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.
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 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
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