ava will cash‐out directly pay the customer for any remaining surplus kWh generation credits on Updated 02.20.19, 06.19.19, 12.16.20, 03.17.21, 10.19.22, 2.14.25, 10.16.25 Attachment Consent Item 10B
the account (using the approach detailed in section de above). and mail a check to the billing address.
g) PG&E NEM Services:
All Ava NEM customers are subject to the conditions and billing procedures of PG&E for their non-generation services, as described in PG&E’s Electric Schedule NEM and related PG&E tariff options addressing NEM service. Customers should be advised that while Ava settles out balances for generation on a monthly or annual basis, PG&E will continue to assess charges for delivery, transmission and other services. Most NEM customers will receive an separate annual true-up from PG&E (on their NEM interconnection anniversary with PG&E) for these non-generation services.
Customers are encouraged to review PG&E’s most up‐to‐date NEM tariffs, which are available from PG&E.
h) Aggregated NEM
Per the California Public Utilities Code Section 2827(h)(4)(B), aggregated NEM customers are “permanently ineligible to receive net surplus electricity compensation.” Therefore, any excess accrued credits over the course of a year under an aggregated NEM account are ineligible for payment via Ava’s annual Cash‐Outtrue-up process as described in section (de).
All other NEM rules apply to aggregated NEM accounts.
i) NEM Fuel Cell (NEM FC)
Per the California Public Utilities Code Section a 2827.10(f)(3), NEM fuel cell customers are ineligible to receive net surplus electricity compensation. Therefore, any excess credits accrued over the course of a year under a NEM FC account are ineligible for payment via Ava’s annual true-up process as described in section (e).