Staff Report Item 18
Staff Report Item 18
To: Ava Community Energy Authority
From: Howard Chang, CEO
Subject: Ava 5-year agency priorities
Date: 10/21/2026
__________________________________________________________________ Summary/Recommendation
Staff is providing an informational presentation providing an overview of Ava’s 5-year agency priorities.
Analysis and Context
Since Ava’s operational launch, staff have developed priorities to help guide staff workflows and deliverables. This presentation serves to provide an organized review of these priorities to the board. The presentation is not a comprehensive collection of all operational responsibilities, but rather more strategic needs from 2027-2031. The purpose is to raise awareness of these priorities with the board, seek feedback and alignment on what is identified, and provide a preview of substantive deliverables and future action items that staff will bring forward for discussion in 2027.
Attachment
A. 5-year Agency Priorities PPT
5-Year Agency Priorities
October 21, 2026
Attachment Staff Report Item 18A
Introduction
2 Purpose:
Receive an informational
presentation that outlines strategic
priorities for the agency over the
next 5 years (2026–2031)
Note: This does not reflect a comprehensive review
of all operational priorities and deliverables.
Electrify
Everything
Provide Affordable,
Clean Power to
Everyone
Defeat Existential
Threats
Build an Ethos-Driven Organization
Agency Objectives & Key Results (OKRs)
Attachment Staff Report Item 18A
Provide Affordable, Clean
Power to Everyone
3 Attachment Staff Report Item 18A
4 Target Key Results:
1. Decrease greenhouse gas (GHG) emissions within Ava’s wholesale energy portfolio
2. Ensure adequate generation and capacity resources to meet current and future load
3. Stabilize and lower wholesale energy costs
Example KPIs include: GHG emissions, GHG reduction, Rates: ¢ /kWh, PPA price: $/MWh, Peak load (GW) vs. volumetric load (GWh), etc.
Objective:
Decarbonize Ava’s
wholesale energy
supply and drive
down costs for our
customers
Provide Affordable, Clean Power to Everyone
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Channel & Deliverables Mechanism/Strategy
Establish long-term power
procurement targets
● Evaluate 24x7 vs. net annual emissions accounting frameworks and changing power content regulatory requirements
● Complete supplemental internal IRP analysis and align on emissions/power content focused targets for 2030 and beyond
Renewable 100 & Bright
Choice roadmap ● Evaluate a price and power content roadmap given convergence of these two products Energy prepay
optimization
● Maximize and optimize operations of energy prepay transaction to utilize tax exempt status and structurally lower procurement costs
Power generation project
ownership
● Evaluate value creation and risk mitigation benefits
● Review a project to pilot ownership
Innovation
● Continue to create new power contracting structures to diversify and mitigate risk (e.g. Options agreements, interconnection enhancement agreements, hybridization projects, etc.) ● Evaluate emerging technologies to advance CA energy goals Optimize equity-based
funding tools
● Maximize local renewable energy projects in disadvantaged communities as part of DAC-GT program ● Evaluate rate structures and cost allocation among customer segments; optimize Ava rate structures and CARE/FERA customer eligibility
Policy advocacy ● Engagement on IRP and Reliable and Clean Power Procurement Program (RCPPP) CPUC proceedings regarding procurement and emissions requirements 5 Execution Mechanisms & Strategies
Provide Affordable, Clean Power to Everyone
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Key Deliverables
6 In the next year Over the next 5 years At the end of 5 years A. Evaluate 24x7 emissions
reporting requirements as
indicated by CPUC and CEC
B. Complete supplemental IRP
analysis to evaluate least cost
power portfolios across different
emissions frameworks
C. Execute on 1-2 additional energy
prepay transactions
D. Evaluate power generation
project ownership for board
consideration
A. Align power content targets with
changing regulatory environment
B. Develop mid-term Renewable 100
and Bright Choice content and
price roadmap
C. Execute [3-4] energy prepay
transaction repricings
D. Initiate project ownership pilot(s)
A. Establish long-term
procurement targets within a
24x7 emissions framework
B. Assess project ownership
scalability and target portfolio
share
C. Define portfolio cost target
ranges ($/kWh cost or %
discount to PG&E)
Provide Affordable, Clean Power to Everyone
Attachment Staff Report Item 18A
Electrify Everything
7 Attachment Staff Report Item 18A
8 Target Key Results:
1. Decrease emissions from buildings and transportation across our service area
2. Improve customer affordability of electrification measures
3. Leverage electrification to create cost savings for all customers
4. Bring electrification benefits to priority communities
5. Increase community resilience
6. Facilitate economic development opportunities
Example KPIs include: GHG reduction, $’s deployed, $’s saved, # of customers served, etc.
Objective:
Leverage our clean energy
supply in electrifying
buildings and
transportation to create
tangible and sustained
value for our customers
and communities
Electrify Everything
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Channel & Deliverables Mechanism/Strategy
Customer Programs ● Customer Programs Strategy: Defines the objective, strategic priorities, and success metrics that lead to a portfolio of program concepts.
Municipal Support ● Advance energy and climate goals of our municipal members e.g. project investment, technical assistance, and economic development opportunities Grants ● Current priority areas: Workforce Development, Education, Community Empowerment, Research & Innovation
Rate structures
● Utilize rate structures and dynamic pricing to drive deeper decarbonization through electrification. Includes: Hourly Flex Pricing, Time-of-Use rates, and other structures that support Virtual Power Plants (VPP), load modification, or load reduction. ● May be influenced by regulatory mandates
Policy Advocacy
● Defined by Ava’s legislative platform and regulatory agenda ● Coordinated to support the objective and priorities identified in the Customer Programs Strategy
Local/State Ordinances or
mandates
● Not within Ava’s direct control, but Ava may support local code, permitting, and other supplemental municipal services
Execution Mechanisms & Strategies
Electrify Everything
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10 Key Deliverables
In the next year Over the next 5 years At the end of 5 years A. Customer Programs Strategy
with identified priorities for
focus of next 5 years
B. Customer Programs Funding
Plan
C. Adaptive Program Portfolio
A. Phased implementation of
Customer Programs
B. Tracking of programmatic
success metrics
C. Adaptation/iteration of
individual programs to align with
portfolio targets and market
conditions while honoring
established strategy
A. Report out on success metrics
identified as part of Customer
Programs Strategy
B. Analysis of assets in Virtual
Power Plant to determine
long term resource viability/
scalability
C. Revisit Customer Programs
Strategy to align with current
customer needs and priorities
Electrify Everything
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Defeat Existential Threats
11 Attachment Staff Report Item 18A
12 Defeat Existential Threats
Target Key Results:
1. Maintain effective governance through informed decision making, strong oversight & controls, and full transparency
2. Establish long-term sustainable rate structure competitiveness
3. Build financial resilience through a strong balance sheet, ample liquidity, and high credit quality
4. Minimize operating risks related to customer billing capabilities, power resource management tools, and
cybersecurity
5. Advocate in the regulatory and legislative fields to protect Ava ratepayers, advance Ava priorities, and maintain autonomy Example KPIs include: Value Proposition on rates, Reserve funding levels, Rate Stabilization Fund levels, Credit rating, IT penetration testing, Load served, etc.
Objective:
Mitigate
organizational risks
and protect Ava’s
local autonomy in
how we serve our
customers and
communities
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13 Defeat
Existential
Threats
Policy
Advocacy &
Compliance
Financial
Resilience
Sustained
Competitive
Rates
Operational
Readiness
Effective
Governance
Strategies &
Mitigations
Supporting
Ava’s Mission
Defeat Existential Threats
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Channel & Deliverables Mechanism/Strategy
Effective Governance
● Facilitate informed decision making through enhanced education, retreats, and community engagement ● Enhance controls and ensure comprehensive oversight through periodic review of policies, consideration of operational audits, and implementation of a formal enterprise risk management framework ● Evaluate and strengthen governance structure as needed Establish sustainable
competitive rate
structure
● Evaluate rate-indexing methodology and longer-term value proposition setting; consider more granular rate variations and dynamic rate structures
● Evaluate cost structures related to customer segmentation and regional load shapes ● Build strong rates competency
Financial Resilience
● Maintain a strong balance sheet and liquidity to mitigate risk and create value ● Target Reserve and RSF funding timeframes & utilization plans ● Maintain A- credit rating and evaluate upgrade prioritization - implications on credit facility costs, project debt costs if owning
Policy Advocacy &
Compliance
● Take action for short-term PCIA defense and longer-term reform ● Enhance ratepayer advocacy
● Advocate for procurement and rate setting autonomy
● Ensure compliance in regulatory, legislative, CA, and federal obligations Operational Readiness ● Build necessary and value creating operating capabilities (e.g. billing, scheduling, DERMS, power resource management/optimization)
● Implement Cybersecurity defenses
● Maintain optimal economies of scale and consider growth with strategic load growth and territory expansion Execution Mechanisms & Strategies
Defeat Existential Threats
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15 In the next year Over the next 5 years At the end of 5 years A. Implement a formal enterprise
risk management framework
to measure, mitigate, and
communicate risks
B. Improve board and community
engagement
C. CPUC PCIA Track 3
engagement
D. Initiate Phase 1 of rates
analysis to evaluate various
rate structures
A. Undergo build vs. buy analysis to
evaluate mission critical
operating capabilities
B. Review long-term funding plans
to meet target Reserve Fund and
Rate Stabilization Fund levels
C. Advocate on longer-term PCIA
and other potential regulatory
reform
D. Identify potential rate structure
changes to optimize cost
allocation and long term value
proposition
A. Evaluate debt optimization for
project ownership and
programs
B. Establish plans to meet target
financial funding goals
C. Preserve local decision
making and maintain
procurement autonomy
D. Establish timeline to
implement rate structure
adjustments
Key Deliverables
Defeat Existential Threats
Attachment Staff Report Item 18A
Build an Ethos-Driven
Organization
16 Attachment Staff Report Item 18A
17 Target Key Results:
1. Sustain a high-quality and engaging employee experience
2. Retain and grow top talent through strong manager
effectiveness, development, and performance systems
3. Establish clear, consistent collaboration and
communication practices enabled by tools, technology,
and operational frameworks
4. Ensure a secure, safe, and compliant workplace and
environment that protects staff, data, and operations
Example KPIs include: Employee Net Promoter Score (eNPS), Employee retention, Staffing headcount
Objective:
Create an employee
experience and
operational environment
where staff can thrive,
collaborate effectively,
grow professionally, and
safely deliver on Ava’s
mission
Build an Ethos-Driven Organization
Attachment Staff Report Item 18A
The People and
Tools to Power
Ava’s Mission
18 Build an
Ethos-Driven
Organization
Workforce
Planning &
Talent
Collaboration
& Ways of
Working
Leadership &
Manager
Development
Performance,
Growth &
Rewards
Employee
Experience &
Culture
Technology &
Tool
Enablement
Build an Ethos-Driven Organization
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19 Execution Channel Mechanism/Strategy
Workforce Planning & Talent ● Use 3-5 year workforce planning, recruitment, succession planning, and internal growth pathways to build future organizational capacity Employee Experience & Culture ● Use engagement surveys, onboarding, recognition, DEIB initiatives, and Ethos-based programs to strengthen connection and belonging
Leadership & Manager Development ● Build leadership and manager effectiveness through training, coaching, shared expectations, and team-development support
Performance, Growth & Rewards ● Align OKRs, feedback, performance management, compensation, and development to reinforce impact and employee growth
Collaboration & Ways of Working ● Establish clear communication practices, cross-functional workflows, project management standards, and knowledge-sharing systems
Technology & Tool Enablement ● Adopt tools, technology, and AI that improve the employee experience, collaboration, efficiency, and decision-making
Execution Mechanisms & Strategies
Build an Ethos-Driven Organization
Attachment Staff Report Item 18A
20 In the next year Over the next 5 years At the end of 5 years A. Develop 3-5 year workforce
hiring plan
B. Launch a multi-year succession
planning initiative
C. Assess AI adoption
opportunities, conducting pilots
and enhancing how we work with
a “put people first” mentality
D. Define and measure manager
effectiveness and provide
training and workshops to
support manager growth and
alignment.
A. Execute & refine long-term
workforce hiring plan, inclusive
of relevant outcomes from
succession planning and
operational initiatives
B. Focused training efforts
aligned with opportunities
identified in engagement
surveys and other
assessments
C. Continued optimization of goal
setting, performance, and
retention practices
A. Continuous optimization of
tools across the agency,
inclusive of newly adopted
technology
B. Maintain a high performance
based culture with strong
staff retention
C. Provide the people and tools
to effectively deliver on the
goals previously stated
Key Deliverables
Build an Ethos-Driven Organization
Attachment Staff Report Item 18A
Conclusion
21 Attachment Staff Report Item 18A
Conclusion
22 • 2031 will approach quickly and this
presentation consolidates the broad range of
strategic priorities that Ava needs to resource
outside of the day to day operational needs
• While this list of objectives, key results, and
deliverables is not comprehensive of all
priorities, even what has been presented here
will need to be further prioritized &
streamlined given limited time and resources
• Staff welcomes board feedback on this
informational presentation
Electrify
Everything
Provide Affordable,
Clean Power to
Everyone
Defeat Existential
Threats
Build an Ethos-Driven Organization
Attachment Staff Report Item 18A
Glossary Appendix
23 Attachment Staff Report Item 18A
Acronym Glossary
24 Acronym Definition
IRP Integrated Resources Plan
IT Information Technology
KPI Key Performance Indicator
kWh Kilowatt-hour
MW Megawatt
OKR Objectives and Key Results
PCIA Power Charge Indifference Adjustment
PPA Power Purchase Agreement
RCPPP Reliable and Clean Power Procurement Program
RSF Rate Stabilization Fund
TWh Terawatt-hour
VPP Virtual Power Plant
Acronym Definition
24x7 24 hours, 7 days/week
AI Artificial Intelligence
CARE/FERA California Alternate Rates for Energy /
Family Electric Rate Assistance
CEC California Energy Commission
CPUC California Public Utilities Commission
DAC-GT Disadvantaged Community Green Tariff
DEIB Diversity, Equity, Inclusion, and Belonging
DERMS Distributed Energy Resource Management System
eNPS Employee Net Promoter Score
GHG Greenhouse Gas
GW Gigawatt
GWh Gigawatt-hour
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