Understanding Bill Credits: How Ava Returns Money Directly to Customers
We’re all looking for ways to reduce electricity bills. While Ava Community Energy works to keep our rates competitive, we go a step further by returning excess revenue directly to our customers.
To kick off 2025, Ava issued $22 million in bill credits to our customers across Alameda County and Tracy—but what exactly are these credits, and how do they reflect our broader mission as your community power provider?
Why Does Ava Distribute Bill Credits?
As a not-for-profit public agency, Ava operates differently than an investor-owned utility. Since 2018, we’ve saved customers over $145 million through a combination of bill credits and lower rates.
By returning revenue to our customers, we’re working to ensure no one gets left behind in the transition to clean energy. Think of it as a community dividend that helps make clean energy more affordable for everyone.
When our operations generate excess revenue, we return portions of it to the communities we serve.
Our bill credit program reflects a core belief: everyone should have access to affordable clean energy.
How Do Ava Bill Credits Work?
Each year, Ava evaluates our financial position to maintain strong operational stability. Our Board of Directors, made up of elected officials from each city and county we serve, votes to approve a budget that allows us to:
- Maintain adequate working capital needs and operating reserves
- Invest in long-term renewable energy and/or clean storage projects
- Support community programs, grants, and sponsorships for local organizations
In early 2025, as approved by the Board of Directors, all residential customers received a one-time credit, regardless of their energy usage or rate plan. We provided enhanced credits of $100 to customers enrolled in California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) programs. Commercial and business customers received credits based on their energy usage, helping local enterprises manage their operating costs.
Annual Bill Credit History
| Fiscal Year | CARE/FERA | Residential | Non-Residential | Total Returned to Customers |
|---|---|---|---|---|
| 2024/25 | $11 million | $4 million | $7 million | $22 million |
| 2023/24 | $6 million | $4 million | $3 million | $13 million |
| 2022/23 | $6 million | – | – | $6 million |
Customers don’t need to take any action to receive their credits—they are automatically applied to the Ava Community Energy portion of PG&E bills during our annual distribution period. We typically issue credits in winter months, when energy bills tend to be highest.
Beyond Bill Credits: Our Approach to Affordable, Clean Power for All
As one of California’s 25 community choice aggregation programs, Ava exemplifies how local control over power purchasing can benefit residents and businesses. While annual bill credits provide immediate savings, they’re part of a broader strategy to reinvest in our community and provide 100% carbon-free energy at low rates to all our customers by 2030.
Everyday Savings
Our Bright Choice service plan is priced 5% lower than PG&E rates. That means customers on this plan are saving a little bit every month, just for being Ava customers.
Local Programs
We offer programs designed to make it easier and more affordable for residents to switch to carbon-free electric technologies, such as induction cooking, solar and battery storage, and electric heat pump water heaters.
Grants and Sponsorships
Ava invests in local organizations through community sponsorships and multi-year grants that align with our strategic priorities of community energy resilience, workforce development, and climate education.
As we begin serving Stockton and Lathrop, our commitment to returning excess revenue to customers remains unchanged. This approach demonstrates how public power can work for everyone—delivering cleaner energy, lower rates, and direct community benefits.
California Climate Credit: A discount on electricity and natural gas that appears on your spring and fall energy bills. It comes from fees that California collects from companies that release greenhouse gases.
State Discount Programs: CARE (California Alternate Rates for Energy), FERA (Family Electric Rate Assistance), and Medical Baseline provide automatic monthly savings on your energy bill. These programs are administered by PG&E.
Ava Auto-Enrolled Solar Discount: Provides improved access to renewable energy for CARE and FERA customers. Program participants get clean, renewable energy and an additional 20% savings on their electricity bill on top of CARE and FERA rate discounts.
Incentive Finder: Find available incentives from Ava, local, state, and federal programs that can help you make energy-efficient upgrades to your home and transportation.