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• In May 2020, PG&E decreased the generation component of the rate by 8 percent. Since EBCE's rates are tied to PG&E's rates, EBCE made the same change, resulting in loss in revenue. • In May 2020, the Power Charge Indifference Adjustment (PCIA), also referred to as an "exit fee," increased by 30 percent and will likely increase again in 2021. The PCIA is annually set by the California Public Utilities Commission (CPUC) with the intent to ensure that customers who switch to EBCE (and other Community Choice programs like MCE) pay for energy that was contracted by PG&E to serve them prior to their switch. Because the EBCE Board has determined to maintain rates competitive with PG&E, when the PCIA increases, it reduces EBCE's profit margin. • Procurement costs for the large hydroelectric power in the Brilliant 100 portfolio have been higher than expected. While the difference in rates between Bright Choice and Brilliant 100 is 1.5 percent, the costs of providing Brilliant 100 exceeds 1.5 percent. As a result, Brilliant 100 will no longer be offered beginning in 2022. In June 2020, the EBCE Board approved their annual budget and changed the discount for the entry level service Bright Choice from 1.5 percent to 1.0 percent below PG&E rates, effective July 1, 2020. The Board also decided to maintain the rate for the service level Renewable 100 at $0.01/kWh more than PG&E rates. On November 18, 2020, the EBCE Board discussed the future of the intermediate service level Brilliant 100 and voted to close this option to accounts in existing jurisdictions. In addition to the current Brilliant 100 accounts having access to this option, the cities of Pleasanton, Newark, and Tracy were given the option to offer this product as a voluntary opt-up option, or as a default service for its residents, businesses, and/or municipal accounts. On January 19, 2021 the City Council unanimously voted to enroll residential, commercial and industrial accounts into Brilliant 100 and municipal accounts into Renewable 100. DISCUSSION The Brilliant 100 product will no longer be offered after December 31, 2021. The City's choices for a new default product that will take effect in January 2022 are Renewable 100 and Bright Choice. Renewable 100 is sourced from 50 percent solar and 50 percent wind from California and has rates that are 3 to 5 percent more than PG&E rates (a $0.01/kWh premium). In 2021, Bright Choice has a minimum of 41 percent renewable energy and is priced at 1 percent less than PG&E rates. In comparison, in 2020 PG&E reported a renewable content of approximately 36 percent and an overall carbon-free content of approximately 88 percent. Rates—The detailed differences in rates are provided in table 2 of this report. If Bright Choice is chosen as the new default product, most customers will see a small decrease in their cost of electricity. The generation rate for Bright Choice is 1 percent less than the 3