Consent Item 7
Consent Item 7
To: Ava Community Energy Authority
From: Matthew Chiodo Senior Analyst, Power Resources
Subject: Adopting two Resolutions (1) Authorizing the Chief Executive Officer to Negotiate and Execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-SANLEANDRO1, LLC and (2) Authorizing the Chief Executive Officer to Negotiate and Execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-HAYWARD1, LLC
Date: October 21, 2026 __________________________________________________________________ Recommendation (1) Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-SANLEANDRO1, LLC. (2) Adopt a Resolution authorizing the Chief Executive Officer to negotiate and execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-HAYWARD1, LLC.
Analysis and Context
In February 2024, the Ava Community Energy ( ) Board of Directors oard approved the execution of five Power Purchase Agreements ( ents with Prologis, Inc. for solar projects located in Av service territory . These solar projects are part of two California Public Utilities Commission ( CPUC funded programs: the Disadvantaged Communities Green Tariff ( DAC-GT ) and Community Solar Green Tariff ( CSGT ). These programs intend to promote development of renewable generation within Disadvantaged Communities California Alternate Rates for Energy ( CARE ) and Family Electric Rate Assistance ( FERA ) program customers living in a DAC access to 100 percent renewable energy supply and a 20 percent discount on electricity bills.
Consent Item 7
The DAC Portfolio totals 7.28 MW of renewable energy from commercial rooftop solar projects in Ava service territory, including rooftop solar projects in Oakland, San Leandro, Hayward, and two projects in Tracy. This portfolio of long-term contracts is intended to serve approximately 3,920
the DAC-GT program1. Of the five projects, Oakland achieved commercial operation of August 31, 2026, and San Leandro and Hayward are under construction.
Within the DAC Portfolio, two projects, ESCA-PLD-SANLEANDRO1, LLC ( San Leandro and ESCA-PLD-HAYWARD1, LLC ( Hayward Commerce Center , have experienced interconnection delays during their development, making the commercial operation milestones currently unreachable. These challenges are caused by delays in the interconnection process managed by Pacific Gas and Electric ( PG&E ). PG&E is the party responsible for syncing projects to the distribution system. Due to the delays, contract amendments are necessary to increase the number of days from 180 to 365 before the occurrence of an Event of Default under the PPAs. The current schedule estimates that the San Leandro project will achieve commercial operation on April 9, 2027, and that the Hayward project will achieve commercial operation on May 14, 2027. Both projects were originally expected to achieve commercial operation on April 1, 2026. Similar delays occurred to the Tracy 2 and Tracy 12 DAC Projects which were brought to the Board for amendments to their commercial operation date and approved in February 2026.
When these two projects come online, they will provide valuable benefits to Ava customers, including bill savings for customers eligible for the Disadvantaged Community Green Tariff program. Both projects are expected to become operational in the spring of 2027. Once completed, the projects will become the second and third DAC projects to be built and operational with On November 18, 2024, Ava
additional eligible DAC-GT program volumes was approved by the CPUC, allowing Ava to increase the number of customers enrolled in the program. Currently, 3,920 Ava customers are enrolled in the DAC program.
service territory:
City # DAC-GT Customers
Berkeley 28
Emeryville 65
French Camp 16
Hayward 120
Lathrop 58
Manteca 14
Newark 46
Oakland 1,691
1 CPUC D.18-06-027
Consent Item 7
276
San Lorenzo 1
Stockton 1,335
Tracy 189
Union City 81
Total 3,920
Attachments
A. Resolution of the Board of Directors of Ava Community Energy Authority Authorizing the Chief Executive Officer to Negotiate and Execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-SANLEANDRO1, LLC
B. Resolution of the Board of Directors of Ava Community Energy Authority Authorizing the Chief Executive Officer to Negotiate and Execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-HAYWARD1, LLC
Attachment Consent Item 7A
RESOLUTION NO. R-2026-XX
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CHIEF
EXECUTIVE OFFICER TO NEGOTIATE AND EXECUTE A FIRST
AMENDMENT TO THE POWER PURCHASE AGREEMENT WITH ESCA-PLD-SANLEANDRO1, LLC WHEREAS Ava was formed as a community
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 JPA in March of 2020. The City of Stockton, located in San Joaquin County, was added as a member of Ava in September of 2022. The City of Lathrop, located in San Joaquin County, 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; and
WHEREAS Ava issued the 2022 Disadvantage Communities Green Tariff and Community Solar Request For Offer in December 2022; and WHEREAS Ava executed a Power Purchase Agreement ) with ESCA-PLD-SANLEANDRO1, LLC 22, 2024; and WHEREAS the PPA is for 1 mega-watt of Solar Energy with an Expected Commercial Operation Date of April 1, 2026; and
WHEREAS Ava staff is negotiating a first amendment to the PPA with the Seller to amend the number of allowable delay days before triggering an event of default.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Chief Executive Officer, in consultation with staff and legal counsel, is hereby authorized to negotiate and execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-SANLEANDRO1, LLC to increase the allowable days to 365 days before the occurrence of an Event of Default under the PPA.
Attachment Consent Item 7A
ADOPTED AND APPROVED this 21st day of October, 2026.
Betsy Andersen, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board
Attachment Consent Item 7B
RESOLUTION NO. R-2026-XX
A RESOLUTION OF THE BOARD OF DIRECTORS
OF AVA COMMUNITY ENERGY AUTHORITY AUTHORIZING THE CHIEF
EXECUTIVE OFFICER TO NEGOTIATE AND EXECUTE A FIRST
AMENDMENT TO THE POWER PURCHASE AGREEMENT WITH ESCA-PLD-HAYWARD1, LLC WHEREAS Ava was formed as a community
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 JPA in March of 2020. The City of Stockton, located in San Joaquin County, was added as a member of Ava in September of 2022. The City of Lathrop, located in San Joaquin County, 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; and
WHEREAS Ava issued the 2022 Disadvantage Communities Green Tariff and Community Solar Request For Offer in December 2022; and WHEREAS Ava executed a Power Purchase Agreement ) with ESCA-PLD-HAYWARD1, LLC 22, 2024; and WHEREAS the PPA is for 0.56 mega-watt of Solar Energy with an Expected Commercial Operation Date of April 1, 2026; and
WHEREAS Ava staff is negotiating a first amendment to the PPA with the Seller to amend the number of allowable delay days before triggering an event of default.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF AVA COMMUNITY ENERGY AUTHORITY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The Chief Executive Officer, in consultation with staff and legal counsel, is hereby authorized to negotiate and execute a First Amendment to the Power Purchase Agreement with ESCA-PLD-HAYWARD1, LLC to increase the allowable days to 365 days before the occurrence of an Event of Default under the PPA.
Attachment Consent Item 7B
ADOPTED AND APPROVED this 21st day of October, 2026.
Betsy Andersen, Chair
ATTEST:
Adrian Bankhead, Clerk of the Board