DATE: May 19, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT Ava Community Energy: Presentation of Impact Report by CEO Howard Chang
RECOMMENDATION
That the City Council reviews this informational report and receives a presentation from Ava Community Energy.
SUMMARY
Ava Community Energy has been Hayward’s electricity provider since 2018. Ava ’s Chief Executive Officer, Howard Chang, will present a summary of their recently published Impact Report (Attachment II). The report includes an overview of Ava Community Energy, their power generation , local programs, customer bill savings, and community benefits . The agency was established in 2016 as East Bay Community Energy (EBCE) and in 2023, the name was changed to Ava Community Energy.
FISCAL IMPACT
Hayward’s participation in Ava Community Energy has no impact on the City’s General Fund or Measure C.
BACKGROUND
In December 2016, Hayward joined the County of Alameda and ten of its cities in founding and launching EBCE as a joint powers authority to provide cleaner, greener energy to their customers at lower rates . EBCE began providing electricity to commercial, municipal, and residential accounts in 2018 . Since 2018, EBCE has continued to increase investments in local programs, leading to an expansion in the number of programs offered and an increase in customer savings throughout EBCE’s service area . Information about Hayward’s participation and customer bill savings is available on Ava’s Hayward-specific webpage.1
1 https://avaenergy.org/hayward
In 2023, EBCE changed its name to Ava Community Energy to reflect the expanded service territory, which is now more than the East Bay. Ava now includes Lathrop, Stockton, Tracy, unincorporated San Joaquin County as well as all cities in Alameda County except the City of Alameda, which has its own electric utility.
Ava Community Energy offers two electricity products:
• Bright Choice – Carbon content is higher than PG&E. Rates are 0.5% lower than PG&E rates.
• Renewable 100 – 100% renewable electricity, sourced entirely from California solar and wind energy. Rates are currently 1¾ cents per kWh more than PG&E rates.
On November 10, 2020,2 the City Council approved the enrollment of all City facilities in the Renewable 100 product. On July 6, 2021,3 the City Council voted to transition most Hayward customers to Renewable 100, effective January 202 2. Customers on income or medical - related discounts are automatically enrolled in Bright Choice. The last update about Ava Community Energy was presented to the Council Sustainability Committee on September 8, 2025.4
DISCUSSION
In addition to its core services related to procuring alternative sources of energy, Ava also offers programs aimed at improving resiliency and electrifying buildings and vehicles .
Following are some of the programs that will be included in Ava’s presentation:
• Energy Resilience at Critical Facilities – The City is partnering with Ava to develop solar and battery energy systems at Hayward’s Corporation Yard and Fire Station 1 .
Both projects will be completed this spring.
• Public EV Charging – Ava is installing publicly accessible electric vehicle fast charging infrastructure in the East Bay, including a hub planned for Municipal Parking Lot #4 in Downtown Hayward.
• Home EV Charging – Ava’s SmartHome Charging program helps customers save money, earn rewards, and use more renewable energy by optimizing their home charging schedule.
• Incentives for E-Bikes – The Ava Bike Electric program is providing $10 million in incentives to customers in Ava’s service area to purchase e -bikes. The program , partially funded with a $4 million grant from the Alameda County Transportation
2 https://hayward.legistar.com/LegislationDetail.aspx?ID=4688323&GUID=F7AA3CB1-0D7A-48C3-A886-6C7CE8C13EB7&Options=&Search= 3 https://hayward.legistar.com/LegislationDetail.aspx?ID=5018124&GUID=8CCC9164-4B0D-463C-AD16-709EFC1035D4&Options=&Search= 4 https://hayward.legistar.com/LegislationDetail.aspx?ID=7648205&GUID=BACFE1D2-CFE3-4669-9859-125652D2F4F4&Options=&Search=
Commission (ACTC), will direct at least 40% of incentives dedicated to low -income customers.
• Solar and Storage Incentive Program – Ava recently launched an incentive program for customers to install new solar and battery storage on their homes. Half of the total program budget is reserved for low -income residential customers and community resilience hubs. Through this program, staff is working with Ava Community Energy to evaluate the feasibility of adding a battery to the Downtown Library.
Greenhouse Gas Emissions – Ava Community Energy was established with the intention to provide electricity at rates that are lower or competitive with those offered by PG&E and to develop an electric supply portfolio with a lower greenhouse gas (GHG) intensity than PG&E.
Renewable 100 is sourced from 100% renewable electricity and Bright Choice is sourced from a mix of sources. For a few years, Bright Choice was much more carbon intensive than PG&E’s base product. However, as shown on page 18 of the Impact Report , Ava’s Bright Choice was 96% carbon free in 2024 while PG&E was 98% carbon free. The 2025 analysis is still being finalized, but Bright Choice is project ed to be 97% carbon free in 2025.
Approximately 30% of Hayward’s customers are on Bright Choice, so the emissions associated with this product make a significant impact on Hayward’s overall GHG emissions.
Ava Community Energy is on track to meet it s goal for its entire portfolio to be carbon free by 2030.
ECONOMIC IMPACT
While most Hayward customers are automatically enrolled in Renewable 100, customers enrolled in the medical baseline discount program or the income -qualifying CARE/FERA 5, discount programs are enrolled in Bright Choice. In addition, some Hayward customers have opted for the Bright Choice product. Rates for Bright Choice are tied to PG&E’s rates and the current discount for Bright Choice is 0.5% lower than PG&E rates. As shown on page 8 of the Impact Report, the discount has changed over the years. In January this year, the discount was reduced to help address Ava’s budget deficit. Similarly, the premium for Renewable 100 has changed over the years and is currently 1¾ cents per kWh more than PG&E rates.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority to Champion Climate Resilience & Environmental Justice, and specifically relates to implementation of the following Project s under that heading:
5 CARE is the California Alternate Rates for Energy Program and FERA is the Family Electric Rate Assistance Program. More information is available at https://avaenergy.org/your-energy-options/rate-discounts-assistance/state-discount-programs/
Reduce Greenhouse Gases and Dependency on Fossil Fuels:
Project CP1: Implement Year 1 Programs from the adopted GHG Roadmap (Climate Action Plan).
Project CP2: Continue to collaborate with Ava Community Energy to provide public EV charging facilities
SUSTAINABILITY FEATURES
Community choice energy was identified in the City’s Climate Action Plan as the program with the greatest potential to reduce community wide GHG emissions. In 2018, Hayward’s participation in Ava Community Energy resulted in the 20% GHG reduction goal for 2020 being met two years early. In 2019, due in large part to EBCE, Hayward’s emissions were
25.7% lower than the 2005 baseline. However, in 2020-2022, the carbon content for Bright Choice increased significantly while PG&E decreased theirs. Bright Choice emissions are again declining and will be zero by 2030. In addition, Ava ’s current and proposed local development programs are supporting the implementation of many initiatives identified in Hayward’s Climate Action Plan.
PUBLIC CONTACT
No public contact was made for this agenda item.
NEXT STEPS
Staff will continue to coordinate closely with Ava staff to implement programs that benefit the Hayward community, implement the City’s Climate Action Plan, and carry out related projects identified in the Strategic Roadmap.
Prepared by: Erik Pearson, Environmental Services Manager
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________
Jennifer Ott, City Manager