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The CCA is still new and plans to sign more PPAs in the future. The size of EBCE should prove helpful in securing favorable contract terms, compared to smaller CCAs. In addition to using MCE as an indicator for assessing the financial viability of other CCAs, a recent development provides a positive sign of EBCE's sustainability, at least in the near future. On May 29, 2019, only 11 months after EBCE began service for business customers, EBCE announced that they had repaid their $4.7 million startup loan from Alameda County. The repayment of the loan enables EBCE to put more money into the LDBP and PPAs. There have also been liability concerns regarding joining EBCE. Provision 2.3 of the JPA agreement, Formation, states, "There is formed as of the Effective Date a public agency named the East Bay Community Energy Authority. Pursuant to Sections 6506 and 6507 of the Act, the Authority is a public agency separate from the Parties. The debts, liabilities or obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties unless the governing board of a Party agrees in writing to assume and of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority. Notwithstanding Section 8.4 of this Agreement, this Section 2.3 may not be amended unless such amendment is approved by the governing boards of all Parties." Section 8.4 concerns amendments to the JPA. Pleasanton's City Attorney has confirmed that the City would not be liable for any of EBCE's unfulfilled debts, liabilities, or obligations. The City Attorney has also reviewed AB 1912 and determined that this bill would not burden the City with EBCE's employee pension liabilities due to the explicit exclusion provision contained in the joint powers agreement described above. Lastly, staff notes that PG&E is facing liability difficulties of its own in the aftermath of the 2017 and 2018 California wildfires in their service areas. They potentially owe up to $30B from the past two fire seasons, and there is always a chance they can be liable for future wildfires as well. PG&E's service is volatile right now, and their Chapter 11 filing can result in changes in their role as an energy supplier. Given the above, it is important to consider giving Pleasanton customers a choice when it comes to who supplies their electricity. 4. Governance EBCE is anot-for-profit organization that has a Board of Directors consisting of elected officials from every jurisdiction that is a part of the JPA. This governance structure is probably more inclined to operate with longer-term decision-making time horizons and with its customer base as their central focus than a typical IOU. Staff sees this as one of the biggest advantages EBCE has over an IOU that is focused on quarterly earnings and their shareholders. This system benefits the local community because the elected officials on the Board of Directors understand that their local constituents can always hold them accountable for poor decision-making. Page 17 of 20