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Other Projects: EBCE has a long list of ongoing projects ranging from community solar, solar loan buydowns for low income solar users, to local energy generation. EBCE is investing small amounts in many projects to gauge each project's impact and to guide future investment. CCAs are required to reinvest in their community, and EBCE is beginning to do this through initiatives laid out in the LDBP. EBCE's $625,000 for LDBP implementation in FY19 was a relatively small amount, but it is important to factor in that EBCE was just beginning during this time. FY20, on the other hand, has $4,540,000 allocated for reinvestment in the local community. These investments in the local community are designed to lower GHG emission levels in innovative ways and create new jobs. Pleasanton is potentially missing out on these opportunities by not participating in EBCE. EBCE's decision-making board is comprised of elected officials from all participating jurisdictions, who ultimately approve where the LDBP funding goes. If Pleasanton joins EBCE, they will get a seat and voice at the decision-making table and ensure that local development funding is used appropriately and to help Pleasanton meet its CAP goals where feasible. 3. Financial Viability, Risks, and Uncertainties Anther objective of staff's investigation is to assess EBCE's financial viability, its ability to keep rates from fluctuating, and whether or not Pleasanton will be insulated from EBCE liability. MCE is the first CCA to service California residents, and received a "Baa2" Issuer Rating from Moody's on May 16, 2018. This is an investment grade rating, with Baal being a "medium grade, with some speculative elements and moderate credit risk." Other CCAs do not yet have credit ratings due to their lack of an adequate credit history. EBCE and the other CCAs work around this by using a "lockbox" to sign contracts. CCAs put their revenue into a bank account, and these funds can only be withdrawn to pay for PPAs first. Once the PPA is entirely paid for, then the funds in that account become available for other purposes. The lockbox method has resulted in billions of dollars in contracts so far as energy wholesalers have been willing to enter into such arrangements. Over 60 long-term PPAs have been signed through lockboxes for new development in solar, wind, biogas, and energy storage facilities. Approximately 95% of these PPAs are within California, scattered in 16 counties. EBCE currently has the largest customer base of any CCA in California with over 550,000 accounts. The opt -out rate is less than 4% and has remained stable, based on monthly trends. Having such a large customer base gives EBCE bargaining power and stability. The size of EBCE enabled them to sign the four long-term energy PPAs mentioned earlier in this document. The four PPAs were signed in June 2019, one year after businesses started their service with EBCE, and six months after residents joined. Page 16 of 20