Orange County Power Authority Board of Directors
June 9, 2025

AGENDA

ORANGE COUNTY POWER AUTHORITY

REGULAR MEETING OF THE BOARD OF DIRECTORS
Monday, June 9, 2025
4:30 p.m.

This meeting will proceed as an in-person meeting at 15310 Barranca Parkway, Suite 250, Irvine, CA 92618. In addition, as a convenience to the public, the Orange County Power Authority is also providing an option for members of the public to remotely view and participate in the meeting. Further details are below. Please note that, in the event of a technical issue causing a disruption in the remote participation option, the meeting may continue unless otherwise required by law.

Public Comments: Any member of the public may provide comments to the Orange County Power Authority Board of Directors on any agenda items by requesting to speak during Item 4, or on any matter not appearing on the agenda but within the jurisdiction of the Board by requesting to speak during Item

5. When providing comments to the Board, it is requested that you provide your name and city of residence for the record. Commenters are requested to address their comments to the Board as a whole through the Chair. Comments may be provided in the following manner:

To provide comments during the meeting, in-person attendees, please fill out the public speaker slip and provide it to the clerk at the beginning of the meeting. Before Items 4 and 5, the Chair or Clerk will ask members of the public to join the queue to provide public comment. The queue will remain open for a reasonable amount of time to allow members of the public sufficient time to request to speak and inform the Board of the number of speakers. After such time, the queue will be closed and the members of the public who have joined the queue to speak will be recognized at the appropriate time may speak. To join the queue on Zoom video conference by computer or mobile phone, use the “Raise Hand” feature. If joining the meeting using the Zoom dial-in number, you can raise your hand and join the queue by pressing *9. Members of the public will not be shown on video but will be able to speak when called upon.

Comments shall generally be limited to three minutes when speaking, provided that the Chair may equally reduce each speaker’s time to accommodate a large number of speakers or a large number of agenda items.

Written Communications: If you have a written communication that you wish to be distributed to the Board, please provide it via e-mail to [email protected]. Written communications are public records and, if received by 5:00 p.m. on the day prior to the meeting, will be distributed to the Board prior to the meeting by either e-mail or hard-copy, posted on the Authority’s website and noted, but not read, at the meeting. Communications received after the 5:00 p.m. deadline will be retained in the Authority’s records.

The public may participate using the following remote options:

ZOOM WEBINAR
Please click the link below to join the webinar:

Launch Meeting - Zoom
Dial-in: 1-669-900-6833
Webinar ID: 830 8026 9961

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. PUBLIC COMMENTS ON AGENDA ITEMS
Opportunity for members of the public to address the Board on any items on the agenda.

5. PUBLIC COMMENTS ON NON-AGENDA ITEMS
Opportunity for members of the public to address the Board on any items not on the agenda but within the jurisdiction of the Board.

6. DIRECTOR ANNOUNCEMENTS & REPORTS ON CONFERENCES/EVENTS

ATTENDED
Board Members may briefly provide information to other members of the Board and the public, ask questions of staff, or report on conferences, events, or activities related to Authority business. There is to be no discussion or action taken on comments made by Board Members unless authorized by law.

7. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. Prior to the motion to consider any action by the Board of Directors , any public comments on any of the Consent Items will be heard. There will be no separate action unless members of the Board of Directors request specific items be removed from the Consent Calendar.

1. MINUTES FOR THE REGULAR BOARD MEETING OF MAY 12, 2025 Recommended Action:

Approve as submitted.

2. COMMUNITY ADVISORY COMMITTEE (CAC) REPORT
Recommended Action:

Receive and file.

3. LEGISLATIVE AND REGULATORY UPDATE
Recommended Action:

Receive and file.

4. STRATEGIC PLAN MONTHLY STATUS REPORT
Recommended Action:

Receive and file.

5. PUBLIC RECORDS ACT REPORT
Recommended Action:

Receive and file.

8. REGULAR CALENDAR
The following items call for discussion or action by the Board of Directors. The Board may discuss and/or take action on any item listed below if the Board is so inclined.

1. PUBLIC HEARING ON ORANGE COUNTY POWER AUTHORITY

VACANCIES AND RECRUITMENT AND RETENTION EFFORTS PURSUANT TO ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3
Recommended Actions:

1. Conduct a Public Hearing pursuant to AB2561/Government Code Section 3502.3.

2. Receive and file the OCPA 2024/2025 annual employee vacancy report.

2. APPROVE SECOND AMENDMENT WITH REVEILLE, INC
Recommended Action:

Authorize the CEO to execute an amendment to the agreement with Reveille, Inc. for communications, marketing, strategy, public engagement, digital, and graphic design services, effective from July 1, 2025, to July 31, 2026, and increasing the not-to-exceed amount by $1,000,000, bringing the total not-to-exceed amount to $3,999,686.

3. APPROVE OCPA’S FISCAL YEAR 2025/26 OPERATING BUDGET
Recommended Actions:

1. Approve the recommended FY2025/26 Operating Budget, which maintains the current 2025 Basic Choice rate discount of 3% below SCE’s equivalent generation rates; or approve one of the three alternate options: Alternate Option 1, approve the FY2025/26 Operating Budget, which reduces the discount to 2% below SCE’s equivalent generation rates, effective August 2025; Alternate Option 2, approve the FY2025/26 Operating Budget, which reduces the discount to 1% below SCE’s equivalent generation rates, effective August 2025; or Alternate Option 3, approve the FY2025/26 Operating Budget, which sets the Basic Choice rate at parity with SCE’s equivalent generation rates, effective August 2025 (Attachments 1 through 4).

2. Approve the reclassification of two existing full-time positions, including the associated draft job descriptions provided in Attachments 6 through 7.

3. Approve the proposed salary grade and salary range for the Administrative Services Manager position.

4. Approve a 3% Cost-of-Living Adjustment (COLA) for all full-time employees, effective January 1, 2026, and authorize corresponding updates on the salary ranges.

5. Dissolve the Ad-Hoc Committee for the development of the FY2025/26 Budget.

9. STAFF REPORT
Staff may briefly provide information to the Board and the public. The Board may engage in discussion if the specific subject matter of the report is identified, but the Board may not take any action. There is to be no other discussion or action taken unless authorized by law.

10. ADJOURNMENT
Compliance with the Americans with Disabilities Act
Board of Directors meetings comply with the protections and prohibitions of the Americans with Disabilities Act. Individuals with a disability who require a modification or accommodation, including auxiliary aids or services, in order to participate in the public meeting may contact 949- 263-2612. Requests for disability-related modifications or accommodations require different lead times and should be provided at least 72-hours in advance of the public meeting.

Availability of Board Documents
Copies of the agenda and agenda packet are available at www.ocpower.org. Late-arriving documents related to a Board meeting item which are distributed to a majority of the Board prior to or during the Board meeting are available for public review as required by law. Public records, including agenda-related documents, can be requested electronically at [email protected] or by mail to 15642 Sand Canyon Avenue, P.O. Box 54283, Irvine, CA 92619-4283. The documents may also be posted at the above website. Such public records are also available for inspection, by appointment, at 15310 Barranca Parkway, Suite 250, Irvine, CA 92618. Please contact [email protected] to arrange an appointment.

OCPA ACRONYM LIST

OCPA ACRONYM LIST
Last revised on 6/3/2025
Displaying regularly used acronyms is beneficial for public agencies, enhancing clarity and efficiency in communication. OCPA’s Acronyms Lists contain terms that are often used and abbreviated to simplify complex terms and processes, making information more accessible to both employees and the public.

Our hope is to ensure that everyone understands the terminology we use, reducing confusion, and misunderstandings. When members of the public can easily decode acronyms, they feel more informed and engaged with the agency's operations. This practice also supports training and onboarding efforts, as new employees can quickly familiarize themselves with commonly used terms, accelerating their integration into the team.

AB Assembly Bill
ACC Avoided Cost Calculator
AL Advice Letter
ALJ Administrative Law Judge
ARB Air Resource Board
BA Balancing Authority
BESS Battery Energy Storage System
BioMAT Bioenergy Market Adjusting Tariff
C&I Commercial & Industrial
CAISO California Independent System Operator
CalCCA California Community Choice Association
CAM Cost Allocation Mechanism
CAPP California Arrearage Payment Program
CARB California Air Resources Board
CARE California Alternate Rates for Energy (Low Income Discount Rate) CCA Community Choice Aggregation
CEC California Energy Commission
CP Compliance Period
CPE Central Procurement Entity
CPUC California Public Utilities Commission
CRR Congestion Revenue Right
DA Direct Access (Private Retail Energy Supplier)
DAC Disadvantaged Community (As Defined by CalEnviroScreen 3.0) DAME Day-Ahead Market Enhancements
DCPP Diablo Canyon Power Plant

OCPA ACRONYM LIST
Demand
The rate at which electric energy is delivered to or by a system or part of a system, generally expressed in kilowatts (kW), megawatts (MW), or gigawatts (GW), at a given instant or averaged over any designated interval of time. Demand should not be confused with Load or Energy DER Distributed Energy Resources
DERMS Distributed Energy Resource Management System
Distribution The delivery of electricity to the retail customer’s home or business through low voltage distribution lines
DLAP Default Load Aggregation Point
DR Demand Response
DRP Distributed Resource Plans
DWR Department of Water Resources
ECR Enhanced Community Renewable
ED Energy Division
EDAM Extended Day-Ahead Market
EE Energy Efficiency
ELCC Effective Load Carrying Capacity
ELRP Emergency Load Reduction Program
EPIC Electric Program Investment Charge
ERRA Energy Resource Recovery Account (SCE Generation Rate Setting) ES Energy Storage
ESA Energy Storage Agreement
ESP Energy Service Provider
EV Electric Vehicle
EVSE Electric Vehicle Supply Equipment (EV Charger)
FERA Family Electric Rate Assistance (Low Income Discount Rate) FERC Federal Energy Regulatory Commission
GHG Greenhouse Gas
GRC General Rate Case
GT Green Tariff
GTSR Green Tariff Shared Renewables
GWh Gigawatt-hour
ICA Integration Capacity Analysis
IDER Integrated Distributed Energy Resources
IDSM Integrated Demand-Side Management
IEPR Integrated Energy Planning Report
IGFC Income-Graduated Fixed Charge
IOU Investor-Owned Utility
IRP Integrated Resource Plan
JPA Joint Powers Authority
JRM Joint Rate Mailer

OCPA ACRONYM LIST
kW Kilowatt
kWh Kilowatt-hour
LCFS Low Carbon Fuel Standard
LCR Local (RA) Capacity Requirements
LMP Locational Marginal Price
LMS Load Management Standards
LNBA Locational Net Benefits Analysis
Load An end use device or customer that receives power from an energy delivery system
LOLE Loss of load expectations
LSE Load Serving Entity
LTPP Long-Term Procurement Rulemaking
MB Medical Baseline (Discount Rate for Medical Equipment Needs) MEO Marketing Education and Outreach
MPB Market Price Benchmark
MTR Mid Term Reliability
MW Megawatt
MWh Megawatt-hour
NBC Non-Bypassable Charge
NBT Net Billing Tariff (NEM 3.0) Also known as Solar Billing Tariff or Solar Billing Plan
NDA Non-Disclosure Agreement
NEM Net Energy Metering (Usually for Customers with Solar) NP-15 North Path 15
OAT Other Applicable Tariffs
OIR Order Instituting Rulemaking
OSC Order to Show Cause
OSW Offshore Wind
PA Program Administrator
PCC1 Renewable energy generated in the state of California PCC2 Renewable energy generated outside California
PCC3 A REC from a Renewable Resource, independent of Energy PCIA Power Charge Indifference Adjustment
PCL Power Content Label
PD Proposed Decision
PfM Petition for Modification
PG&E Pacific Gas & Electric
PHC Prehearing Conference
Pnode Pricing Node
POLR Provider of Last Resort
POU Publicly Owned or Municipal Utility
PPA Power Purchase Agreement

OCPA ACRONYM LIST
PRP Priority Review Project
PRRR Progress on Residential Rate Reform
PSD Power Source Disclosures
PSPS Public Safety Power Shutoff
PUC Public Utilities Code / Public Utilities Commission PURPA Public Utilities Regulatory Policy Act
PV Photovoltaic (Solar) Panels
RA Resource Adequacy
RAM Renewables Auction Mechanism
RCPPP Reliable and Clean Power Procurement Program
RE Renewable Energy
REC Renewable Energy Credit or Renewable Energy Certificate RES-BCT Renewables Energy Self-Generation Bill Credit Transfer RFI Request for Information
RFO Request for Offers
RFP Request for Proposals
RFQ Request for Qualifications
RIN Rate Identifier Number
RPS Renewable Portfolio Standard
SB Senate Bill
SBT/SBP Solar Billing Tariff/Solar Billing Plan
SCE Southern California Edison
SDG&E San Diego Gas & Electric
SGIP Self-Generation Incentive Program
SOD Slice of Day
T&D Transmission and Distribution
TBS Transitional Bundled Service
TE Transportation Electrification
Time-of-Use
(TOU) Rates
The pricing of delivered electricity based on the estimated cost of electricity during a particular time-block
TPP Transmission Planning Process
Unbundled RECs
Renewable energy certificates that verify a purchase of a MWH unit of renewable power where the actual power and the certificate are “unbundled” and sold to different buyers.

VAMO Voluntary Allocation, Market Offer
VPP Virtual Power Plant
WECC Western Electricity Coordinating Council
WEIM Western Energy Imbalance Market
WREGIS Western Renewable Energy Generation Information System

MINUTES

REGULAR MEETING

BOARD OF DIRECTORS

ORANGE COUNTY POWER AUTHORITY
Monday, May 12, 2025
OCPA Board Regular Meeting of May 12, 2025 Page 1

1. CALL TO ORDER
Chair Sonne called to order the Regular Meeting of the Orange County Authority Board of Directors at 4:30 p.m. on Monday, May 12, 2025.

2. PLEDGE OF ALLEGIANCE
Director Go led the Pledge of Allegiance.

3. ROLL CALL

Present: Director William Go City of Irvine
Director Glenn Grandis City of Fountain Valley
Director Fred Jung City of Fullerton
Vice Chair James Mai City of Irvine
Chair Susan Sonne City of Buena Park

4. PUBLIC COMMENTS ON AGENDA ITEMS
Tomas Castro

5. PUBLIC COMMENTS ON NON-AGENDA ITEMS
Vicki Johnson
Mike Rough

6. DIRECTOR ANNOUNCEMENTS & REPORTS ON CONFERENCES/EVENTS

ATTENDED
Director Go thanked OCPA staff for making second annual CicloIrvine a great event. He was looking forward to next year’s event.

Director Grandis thanked Director Henderson and her team for going to the Fountain Valley Community Foundation Volunteer Event. She gave a presentation on OCPA, which was very well received by everyone in attendance.

Chair Sonne congratulated the Clerk of the Board Jacquez-Nares, on successfully defending her doctoral dissertation and becoming a doctor. It was quite an accomplishment while she was working hard for us, so thank you.

7. CONSENT CALENDAR
Director Grandis removed Item No. 7 for a separate discussion.

Director Jung made the motion, seconded by Director Grandis to:

OCPA Board Regular Meeting of May 12, 2025 Page 2
Approve consent calendar 7.1 – 7.6 and 7.8.

The motion carried unanimously by the following 5-0 vote:

Ayes: Chair Sonne, Vice Chair Mai, Director Jung,
Director Grandis, Director Go
Noes: None

Absent: None

1. MINUTES FOR THE REGULAR BOARD MEETING OF APRIL 14, 2025 Action Taken:

Approved as submitted.

2. COMMUNITY ADVISORY COMMITTEE (CAC) REPORT
Action Taken:

Received and file.

3. LEGISLATIVE AND REGULATORY UPDATE
Action Taken:

Receive and file.

4. RISK OVERSIGHT COMMITTEE UPDATE
Action Taken:

Receive and file.

5. TREASURER’S REPORT – FISCAL YEAR ENDED MARCH 31, 2025 AND Q1 2025 CHECK REGISTER
Action Taken:

Receive and file.

6. APPROVAL OF AMENDMENT TO AGREEMENT WITH AMPERON

FOR LOAD FORECAST RISK ANALYSIS SERVICES
Action Taken:

Authorize the CEO to execute an amendment to the agreement with Amperon for the provision of short-term and long-term load forecast risk analysis services, effective May 12, 2025, through May 11, 2026. The amendment builds on the initial contract with a not-to-exceed (NTE) amount of $60,000 and includes an option to extend the agreement for one additional year, subject to satisfactory performance and mutual agreement, for a total contract amount not to exceed $187,100.

OCPA Board Regular Meeting of May 12, 2025 Page 3
ITEM 7.7 WAS REMOVED FOR SEPARATE DISCUSSION

7. APPROVE SECOND AMENDMENT WITH REVEILLE, INC
Director Grandis stated he favored this item but would like to discuss the marketing dollars' strategy and purpose in the future. He was aware that the current focus was on the existing member cities, and he would like the focus to be on potential new member cities.

Director of Communications and External Affairs Henderson provided a brief summary of the presentation.

Director Grandis suggested that OCPA staff contact other cities and other special districts they are disparate for content and OCPA can share videos on their outreach sites.

CEO Mosca stated that this contract has been reduced from 1.5 to 1 million because staff was doing more work in-house. OCPA has slowly extended outreach to non-member cities.

Director Jung stated that the new cities do not contribute revenues. OCPA should focus on member cities. He asked who created these marketing objectives; was it Reveille? Director Henderson answered that it was Reveille working with our staff.

Director Jung asked what would happen if Reveille did not meet the first three deliverables. Director Henderson stated that they had already exceeded that number now and was not worried that they could not deliver. Director Jung stated that these deliverables were for 2026. He further asked how OCPA was going to hold Reveille accountable. He could not support this item until his questions were answered.

Director Henderson explained to him the accountability process she follows in managing this contract.

Vice Chair Mai asked if this item had gone to the Marketing and Communications Committee for their input. Director Henderson answered it had not gone to the committee prior to this meeting. Vice Chair Mai was skeptical on the level of marketing being done by Reveille for the amount OCPA was paying.

Director Jung made the motion, seconded by Vice Chair Mai to:

To continue this item, bring it back to the June Board meeting, and present it to the Marketing and Communications Committee before the June Board meeting.

The motion carried unanimously by the following 5-0 vote:

Ayes: Chair Sonne, Vice Chair Mai, Director Jung,
Director Grandis, Director Go
Noes: None

Absent: None
OCPA Board Regular Meeting of May 12, 2025 Page 4

8. 2025 CONFLICT OF INTEREST CODE AMENDMENT
Action Taken:

Adopted Resolution No. 2025-04 approving the amended Conflict of Interest Code pursuant to the Political Reform Act of 1974, establishing broader applicability for the Analyst position for future similar positions. The amended code shall be submitted to the Orange County Board of Supervisors for approval.

8. REGULAR CALENDAR

1. FISCAL YEAR 2025/2026 BUDGET FRAMEWORK
Chief Financial Officer Law provided a brief summary of the presentation.

Action Taken:

Received and filed.

2. SUSTAINABLE WORKFORCE GUIDELINES DISCUSSION
Director of Power Resources Ting provided a brief summary of the presentation.

Regulatory and Legislative Manager Halligan assisted with this presentation.

Please note that Director Jung left the meeting at 5:21 p.m.

Director Go thanked the staff for the detailed presentation. He has introduced several union representatives to staff and wants the Orange County Labor Federation to be comfortable with these guidelines.

Director Grandis supports this item.

Vice Chair Mai thanked the staff for the presentation. The City of Irvine does not have an issue retaining talent. The involvement of students is also essential for the City of Irvine and should be a priority for OCPA.

Chair Sonne stated that Buena Park has a community workforce agreement, and she supports this line of thought. However, she needs clarity on how they work with CCAs and how other CCAs have written their policies on this item.

Regulatory and Legislative Manager Halligan provided examples of how CCAs use these guidelines within their communities.

Power Resources Director Ting also provided examples of how CCAs use these guidelines.

OCPA Board Regular Meeting of May 12, 2025 Page 5
Action Taken:

Reviewed and provided staff direction.

3. 2025-26 STRATEGIC PLAN DRAFT REVIEW AND PRESENTATION Chief Executive Officer Mosca provided a brief summary of the presentation.

Director Grandis requested monthly updates be reviewed at the Board meetings.

Chair Sonne stated that at Buena Park they tie the agenda item to their corresponding strategic plan goals and objectives.

Director Grandis confirmed that Fountain Valley also does that in the staff reports.

Fountain Valley has strategic planning sessions with all the executive directors and managers every six months, and they set six-month objectives.

Director Grandis made the motion, seconded by Chair Sonne to:

Approve the 2025-26 Strategic Plan and bring back monthly updates at every Board meeting on the consent calendar.

The motion carried by the following 4-0-1 vote:

Ayes: Chair Sonne, Vice Chair Mai, Director Grandis, Director Go Noes: None

Absent: Director Jung

9. STAFF REPORT
CEO Mosca provided his full report in the agenda packet. He highlighted the CalCCA Annual Conference held here in Irvine.

Chair Sonne shared how other CalCCA board members helped her when she first started on the OCPA Board.

10. ADJOURNMENT
There being no further business to come before the Board, Chair Sonne adjourned the May 12, 2025, Orange County Power Authority Board Regular meeting at 6:10 p.m.

Submitted by:

Pat Jacquez-Nares, Authority Secretary

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item No. 7.2
-------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Jacquie Henderson, Director of Communications & External Affairs Andrew Di Giovanna, External Affairs Manager
Linda Kraemer, Community Engagement Manager
Approved By: Joe Mosca, Chief Executive Officer
Subject: COMMUNITY ADVISORY COMMITTEE (CAC) REPORT
Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☐ Raise Awareness of Community Energy & Advocate for Our Customers:
☒ Not Applicable:

RECOMMENDED ACTION
Receive and file.

BACKGROUND
On Monday, June 2, 2025, at 6:00 p.m., the Community Advisory Committee (CAC) held its regular monthly meeting. The meeting featured three informational presentations from OCPA staff: an Energy 101 overview, an update on the 2025-26 Strategic Plan, and a summary of public engagement activities scheduled for June and July. Staff also provided a general update on ongoing outreach efforts and emerging programmatic developments.

ANALYSIS
The CAC regular meeting on Monday, June 2, 2025, covered the following topics:

Energy 101
Louis Ting, Director of Power Resources, presented an Energy 101 overview as part of the CAC’s annual education plan. His presentation explained how the electric grid must maintain real-time balance between supply and demand, and reviewed the roles of key regulatory agencies such as the California Independent System Operator (CAISO), California Public Utilities Commissions (CPUC), California Energy Commission (CEC), and California Air Resources Board (CARB). Ting highlighted OCPA’s use of both long-term contracts and market purchases to manage energy costs and reliability, as well as how Renewable Energy Credits (RECs) are tracked through the Western Renewable Energy Generation Information System (WREGIS) to verify compliance with the state’s Renewables Portfolio Standards (RPS).

A key discussion point involved the distinction between zero-emission and renewable energy sources.

In response to a CAC inquiry, Ting clarified that while both categories reduce greenhouse gas emissions, only certain technologies such as wind, solar, small hydro, and geothermal qualify as renewable under California state designation. Other sources, like large hydro and nuclear, are considered zero-emission but are not RPS-eligible. This distinction affects how energy products are marketed, reported, and factored into regulatory requirements.

OCPA 2025-26 Strategic Plan Update
Saul Viramontes, Management Analyst, provided an overview of the newly adopted 2025-26 Strategic Plan, highlighting changes from the prior year. The updated plan reflects OCPA’s shift from initial startup priorities to expanded programming, continued affordability, and community support.

Key updates include renaming and merging several strategic goals to better emphasize equitable outreach, energy affordability, and community-informed customer programs. Notably, the new plan calls for launching three new customer programs, finalizing the Community Needs Assessment, and expanding educational tools for city stakeholders, staff, and CAC members.

In response to committee feedback, staff acknowledged the potential value of adopting a longer-term strategic vision. CAC members recommended that OCPA pair its annual plan with a broader, multi-year outlook to help track long-term objectives and community progress. Staff committed to exploring how future plans could incorporate this extended framework to improve strategic continuity.

OCPA Public Engagement for June and July 2025
Staff shared a calendar of upcoming outreach events. Highlights include Pride Fest in Fullerton, Cool Irvine Eco Fair, the Little Saigon 50th Anniversary, Juneteenth in Buena Park, and Summerfest in Fountain Valley. CAC members were encouraged to volunteer at these events to support visibility and public education. Staff reiterated the importance of community representation and offered logistical support for interested volunteers.

Updates from Staff
Staff provided updates on communications, budget planning, programs, and outreach. After the FY25/26 Budget Framework was presented to the Board on May 12, with final review scheduled for June 9, CAC input was welcomed on budget priorities and new sustainable workforce guidelines in development. Program updates included: 15 Energy Efficiency Kits delivered to-date (11 to CARE/FERA customers), 22 EV charger rebates issued to-date, and 21 Bright Futures Grant applications received. The Solar/Battery Rebate and Equitable Building Decarbonization Direct Install programs are set to launch in July and Summer 2025 respectively. To support broader participation in the Community Power Plan community survey, targeted outreach is underway in Fullerton and Fountain Valley, along with multilingual engagement strategies to ensure stronger representation from ESL communities.

FISCAL IMPACT
None

ATTACHMENT
None

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 7.3
-------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Steven Halligan, Regulatory and Legislative Manager Approved By: Joe Mosca, Chief Executive Officer
Subject:

Date:

REGULATORY AND LEGISLATIVE UPDATE
June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☒ Raise Awareness of Community Energy & Advocate for Our Customers:
☐ Not Applicable:

RECOMMENDED ACTION
Receive and file.

BACKGROUND
Orange County Power Authority (OCPA) staff actively participate in several regulatory proceedings at the California Public Utilities Commission (CPUC), California Independent System Operator (CAISO), and the California Energy Commission (CEC). A summary of high priority, active proceedings is provided in the Regulatory Analysis.

Staff have identified 121 bills, including 14 priority bills (Attachment – 2025 Orange County Power Authority Bill Tracker) to analyze and monitor. Staff track bills in several categories including but not limited to affordability, building standards, energy sources, CEQA, transmission, decarbonization, demand forecasting, electrification, IOU rate cases and oversight, and workforce development.

The last day for policy committees in the California State legislature to meet was May 16, 2025.

Fiscal committees had until May 23, 2025, to hear and report bills introduced in their house.

Beginning June 2, 2025, no committee was allowed to meet for any purpose. June 6 was the deadline for bills to pass out of their house of origin. The Budget Bill must be passed by midnight on June 15, 2025.

The Legislative and Regulatory Committee met on June 5. The Committee was briefed on several legislative and regulatory topics including the status of high priority legislation, the State Budget, a Federal update, and several regulatory proceedings including the Power Charge Indifference Adjustment (PCIA) Proceeding, the Resource Adequacy (RA) proceeding, and the Integrated Resource Planning proceeding.

REGULATORY ANALYSIS AND DISCUSSION
Power Charge Indifference Adjustment (PCIA) Proceeding – R.25-02-005 Background: On February 11, 2025, the CPUC issued an Order Instituting Rulemaking (OIR) to initiate a new proceeding related to the Power Charge Indifference Adjustment (PCIA). The proceeding will consist of two tracks. The first track will be an expedited track focused on potential modifications to the Market Price Benchmark (MPB). Track two may consider several issues including a review of the revisions to the MPB, consideration of ERRA-specific implementation guidance for RA program changes, changes to Bundled Procurement Plan directions, and consideration of improved PCIA and ERRA mechanisms to reduce rate volatility. The CPUC has identified four objectives of the proceeding:

1. Consider and identify reasonable improvements to existing ERRA and PCIA rules, mechanisms, and processes to ensure best practices in utility forecasting and other procurement plan activities;

2. Identify ways to mitigate and respond to rate volatility, whether resulting from market conditions or ratemaking constructs;

3. Best ensure indifference among bundled and departed customers;

4. Provide policy guidance to ensure that individual utility forecast ratemaking proceedings function as efficiently and consistently as possible.

Update: Staff attended the April 7, 2025, Prehearing Conference and a Track 1 Scoping Ruling was issued on April 8, 2025. Specifically, the Scoping Ruling requests Opening and Reply Briefs on the following:
• Should the CPUC expand the data considered when determining the Resource Adequacy (RA) MPB by extending or eliminating the existing time limits on transaction data considered?
• Should the CPUC combine system, local, and flexible RA into a single RA value when calculating the RA MPB?
• When determining the RA MPB, should the CPUC eliminate data that is duplicative or does not reflect market-based transactions? How should the CPUC determine which transactions to eliminate?
CalCCA filed an Opening Brief on April 21, 2025. In the Opening Brief, CalCCA recommended that the CPUC:
• Apply any modification to the RA MPB only prospectively to the 2026 RA Forecast MPB to avoid unlawful retroactive rulemaking;
• To the extent the CPUC decides to modify the RA MPB in Track One, ensure such modification is narrowly tailored to address only the problem identified through substantial evidence – reduced volumes for the RA MPB calculation;
• In choosing the narrowly tailored “fix,” first apply Staff Proposal 5 to combine the RA MPBs, and if the volumes are sufficiently increased, stop there and move to Track Two for a broad review of the PCIA methodology;
• If the CPUC must also implement Staff Proposal 1 to increase the volumes, limit the expansion of the timeframe to the shortest timeframe to sufficiently increase the volumes; • Establish definitions of affiliate, swap, and sleeve transactions if the CPUC decides to exclude such transactions from the RA MPB; and
• Adopt monthly RA MPB values, as proposed in Staff Proposal 4.

CalCCA filed a Reply Brief on April 30, 2025, and recommended that the CPUC:
• Amend the schedule set forth in the Scoping Ruling to include a deadline for all parties to submit direct and rebuttal testimony to ensure procedural due process, and then subsequently decide if evidentiary hearings are necessary. • Address the contested issues of material fact, including:
(1) whether the 2025 RA MPB is an anomaly caused by artificial scarcity on account of a change to the Slice-of-Day (SOD) methodology, and there is no fundamental issue with the benchmark;
(2) whether the factors Energy Division identified in the Staff Report have led to an inaccurate 2025 Forecast RA MPB;
(3) whether there were insufficient volumes relative to prior years to calculate an accurate 2025 Forecast RA MPB;
(4) whether swap and sleeve transactions, and affiliate transactions, inappropriately slanted the 2025 Forecast RA MPB;
(5) whether Proposal Five to combine the three different RA MPBs into one RA MPB will address the lack of volume Energy Division asserts exists; (6) whether one, three or five years of data better represents the current market value of a MW of net qualifying capacity; and
(7) whether the Staff Proposals, including Proposal One expanding the dataset, will remedy the RA MPB deficiencies the IOUs assert exist, including their inability to hedge.
• Reject arguments of the Joint IOUs and TURN in support of Proposal One to expand the timeframe of transactions to incorporate into the RA MPB given section 366.2(g) and D.18- 10-019 require the valuation of retained RA to reflect current market value. To the extent the CPUC decides to expand the timeframe, such expansion should be limited, as is recommended in varying proposals by CUE, Cal Advocates, and DACC/AReM. • Adopt Proposal Five to combine the MPBs as supported by the Joint IOUs, TURN, Cal Advocates, and DACC/AReM, but limit the timeframe of transactions in the combined MPBs to ensure the retained RA reflects current market value. • Reject arguments of the Joint IOUs, TURN, CUE, and Cal Advocates to apply any modification to the RA MPB retroactively since doing so would constitute unlawful retroactive ratemaking
• The Track 1 Proposed Decision was released on May 23, 2025.

Resource Adequacy (RA) - R.23-10-001
Background: The OIR for R.23-10-011 continues the CPUC’s oversight of the RA program, establishes forward RA procurement obligations applicable to Load-Serving Entities (LSEs) beginning with the 2025 compliance year, and considers structural reforms to the program. This proceeding is the successor to R.21-10-002 and includes the following issues in scope: (1) adoption of local and flexible RA requirements; (2) loss of load expectation (LOLE) study and PRM; (3) 24-hour Slice of Day (SOD) framework; (4) unforced capacity (UCAP); (5) QC counting conventions; (6) RA compliance and penalties; and (7) other refinements to the RA program.

Update: On May 16, 2025, the CAISO provided its Final Flexible Capacity Needs Assessment Report for 2026 to the CPUC. 2026 flexible RA requirements will be adopted in the forthcoming Track 3 decision.

Provider of Last Resort (POLR) - R.21-03-011
Background: The CPUC issued a September 1, 2021, Scoping Ruling to set forth the scope in the Provider of Last Resort (POLR) proceeding. This proceeding implements the POLR requirements and framework directed by SB 520. The POLR proceeding is being considered in three phases.

Phase 1, which culminated with D.24-04-009 in April 2024, focused on issues necessary to establish a comprehensive framework for existing IOU POLRs. Phase 2, currently under consideration, will set rules that allow a non-IOU LSE to be designated as the POLR. Phase 3 may be opened to consider any additional issues not covered in Phase 1 or Phase 2.

Update: SCE provided OCPA with the updated seasonal FSR Advice Letter (AL) on May 12, 2025. This AL was the first to use the updated FSR calculation methodologies that were approved in the Phase 1 Decision.

Integrated Resource Planning – R.20-05-003
Background: On April 29, 2025, the CPUC released its long awaited Reliable and Clean Power Procurement Program (RCPPP) Staff Proposal through an ALJ Ruling. The CPUC’s goal in RCPPP is to give LSEs a more predictable regulatory framework to procure their share of the resources needed to meet electric system reliability and GHG emission reduction goals at least cost. The Staff Proposal includes a reliability framework and GHG reduction framework, each with the following key design elements: need determination, need allocation, compliance, and enforcement. The Staff Proposal proposes two options for the reliability framework. The first requires LSEs to demonstrate procurement of new and existing resources. The second requires LSEs to demonstrate procurement of new resources plus adopt a multi-year RA framework for existing resources. The Staff Proposal also proposes a clean energy standard framework for GHG reduction. Finally, the Staff Proposal includes a proposal to allocate CPE procurement via credits to LSEs to show in RCPPP filings. The CPUC hosted a Workshop on May 16, 2025.

Update: Comments on RCPPP were originally due June 5, 2025, and Reply Comments were originally due June 26, 2025. CalCCA requested an extension for Comments (to July 15, 2025) and Reply Comments (to August 5, 2025) jointly with the IOUs and the extension request was granted. In addition, CalCCA and the IOUs requested ED hold an additional workshop before comments are due, and Energy Division is considering the request.

SCE Energy Resource Recovery Account (ERRA) 2024 Compliance (A.25-03-009) and 2026 Forecast (A.25-05-008)
Background: ERRA Compliance applications are filed annually by the IOUs for review of costs associated with Utility-owned Generation (UOG) operations and fuel procurement, Portfolio Allocation Balancing Account (PABA) entries, economic dispatch of electric resources, and contract administration. IOUs are required to demonstrate compliance with CPUC decisions and the Pub. Util. Code. ERRA Forecast Applications are filed annually by IOUs to forecast energy procurement-related revenue requirements, which includes forecast allocation of costs across PCIA vintages.

Update: On behalf of the Joint SCE CCA’s CalCCA submitted a protest to SCE’s 2024 ERRA Compliance Application on May 12, 2025. Though CalCCA has not yet identified any significant issues in the Application, more time and discovery are needed to confirm whether SCE’s request to increase the $3.9 million increase to its 2024 revenue requirement is reasonable. SCE filed its 2026 ERRA Forecast Application on May 15, 2025. SCE forecasts a residential average bundled rate decrease of 0.5 percent, which translates to approximately 87 cent decrease on residential monthly bills. While SCE forecasts a total generation revenue requirement reduction of $115 million, it forecasts an increase to the distribution revenue requirement of $40 million, indicating a distribution rate increase. Protests are due June 16, 2025.

LEGISLATIVE ANALYSIS AND DISCUSSION
AB 303 (Addis) - Battery energy storage facilities
Summary: This bill would prohibit the authorization of a development project that includes a battery energy storage system capable of storing 200 megawatt hours or more of energy if the development project is located within 3,200 feet of a sensitive receptor or is located on an environmentally sensitive site, as specified.

Current Status: Failed to pass out of Committee
AB 306 (Schultz and Rivas) - Building regulations: state building standards Summary: This bill would, from June 1, 2025, to June 1, 2031, inclusive, prohibit a city or county from making changes that are applicable to residential units to the above-described building standards unless a certain condition is met, including that the commission deems those changes or modifications necessary as emergency standards to protect health and safety. This bill would, from June 1, 2025, to June 1, 2031, inclusive, require the commission to reject a modification or change to any building standard, as described above, affecting a residential unit and filed by the governing body of a city or county unless a certain condition is met, including that the commission deems those changes or modifications necessary as emergency standards to protect health and safety.

Current Status: In Senate Committee on Housing
SB 239 (Arreguin) - Open meetings: teleconferencing: subsidiary body Summary: This bill would authorize a subsidiary body, as defined, to use alternative teleconferencing provisions and would impose requirements for notice, agenda, and public participation, as prescribed. The bill would require the subsidiary body to post the agenda at each physical meeting location designated by the subsidiary body, as specified. The bill would require the members of the subsidiary body to visibly appear on camera during the open portion of a meeting that is publicly accessible via the internet or other online platform, as specified. The bill would also require the subsidiary body to list a member of the subsidiary body who participates in a teleconference meeting from a remote location in the minutes of the meeting.

Current Status: Read second time on Senate Floor. Ordered to third reading.

Current position: Support
SB 254 (Becker) - Senate Energy Affordability Bill
Summary: SB 254 is a 161-page, detailed, and far-reaching bill aimed at addressing electricity rate affordability. Among other things, the bill:
• Creates the Clean Energy Infrastructure Authority to develop transmission and other infrastructure. The Authority, which is exempt from CPUC oversight, can “finance, plan, develop, acquire, own, maintain, sell, or operate eligible clean energy infrastructure (including transmission and storage) necessary or useful” in the state’s transition to 100% clean energy. It includes public financing of transmission that would be operated and maintained by the utilities.
• Overhauls the framework for oversight of wildfire mitigation project review, introduces the need to evaluate wildfire investments based on cost efficiency, and exempts undergrounding from CEQA.
• Prevents the IOUs from including in their rate base their proportional share of $5 billion of fire risk mitigation capital expenditures and $20 billion of energization capital expenditures approved by the Commission on or after January 1, 2025. • Increases the Climate Credit for CARE/FERA customers and concentrates the credit on peak bill months.
• Establishes the Policy-Oriented and Wildfire Electric Reimbursement (POWER) program that will use appropriated funds, if any, to reimburse CPUC programs “driven by public policy goals, that provide benefit to the general public and not just to ratepayers, and that are not required for the safe and reliable delivery of electricity to the ratepayers….” (e.g. transportation electrification, building decarbonization, energy efficiency, low-income discounts, and wildfire mitigation).
• Modifies the Commission’s reporting responsibility for demand-side management programs it oversees or that are paid for by ratepayers of the IOUs or community choice aggregators by (1) limiting the requirement to provide budgets and actual expenditures to “utility” expenditures and (2) specifies that “public interest impacts” include nonenergy effects, emissions reductions, or equity considerations. • Heightens the burden of proof for proposed costs in excess of inflation to “clear and convincing” evidence and increases reporting requirements for the Commission if such costs are authorized.
• Requires the CEC to prepare a program EIR to analyze the development of classes of facilities, including solar PV, wind, energy storage, and thermal generation so that other agencies considering approval of specific facilities within the class may rely and build on the program EIR.
• Broadens the scope of projects that fall within the exclusive jurisdiction of the CEC for permitting by reducing the capital investment requirement for discretionary projects from $250 million to $100 million and extends eligibility to come within the CEC’s jurisdiction from mid-2029 to mid-2034. Makes other material changes to the certification process.

Current Status: Passed out of Senate Appropriations, Amendment: Make technical changes related to large energy consumers and add co-authors
SB 283 (Laird) - Energy Storage Systems
Summary: This bill would require an application submitted to the Energy Commission relating to certification of facilities by the Energy Commission, and an application submitted to a local jurisdiction for an energy storage management system, to include the applicant’s certification that the facility has been designed in accordance with the most recently published edition of the NFPA 855, Standard for the Installation of Stationary Energy Storage Systems, except as specified, and, at least 30 days before submitting an application, that the applicant met and conferred with the local fire department responsible for fire suppression in the area where the facility or system is proposed, as provided. The bill would also prohibit the approval of those applications unless the local jurisdiction requires as a condition of approval that the system be constructed, installed, commissioned, operated, maintained, and decommissioned in accordance with the most recently published edition of the NFPA 855, that after installation is complete, but before commencing operations, the system be inspected by the local fire department responsible for fire suppression or by a representative or designee of the State Fire Marshal, and that the applicant bear the cost of the inspection. The bill would authorize a state or local entity to approve the construction of an energy storage management system with over 600 kilowatthours of storage capacity only if it is located in a noncombustible, dedicated-use building or is a remote outdoor installation, as provided.

Current Status: Passed out of Senate Appropriations with no amendments SB 330 (Padilla) - Electrical transmission infrastructure: financing Summary: This bill would authorize the Governor to establish one or more pilot projects to develop, finance, or operate electrical transmission infrastructure that meet the specified criteria, including, among other things, that the transmission line is identified by the Independent System Operator in its transmission planning process as a project subject to competitive bidding and necessary to support clean energy generation to meet the state’s clean energy goals. The bill would require the Governor to designate existing state agencies, local public agencies, tribal organizations, or joint powers authorities to implement the pilot projects. The bill would authorize the pilot projects to develop, finance, operate, and maintain electrical transmission lines and all works, facilities, improvements, and property, or portions thereof, necessary or convenient for the conveyance of electricity, as specified. The bill would authorize the Governor to issue guidelines regarding application and certification of pilot projects.

Current Status: Passed out of Senate Appropriations with no amendments SB 540 (Becker and Stern) - Independent System Operator: independent regional organization SB 540 provides the California Independent System Operator (CAISO) with the authority necessary to implement the Pathways Initiative Proposal if it determines an independent regional organization (RO) meets specific requirements. The bill allows CAISO to tap into a wider market of electricity resources which studies have shown stand to provide significant benefits to Californians including cost savings, enhanced grid reliability, and reduced air pollution.

Current Status: Passed out of Senate Appropriations, Amendment: Modify off-ramp provisions to protect California ratepayers and climate policies Current position: Support
California Budget Update
In the May Budget Revision, the Legislature is considering choices on the extension of the Cap-and-Trade Program. The May revision proposes to extend the Cap-and-Trade program’s sunsetting from 2030 to 2045. This may cause emitters to pay an additional $200 billion, which may increase gas and diesel fuel prices. The Governor has proposed to rename the program from Cap-and-Trade to Cap-and-Invest. The revised program will extend the California Climate Credit bill subsidy by around $60 million, which can be used to reduce utility bills. To address the major budget shortcomings, the state plans to allocate $1.54 billion from the General Fund to the Greenhouse Gas Reduction Fund (GGRF) to support CAL FIRE’s fire prevention, fire control, and resource management activities. This includes a funding backstop in case the GGRF falls short on their projected revenues, and the budget is projected to reach $1.9 billion by 2029-2030. The proposed budget for CAL FIRE amounts to one-third of their total budget, and in total, the High-Speed Rail Project and CAL FIRE budget would amount to over half of the projected cap-and-trade budget for FY2025-26. There is uncertainty regarding future reliance on cap-and –trade funding due to an expected reduction in carbon emissions in California.

Two major budget adjustments in the energy sector are expected to take place following the May Budget Revision. $3.7 million will be added towards the CPUC's Utilities Reimbursement Account until 2027, and $2.9 million will be added ongoing in 2028 to support compliance and safety standards in connecting Battery Energy Storage Systems (BESS) to the electric grid. To expedite renewable energy development in the state, the state will add $1.9 million Energy Facility Licensing and Compliance Fund and add positions to support CEC’s opt-in (AB 205) clean energy permitting program. The May Budget notably plans on shifting $33 million from the CPUC’s solar program from the State’s General Fund to federal funds, should these federal funds be available.

It also shifts $475 million from the CEC’s Offshore Wind Infrastructure Program from the General Fund to the Prop. 4 Climate Bond.

Federal Update
On May 21, 2025 the House passed the budget bill “One Big Beautiful Bill”, on a 215-214, party-line vote. The bill now heads to the Senate. The bill terminates the 48E investment and 45Y production tax credits for non-nuclear clean energy projects placed in service after 2028, with no phaseout period. Projects must begin construction within 60 days of the bill’s enactment — likely later this year — to be eligible for the credits. The bill also eliminates the Inflation Reduction Act’s tax credit transferability framework for most clean energy projects.

The bill proposes a major rollback of clean energy credits. After 2025, the bill repeals four EV-related credits, notably including Section 30D and 25E’s new and previously owned clean vehicle credits. From December 2009 to December 2025, any covered vehicle where the manufacturer sold less than 200,000 vehicles in the United States is no longer considered a “new clean vehicle”, which the Clean Vehicle Credit cannot cover. The bill continues restrictions on clean fuel production credits under Section 38, prohibiting credits for taxes claimed by a “foreign-influenced entity”.

The bill repeals the Section 25D residential solar tax credit. Under this revision, homeowners can no longer receive a 30% tax credit for residential solar installations after 2025. Production tax credits (PTCs) and investment tax credits (ITCs) of renewable energy and battery storage projects that are currently in operation, as well as tax credits for projects under construction by the end of 2024, will be unaffected by the budget bill.

Events, Workshops, and Meetings
During the past month staff attended several events, workshops, and meetings. These include:
• CalCCA Regulatory Policy meetings – including several tiger team meetings covering PCIA, POLR, IRP, and RA proceedings
• Weekly CalCCA Legislative Policy meetings - including several Tiger teams such as Infrastructure, Building Decarb, ZEV, Autonomy, and Affordability • CalCCA Federal Policy meetings
• CalCCA Monthly CAISO Meeting
• Stakeholder Policy Meetings
• California Assembly Utilities and Energy and Senate Energy Utilities and Communications Committee meetings and hearings
• CalCCA Regulatory Directors meetings
• CalCCA Compliance meetings
• CPUC Voting meeting
• CEC Business meeting
• Pathways Stakeholder meeting
• Joint CCA SCE ERRA Forecast Review meeting
• CAISO stakeholder meetings

FISCAL IMPACT
None

ATTACHMENTS
Attachment A - 2025 Orange County Power Authority Bill Tracker Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
Bill # Author Title Category Summary Status Position
AB 303 Addis Battery energy storage
facilities
Battery Storage This bill would prohibit the authorization of a development project that includes a battery energy storage system capable of storing 200 megawatthours or more of energy if the development project is located within 3,200 feet of a sensitive receptor or is located on an environmentally sensitive site, as specified.

In committee: Hearing
postponed by
committee.

CalCCA
Oppose
AB 306 Schultz and Rivas Building regulations: state
building standards
Building Standards This bill would, from June 1, 2025, until June 1, 2031, inclusive, prohibit a city or county from making changes to the above-described building standards unless a certain condition is met, including that the commission deems those changes or modifications necessary as emergency standards to protect health and safety.

From committee chair,
with author's
amendments: Amend,
and re-refer to
committee. Read
second time,
amended, and re-referred to Com. on
HOUSING.

CalCCA
Oppose
Unless
Amended
AB 526 Papan Energy: new in-state
geothermal energy
generation
Geothermal The bill would require the Energy Commission, on or before June 1, 2026, to evaluate and quantify the maximum feasible capacity of new in-state geothermal energy to achieve reliability, ratepayer, employment, and decarbonization benefits, and to establish megawatt in-state next-generation geothermal planning goals for 2035 and 2045, as specified.

In committee: Held
under submission.

CalCCA
Support
AB 527 Papan California Environmental
Quality Act: geothermal
exploratory projects
Geothermal This bill provides that “geothermal exploratory project” includes, among other things, equipment and activities necessary to establish interconnectivity between wells and reservoirs. The bill would exempt geothermal exploratory projects for which the county is the lead agency that meet specified conditions from CEQA. The bill would require the lead agency, at least 30 days before the making the determination to approve or carry out a change in use pursuant to this exemption, to post a written notice on its internet website and at the project site. Because the exemption would apply to projects where the county is the lead agency and the county would be required to determine if a project qualifies for this exemption, the bill would impose a state-mandated local program.

In Senate. Read first
time. To Com. on RLS.
for assignment.

CalCCA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
AB 531 Rogers Geothermal powerplants
and geothermal field
development projects:
certification and
environmental review
Geothermal This bill would expand the types of facilities eligible to be certified as environmental leadership development projects by the Energy Commission to include geothermal powerplants and geothermal field development projects, as defined.

From committee: Do
pass. (Ayes 13. Noes

0.) (May 23). Read
second time. Ordered
to third reading.

CalCCA
Support
AB 825 Petrie-Norris Public Transmission
Financing Act of 2025
Public Financing 1) This bill would create the Public Transmission Financing Fund within the State Treasury for the purpose of financing eligible transmission projects, as defined, that are necessary to meet the state’s clean energy goals to reduce or offset ratepayer costs associated with the public benefits of transmission projects. The bill would make the moneys in the fund, except as specified, continuously appropriated, without regard to fiscal year, for the support of eligible entities, as defined, and available for expenditure for the above-described purpose. By establishing a continuously appropriated fund, the bill would make an appropriation. 2) This bill would require an Read third time and
amended. Ordered to
third reading. Re-referred to Com. on U.
& E. pursuant to
Assembly Rule 77.2.

AB 941 Zbur California Environmental
Quality Act: electrical
infrastructure projects
CEQA This bill would require the commission to determine whether to certify the environmental impact report for an electrical infrastructure project that is a priority project, as defined, no later than 270 days after the commission determines that an application for an electrical infrastructure project is complete, except as specified.

In committee: Held
under submission.

CalCCA
Support
SB 57 Padilla Data centers: special
tariff or program
Data Centers This bill, the Ratepayer and Technological Innovation Protection Act, would require the commission, on or before July 1, 2026, to establish a special electrical corporation tariff or program, or modify an existing tariff or program, for transmission and distribution service to eligible customers, as defined, that, among other things, ensures just and reasonable rates for customers of electrical corporations and does not result in cost shifts to customers who do not receive the tariff. The bill would authorize the commission to require an eligible customer to site distributed energy storage systems and backup power systems that better enable the state to meet its emission reduction goals. The bill would authorize the commission to establish minimum requirements for zero-carbon procurement on behalf of retail sellers for eligible customers receiving the tariff.

In Assembly. Read first
time. Held at Desk.

Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 239 Arreguin Open meetings:
teleconferencing:
subsidiary body
Teleconferencing This bill would authorize a subsidiary body, as defined, to use alternative teleconferencing provisions and would impose requirements for notice, agenda, and public participation, as prescribed. The bill would require the subsidiary body to post the agenda at each physical meeting location designated by the subsidiary body, as specified. The bill would require the members of the subsidiary body to visibly appear on camera during the open portion of a meeting that is publicly accessible via the internet or other online platform, as specified. The bill would also require the subsidiary body to list a member of the subsidiary body who participates in a teleconference meeting from a remote location in the minutes of the meeting.

From committee: Do
pass. (Ayes 10. Noes

1.) (May 6). Read
second time. Ordered
to third reading.

OCPA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 254 Becker Electricity: wildfire
mitigation: rate
assistance: Policy-Oriented and Wildfire
Electric Reimbursement
Program.

Affordability 1) Creates the Clean Energy Infrastructure Authority to develop transmission and other infrastructure. The Authority, which is exempt from CPUC oversight, can “finance, plan, develop, acquire, own, maintain, sell, or operate eligible clean energy infrastructure (including transmission and storage) necessary or useful” in the state’s transition to 100% clean energy. It includes public financing of transmission that would be operated and maintained by the utilities.2) Overhauls the framework for oversight of wildfire mitigation project review, introduces the need to evaluate wildfire investments based on cost efficiency, and exempts undergrounding from CEQA. 3) Prevents the IOUs from including in their rate base their proportional share of $5 billion of fire risk mitigation capital expenditures and $20 billion of energization capital expenditures approved by the Commission on or after January 1, 2025. 4) Increases the Climate Credit for CARE/FERA customers and concentrates the credit on peak bill months. 5) Establishes the Policy-Oriented and Wildfire Electric Reimbursement (POWER) program that will use appropriated funds, if any, to reimburse CPUC programs “driven by public policy goals, that provide benefit to the general public and not just to ratepayers, and that are not required for the safe and reliable delivery of electricity to the ratepayers….” (e.g. transportation electrification, building decarbonization, energy efficiency, low-income discounts, and wildfire mitigation). 6) Modifies the Commission’s reporting responsibility for demand-side management programs it oversees or that are paid for by ratepayers of the IOUs or community choice aggregators by (1) limiting the requirement to provide budgets and actual expenditures to “utility” expenditures and (2) specifies that “public interest impacts” include nonenergy effects, emissions reductions, or equity considerations. 7) Heightens the burden of proof for proposed costs in excess of inflation to “clear and convincing” evidence and increases reporting requirements for the Commission if such costs are authorized. 8) Requires the CEC to prepare a program EIR to analyze the development of classes of facilities, including solar PV, wind, energy storage, and thermal generation so that other agencies considering approval of specific facilities within the class may rely and build on the program EIR. 9) Broadens the scope of projects that fall within the exclusive jurisdiction of the CEC for permitting by reducing the capital investment requirement for discretionary projects from $250 million to $100 million and extends eligibility to come within the CEC’s jurisdiction from mid-2029 to mid-2034. Makes other material changes to the certification process.

From committee: Do
pass as amended.
(Ayes 5. Noes 1.) (May
23). Read second time
and amended. Ordered
to third reading.

CalCCA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 283 Laird Energy Storage Systems Battery Storage This bill would require an application submitted to the Energy Commission in accordance with the above-described provisions relating to certification of facilities by the Energy Commission, and an application submitted to a local jurisdiction for an energy storage management system, to include the applicant’s certification that the facility has been designed in accordance with the NFPA 855, Standard for the Installation of Stationary Energy Storage Systems, and, at least 30 days before submitting an application, the applicant met and conferred with the local fire department responsible for fire suppression in the area where the facility or system is proposed, as provided.

The bill would also prohibit the approval of those applications unless the local jurisdiction requires as a condition of approval that the system be constructed, installed, commissioned, operated, maintained, and decommissioned in accordance with NFPA 855, that after installation is complete, but before commencing operations, the system be inspected by the local fire department responsible for fire suppression or by a representative or designee of the State Fire Marshal, and that the applicant bear the cost of the inspection. By imposing additional duties on local officers, the bill would impose a state-mandated local program.

In Assembly. Read first
time. Held at Desk.

CalCCA
Support if
Amended
SB 302 Padilla Personal Income Tax Law
and Corporation Tax Law:
exclusions:
environmental credits
Tax Credits This bill, in conformity with federal law, for taxable years beginning on or after January 1, 2023, would exclude from gross income a refund payment made for the specified federal environmental credits described above and any payment received by a transferor as consideration for a transfer, as provided. The bill would also prohibit a transferee from deducting the amount paid as consideration for the transfer, in conformity with federal law.

In Assembly. Read
first time. Held at
Desk.

CalCCA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 330 Padilla Electrical transmission
infrastructure: finacning
Transmission This bill would authorize the Governor to establish one or more pilot projects to develop, finance, or operate electrical transmission infrastructure that meet the specified criteria, including, among other things, that the transmission line is identified by the Independent System Operator in its transmission planning process as a project subject to competitive bidding and necessary to support clean energy generation to meet the state’s clean energy goals. The bill would require the Governor to designate existing state agencies, local public agencies, tribal organizations, or joint powers authorities to implement the pilot projects. The bill would authorize the pilot projects to develop, finance, operate, and maintain electrical transmission lines and all works, facilities, improvements, and property, or portions thereof, necessary or convenient for the conveyance of electricity, as specified. The bill would authorize the Governor to issue guidelines regarding application and certification of pilot projects.

From committee: Do
pass. (Ayes 5. Noes 1.)
(May 23). Read
second time. Ordered
to third reading.

CalCCA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 540 Becker and Stern Independent System
Operator: independent
regional organization
Regional Organization This bill would delete provisions providing for the transformation of the ISO into a regional organization. The bill would authorize the ISO and the electrical corporations that are participating transmission owners whose transmission systems are operated by the ISO, in lieu of the ISO managing related energy markets, as provided, to use energy markets governed by an independent regional organization, provided that specified requirements are satisfied. This bill would specify that the above-described provisions do not diminish the PUC’s authority to direct an electrical corporation to withdraw from an energy market governed by an independent regional organization, and would authorize the PUC to direct an electrical corporation to withdraw from an energy market governed by an independent regional organization under specific circumstances. The bill would also require an electrical corporation within the balancing authority of the ISO to withdraw from an energy market governed by an independent regional organization under two specified conditions.

This bill would establish the Regional Energy Market Oversight Council, which would be responsible for ensuring that participation in regional energy markets serves the interests of the state. The bill would require the council to approve or disapprove initial participation in the independent regional organization by electrical corporations and any other participating load-serving entities and determine whether electrical corporations and any other participating load-serving entities should be required to withdraw from an energy market governed by the independent regional organization. The bill would require the council to convene a duly noticed public meeting to make a finding of approval or withdrawal of participation in the independent regional organization and would require the council to disapprove of initial participation in the independent regional organization, or order withdrawal, if the council makes any of specified findings.

From committee: Do
pass as amended.
(Ayes 4. Noes 1.) (May
23). Read third time
and amended. Ordered
to second reading.

OCPA and
CalCCA
Support
Orange County Power Authority
2025 California Bill Tracker (Updated 6/2/2025)
High Priority
SB 541 Becker Electricity: load shifting:
dynamic pricing
Dynamic Rates This bill would require the Energy Commission, as part of each integrated energy policy report, to allocate the incremental load shifting needed to reach the above-described load-shifting goal, including biennial adjustments to the goal, to each retail supplier, as defined, based on the commission’s estimate of its load-shifting potential, including consideration of the relative share of statewide load of each retail supplier, and other relevant factors, as specified. The bill would require the Energy Commission, on or before July 1, 2028, and biennially thereafter, to evaluate and publish the amount of load shifting that each retail supplier achieved in the prior calendar year, and the amount of load shifting that each retail supplier is expected to achieve in future years, in comparison to the load shifting allocated to the retail supplier, as specified. The bill would require the Energy Commission, in consultation with the PUC and the Independent System Operator, to identify and evaluate barriers to effectively implement load-shifting strategies and to establish a location-based avoided cost metric that estimates the value of demand reduction at different times and locations, as specified.

From committee: Do
pass as amended.
(Ayes 5. Noes 1.) (May
23). Read second time.

Ordered to third
reading.

CalCCA
Oppose
Medium Priority
Bill # Author Title Category Summary Status
AB 13 Ransom Public Utilities
Commission:
membership: reports.

CPUC Reporting This bill would require that 4 members of the commission represent the geographic locations of the 4 State Board of Equalization districts, existing as of January 1, 2026, and one member be an at-large member with expertise in nongovernmental public advocacy or public interest law and with a nongovernmental background, as specified.

From committee: Amend, and do
pass as amended. (Ayes 11.

Noes 0.) (May 23). Read second
time. Ordered to third reading.

AB 39 Zbur General plans: Local
Electrification Planning
Act.

Local Programs This bill, the Local Electrification Planning Act, would require a city, county, or city and county, on or after January 1, 2027, but no later than January 1, 2030, to prepare and adopt a specified plan, or integrate a plan in the next adoption or revision of the general plan, that includes locally based goals, objectives, policies, and feasible implementation measures that include, among other things, the identification of opportunities to expand electric vehicle charging and other zero-emission vehicle fueling infrastructure, as specified, and includes policies and implementation measures that address the needs of disadvantaged communities, low-income households, and small businesses for equitable and prioritized investments in zero-emission technologies that directly benefit these groups. For these purposes, the bill would authorize a city, county, or city and county to designate a previously adopted similar plan that meets the above-described requirements, as specified. By increasing the duties of local public officials, the bill would establish a state-mandated local program.

From committee: Do pass. (Ayes

12. Noes 3.) (May 21). Read third
time and amended. Ordered to
third reading.

AB 44 Schultz Energy: electrical
demand forecasts.

Demand Forecasts This bill would require the Energy Commission, on or before December 1, 2026, and in consultation with the Public Utilities Commission, Independent System Operator, load-serving entities, and resource aggregators, to adopt a set of upfront technical requirements and load modification protocols, as defined, to provide the option for a load-serving entity to reduce or modify its electrical demand forecast upon aggregated system operation, as specified. The bill would require the commission to evaluate new and existing mechanisms that can support or expand opportunities for load-serving entities to modify their hourly resource adequacy obligations through load management, and would authorize the Energy Commission to include its findings and recommendations in its integrated energy policy report.

In Senate. Read first time. To
Com. on RLS. for assignment.

Medium Priority
AB 61 Pacheco Electricity and natural
gas: legislation imposing
mandated program and
requirements: third-party
review.

Programs This bill would request the office to establish, by January 1, 2027, a program to, upon request of the Legislature, analyze legislation that would establish a mandated requirement or program or otherwise affect electrical or gas ratepayers, as specified. The bill would request the office to develop and implement conflict-of-interest provisions that would prohibit a person from participating in an analysis for which the person knows or has reasons to know that the person has a financial interest. The bill would establish the Energy Programs Benefit Fund in the State Treasury and continuously appropriate the moneys in the fund to the office to support the work of the office in providing analyses under the bill.

The bill would repeal these provisions on January 1, 2031.

From committee: Do pass.
(Ayes 14. Noes 0.) (May 23).

Read second time. Ordered to
third reading.

AB 222 Bauer-Kahan Data centers: energy
usage reporting and
modeling.

Data Centers This bill would require the Energy Commission to require operators of data centers to annually report energy consumption and performance data, as specified. The bill would require the Energy Commission to include energy consumption trends for data centers in its integrated energy policy reports. The bill would require the Energy Commission to adopt energy efficiency performance standards, as described, for data centers.

From committee: Amend, and do
pass as amended. (Ayes 11.

Noes 3.) (May 23). Read second
time. Ordered to third reading.

AB 368 Ward Energy: building
standards: passive house
standards
Building Standards This bill would require the commission to evaluate the passive house energy efficiency standards, and, if appropriate, adopt those standards, or any elements that align with the state’s existing requirements, as an alternative compliance pathway for the building efficiency standards established by the Energy Commission.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

AB 420 Petrie-Norris Public Utilities
Commission:
proceedings
CPUC This bill would authorize an interested person to submit a written ex parte communication during a quiet period if the commission modifies, rather than materially modifies, a proposed decision. The bill would require each public utility, as a part of its general rate case, to report all transactions performed pursuant to this exemption, enumerated by date, value, location, and party.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 441 Hadwick Wildfire prevention:

Office of Wildfire
Technology Research and
Development: wildfire
mitigation program
Wildfires Would repeal provisions related to the Office of Wildifre Technology Research and Development. From committee: Amend, and do pass as amended. (Ayes 14.

Noes 0.) (May 23). Read second
time. Ordered to third reading.

Medium Priority
AB 443 Bennett Energy Commission:
integrated resource policy
report: curtailed solar and
wind generation:
hydrogen production
Hydrogen This bill would require the Energy Commission, as part of the 2027 edition of the integrated energy policy report and each edition thereafter, and contingent upon an appropriation for this purpose, to include an assessment of funding needs for port infrastructure for offshore wind energy development, as specified.

The bill would require the Energy Commission, in consultation with specified entities, to include in the assessment any federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

AB 615 Davies Power facilites:
emergency response and
action plan
Power Facilities This bill would require that those applications also contain emergency response and action plans, to be paid for by the applicant, that incorporate impacts to the surrounding areas in the event of an emergency and that would be conducted and coordinated with local emergency management agencies, unified program agencies, and local first response agencies. The bill would require that applications for an energy storage system also contain emergency response and action plans, to be paid for by the applicant, and that the plan plans include analysis and feedback from the local emergency management agencies as to whether the proposed facilities require supplemental first responder capabilities and meet National Fire Protection Association 855 Standard as it relates to setbacks, as specified.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 705 Boerner Public Utilites Comission:

Independent Office of
Audits and Investigations
CPUC This bill would delete the provision providing for the appointment of the chief internal auditor and instead provide that, effective January 1, 2026, the internal audit unit of the commission and its staff are transferred to the Independent Office of Audits and Investigations, which the bill would establish within the commission, as specified. The bill would provide for the appointment and removal of the director of the office, who would have the title of Inspector General. The bill would require that the office have access and authority to examine all records, files, documents, accounts, reports, correspondence, or other property of the commission, public utilities, and other entities regulated by the commission, as specified.

The bill would require the Inspector General to report to the Governor and the Legislature, as provided.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
AB 716 Carillo Fire safety standards:
hydrogen facilities
Hydrogen This bill would require the State Fire Marshal to adopt the National Fire Protection Association Hydrogen Technologies Code (NFPA 2) as the statewide fire safety standards and guidelines for hydrogen production, storage, and distribution facilities. The bill would authorize local governments, in consultation with the State Fire Marshal, to adopt more stringent fire safety standards than the statewide fire safety standards, based on unique local hazards and risks. The bill would require the State Fire Marshal to appoint a hydrogen fire expert, with specified duties. The bill would require the State Fire Marshal to provide ongoing training to local fire departments and building inspectors, as specified.

From committee: Do pass.
(Ayes 14. Noes 0.) (May 23).

Read second time. Ordered to
third reading.

AB 729 Zbur Public utilities: climate
credits
Climate Credits This bill would require that the electric California Climate Credit be provided to  residential, small business, and emissions-intensive trade-exposed retail customers in of electrical corporations on the bills of those customers for the months of August and September of each year unless otherwise directed by the commission, as specified. The bill would require that the natural gas California Climate Credit be provided to residential customers on the bills of those customers for the month of February of each year unless otherwise directed by the commission, as specified.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 737 Qurik-Silva Energy: building
decarbonization: notice
and recordation of a
decarbonization charge
Decarbonization This bill would additionally add gas corporations to the definition of “energy supplier” for purposes of the above-described provisions.

Referred to Senate Com. on E., U
& C.

AB 738 Tangipa and
Patterson
Energy: building
standards: photovoltaic
requirements
Building Standards This bill would, until January 1, 2029, require residential construction intended to repair, restore, or replace a residential building damaged or destroyed as a result of a disaster in an area in which a state of emergency has been proclaimed by the Governor to comply only with the requirements regarding photovoltaic systems pursuant to those regulations, if any, that were in effect at the time the damaged or destroyed building was originally constructed and would prohibit that construction from being required to comply with any additional or conflicting photovoltaic system requirements in effect at the time of repair, restoration, or replacement. The bill would only apply to the construction of a building if certain conditions are met with respect to the building owner’s income and insurance coverage, and to the location and square footage of the construction.

Referred to Com. on E., U & C.

Medium Priority
AB 740 Harabedian Integrated energy policy
report: virtual power
plants
VPP This bill would require the Energy Commission, on or before November 1, 2026, to adopt a  virtual power plant deployment plan. The bill would require the Energy Commission, in developing the plan, to take certain actions, and would require that the plan meet specified requirements. The bill would require the plan adopted pursuant to these provisions to be included in the above-described integrated energy policy report.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

AB 745 Irwin Electricity: clean energy
transmission projects:
utility infrastructure
undergrounding:
financing.

Transmission Projects This bill would require the credit provided to residential customers of an electrical corporation to be provided on the bills of those customers for the months of July, August, and September of each year, or as otherwise directed by the commission to address extreme, unforeseen, and temporary circumstances.

The bill would require the credit to be volumetric, rather than independent of consumption.

Read third time and amended.

Ordered to third reading. Re-referred to Com. on U. & E. pursuant to Assembly Rule 77.2.

AB 777 Rodriguez Food assistance:
disasters: utilities.

Data Sharing This bill would require electrical corporations, gas corporations, water corporations, and local publicly owned electric utilities to respond to data requests from the department, and would require the commission to establish any memoramdum memorandum of understanding or other data sharing agreements agreement necessary to direct those utilities to provide data to the department to maximize food assistance, as provided. The bill would require the department to maximize the amount of assistance requested and received through D-SNAP and all other federally funded nutrition assistance, including utilizing that provided utility data, in order to timely seek automated mass replacement of specified federally funded nutrition assistance programs. The bill would require the department, on or before December 31, 2026, to submit a report to the Legislature related to food assistance, as specified.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 841 Patel State Fire Marshal:
personal protective
equipment: fires
Battery Storage This bill would require the State Fire Marshal, in consultation with the Division of Occupational Safety and Health, to develop a working group with specified membership to make recommendations regarding personal protective equipment used in responding to lithium-ion battery fires. The bill would require, at a minimum, the working group to review, and for the purpose of making the recommendations to consider, the latest personal protective equipment to limit exposure to lithium and other heavy metals, technology to clean personal protective equipment, whether different types of personal protective equipment should be used for different types of lithium-ion battery fires, and current decontamination practices at the fire scene, as specified. The bill would require the recommendations to be submitted to the Legislature on or before September 1, 2026.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
AB 864 Ward Hazardous waste: solar
photovoltaic modules
Solar Panel Recycling This bill would exempt solar photovoltaic modules not identified as hazardous waste and treated, except as provided, as universal waste, as defined, from state hazardous waste regulations, if transferred to a designated recycler for legitimate recycling, as described, and if the facility meets specified criteria relating to registration permits, as provided. The bill would make the universal waste designation applicable to a solar photovoltaic module that is intended for recycling and cannot otherwise be resold, reused, or refurbished only until the department adopts regulations implementing alternative management standards for solar photovoltaic modules. The bill would also designate a solar photovoltaic module that can be resold, reused, or refurbished as surplus material. The bill would make a conforming change.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

AB 915 Petrie-Norris Clean energy project
siting and permitting
Clean energy project
siting and permitting
This bill would require the Energy Commission to establish a state central pool of subject matter experts with experience in clean energy project siting and permitting.

From committee: Amend, and do
pass as amended. (Ayes 11.

Noes 0.) (May 23). Read second
time. Ordered to third reading.

AB 942 Calderon Net energy metering:
eligible customer-generators: tariffs.

NEM This bill would provide that, on and after July 1, 2026, an eligible customer-generator that has taken service pursuant to NEM 1.0 or 2.0 for 10 or more years is no longer entitled to take service under that contract or tariff. The bill would require that eligible customer-generator to take service under the then-current applicable tariff adopted by the commission after December 1, 2022, disqualify that eligible customer-generator from eligibility for the avoided cost calculator plus glide path, as specified, and would require the eligible customer-generator to pay all nonbypassable charges that are applicable to customers that are not eligible customer-generators. This bill would, on and after January 1, 2026, for a customer that becomes a new eligible customer-generator by purchasing real property that contains a renewable electrical generation facility upon which a prior eligible customer-generator took service, require the new eligible customer-generator to take service under the then-current applicable tariff adopted by the commission after December 1, 2022, would disqualify the new eligible customer-generator from eligibility for the avoided cost calculator plus glide path, as specified, and would require the new eligible customer-generator to pay all nonbypassable charges that are applicable to customers that are not eligible customer-generators.

From committee: Do pass. (Ayes

9. Noes 1.) (May 21). Read
second time. Ordered to third
reading.

Medium Priority
AB 1016 Gonzalez Power facility and site
certifications: thermal
powerplants: geothermal
resources
Geothermal This bill would additionally authorize the commission to exempt from the certification requirement, only until January 1, 2030, a thermal powerplant that generates electricity using geothermal resources and meets specified criteria, including that a person proposing an eligible thermal powerplant files an application on or before June 30, 2029, for certification with the local governmental agency that has land use and related jurisdiction over the area in which the powerplant is located to certify the site and related facility, and that the powerplant has a generating capacity of up to 150 megawatts, or that modifications are being made to a thermal powerplant that generates electricity using geothermal resources that do not add capacity in excess of 150 megawatts. Upon the commission granting an exemption, the bill would require the local governmental agency to be the lead agency to certify the site and related facility, as provided. The bill would make the local governmental agency that has land use and related jurisdiction over the area of the proposed site and related facility the lead agency pursuant to CEQA for any project that the commission exempts from the certification requirement and that generates electricity using geothermal resources as provided.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 1017 Boerner Energy: electrical and gas
corporations: general rate
cases.

General Rate Cases This bill would require an electrical corporation or gas corporation, as a part of its general rate case, to provide to the commission certain information, including, among other things, the authorized and actual rate of return and return on equity for the past 10 years and projects related to the corporation’s distribution capacity that include the forecast submitted in the prior general rate case of the corporation.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 1020 Schiavo Public utilities: energy:
nontraditional funding:
reporting
IOU This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any taxpayer funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant taxpayer funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of taxpayer funding to ratepayers, as provided.

From committee: Do pass. (Ayes

11. Noes 3.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
AB 1104 Pellerin Net energy metering:
construction of
renewable electrical
generation facilities:
public works project
requirements.

Solar Existing law provides for various enforcement mechanisms related to ensuring a contractor pays each construction worker the prevailing rate of per diem wages, and provides that an enforcement of a willful violation of any of these mechanisms against a contractor for the construction of a renewable electrical generation facility disqualifies that facility from eligibility being eligible to receive service pursuant to NEM

1.0, NEM 2.0, or the net billing tariff. This bill instead would make a renewable electrical generation facility eligible to receive service pursuant to NEM 1.0, NEM 2.0, or the net billing tariff despite enforcement of a willful violation against a contractor for the construction of the facility, as described above, if restitution has been made to the affected workers and all associated penalties and fines have been paid.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 1117 Schultz Electricity rates: optional
dynamic rate tariffs
Rates This bill would require the commission, through a new or existing proceeding, to develop optional dynamic rate tariffs applicable to each large electrical corporation for the large electrical corporation’s commercial and industrial customers on or before July 1, 2028, and for its other customers, including residential customers, on or before July 1, 2030. The bill would require each optional dynamic rate tariff to include, at minimum, specified components, including dynamic transmission and distribution rates that reflect real-time grid conditions and certain nonbypassable charges, as specified.

From committee: Do pass.
(Ayes 11. Noes 0.) (May 23).

Read second time. Ordered to
third reading.

AB 1156 Wicks Solar-use easements:
suspension of Williamson
Act contracts: terms of
easement: termination.

Solar This bill would revise these provisions to authorize the Department of Conservation to determine that a parcel is eligible for suspension, as described above, upon the request of the landowner, instead of a request from a county or city, and would require the department to additionally make that determination in consultation with any applicable groundwater sustainability agency or services. The bill would revise the eligibility criteria for a parcel to be deemed eligible under these provisions by (1) additionally authorizing land for which there are or will be insufficient surface water or groundwater rights associated with the land to support commercially viable irrigated agricultural use; (2) deleting the requirement that the land not be located on lands designated as prime farmland, unique farmland, or farmland of statewide importance; and (3) additionally requiring that the land meet certain additional requirements relating to the land’s historical use as cropland and whether it is encumbered by a conservation easement or enrolled in a land conservation program, as specified. The bill would also require the Department of Conservation to issue its determination of eligibility within 120 days following submission of a completed application package, and would deem any application not rejected within this 120-day period to be approved.

From committee: Amend, and do
pass as amended. (Ayes 11.

Noes 1.) (May 23). Read second
time. Ordered to third reading.

Medium Priority
AB 1167 Berman Electrical corporations
and gas corporations:
rate recovery: political
activities and promotional
advertising.

IOUs This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, or with promotional public messages, as defined, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its public messages whether the costs of the advertising are paid for by the corporation’s shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available and would authorize the commission to redact information that the commission deems to be confidential in the report.

From committee: Amend, and do
pass as amended. (Ayes 10.

Noes 0.) (May 23). Read second
time. Ordered to third reading.

AB 1207 Irwin Climate change: market-based compliance
mechanism: price ceiling
Cap-and-Trade This bill would require the state board to instead consider the full social cost associated with emitting a metric ton of greenhouse gases, as determined by the United States Environmental Protection Agency in November 2023.

In Senate. Read first time. To
Com. on RLS. for assignment.

AB 1273 Patterson Public utilities: electricity
rates
Rates This bill would prohibit the commission from placing the consideration of an application from an electrical corporation for a rate increase on its consent calendar.

Referred to Senate Com. on E., U
& C.

AB 1280 Garcia Energy Energy This bill would authorize the I-bank to provide financial assistance in connection with the financing or refinancing of a new category of climate catalyst projects, those that enable the decarbonization of industrial facilities’ use of heat and power, including, but not limited to, industrial heat pump and thermal energy storage projects, as specified, with the State Energy Resources Conservation and Development Commission and the State Air Resources Board as consulting agencies. This bill would establish and implement an Industrial Facilities Thermal Energy Storage Program within the Long-Duration Energy Storage Program to provide financial incentives for eligible projects to decarbonize industrial facilities’ use of heat and power, as specified.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
AB 1285 Committee on
Emergency
Management
State Fire Marshal:
lithium-ion battery
facilities: guidance
Battery Storage This bill would require the State Fire Marshal, in consultation with the Office of Emergency Services, to develop fire prevention, response, and recovery measures for utility grade lithium-ion battery storage facilities, as specified.

From committee: Do pass.
(Ayes 14. Noes 0.) (May 23).

Read second time. Ordered to
third reading.

AB 1301 Petrie-Norris Electricity: Power
Exchange
Power Exchange This bill would abolish the Power Exchange and would make various conforming changes. Referred to Com. on E., U & C.

AB 1302 Wallis Electricity: customer
generators: departing
load charges.

Departing Load This bill would require the commission, until December 31, 2031, to study and design a new system for allowing electrical customers of electrical corporations, community choice aggregators, local publicly owned electric utilities, and electrical cooperatives to generate their own electricity on their commercial or residential sites. The bill would require the commission, in designing the new system, to ensure all electrical customers are treated fairly, increase transparency in the calculation and application of departing load charges, promote the development and integration of renewable energy sources, support the state’s clean energy goals, consider the benefits of customer-generated energy, and provide a mechanism for stakeholder input, as provided. The bill would require the commission, on or before December 31, 2027, to submit a report to the Legislature detailing the proposed new process for departing load charges and any recommendations for legislative action.

Re-referred to Com. on U. & E.

AB 1334 Wallis Solar energy: official state
energy
Solar This bill would establish solar energy as the official state energy. Referred to Com. on G.O.

AB 1408 Irwin Electricity:
interconnections
Interconnections This bill would require each electrical corporation, and each local publicly owned utility with an annual electrical demand exceeding 700 gigawatthours, to require the evaluation of surplus interconnection options and to consider surplus interconnection options, for purposes of its integrated resource plan.

From committee: Do pass.
(Ayes 14. Noes 0.) (May 23).

Read second time. Ordered to
third reading.

AB 1410 Garcia Public utilities: service
outages and updates:
alerts
Outages This bill would require each public utility to automatically enroll customers in alerts for service outages and updates. The bill would require customers to be provided with the opportunity to opt-out of any alerts they do not wish to receive, except as provided. The bill would require each public utility to provide information on customers’ bills on how to update their preferred contact methods and to allow customers to update their contact information by email or telephone.

In Senate. Read first time. To
Com. on RLS. for assignment.

Medium Priority
AB 1423 Irwin Transportation
electrification: charging
station uptime:
regulatiosn: violations
EVSE This bill would require the above uptime recordkeeping and reporting standards, for electric vehicle chargers and charging stations installed on or after January 1, 2024, to also apply to electric vehicle chargers and charging stations that were installed with moneys from specified consent decrees among the State Air Resources Board, Volkswagen AG, and the United States Department of Justice, as specified.

The bill would additionally require the Energy Commission, in consultation with PUC, to develop, by January 1, 2027, uptime recordkeeping and reporting standards that apply to electric vehicle chargers and charging stations installed after January 1, 2018, but before January 1, 2024, that either received an incentive from a state agency or through a charge on ratepayers or were installed with moneys from specified consent decrees among the State Air Resources Board, Volkswagen AG, and the United States Department of Justice, as specified. The bill would require the Energy Commission to consider specified factors when developing these uptime recordkeeping and reporting standards.

From committee: Do pass. (Ayes

14. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

AB 1436 Avila Farias Public Utilities
Commission: outreach.

PUC Outreach Existing law, in effect until January 1, 2020, required the Policy and Planning Division of the Public Utilities Commission to undertake one or more studies of outreach efforts undertaken by other state and federal utility regulatory bodies and make recommendations to the commission to promote effective outreach, including metrics for use in evaluating success. This bill would repeal that obsolete provision.

Referred to Com. on E., U & C.

SB 24 McNerney Electrical and gas
corporations: rates:
political influence
activities and promotional
advertising: termination
of services.

IOU This bill would prohibit, except as provided, an electrical corporation or gas corporation from recording various expenses associated with political influence activities, as defined, promotional advertising, as defined, or opposing the municipalization of electrical or gas service, to accounts that contain expenses that the electrical corporation or gas corporation recovers from ratepayers. The bill would require electrical corporations and gas corporations to clearly and conspicuously disclose in all of its advertising whether the costs of the advertising are paid for by the corporation’s shareholders or ratepayers. The bill would require an electrical corporation or gas corporation, on or before April 30, 2026, and annually thereafter, to provide the commission with a report of expenses from the previous calendar year and would require that, for each business unit of the corporation that performs work associated with political influence activities or promotional advertising, the report contain specified information. The bill would require the commission to make the report publicly available.

From committee: Do pass. (Ayes

5. Noes 1.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
SB 80 Caballero The Fusion Research and
Development Innovation
Hub Program.

Fusion This bill would establish the Fusion Research and Development Innovation Hub Program within the commission to accelerate the development and growth of fusion energy by advancing fusion science and technology with the goal of delivering the world’s first fusion energy pilot plant in the state by the 2040s.

The bill would require, among other things, the commission to designate fusion research and development innovation hubs representing regions of southern California, the central valley, adn the San Francisco Bay.

From committee: Do pass. (Ayes

6. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

SB 86 McNerney California Alternative
Energy and Advanced
Transportation Financing
Authority Act: sales and
use tax exclusion.

Fusion This bill would extend to January 1, 2031 the authorization to provide financial assistance in the form of a sales and use tax exclusion for projects approved by the authority. The bill would increase the maximum cumulative amount of the sales and use tax exclusions authorized under these provisions to $200,000,000 per calendar year. The bill would add electrical generation facilities using nuclear fusion technology to the types of projects qualifying for this sales and use tax exclusion. The bill would make other conforming changes.

From committee: Do pass as
amended. (Ayes 6. Noes 0.) (May
23). Read second time. Ordered
to third reading.

SB 88 Caballero Air resources: carbon
emissions: biomass.

Biomass This bill would require the state board, on or before January 1, 2027, to finalize the standardized system described above. The bill would require the state board, on or before January 1, 2028, to adopt a method of quantification of the life-cycle emissions from alternative uses of forest and agricultural biomass residues. The bill would require the state board, on or before January 1, 2028, to include in the next scoping plan update a strategy to support beneficial carbon removal products, including, but not limited to, biochar, that are generated from agricultural or forest biomass resources.

From committee: Do pass as
amended. (Ayes 5. Noes 0.) (May
23).Read second time. Ordered
to third reading.

Medium Priority
SB 256 Perez Electricity: infrastructure:
wildfire mitigation:
undergrounding:
emergency operations.

Infrastructure This bill would, for the description in the wildfire mitigation plan of the preventive strategies and programs to minimize the risk of its electrical lines and equipment causing catastrophic wildfires, require electrical corporations, electrical cooperatives, and local publicly owned electric utilities to include consideration of low-risk areas. The bill would require a wildfire mitigation plan to include an identification of any lapses in communication coordination during recent past emergency response events with local governments, as specified, and a description of any opportunities to collaborate with local governments, and other steps that can be taken to establish more efficient communication coordination during future emergency responses, as provided. The bill would require electrical corporations, electrical cooperatives, and local publicly owned electric utilities to conduct annual wildfire preparedness workshops in collaboration with and open to any local fire departments in their service areas to provide updates on the latest adopted wildfire mitigation plans, discuss any lapses in, and opportunities to increase efficiency of, communication coordination during emergency responses, and gather input for inclusion in the development of the next annual submission of their wildfire mitigation plans, as provided.

From committee: Do pass. (Ayes

5. Noes 1.) (May 23). Read
second time. Ordered to third
reading.

SB 298 Caballero State Energy Resources
Conservation and
Development
Commission: seaports:
plan: alternative fuels
Alternative Fuels This bill would require the State Energy Resources Conservation and Development Commission (Energy Commission), in coordination with the State Lands Commission, the Transportation Agency, and the state board, to develop a plan on or before December 31, 2030, for the alternative fuel needs of oceangoing vessels at California’s public seaports that will enable the seaports to meet their emissions reduction goals. The bill would require the plan to do specified things, including, among other things, identifying barriers to permitting alternative fuel facilities at seaports and opportunities to address those barriers. The bill would require the Energy Commission to convene a working group to advise the Energy Commission on the development of information required by the plan, as specified. The bill would require the state board to provide the Energy Commission with information regarding fuels for oceangoing vessels that comply with the state board’s regulations for those vessels.

From committee: Do pass. (Ayes

6. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
SB 326 Becker and Laird Wildfire safety: The
California Wildfire
Mitigation Strategic
Planning Act
Wildfires This bill would require the deputy director, on or before January 1, 2027, and every 3 years thereafter, to prepare a Wildfire Risk Mitigation Planning Framework sufficient to quantitatively evaluate wildfire risk mitigation actions, as provided. The bill would require the framework to allow for geospatial evaluation and comparison of wildfire risk mitigation actions, as defined, sufficient to direct coordinated mitigation efforts and long-term collaborative mitigation planning. The bill would require the deputy director to, each year the framework is completed, submit a copy of the framework to the Legislature, the Office of Energy Infrastructure Safety, and the Public Utilities Commission for review and consideration.

From committee: Do pass. (Ayes

6. Noes 0.) (May 23). From
special consent calendar on
motion of Senator Becker.

Ordered to third reading.

SB 332 Wahab Investor-Owned Utilities
Accountability Act
IOU Oversight This bill would require the Energy Commission to select a research institute, as defined, to conduct a comparative analysis of the benefits and challenges of transitioning the electrical corporations to a public entity, nonprofit public benefit corporation, or mutual benefit corporation in order to identify a recommended model, as provided. The bill would require the research institute to complete the analysis on or before January 1, 2029, and, upon completion, to submit the analysis to the Legislature and the Energy Commission. The bill would require the Energy Commission to make a draft of the analysis available to the public for comment before submitting the final draft to the Legislature, and would limit the cost of conducting the analysis to $5,000,000.

Upon completing the analysis by the research institute, this bill would require the Energy Commission to present the analysis at a publicly noticed business meeting on or before September 30, 2029.

From committee: Do pass as
amended. (Ayes 5. Noes 0.) (May
23). Read second time and
amended. Ordered to third
reading.

Medium Priority
SB 500 Stern Electrical corporations:
performance metrics and
incentives.

IOUs This bill would require the commission to evaluate performance metrics and financial performance-based incentives to identify mechanisms that may serve to better align electrical corporation operations, expenditures, and investments with delivering safe and reliable electrical service and achieving public policy goals, while minimizing costs for ratepayers. The bill would require the commission to prioritize performance metrics and financial performance-based incentives that can reduce electrical corporations’ preference for investments that can be added to their ratebase and instead encourage electrical corporations to propose the most cost-effective solutions for providing safe and reliable electrical service, as provided. The bill would require the commission, on or before January 1, 2028, to begin tracking one or more of the performance metrics identified, and to subsequently consider whether financial performance-based incentives linked to those performance metrics would be effective and beneficial for minimizing costs for ratepayers.

From committee: Do pass as
amended. (Ayes 5. Noes 1.) (May
23). Read second time. Ordered
to third reading.

SB 533 Richardson Electric vehicle charging
stations: internet based
applications
EVSE This bill would create an exception to the above-described provisions that authorizes an electric vehicle charging station to require that payment for charging services be made through the use of an internet-based application and require the use of that internet-based application for admission to the premises.

Referred to Coms. on TRANS.
and U. & E.

Medium Priority
SB 534 Padilla Green Empowerment
Zone for the Salton Sea
and Southeastern Desert
Valleys.

Green Empowerment
Zone
This bill, until January 1, 2035, would authorize establishment of a Green Empowerment Zone for the Salton Sea and Southeastern Desert Valleys (empowerment zone). The bill would authorize the empowerment zone to be composed of specified land and communities within the Imperial, Eastern Coachella, and Palo Verde Valleys, upon adoption of a resolution by the Imperial County Board of Supervisors, and would provide for the empowerment zone to be governed by a board of directors, as specified. The bill would task the empowerment zone with various duties, including, among other things, identification of projects and programs that will best utilize public dollars, distribute benefits to disinvested communities, and most quickly improve the economic vitality of California’s southeastern desert valleys, as specified, in a coordinated effort to support the development and equitable transition to a clean energy economy. The bill would require the board of directors, beginning on January 1, 2027, to submit an annual progress report to the Legislature and the Governor’s Office of Business and Economic Development, as specified. The bill would require the empowerment zone, commencing on January 1, 2027, as specified, to post the above-described report on its internet website and to submit a letter to the Legislature informing the Legislature that the report has been posted.

Referred to Com. on E.D., G., &
H.I.

Medium Priority
SB 567 Limon Gravity-Based Energy
Storage Well Pilot
Program
Energy Storage This bill would, until January 1, 2035, establish the Gravity-Based Energy Storage Well Pilot Program and would authorize the supervisor to authorize the conversion of not more than 250 wells for use as gravity-based energy storage wells, as defined, to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely generate energy. The bill would require idle wells that are authorized for use as gravity-based energy storage wells to be identified as gravity-based energy storage wells in a plan for the management and elimination of idle wells or updates to the plan required to be filed with the supervisor. The bill would require the mechanical integrity of gravity-based energy storage wells to be assessed by the Geologic Energy Management Division not less than annually. The bill would require an operator of a gravity-based energy storage well, in the event of a loss of mechanical integrity of the well or a leak to the environment, to notify the division, the State Air Resources Board, the appropriate regional water quality control board, and schools and community members within 3,200 feet of the well and to cease operation until the mechanical integrity is restored or to plug and abandon the well, as provided. The bill would require gravity-based energy storage wells to be continuously monitored for fluid leaks. The bill would specify that the authorization for wells to be used as gravity-based energy storage wells end at the termination of the pilot program. The bill would, by January 1, 2033, require the Secretary for Environmental Protection, in consultation with certain entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to regulate the operation of gravity-based energy storage wells, as provided.

From committee: Do pass as
amended. (Ayes 5. Noes 0.) (May
23). Read second time. Ordered
to third reading.

SB 593 Hurtado Voltage changes:
consumer protection.

Notice This bill would require the commission, on or before July 1, 2026, to require electrical corporations to adjust their consumer protections to better protect customers from significant voltage changes that can result in damage to customers’ equipment and appliances if the commission determines adjustments to the consumer protections are necessary. The bill would specify the factors that the commission would be required to evaluate when determining whether to adjust the consumer protections, as provided.

In Assembly. Read first time.

Held at Desk.

Medium Priority
SB 707 Durazo Open meetings: meeting
and teleconference
requirements.

Brown Act This bill would, until January 1, 2030, require an eligible legislative body, as defined, to comply with additional meeting requirements, including that, except as specified, all open and public meetings include an opportunity for members of the public to attend via a 2-way telephonic service or a 2-way audiovisual platform, as defined, and that the eligible legislative body take specified actions to encourage residents to participate in public meetings, as specified. This bill would revise and recast the above-described definition of a legislative body and would specify that advisory committees with a continuing subject matter jurisdiction or a fixed meeting schedule, as specified, are legislative bodies. This bill would also require the agenda for each meeting of an eligible legislative body, as defined, to be translated into all applicable languages. The bill would define “applicable languages” to mean languages spoken jointly by 20% or more of the population in the city or county in which the eligible legislative body is located that, among other things, speaks English less than “very well,” as specified, and except as provided.

Read third time and amended.

Ordered to second reading.

SB 710 Blakespear Property taxation: active
solar energy systems:
extension
Solar Under existing property tax law, this exclusion remains in effect only until there is a subsequent change in ownership, but an active solar energy system that qualifies for the exclusion before January 1, 2027, will continue to receive the exclusion until there is a subsequent change in ownership. Existing law repeals these exclusion provisions on January 1, 2027. This bill would, beginning with the 2026–27 fiscal year, extend the exclusion indefinitely, and would limit the exclusion to customer-sited active solar energy systems, as defined.

From committee: Do pass as
amended. (Ayes 6. Noes 0.) (May
23). Read second time. Ordered
to third reading.

SB 714 Archuleta Zero-emission vehicles:
workforce development:

Clean Energy Workforce
Training Council
Workforce
Development
This bill would state the intent of the Legislature to enact legislation that would establish a zero-emission vehicle workforce development pilot project and a Clean Energy Workforce Training Council, as provided.

Referred to Com. on RLS.

Medium Priority
SB 782 Perez Enhanced infrastructure
financing district: climate
resilience districts.

Enhanced
infrastructure climate
district
This bill would authorize a city or county to adopt a resolution providing for the division of taxes of any participating entity without following specified procedures for the preparation and adoption of an infrastructure financing plan, if certain conditions are met. The bill would require the district to hold a public meeting to consider the resolution of intention to establish the district and a second public meeting to consider the adoption of the infrastructure financing plan, and would require the district to post specified notices prior to the meetings. The bill would require the resolution to include specified information, including that incremental property tax revenue from the city or county and all affected taxing entities within the district may be used to finance the district’s activities. The bill would require the district to make the infrastructure financing plan available for public inspection at least 10 days before the hearing to approve the formation of the district, and would require the designated official of the district to consult with each affected taxing entity prior to development of the infrastructure financing plan.

In Assembly. Read first time.

Held at Desk.

Medium Priority
SB 787 McNerney Energy: Task Force on
Equitable Clean Energy
Supply Chains and
Industrial Policy in
California
Task Force on
Equitable Clean
Energy Supply Chains
This bill would require the commission, on or before March 1, 2026, to designate a person, within the commission, to serve as the Senior Counselor on Industrial Policy and Clean Energy Development and would specify the senior counselor’s duties. The bill would require the Senior Counselor on Industrial Policy and Clean Energy Development to convene working groups that focus on certain issues, as provided. The bill would require the commission, the Governor’s Office of Business and Economic Development, the Labor and Workforce Development Agency, the Public Utilities Commission, the Department of Water Resources, the Department of General Services, and the office of the Treasurer, on or before March 1, 2026, to enter into an a memorandum of understanding on equitable clean energy supply chains and industrial policy in California to, among other things, review, investigate, and develop strategies for building integrated industrial bases in California to support the zero-emission vehicle and battery supply chain industries, offshore wind and offshore wind component industries, and building decarbonization and heat pump industries through industrial planning and public investment, procurement, and subsidization, as provided. The bill would require the Senior Counselor on Industrial Policy and Clean Energy Development to track and coordinate the work taken under the memorandum of understanding and to prepare an annual report summarizing the key findings and recommendations resulting from that work. The bill would require that the report be presented at a public meeting of the commission and be published on the commission’s internet website. The bill would establish in the State Treasury the Equitable Clean Energy Supply Chain and Industrial Policy Fund and would, upon appropriation by the Legislature, authorize the moneys in the fund be expended for the purposes of the bill.

From committee: Do pass. (Ayes

5. Noes 1.) (May 23). Read
second time. Ordered to third
reading.

SB 804 Archuleta Hydrogen pipeline safety Hydrogen This bill would require the PUC to require that hydrogen pipelines meet specified requirements. The bill would require the PUC to establish, on or before January 1, 2028, and, with the exception specified below, to enforce, standards that meet or exceed those requirements, as provided. The bill would require the Energy Commission to enforce the standards for private, intrastate hydrogen pipelines.

The bill would require a hydrogen pipeline owner to maintain accurate records of hydrogen concentration levels within its hydrogen pipeline and any leakage of hydrogen and, on or before December 31 of each year, to submit a report to the PUC detailing compliance with that requirement.

From committee: Do pass. (Ayes

6. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

Medium Priority
SB 840 Limon and
McGuire
Greenhouse gases: report Cap-and-Trade This bill would extend indefinitely the requirement for the Legislative Analyst’s Office to annually submit to the Legislature the report on the economic impacts and benefits of those greenhouse gas emissions targets. The bill would require the committee, at a public hearing, to review the annual report by the Legislative Analyst’s Office.

From committee: Do pass. (Ayes

6. Noes 0.) (May 23). Read
second time. Ordered to third
reading.

SB 842 Stern Energy: firm zero-carbon
resources
Zero-Carbon
Resources
This bill would require commission, on or before December 31, 2026, through a new or ongoing proceeding, to establish or identify a process by which each load-serving entity subject to its jurisdiction may solicit bids and propose projects for new firm zero-carbon resources to meet identified local reliability needs, as provided. The bill would require the report to include, among other things, characterization of the resource attributes vital for local reliability and identification of barriers, including market barriers, to deploying firm zero-carbon resources to enhance local reliability.

From committee: Do pass as
amended. (Ayes 5. Noes 1.) (May
23). Read second time. Ordered
to third reading.

Failed Deadline
Bill # Author Title Category Summary Status
AB 23 DeMaio The Cost of Living
Reduction Act of 2025.

Affordability This bill would require the Energy Commission to develop a rebate methodology to compensate Californians for the higher cost of gasoline, electricity, and natural gas compared to the national average, and, beginning with the 2026–27 fiscal year, in any year where the average prices for gasoline, electricity, or natural gas have exceeded the national average for those energy sources by more than 10% in the preceding 12 months, would require the Controller to provide rebates to households consistent with the methodology developed by the commission. The bill would establish the Cost of Living Reduction Fund and would require an amount necessary to fund the rebates, as specified, to be transferred from the Greenhouse Gas Reduction Fund to the Cost of Living Reduction Fund, the moneys in which would be continuously appropriated to the Controller for the purpose of making the rebate payments. By requiring the transfer of moneys into a continuously appropriated fund, the bill would make an appropriation.

Re-referred to Com. on U. & E.

AB 99 Ta Electrical
corporations: rates.

Affordability This bill would prohibit an electrical corporation from proposing a rate increase above the rate of inflation as defined, as a systemwide average for any general rate case cycle, except the bill would expressly authorize the commission to approve a rate increase above the rate of inflation if the commission determines that the costs underlying the rate increase are directly related to safety enhancements and modernization or to higher commodity or fuel costs.

In committee: Held under
submission.

AB 267 Macedo Greenhouse Gas
Reduction Fund: high-speed rail: water
infrastructure and
wildfire prevention
GGRF This bill would suspend the appropriation to the High-Speed Rail Authority for the 2026–27 and 2027–28 fiscal years and would instead require those amounts from moneys collected by the state board to be transferred to the General Fund. The bill would specify that the transferred amounts shall be available, upon appropriation by the Legislature, to augment funding for water infrastructure and wildfire prevention.

Referred to Coms. on TRANS.
and NAT. RES.

AB 273 Sanchez Greenhouse Gas
Reduction Fund: high-speed rail:
infrastructure
improvements
GGRF This bill would eliminate the continuous appropriation of 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to the High-Speed Rail Authority on June 30, 2026. The bill, beginning with the 2026–27 fiscal year, would instead require 25% of the annual proceeds of the Greenhouse Gas Reduction Fund to be transferred to the General Fund and for those moneys, upon appropriation, to be used to augment funding provided to local governments to improve infrastructure.

Referred to Coms. on TRANS.
and NAT. RES.

Failed Deadline
AB 275 Petrie-Norris Office of Emergency
Services: wildfire
aerial response:
program
Wildfires This bill would require the Office of Emergency Services, in consultation with the Department of Forestry and Fire Protection, to establish, on or before December 31, 2026, a working group to evaluate and develop recommendations for implementing a wildfire aerial response program to provide year-round, 24 hours per day, 7 days per week, rapid aerial suppression capabilities. The bill would require the working group to consider specified elements to ensure effective statewide aerial wildfire suppression and to develop recommendations, including whether the program should be implemented as a pilot program, a full-scale statewide initiative, or if implementation is not recommended based on feasibility findings. The bill would require the Director of Emergency Services, in consultation with the department, to appoint members to the working group who are familiar with wildfire aviation response programs, as provided. The bill would require the working group to report its findings and implementation recommendations to the Assembly Committee on Emergency Management and the Senate Committee on Governmental Organization on or before December 31, 2027, as provided.

In committee: Set, second
hearing. Hearing canceled at the
request of author.

AB 286 Gallagher Electricity: mandatory
rate reduction.

Rates This bill would require the commission to generate a report outlining recommendations to decrease the kilowatt-per-hour rate for electricity charged to ratepayers by not less than 30% by January 1, 2027. The bill would require the commission, in making those reduction recommendations, to take certain actions, as specified.

In committee: Held under
submission.

AB 305 Arambula Energy: nuclear
facilities
Nuclear Power This bill would exempt small modular reactors, as defined, from those provisions. This bill would require the PUC, on or before January 1, 2028, to adopt a plan to increase the procurement of electricity generated from nuclear facilities and to phase out the procurement of electricity generated from natural gas facilities.

In committee: Hearing
postponed by committee.

AB 388 Rogers Electricity Electrical
Corporations
This bill would revise the definition of “electrical corporation” to exclude a corporation or person employing certain solar or wind generating technology if electricity is transmitted exclusively and directly through private electrical lines to a single facility owned by a different corporation or person that uses the electricity only for new load, not for departing load, and for an electrolytic hydrogen production facility, as defined, or a facility using the electricity to provide industrial process heat, or both.

In committee: Held under
submission.

Failed Deadline
AB 434 DeMaio Construction and
safety standards:
battery storage
facilities
Battery Storage This bill would prohibit, until January 1, 2028, a public agency from authorizing the construction of a battery energy storage facility, as defined. The bill would require the State Fire Marshal, on or before January 1, 2028, to adopt guidelines and minimum standards for the construction of a battery energy storage facility to prevent fires and protect nearby communities from any fire hazard posed by the facility. The bill would require a public agency, when authorizing the construction of a battery energy storage facility on or after January 1, 2028, to require the facility to meet the guidelines and minimum standards adopted by the State Fire Marshal or more stringent guidelines and minimum standards as determined appropriate by the public agency.

In committee: Set, first hearing.

Referred to suspense file.

AB 472 Rogers and
Connolly
Energy: offshore wind
generation
Offshore Wind This bill would amend the definition of “infrastructure” described above to include port infrastructure for offshore wind energy development, and would require the 5-year infrastructure plan to include, beginning in the 2027–28 fiscal year, and contingent upon an appropriation for this purpose, an assessment of funding needs for port infrastructure for offshore wind energy development, as specified. The bill would require the Governor, in consultation with specified entities, to assess federal, state, and local funding opportunities, including general obligation bonds and funding from the private sector, that can help build port infrastructure for offshore wind energy development.

In committee: Held under
submission.

AB 884 Essayli Campaign
contributions: investor-owned utilities
IOU This bill would prohibit an investor-owned utility from making a contribution to a candidate for elective state office and would prohibit a candidate for elective state office from accepting a contribution from an investor-owned utility.

In committee: Hearing
postponed by committee.

AB 1173 Patterson Public Utilities
Commission:
organization
IOU/CPUC This bill would prohibit a staff member who moves from the Public Advocate’s Office of the Public Utilities Commission to the commission from working on any matter that the staff member participated in while employed at the office.

In committee: Held under
submission.

AB 1174 Alanis Clean Transportation
Program: eligible
programs and
projects: electrical
vehicle charging
stations: vandalism
deterrence
EVSE This bill would add to the categories of programs and projects eligible for funding under the Clean Transportation Program programs and projects to deter and combat vandalism of publicly available electric vehicle charging stations.

Referred to Com. on TRANS.

Failed Deadline
AB 1176 Flora Energy: renewable
energy resources
programs
Energy Spot Bill In committee: Hearing
postponed by committee.

AB 1182 Irwin State Energy
Resources
Conservation and
Development
Commission: report:
electrical grid
infrastructure
manufacturing
Transmission and
Distribution
Manufacturing
This bill would require the commission to prepare and submit a report, on or before July 1, 2026, to the Governor and the Legislature regarding the status of electrical transmission and distribution grid infrastructure manufacturing in this state.

In committee: Held under
submission.

AB 1191 Tangipa California Renewables
Portfolio Standard
Program: hydroelectric
generation.

RPS/Hydro This bill would revise the definition of an eligible renewable energy resource for the purposes of the California Renewables Portfolio Standard Program to include all hydroelectric generating facilities and would make conforming changes.

In committee: Set, first hearing.

Failed passage.

Reconsideration granted.

AB 1222 Bauer-Kahan Public utilities: judicial
review
IOUs This bill would prohibit the commission from authorizing electrical or gas corporations to recover from their ratepayers the costs associated with seeking judicial review of a commission decision by a state or federal court or requesting relief from a commission decision at a federal agency. The bill would require the electrical and gas corporation to track those costs.

In committee: Held under
submission.

AB 1228 Essayli Electricity: expedited
utility distribution
infrastructure
undergrounding
program
Infrastructure This bill would specify that the approval of a distribution infrastructure undergrounding plan is not a project for purposes of the California Environmental Quality Act, as specified.

Referred to Coms. on U. & E.
and NAT. RES.

AB 1238 DeMaio California Energy
Consumer Freedom
Act
Electrification This bill, the California Energy Consumer Freedom Act, would prohibit state agencies and local governments from adopting or enforcing a rule, regulation, resolution, or ordinance that directly or indirectly results in prohibiting the use of gas appliances in residential or nonresidential buildings, and the buying, selling, or use of gasoline-powered vehicles or equipment.

Re-referred to Com. on U. & E.

Failed Deadline
AB 1260 Ward Electricity: renewable
energy subscription
programs
Community
Renewables
This bill would revise and recast the requirements for the customer renewable energy subscription program to, among other things, specify that the avoided costs include certain avoided cost values. The bill would impose additional requirements that the program is required to meet, including requiring facilities participating in the program to have no more than 5 megawatts of generation capacity and no more than 5 megawatts of storage, and capping the total program capacity at 5 gigawatts or ending program subscription after 7 years, when either limit is first reached. The bill would require the PUC, on or before September 1, 2026, to adopt or modify the community renewable energy program to ensure consistency with certain requirements, as provided. The bill would require each community choice aggregator and electric service provider, within 180 days of the adoption or modification of the program, to notify the PUC regarding whether it will participate in the program. The bill would authorize a community choice aggregator or electric service provider to begin participating in, or end its participation in, the program at any time by notifying the PUC. The bill would require the PUC, beginning 2 years from the adoption or modification of the program, to evaluate the program to ensure consistency with the program’s requirements and would require the PUC to authorize the termination or modification of the program if the PUC determines that the program does not meet those requirements. The bill would require the State Energy Resources Conservation and Development Commission (Energy Commission) to evaluate community solar and storage projects as a load-modifying resource so that those projects may be counted as a load-modifying resource. The bill would require the Energy Commission to undertake the evaluation and issue a determination on or before September 1, 2026, as provided.

In committee: Held under
submission.

AB 1295 Patterson Public utilities: bills
and notices:
consolidation and
transparency
Billing This bill would require the commission, on or before June 1, 2026, to evaluate all customer billing and noticing requirements existing on January 1, 2026, that apply to gas or electric utilities, and to identify and consider potential avenues to consolidate and enhance billing transparency, including avenues that clearly show the source and value of each charge within each customer’s bill, as specified, and use the most cost-effective communications channels, as provided. The bill would authorize the commission to seek and consider input from utilities and other relevant stakeholders to inform its evaluation and identification and consideration of potential avenues to consolidate notices and enhance billing transparency.

In committee: Held under
submission.

Failed Deadline
AB 1342 Soria Public Utilities
Commission: energy
efficiency programs:
report.

Programs Existing law requires the Public Utilities Commission, on or before December 31, 2018, and biennially thereafter, as part of a specified report, to identify and report to the Legislature on electrical and gas corporation ratepayer-funded energy efficiency programs that are similar to programs administered by the State Energy Resources Conservation and Development Commission, the State Air Resources Board, and the California Alternative Energy and Advanced Transportation Financing Authority. This bill would instead require the commission to identify and report to the Legislature on those programs on an annual basis.

In committee: Hearing
postponed by committee.

AB 1347 Carrillo Electrical
modernization zones
Electrical
modernization
zones
This bill would require the Governor’s Office of Business and Economic Development, in conjunction with the ISO, to identify six electrical infrastructure modernization zones, as provided. The bill would require the PUC and the Energy Commission to recognize these zones as load growth priority areas. The bill would authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to work with the local jurisdiction to update its electrical load projections. The bill would require the PUC to authorize an electrical corporation that serves a customer within an electrical infrastructure modernization zone to expedite cost recovery and to manage microgrids, as specified.

In committee: Set, first hearing.

Hearing canceled at the request
of author.

AB 1372 Papan Renewable electrical
generation facilities:
electrified commuter
railroads: regenerative
braking: net billing
Rates This bill would, upon an electrical corporation, electric service provider, or community choice aggregator and an operator of an electrified commuter railroad that produces electricity through the regenerative braking of electric trains, including the Peninsula Corridor Joint Powers Board, completing certain technical studies, require the electrical corporation, electric service provider, or community choice aggregator to adopt or modify a net billing contract or tariff that is approved by the commission or the appropriate rate approving entity, as provided. The bill would require that contract or tariff to, among other things, require the supplier or distributor to apply bill credits for the electricity exported to the electrical grid based on its value, as specified. The bill would require the load-serving entity responsible for the delivery of electricity to provide, or install at its cost, if necessary, metering that records and documents electricity imports and exports, as specified.

In committee: Hearing
postponed by committee.

Failed Deadline
AB 1404 Ortega Electrical
Corporations:
connections:
affordable housing
projects
Rates This bill would require an electrical corporation to connect an affordable housing project, as defined, to the electrical distribution grid within 60 days, except as specified. The bill would require the commission to streamline any necessary review on an affordable housing project that is ready to connect but sitting vacant and that has not been connected by an electrical corporation within the required 60 days. The bill would delay the effective date of a rate increase approved by the commission for the greater of either the amount of time the electrical corporation took, beyond 90 days from receipt of the project building plans, to provide a final contract, or the amount of time the electrical corporation took, beyond the 60 days allowed, to connect the most recently completed affordable housing project within the electrical corporation’s service area.

In committee: Hearing
postponed by committee.

AB 1484 Bennett Energy reliability Spot Spot Bill Read first time.

SB 58 Padilla Sales and Use Tax
Law: exemptions:
certified data center
facilities
Data Centers This bill would, on and after January 1, 2026, provide a partial exemption from those taxes with respect to the gross receipts from the sale, storage, use, installation, assembly, repair, maintenance, or other consumption of data center equipment, as defined, used at or for the benefit of a certified data center facility, as defined. The bill would require a data center facility to meet specified requirements in order to receive certification from the California Department of Tax and Fee Administration, including requirements relating to job creation, investment, and renewable energy procurement requirements. The bill would require the department to revoke certification where a data center facility obtains certification and subsequently fails to meet these requirements after reasonable opportunity for the data center facility to cure noncompliance, as provided.

May 14 set for first hearing
canceled at the request of
author.

SB 252 Valladares CEQA: exemption:
undegrounding
powerlines
CEQA This bill would exempt from the provisions of CEQA a project to underground powerlines. April 2 set for second hearing canceled at the request of
author.

SB 282 Wiener Residential heat pump
systems: water
heaters and HVAC:
installations
Heat Pumps This bill would require the commission, on or before January 1, 2027, to establish a statewide certification program for licensed contractors of residential heat pump water heaters and heat pump heating, ventilation, and air conditioning (HVAC) systems to obtain a heat pump installation certification, and would require the commission to create a state training program, as described, on residential heat pump water heaters and heat pump HVAC systems for purposes of the certification program, as specified.

May 23 hearing: Held in
committee and under
submission.

Failed Deadline
SB 285 Becker Net zero greenhouse
gas emissions goal:
carbon dioxide
removal: regulations
GHG Emissions This bill would, for the purpose of meeting, or tracking progress against, any state requirement to achieve net zero emissions of greenhouse gases,authorize only qualified carbon dioxide removal, as defined, to be used to counterbalance the state’s or an entity’s greenhouse gas emissions and would require qualified carbon dioxide removal used for those purposes to meet certain requirements, as specified.

May 23 hearing: Held in
committee and under
submission.

SB 314 Padilla Weights and
measures: electric
vehicle supply
equipment
EVSE This bill would authorize an EVSE that has been audited or tested by the manufacturer or supplier to be used commercially without further testing during the remainder of the inspection period adopted by the Secretary of Food and Agriculture, but not until it has been sealed by a sealer. The bill would, among other things, require the county sealer to ensure that certain EVSE installed before January 1, 2026, are initially placed in service and tested by a sealer on or before January 1, 2027, at no additional cost other than the registration fees paid by the EVSE owner or operator.

May 23 hearing: Held in
committee and under
submission.

SB 327 McNerney Fusion energy data
centers
Fusion energy This bill would require the commission to initiate an agreement with the United States Department of Energy for the establishment of a fusion energy data center, as specified.

April 29 set for first hearing
canceled at the request of
author.

SB 348 Hurtado State Air Resources
Board: Low-Carbon
Fuel Standard
LCFS This bill would require the state board, beginning no later than January 31, 2026, to reconsider and revise the Low Carbon Fuel Standard to reduce the program’s financial burden on drivers in the state, including by taking specified actions.

May 23 hearing: Held in
committee and under
submission.

SB 377 Grayson Biomethane
procurement targets
Biomethane This bill would instead require that biomethane delivered to California through a common carrier pipeline meet either of the specified requirements, rather than both. The bill would also additionally add the displacement of conventional natural gas that results in a reduction in greenhouse gas emissions as one of the specified environmental benefits.

April 7 set for first hearing
canceled at the request of
author.

SB 559 Stern Electricity:
deenergization events:
communications
Deenergization events This bill would require, at the start of a deenergization event, an electrical corporation to immediately notify local emergency management organizations and local utility districts about the impacts of the deenergization, as specified. The bill would require detailed status information on restoration efforts to be made available to emergency management organizations, public safety officials, customers, and the public in real-time, with regular progress updates issued at intervals of no more than 12 hours, for all impacted circuits, as specified.

May 23 hearing: Held in
committee and under
submission.

Failed Deadline
SB 620 Stern Energy utility data. Data This bill would require the State Energy Resources Conservation and Development Commission (Energy Commission) to create the Data Access Governance Committee, with specified membership, and would require the committee, on or before January 1, 2027, to provide initial recommendations on prescribed topics to the Energy Commission and the PUC, as specified. The bill would authorize the Energy Commission to work with certain gas corporations, electrical corporations, and local publicly owned utilities that provide gas or electrical service to enact cost-effective energy utility data programs, as specified. The bill would create, and would require the PUC and the Energy Commission to administer and enforce, the Customer Energy Utility Data Bill of Rights, with specified protections and customer rights.

April 29 set for first hearing
canceled at the request of
author.

SB 636 Menjivar Electrical or gas
corporations:
deferment of
payments: hardship
Disconnections This bill would prohibit an electrical or gas corporation from disconnecting service of a customer who meets certain criteria, including making a hardship request based on certain circumstances, as provided. The bill would require the corporation to grant that customer a 6-month deferment for any and all payments due from the date that the deferment is granted. Upon the expiration of the deferment period, the bill would require the corporation to enroll the customer into its arrearage management program for any and all debts on the customer’s account.

The bill would authorize the commission to adopt rules to implement these provisions.

May 23 hearing: Held in
committee and under
submission.

SB 684 Menjivar Polluters Pay Climate
Superfund Act of 2025.

Climate This bill would enact the Polluters Pay Climate Superfund Act of 2025 and would establish the Polluters Pay Climate Superfund Program to be administered by the California Environmental Protection Agency to require fossil fuel polluters to pay their fair share of the damage caused by greenhouse gases released into the atmosphere during the covered period, which the bill would define as the time period between the 1990 and 2024 calendar years, inclusive, resulting from the extraction, production, refining, sale, or combustion of fossil fuels or petroleum products, to relieve a portion of the burden to address cost borne by current and future California taxpayers. The bill would require the agency, within 90 days of the effective date of the act, to determine and publish a list of responsible parties, which the bill would define as an entity with a majority ownership interest in a business engaged in extracting or refining fossil fuels that, during the covered period, did business in the state or otherwise had sufficient contact with the state, and is determined by the agency to be responsible for more than 1,000,000,000 metric tons of covered fossil fuel emissions, as defined, in aggregate globally, during the covered period.

April 22 set for first hearing
canceled at the request of
author.

Failed Deadline
SB 698 McNerney California Solar
Initiative: distributed
energy resource
equipment lists
DER This bill would authorize the Energy Commission to establish distributed energy resource equipment lists with rating standards for equipment, components, and systems that further state energy and environmental goals, including, but not limited to, for solar energy systems, energy storage systems, bidirectional charging systems, and electric vehicle supply equipment. The bill would define various terms for these purposes. The bill would require the Energy Commission to adopt guidelines for the distributed energy resource equipment lists, as provided.

May 23 hearing: Held in
committee and under
submission.

SB 708 Alvarado-Gil Public Utilities
Commission: quorum
for the transaction of
business
CPUC Spot Bill Referred to Com. on RLS.

SB 752 Richardson Sales and use taxes:
exemtions: California
Hybrid and Zero-Emission Truck and
Bus Voucher Incentive
Project: transit buses
Tax on ZE Buses The Sales and Use Tax Law provides various exemptions from those taxes, including, until January 1, 2026, an exemption from those taxes with respect to the sale in this state of, and the storage, use, or other consumption in this state of, specified zero-emission technology transit buses sold to specified public agencies that are eligible for specified incentives from the State Air Resources Board. This bill would extend the exemption for specified zero-emission technology transit buses until January 1, 2028.

May 23 hearing: Held in
committee and under
submission.

SB 755 Blakespear California Contractor
Climate Transparency
Act
California Contractor Climate Transparency Act This bill would enact the California Contractor Climate Transparency Act, which would require the board, beginning January 1, 2027, to require a large contractor and a significant contractor, as defined, to report annually specified information, including, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified.

May 23 hearing: Held in
committee and under
submission.

SB 803 Durazo California
Conservation Corps:

Green Collar
Certification Program
California Conservation Corps This bill would require the Director of the California Conservation Corps to establish a Green Collar Certification Program that provides young persons participating in the corps with skills and education relating to reducing carbon emissions in residential and nonresidential buildings, preparing communities for environmental disasters, and developing conservation infrastructure projects that stabilize shorelines and restore ecological habitats, as provided.

May 23 hearing: Held in
committee and under
submission.

Failed Deadline
SB 810 Dahle Electricity: ratepayer-funded programs:
reports
Reporting Existing law requires the State Energy Resources Conservation and Development Commission (Energy Commission) to administer various programs, such as the Electric Program Investment Charge program, that are funded by a charge on electrical ratepayers. Existing law requires the Public Utilities Commission (PUC) to require electrical corporations to implement various programs, such as energy efficiency programs, that are funded by electrical ratepayers. Under its authority, the Governor has issued an executive order directing the Energy Commission and the PUC to examine electrical ratepayer-funded programs under their respective jurisdictions and to identify programs and regulations that may be unduly adding to electricity rates for which the benefits provided may not be justified by the costs imposed on electrical ratepayers. The executive order requires those 2 commissions to report back to the Governor by January 1, 2025. This bill would require the Energy Commission and the PUC, by July 1, 2025, to each submit to the Legislature a report containing certain information required by the executive order.

Referred to Com. on E., U & C.

SB 836 Rubio Electricity:
transmission planning
and permitting
Transmission Existing law requires the Energy Commission and PUC, in coordination with the Independent System Operator, every 5 years, to review and update, as necessary, the memorandum of understanding and a related workplan to ensure the memorandum and workplan reflect the coordination that is needed to help meet the state’s energy goals. This bill would require those entities to review and update, as necessary, the memorandum every 3 years, rather than every 5 years.

May 23 hearing: Held in
committee and under
submission.

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 7.4
-------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Saul Viramontes, Management Analyst
Approved By: Joe Mosca, Chief Executive Officer
Subject: STRATEGIC PLAN MONTHLY STATUS REPORT
Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☐ Raise Awareness of Community Energy & Advocate for Our Customers:
☒ Not Applicable: Project management for Strategic Plan; promote transparency

RECOMMENDED ACTION
Receive and file.

BACKGROUND
On May 12, 2025, the Orange County Power Authority (OCPA) Board of Directors (Board) approved the 2025-26 Strategic Plan. This strategic plan marks the third iteration of the OCPA strategic planning process. This year’s strategic plan includes five (5) strategic goals and 27 objectives. Specific details on the status of each objective, the expected completion date, and the responsible parties are included in Attachment A.

The strategic plan is available online at – https://www.ocpower.org/strategic-plan 2025-26 Strategic Goals

1. Enrich and Grow the OCPA Community

2. Prioritize Fiscal Sustainability and Affordability

3. Design and Deploy Community-Aligned Customer Programs

4. Energize Our Community with Renewable Energy Sources

5. Raise Awareness of Community Energy & Advocating for Our Customers Not Started In Progress Completed
Objectives 19 8 0
Change since last
meeting - - -
Summary of changes since the last Board meeting:

1.1 Present an overview of CCAs and OCPA to two (2) organizations per quarter that cover the wider Orange County region or those that are focused on non-member cities. • Presented to the Santa Ana Chamber of Commerce on May 13.

1.4 Partner with new local CBOs, including food assistance organizations, to promote state-funded low-income programs widely in member cities, including CARE, FERA, and Medical Baseline.
• OCPA now has a point of contact at Families Forward (Irvine) and has shared program materials.
• Currently partnering with Pathways of Hope (Fullerton) to promote the community power plan survey.

2.4 Initiate planning for a 0.5MW local renewable energy project in a Disadvantaged Community (DAC) to serve income-qualified residential customers without rooftop solar access.

The project will provide 100% renewable energy and a 20% bill discount. • Over the past few months, OCPA has proactively engaged with CPUC Energy Division staff to clarify initial filing requirements for approval. Support was also secured from SCE’s customer programs team for a 0.53 MW capacity transfer from SCE to OCPA.

Currently, OCPA is finalizing the initial Advice Letter filing, including the budget request for the first two years, with a target submission by the end of July. Pending CPUC approval by January 2026, OCPA plans to launch its DAC-GT program in Q1 2026.

3.3 Continue to expand grant and program offerings with a year-over-year growth goal of 25%, respective to total funds allocated, number of applications received, and number of new recipients.
• The summer 2025 Bright Futures Grant will award 60% more than the previous year.

5.2 Host at least two (2) independent pop-up events in member cities per quarter. • The Communications & External Affairs team has hosted three (3) pop-ups, including:

Diamond Jamboree, Irvine: 4/12/25; Fullerton City Hall: 4/15/25; Buena Park City Hall:
5/27/25.

5.5 Develop working relationships with culturally representative organizations to ensure representative and equitable outreach in the top threshold languages. • OCPA has begun Community Power Plan outreach work with the Asian Business Association Collective, which will hopefully turn into a long term relationship. • In partnership with Reveille, OCPA is identifying organizations throughout member cities.

FISCAL IMPACT
None

ATTACHMENTS
Attachment A – 2025-26 OCPA Strategic Plan Monthly Status Report – 6.2.2025 Strategic Goal Objective Progress Due Date Assigned To Status Date Status Update #1 Enrich & Grow the OCPA
Community

1.1 Present an overview of CCAs and OCPA to two (2) organizations per quarter that cover the wider Orange County region or those that are focused on non-member cities.

In progress 10/13/2025 Director of Communications
& External Affairs
6/3/2025 Presented to the Santa Ana Chamber of Commerce on May 13 #1 Enrich & Grow the OCPA
Community

1.2 Present OCPA to key stakeholders in at least two (2) prospective member cities to promote OCPA’s mission and benefits.

Not started 06/01/2026 Director of Communications
& External Affairs
#1 Enrich & Grow the OCPA
Community

1.3 Develop educational tools and programs that promote renewable energy for students of all ages, including school partnerships, curriculum support, internship program, youth ambassador program, and community academy.

Not started 06/01/2026 Director of Communications
& External Affairs
#1 Enrich & Grow the OCPA
Community

1.4 Partner with new local CBOs, including food assistance organizations, to promote state-funded low-income programs widely in member cities, including CARE, FERA, and Medical Baseline.

In progress 12/08/2025 Director of Communications
& External Affairs 6/3/2025
OCPA now has a point of contact at Families Forward (Irvine) and has shared program materials.

Currently partnering with Pathways of Hope (Fullerton) to promote the community power plan survey.
#2 Prioritize Fiscal Sustainability &
Affordability

2.1 Ensure affordable rates for OCPA customers while covering all expenses and advancing equitable renewable energy initiatives. Not started 01/01/2026 Chief Financial Officer #2 Prioritize Fiscal Sustainability &
Affordability 2.2 Strengthen Financial Resilience and Credit Rating Preparation. Not started 12/08/2025 Chief Financial Officer #2 Prioritize Fiscal Sustainability &
Affordability

2.3 Explore innovative financing to optimize long-term power procurement costs and educate the board on options. Not started 12/08/2025 Chief Financial Officer #2 Prioritize Fiscal Sustainability &
Affordability

2.4 Initiate planning for a 0.5MW local renewable energy project in a Disadvantaged Community (DAC) to serve income-qualified residential customers without rooftop solar access. The project will provide 100% renewable energy and a 20% bill discount.

In progress 01/01/2026 Chief Financial Officer 6/3/2025 Over the past few months, OCPA has proactively engaged with CPUC Energy Division staff to clarify initial filing requirements for approval. Support was also secured from SCE’s customer programs team for a 0.53 MW capacity transfer from SCE to OCPA. Currently, OCPA is finalizing the initial Advice Letter filing, including the budget request for the first two years, with a target submission by the end of July. Pending CPUC approval by January 2026, OCPA plans to launch its DAC-GT program in Q1 2026.
#3 Design & Deploy Community-Aligned Customer Programs3.1 Finalize the Community Needs Assessment for the Community Power Plan and present the findings and next steps. In progress 10/13/2025 Director of Communications & External Affairs 6/3/2025 #3 Design & Deploy Community-Aligned Customer Programs

3.2 Develop three (3) new customer programs consistent with the needs identified in the Community Needs Assessment of the OCPA Community Power Plan.

Not started 04/01/2026 Director of Communications
& External Affairs
#3 Design & Deploy Community-Aligned Customer Programs

3.3 Continue to expand grant and program offerings with a year-over-year growth goal of 25%, respective to total funds allocated, number of applications received, and number of new recipients.

In progress 06/01/2026 Director of Communications
& External Affairs
6/3/2025 The summer 2025 Bright Futures Grant will award 60% more than the previous year
#3 Design & Deploy Community-Aligned Customer Programs

3.4 Develop a landing page specifically for low-income residents to connect with programs, including EBD-DI and DAC-GT programs, once launched; and market resource to community partners and networks.

Not started 12/08/2025 Director of Communications
& External Affairs
6/3/2025 To begin summer 2025
#4 Energize Our Community with
Renewable Energy Sources

4.1 Implement the first OCPA local generation programs, establishing contracts for developing small-scale distributed storage facilities with a 1-5 megawatt capacity each.

Not started 03/01/2026 Director of Power Resources
OCPA 2025-26 Strategic Plan Monthly Status Tracker Last Revised 6.3.2025 #4 Energize Our Community with
Renewable Energy Sources

4.2 Establish precise metrics and effective tools to proficiently identify, avoid, and mitigate market and credit risks for OCPA.

Not started 03/01/2026 Director of Power Resources
#4 Energize Our Community with
Renewable Energy Sources

4.3 Create local partnerships with clean technology companies to advance emerging long-term energy storage and technologies. Not started 06/01/2026 Director of Power Resources #4 Energize Our Community with
Renewable Energy Sources

4.4 Forge partnerships with other CCAs to acquire shared resources, mitigate development risks, and capitalize on economies of scale.

Not started 12/08/2025 Director of Power Resources
#4 Energize Our Community with
Renewable Energy Sources

4.5 Create a more sustainable electric grid with measurable milestones above California’s renewable energy goals. Not started 06/01/2026 Director of Power Resources #4 Energize Our Community with
Renewable Energy Sources

4.6 Create partnerships with member agencies to identify local development opportunities.

Not started 12/08/2025 Director of Power Resources
#4 Energize Our Community with
Renewable Energy Sources

4.7 Release at least two (2) long-term solicitations for renewable energy resources.

Not started 06/01/2026 Director of Power Resources
#5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.1 Develop a toolkit of materials for Board member use in engaging with prospective cities about OCPA. In progress 12/08/2025 Director of Communications & External Affairs 6/3/2025 #5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.2 Host at least two (2) independent pop-up events in member cities per quarter.

In progress 06/01/2026 Director of Communications
& External Affairs
6/3/2025
The Communications & External Affairs team has hosted three (3) pop-ups, including: Diamond Jamboree, Irvine: 4/12/25; Fullerton City Hall: 4/15/25; Buena Park City Hall: 5/27/25 #5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.3 Sponsor and help facilitate a small business mixer to build community and opportunities for education about OCPA and renewable energy solutions.

Not started 02/01/2026 Director of Communications
& External Affairs
#5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.4 Develop education curricula for elected officials and their staff; provide this training opportunity annually. Not started 03/01/2026 Director of Communications & External Affairs #5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.5 Develop working relationships with culturally representative organizations to ensure representative and equitable outreach in the top threshold languages.

In progress 12/08/2025 Director of Communications
& External Affairs
6/3/2025
OCPA has begun Community Power Plan outreach work with
the Asian Business Association Collective, which will hopefully turn into a long term relaƟonship
#5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.6 Enhance OCPA’s legislative and regulatory advocacy efforts by developing an advocacy roadmap to engage with key stakeholders and legislators to ensure outcomes consistent with OCPA’s strategic goals.

In progress 07/14/2025 Regulatory & Legislative
Manager
6/3/2025
#5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.7 Develop and implement a regulatory monitoring framework to ensure all departments are consistently informed about regulatory changes and their implications.

Not started 12/08/2025 Regulatory & Legislative
Manager
#5 Raise Awareness of Community
Energy & Advocate for Our Customers

5.8 Create a Policy Risk Assessment Guide to help OCPA determine the risk involved with different policy decisions at the state and federal level in both the regulatory and legislative arena.

Not started 12/08/2025 Regulatory & Legislative
Manager
OCPA 2025-26 Strategic Plan Monthly Status Tracker Last Revised 6.3.2025

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 7.5
--------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Nicholaus Norvell, Interim General Counsel
Approved by: Joe Mosca, Chief Executive Office
Subject: PUBLIC RECORDS ACT REPORT
Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☐ Raise Awareness of Community Energy & Advocate for Our Customers:
☒ Not Applicable:

RECOMMENDED ACTION
Receive and file.

BACKGROUND
OCPA’s Public Records Act quarterly report to the Board of Directors includes (1) the number of public records requests received, closed, and pending; (2) the average time OCPA took to respond to those requests; and (3) the reasons for withholding or redacting requested records, if applicable.

A previous report was provided at the March 18, 2025 meeting, covering the period December 12, 2024 through March 4, 2025.

Below is a report covering the period from March 5, 2025 through June 3, 2025.

Requests Received 3
Requests Closed 2
Requests Pending 1
Determination or Extension
Letters Provided within 10 Days
Yes
Average Calendar Days to Fully
Complete Closed Requests

38.5 Public Records Act Exemptions
Applied
(Citations to Government Code unless
otherwise noted)
• Public disclosure of financial identification
information, tax identification numbers,
banking account numbers, and unique
passwords could promote financial fraud and
could compromise the financial security of the
business or organization to which the financial
information belongs. Therefore, the public
interest served in withholding the redacted
information clearly outweighs any public
interest served in disclosure pursuant to
Government Code § 7922.000.

ATTACHMENT
None.

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 8.1
--------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Gabriele Friedman, Senior Human Resources Analyst Approved by: Joe Mosca, Chief Executive Officer
Subject: PUBLIC HEARING ON ORANGE COUNTY POWER AUTHORITY VACANCIES

AND RECRUITMENT AND RETENTION EFFORTS PURSUANT TO ASSEMBLY BILL 2561/GOVERNMENT CODE SECTION 3502.3
Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☐ Raise Awareness of Community Energy & Advocate for Our Customers:
☒ Not Applicable: Public Hearing, AB2561, Gov. Code 3502.3

RECOMMENDED ACTIONS

1. Conduct a Public Hearing pursuant to AB2561/Government Code Section 3502.3.

2. Receive and file the OCPA 2024/2025 annual employee vacancy report.

BACKGROUND
AB 2561 (McKinnor, 2024) was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload.

Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year and prior to voting on a fiscal year budget. Discussion must include any changes to procedures or policies creating obstacles to hiring and retention. The bill was enacted into law and is codified at Government Code section 3502.3. The new law went into effect on January 1, 2025.

AB 2561 contains additional provisions for public agencies with recognized employee organizations. However, since all employees of OCPA are unrepresented these provisions do not apply.

DISCUSSION/ANALYSIS
Orange County Power Authority (OCPA) has successfully recruited and retained staff for twenty of its twenty-nine budgeted positions. Recruitments for the remaining nine budgeted positions are underway or planned for the following months.

OCPA’s success in recruiting and retaining talented staff has been due to effective outreach in recruitment advertising and thorough applicant screening and interview processes. Position openings posted on industry websites such as California Community Choice Association (CalCCA), California Climate and Energy Collaborative (CCEC), on OCPA’s social media channels and LinkedIn serve to draw a wide variety of applicants to consider. Through initial applicant screenings, initial phone interviews then panel interviews with the top candidates, OCPA nets individuals not only possessing the requisite talent but the vision and mission alignment we seek.

OCPA has an attrition rate of only .05%. This represents only one employee departure in the last twelve months. Once onboard, staff have remained stable and engaged through OCPA’s many programs developed to support OCPA’s commitment to employee growth, development and work/life balance:
• Access to professional development funds
• A relatively flat organization enabling interaction and involvement with all levels of staff • Staff off-site team building experiences
• Maintaining a favored, industry standard, hybrid work schedule • Offering Lunch and Learn sessions wherein staff members alternate each month, presenting topics within their areas of expertise, teaching and sharing knowledge with one another • Presentations by OCPA’s employee assistance program Concern on common issues impacting everyday life
• Safety and disaster preparedness training with the Irvine Police Department and the Orange County Fire Authority to assist staff to effectively prepare for emergencies in the office and at home.

The above, as well as maintaining competitive salaries and benefits, continues to position OCPA as a highly attractive employer in a field where niche skill sets are prevalent and the competition for talent can be intense.

FISCAL IMPACT
None

ATTACHMENT(S)
Attachment A - OCPA Vacancies, Recruitment, and Retention Presentation AGENDA ITEM 8.1
PUBLIC HEARING PURSUANT TO AB2561
June 9, 2025
AB 2561 added section 3502.3 to California’s Government Code. • Effective January 1 of this year, public agencies are now required to report to their governing Board the status of vacancies and recruitment and retention efforts once per year. This summation must occur in a publicly held meeting and before a fiscal year budget is passed.

AB 2561 was introduced and passed to raise public awareness of the adverse impact of job vacancies on public services and staff workloads.

The bill contains additional provisions for public agencies with recognized employee organizations. However, since all employees of OCPA are unrepresented, these provisions do not apply.

Background - AB2561 Overview
ITEM X.X. PUBLIC HEARING PURSUANT TO AB2561
• Orange County Power Authority has successfully recruited and retained staff for twenty of its twenty-nine budgeted full-time positions.
• Recruitments for the nine remaining positions are underway or planned over the next twelve months.
• OCPA’s success in recruiting and retaining talented staff has been due to effective outreach in recruitment advertising and thorough applicant screening and interview processes. • Positions posted on industry websites such as California Community Choice Association (CalCCA) and California Climate and Energy Collaborative (CCEC), OCPA’s social media channels, and LinkedIn serve to draw a wide variety of applicants. • Through careful resume screening, initial applicant phone interviews, and panel interviews with top candidates, OCPA vets individuals not only possessing the requisite talent but also the vision and mission alignment we seek.

OCPA Recruitment Success
ITEM X.X. PUBLIC HEARING PURSUANT TO AB2561
• OCPA continues to position itself as a highly attractive employer in a field where niche skill sets are prevalent and the competition for talent can be intense. • Existing staff remain stable and engaged through programs developed to support OCPA’s commitment to employee growth, development and a healthy work/life balance. • Maintaining competitive salaries and benefits
• Access to professional development funds
• A relatively flat organization enabling interaction and involvement with all levels of staff • Staff off-site team-building experiences
• Maintaining a favored, industry-standard, hybrid work schedule • Lunch and Learn sessions wherein staff members alternate each month, presenting topics within their areas of expertise, sharing their knowledge, and teaching one another • Presentations by OCPA’s employee assistance program Concern on common issues impacting everyday life • Safety and disaster preparedness training with the Irvine Police Department and the Orange County Fire Authority to assist staff in effectively preparing for emergencies in the office and at home.

OCPA Retention Success – Programs + Culture
ITEM X.X. PUBLIC HEARING PURSUANT TO AB2561
Key factors contributing to OCPA’s success in the recruitment and retention of its staff:
• Competitive Salaries and Benefits
• Supportive Work Environment
• Strong Alignment with Organizational Mission
• Effective Hiring Processes
• A Culture of Positivity
OCPA’s Competitive Advantage
ITEM X.X. PUBLIC HEARING PURSUANT TO AB2561
Questions?

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 8.2
------------------------------------------------------------------------------------------------------------------------ To: Orange County Power Authority Board of Directors
From: Jacquie Henderson, Director of Communications and External Affairs Approved by: Joe Mosca, Chief Executive Officer
Subject: APPROVE SECOND AMENDMENT WITH REVEILLE, INC
Date: June 9, 2025
------------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☒ Enrich & Grow the OCPA Community: Develop educational tools and programs. ☐ Prioritize Fiscal Sustainability & Affordability:
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☒ Raise Awareness of Community Energy & Advocate for Our Customers: Develop a toolkit of materials, Develop education curricula.
☐ Not Applicable:

RECOMMENDED ACTION
Authorize the CEO to execute an amendment to the agreement with Reveille, Inc. for communications, marketing, strategy, public engagement, digital, and graphic design services, effective from July 1, 2025, to July 31, 2026, and increasing the not-to-exceed amount by $1,000,000, bringing the total not-to-exceed amount to $3,999,686.

BACKGROUND
The Marketing and Communications Committee, consisting of Director Go and Director Grandis, met on Thursday, May 29, 2025. The meeting was dedicated to reviewing the details of OCPA’s proposal to extend the current contract for marketing, communications, and design services with current contractor Reveille Inc.

The Orange County Power Authority (OCPA) has engaged Reveille, Inc. for marketing, communications, strategy, public engagement, and digital and graphic design services. This engagement is part of OCPA's broader efforts to enhance program awareness, engage with customers, and promote its renewable energy offerings. The following summary provides an overview of the key aspects of the agreement and its amendment, including the parties involved, the scope of services, and the rationale behind the contract.

The marketing and communications engagement originates from a Request for Proposals (RFP) which was released on March 7, 2023. The goal was to develop and maintain a multi-faceted plan for building program awareness and engaging customers. The RFP was downloaded by 51 organizations and three (3) firms submitted a response: Reveille Inc, WeTheCreative, and Wicked Bionic. Proposals were evaluated based on experience, staff qualifications, approach to working with OCPA, expertise in multilingual and multicultural communications, and compliance with OCPA's professional services agreement.

Reveille, Inc. emerged as the top scorer with an average score of 4.13 out of 5, followed by Wicked Bionic and WeTheCreative. The OCPA Board of Directors (Board) approved a short-term, six-month contract with Reveille for an amount not to exceed $750,000.

On May 17, 2023, the Board discussed potential alternatives to staff's recommendation, including awarding the contract to Wicked Bionic. Ultimately, the Board approved the short-term contract with Reveille and authorized the CEO to finalize and execute the agreement.

On July 19, 2023, the Board continued discussions on the marketing and communications contract, considering options for extending the contract with Reveille, holding open the prior RFP for future award decisions, or issuing a new RFP for services starting January 1, 2024.

The original Professional Services Agreement was contracted to provide a comprehensive suite of services aimed at building program awareness, engaging OCPA's residential, commercial, and industrial customers, and supporting the program's website and design needs. Specific tasks included agency branding, web design, community outreach, marketing campaigns, media relations, and project management. The initial term of the agreement was set from July 1, 2023, to December 31, 2023, with options to extend for three additional one-year terms. The total not-to-exceed for the services was $750,000.

On September 25, 2023, the Board approved the First Amendment, extended the term of the agreement, and increased the not-to-exceed amount. The initial term was extended through June 30, 2025. To accommodate the extended term and additional services, the not-to-exceed amount was increased to $2,999,686.

ANALYSIS
The engagement of Reveille, Inc. is a strategic move by OCPA to enhance its marketing and communications efforts, build brand awareness, and foster long-term community engagement. The amendment to the agreement that extends Reveille’s support of OCPA reflects the confidence OCPA has in the organization’s work and ensures that Reveille can continue to provide high-quality services through June 2026. The Board's ongoing discussions and decisions will shape the future direction of OCPA's marketing and communications strategy.

Reveille has experience with adjusting communications to meet the specific needs of OCPA, which is a desired quality for the coming year as OCPA looks to deepen brand education and program engagement in member cities. To date, OCPA has taken the approach of wide brand awareness to help the organization progress and move past early challenges. This has been successful in turning the page and creating more robust communications streams, enhancing positive visibility. However, member city customers continue to lack understanding about the benefits of having OCPA as their energy provider. The goal for FY25/26 is to hyperfocus on member cities and key prospective cities to become the trusted source for energy knowledge, tips, and programs that save customers time and money while supporting the renewable energy transition. This is framed progressing from a brand awareness focus to a brand education focus.

Over the past two years, Reveille has supported OCPA by developing OCPA’s brand look and feel and designing a multiplatform communications profile that has improved with time.

Highlights of Reveille’s support over the past year include:
• Over delivering the goal number of impressions at 150%, • Creating 36 videos that have earned 1,853,838 views,
• Sending six digital newsletters to 4,693 subscribers, all of which have above industry average open rates,
• Publishing 16 blog posts that earned OCPA recognition as a Top Orange County Blog by FeedSpot, and
• Accelerating multicultural outreach and support through publication and community organization partnerships, leading to two successful Multicultural Leader Briefings.

Approval of the Second Amendment will provide support for:

1. Board Relations, by sharing the results of OCPA’s communications efforts with the Board and the public through bi-monthly highlights and quarterly Marketing and Communications Committee meetings.

2. Government Relations, through State of the Agency presentations to member City Councils and hosting an annual Staffers Luncheon that brings together City Staff across member and prospective cities.

3. Fountain Valley Outreach, in dedication to introducing and educating the Fountain Valley community on OCPA ahead of service beginning in October 2026.

4. Community and Customer Outreach, with presentations to groups and organizations, and community engagement events.

5. Commercial Customer Outreach, to build partnerships with large energy users.

6. Multicultural Outreach, specifically deepening connections in hard-to-reach areas of member cities, including spaces where English is the second language.

7. Media Relations to include an editorial calendar of proactive media pitches and deskside briefings, and increased bylined content from senior staff and Board members in trade publications,

8. Paid Media shifting from board promotion on digital billboards and connected TV to hyperlocal bus shelters, HOA newsletters, City publications, and newspapers/magazines.

9. Video Production focused on education such as “How to Read Your NEM bill” and “What is Energy Efficiency”, as well as videos specific to the City of Fountain Valley’s 2026 launch,

10. Website additions including educator resources aligned with state curriculum standards.

11. Internal Communications alignment with a messaging toolkit so that all team members are sharing the same information externally.

12. Research shifted specifically to measure year-over-year movement in public awareness and favorability in member cities, and to test messaging.

13. Community Education Events including past successful efforts like community event sponsorships, and new efforts like a Leadership Academy educational opportunity for local and state elected officials, a Community Academy educational program for current and future customers, and partnerships with trusted service providers to promote low-income programs.

FISCAL IMPACT
The approved not-to-exceed (NTE) amount of $2,999,686 for the First Amendment term (July 1, 2023 – June 30, 2025) was included in the adopted FY2024/2025 budget. The proposed additional $1,000,000 NTE for the Second Amendment will be incorporated into the proposed FY2025/2026 budget, pending board approval in June 2025. This brings the total NTE balance to $3,999,686.

ATTACHMENTS
Attachment A – Second Amendment with Reveille, Inc.

Attachment B – First Amendment with Reveille, Inc. – 9.13.2023 Attachment C – Professional Services Agreement with Reveille, Inc. – 6.1.2023 Attachment D – Contractor Evaluation Form – 5.1.2025

SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN ORANGE COUNTY POWER AUTHORITY AND REVEILLE, INC.

THIS SECOND AMENDMENT (“Second Amendment”) is entered into on May 13, 2025, (“Amendment Effective Date”), by and between the ORANGE COUNTY POWER AUTHORITY, a California joint powers authority (“OCPA”) and REVEILLE, INC., a California stock corporation (“Consultant”). OCPA and Consultant are sometimes individually referred to herein as the “Party” and collectively as the “Parties.”

RECITALS
A. The Parties entered into that certain Professional Services Agreement between OCPA and Consultant, dated June 1, 2023 (“Agreement”).

B. Pursuant to the Agreement, Consultant provides marketing, communications, strategy, public engagement, and digital and graphic design services to Authority.

C. The Parties desire to amend further the Agreement to extend the Term of the Agreement and increase the not-to-exceed amount payable to Consultant through the extended Term.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed by and between the Parties as follows:

1. Amendment of Section 1.2. Section 1.2 of the Agreement is amended to extend the initial term of the Agreement through June 30, 2026. The term may be extended as provided therein.

2. Amendment of Section 3.1. Section 3.1 of the Agreement is amended to increase the not-to-exceed amount payable by the Authority to Consultant for Consultant’s services to Three Million, Nine Hundred and Ninety-Nine Thousand, Six Hundred and Eighty-Six Dollars ($3,999,686).

3. Exhibit B. Exhibit B of the Agreement is amended to increase the not-to-exceed amount to Three Million, Nine Hundred and Ninety-Nine Thousand, Six Hundred and Eighty-Six Dollars ($3,999,686).

4. Capitalized Terms. Any capitalized terms not defined herein shall have the meanings set forth in the Agreement.

5. Counterparts. This Amendment may be executed in two or more counterparts, including facsimile counterparts, each of which shall, for all purposes, be deemed an original and all such counterparts, taken together, shall constitute one and the same instrument.

6. Full Force. Except as expressly set forth herein, the Agreement shall remain unmodified and in full force and effect.

IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Professional Services Agreement between Orange County Power Authority and Reveille, Inc., as of the date first set forth above.

ORANGE COUNTY POWER AUTHORITY,
a California joint powers authority
Name:

Title:

Date:

REVEILLE, INC., a California stock
corporation
Name:

Title:

Date:

APPROVED AS TO FORM:

General Counsel
55735.00001\41610125.1

FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN ORANGE COUNTY POWER AUTHORITY AND REVEILLE, INC.

THIS FIRST AMENDMENT (“First Amendment”) is entered into on September __, 2023 (“Amendment Effective Date”), by and between the ORANGE COUNTY POWER AUTHORITY, a California joint powers authority (“OCPA”) and REVEILLE, INC., a California corporation (“Consultant”). OCPA and Consultant are sometimes individually referred to herein as the “Party” and collectively as the “Parties.”

RECITALS
A. The Parties entered into that certain Professional Services Agreement between OCPA and Consultant, dated June 1, 2023 (“Agreement”).

B. Pursuant to the Agreement, Consultant provides marketing, communications, strategy, public engagement, and digital and graphic design services to Authority.

C. The Parties desire to amend the Agreement to extend the Term of the Agreement and increase the not-to-exceed amount payable to Consultant through the extended Term.

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed by and between the Parties as follows:

1. Amendment of Section 1.2. Section 1.2 of the Agreement is amended to extend the initial term of the Agreement through June 30, 2025. The term may be extended as provided therein.

2. Amendment of Section 3.1. Section 3.1 of the Agreement is amended to increase the not-to-exceed amount payable by the Authority to Consultant for Consultant’s services to Two Million, Nine Hundred and Ninety-Nine Thousand, Six Hundred and Eighty-Six Dollars ($2,999,686).

3. Exhibit B. Exhibit B of the Agreement is amended to increase the not-to-exceed amount to Two Million, Nine Hundred and Ninety-Nine Thousand, Six Hundred and Eighty-Six Dollars ($2,999,686).

4. Capitalized Terms. Any capitalized terms not defined herein shall have the meanings set forth in the Agreement.

5. Counterparts. This Amendment may be executed in two or more counterparts, including facsimile counterparts, each of which shall, for all purposes, be deemed an original and all such counterparts, taken together, shall constitute one and the same instrument. 55735.00001\41610125.1

6. Full Force. Except as expressly set forth herein, the Agreement shall remain unmodified and in full force and effect.

IN WITNESS WHEREOF, the Parties have executed this First Amendment to the Professional Services Agreement between Orange County Power Authority and Reveille, Inc., as of the date first set forth above.

ORANGE COUNTY POWER AUTHORITY
Name: _______________________________
Title:________________________________
Date: ________________________________
REVEILLE, INC.

Name: _____________________________
Title: ______________________________
Date: ______________________________
APPROVED AS TO FORM:
_________________________________
General Counsel
Interim Chief Executive Officer
9/25/2023
CEO
9/25/23
55735.00001\34007512.1 1

ORANGE COUNTY POWER AUTHORITY

PROFESSIONAL SERVICES AGREEMENT
This Professional Services Agreement (“Agreement”) is made and entered into on June 1, 2023, by and between ORANGE COUNTY POWER AUTHORITY, a California joint powers authority (“Authority”) and REVEILLE, INC., a California S-Corporation (“Consultant”).

Authority and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.”

RECITALS
A. Consultant desires to perform and assume responsibility for the provision of certain professional services required by Authority on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing marketing, communications, strategy, public engagement, digital, and graphic design services, is licensed in the State of California, and is familiar with the plans of Authority.

B. Authority desires to engage Consultant to render such professional services for the design and implementation of a public engagement strategy (“Project”) as set forth in this Agreement.

AGREEMENT

1. Scope of Services and Term.

1.1 General Scope of Services. Consultant promises and agrees to furnish to Authority all labor and services and incidental and customary work necessary to fully and adequately supply assist the Authority the implementation services necessary for the Project (“Services”). The Services are more particularly described in Exhibit A attached hereto, and which are stated in the proposal to Authority. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto, and all applicable local, state and federal laws, rules and regulations.

1.2 Term. The term of this Agreement shall be from July 1, 2023 to December 31, 2023, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The term may be extended for three additional one-year terms.

2. Responsibilities of Consultant.

2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Consultant or under its supervision. Authority retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall also not be employees 55735.00001\34007512.1 2
of Authority and shall at all times be under Consultant’s exclusive direction and control.

Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

2.2 Schedule of Services. Consultant shall perform the Services expeditiously, within the term of this Agreement. Consultant represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Consultant’s conformance with the Schedule, Authority shall respond to Consultant’s submittals in a timely manner. Upon request of Authority, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of Authority.

2.4 Substitution of Key Personnel. Consultant has represented to Authority that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of Authority. In the event that Authority and Consultant cannot agree as to the substitution of key personnel, Authority shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to Authority, or who are determined by the Authority to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, or a threat to the safety of persons or property, shall be promptly removed from the Project by the Consultant at the request of the Authority. The key personnel for performance of this Agreement are as follows:
• Brenda Springer
• Brenda Deeley (Consultant)
• Scott Burris
• Jenny Wedge
• Olivia Valdez
• Janelle Kruly
• Hailley Baker
• Grace Granados
• Suzanna Choi (Consultant)

2.5 Authority’s Representative. Authority hereby designates the Chief Executive Officer, or designee, to act as its representative for the performance of this Agreement (“Authority’s Representative”). Authority’s Representative shall have the power to act on behalf of Authority for all purposes under this Agreement. Consultant shall not accept direction or orders from any person other than Authority’s Representative, or designee.

2.6 Consultant’s Representative. Consultant hereby designates Brenda Springer, or his or her designee, to act as its Representative for the performance of this Agreement 55735.00001\34007512.1 3
(“Consultant’s Representative”). Consultant’s Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

2.7 Coordination of Services. Consultant agrees to work closely with Authority staff in the performance of Services and shall be available to Authority’s staff, consultants and other staff at all reasonable times.

2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California.

Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and sub- contractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Consultant represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Consultant shall perform, at its own cost and expense and without reimbursement from Authority, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of the Consultant or its subcontractors who is determined by Authority to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to Authority, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.

2.9 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with Services. If the Consultant performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to Authority, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify and hold Authority, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

2.10 Insurance.

2.10.1 Time for Compliance. Consultant shall not commence the Services under this Agreement until it has provided evidence satisfactory to Authority that it has secured all insurance required under this section, in a form and with insurance companies acceptable to Authority. In addition, Consultant shall not allow any subcontractor to commence work on any 55735.00001\34007512.1 4
subcontract until it has provided evidence satisfactory to Authority that the subcontractor has secured all insurance required under this section.

2.10.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Consultant, its agents, representatives, employees or subcontractors. Consultant shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001 or exact equivalent); (2) Automobile Liability: Insurance Services Office Business Auto Coverage (form CA 0001, code 1 (any auto) or exact equivalent); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. (B) Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.

2.10.3 Professional Liability. Consultant shall procure and maintain, and require its subcontractors to procure and maintain, for a period of five (5) years following completion of the Services, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $2,000,000 per claim. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend.

2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by Authority to add the following provisions to the insurance policies:
(A) General Liability.
(i) Commercial General Liability Insurance must include coverage for (1) Bodily Injury and Property Damage; (2) Personal Injury/Advertising Injury; (3) 55735.00001\34007512.1 5
Premises/Operations Liability; (4) Products/Completed Operations Liability; (5) Aggregate Limits that Apply per Project; (6) Explosion, Collapse and Underground (UCX) exclusion deleted; (7) Contractual Liability with respect to this Agreement; (8) Broad Form Property Damage; and (9) Independent Consultants Coverage.
(ii) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the Agreement. (iii) The policy shall give Authority, its directors, officials, officers, employees, and agents insured status using ISO endorsement forms 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (iv) The additional insured coverage under the policy shall be “primary and non-contributory” and will not seek contribution from Authority’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13, or endorsements providing the exact same coverage.
(B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) Authority, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Consultant or for which the Consultant is responsible; and (2) the insurance coverage shall be primary insurance as respects Authority, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by Authority, its directors, officials, officers, employees, agents and volunteers shall be excess of the Consultant’s insurance and shall not be called upon to contribute with it in any way. (C) Workers’ Compensation and Employers Liability Coverage. (i) Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and Consultant will comply with such provisions before commencing work under this Agreement.
(ii) The insurer shall agree to waive all rights of subrogation against Authority, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Consultant. (D) All Coverages. Defense costs shall be payable in addition to the limits set forth hereunder. Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance 55735.00001\34007512.1 6
coverage requirements and/or limits set forth herein shall be available to Authority, its directors, officials, officers, employees and agents as additional insureds under said policies. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named insured; whichever is greater. (i) The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Authority (if agreed to in a written contract or agreement) before Authority’s own insurance or self-insurance shall be called upon to protect it as a named insured. The umbrella/excess policy shall be provided on a “following form” basis with coverage at least as broad as provided on the underlying policy(ies). (ii) Consultant shall provide Authority at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to Authority at least ten (10) days prior to the effective date of cancellation or expiration.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement.

Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by Authority, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(v) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, Authority has the right but not the duty to obtain the insurance it deems necessary and any premium paid by Authority will be promptly reimbursed by Consultant or Authority will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Authority may cancel this Agreement. Authority may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (vi) Neither Authority nor any of its directors, officials, officers, employees or agents shall be personally responsible for any liability arising under or by virtue of 55735.00001\34007512.1 7
this Agreement.

2.10.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to Authority, its directors, officials, officers, employees, agents and volunteers.

2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by Authority. Consultant shall guarantee that, at the option of Authority, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects Authority, its directors, officials, officers, employees, agents and volunteers; or (2) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, licensed to do business in California, and satisfactory to Authority.

2.10.8 Verification of Coverage. Consultant shall furnish Authority with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to Authority. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms provided by Authority if requested. All certificates and endorsements must be received and approved by Authority before work commences. Authority reserves the right to require complete, certified copies of all required insurance policies, at any time.

2.10.9 Subcontractor Insurance Requirements. Consultant shall not allow any subcontractors to commence work on any subcontract until they have provided evidence satisfactory to Authority that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors shall be endorsed to name Authority as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, Authority may approve different scopes or minimum limits of insurance for particular subcontractors.

2.10.10 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life-saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 55735.00001\34007512.1 8

3. Fees and Payments.

3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit C, attached hereto. The total compensation shall not exceed $750,000 without written approval of Authority’s Board of Directors. Extra Work may be authorized, as described below, and, if authorized, said Extra Work will be compensated at the rates and manner set forth in this Agreement.

3.2 Payment of Compensation. Consultant shall submit to Authority a monthly itemized statement which indicates work completed and hours of Services rendered by Consultant.

The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. Authority shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by Authority.

3.4 Extra Work. At any time during the term of this Agreement, Authority may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by Authority to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from Authority’s Representative.

4. Accounting Records. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of Authority during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

5. General Provisions.

5.1 Termination of Agreement.

5.1.1 Grounds for Termination. Authority may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those services which have been adequately rendered to Authority, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause.
55735.00001\34007512.1 9

5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, Authority may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such documents and other information within fifteen (15) days of the request.

5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, Authority may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant:

Reveille, Inc.

C/O Brenda Springer
150 Paularino Ave. Bldg. B, Costa Mesa, CA 92626
Authority:

Orange County Power Authority
15642 Sand Canyon Ave.

P.O. Box 54283
Irvine, CA 92619-4283
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

5.3 Ownership of Materials and Confidentiality.

5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for Authority to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents & Data”). Consultant shall require all subcontractors to agree in writing that Authority is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & 55735.00001\34007512.1 10
Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by Authority. Authority shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at Authority’s sole risk.

5.3.2 Intellectual Property. In addition, Authority shall have and retain all right, title and interest (including copyright, patent, trade secret and other proprietary rights) in all plans, specifications, studies, drawings, estimates, materials, data, computer programs or software and source code, enhancements, documents, and any and all works of authorship fixed in any tangible medium or expression, including but not limited to, physical drawings or other data magnetically or otherwise recorded on computer media (“Intellectual Property”) prepared or developed by or on behalf of Consultant under this Agreement as well as any other such Intellectual Property prepared or developed by or on behalf of Consultant under this Agreement.

Authority shall have and retain all right, title and interest in Intellectual Property developed or modified under this Agreement whether or not paid for wholly or in part by Authority, whether or not developed in conjunction with Consultant, and whether or not developed by Consultant. Consultant will execute separate written assignments of any and all rights to the above referenced Intellectual Property upon request of Authority.

Consultant shall also be responsible to obtain in writing separate written assignments from any subcontractors or agents of Consultant of any and all right to the above referenced Intellectual Property. Should Consultant, either during or following termination of this Agreement, desire to use any of the above-referenced Intellectual Property, it shall first obtain the written approval of the Authority.

All materials and documents which were developed or prepared by the Consultant for general use prior to the execution of this Agreement and which are not the copyright of any other party or publicly available and any other computer applications, shall continue to be the property of the Consultant. However, unless otherwise identified and stated prior to execution of this Agreement, Consultant represents and warrants that it has the right to grant the exclusive and perpetual license for all such Intellectual Property as provided herein.

Authority further is granted by Consultant a non-exclusive and perpetual license to copy, use, modify or sub-license any and all Intellectual Property otherwise owned by Consultant which is the basis or foundation for any derivative, collective, insurrectional, or supplemental work created under this Agreement.

5.3.3 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of Authority, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant 55735.00001\34007512.1 11
which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use Authority’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of Authority.

5.3.4 Infringement Indemnification. Consultant shall defend, indemnify and hold Authority, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by Authority of the Documents & Data, including any method, process, product, or concept specified or depicted.

5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

5.5 Attorney’s Fees. If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

5.6 Indemnification.

5.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of Authority’s choosing), indemnify and hold the Authority, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant shall defend, at Consultant’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against Authority, its directors, officials, officers, employees, agents or volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against Authority or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding.

Consultant shall reimburse Authority and its directors, officials, officers, consultants, employees, agents and/or volunteers, for any and all legal expenses and costs, including reasonable attorneys’ fees, incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the Authority, its officials, officers, employees, agents, or volunteers. This section shall survive any expiration or termination of this Agreement.

5.7 Entire Agreement. This Agreement contains the entire Agreement of the Parties 55735.00001\34007512.1 12
with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both Parties.

5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Orange County, California.

5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.

5.10 Authority’s Right to Employ Other Consultants. Authority reserves right to employ other consultants in connection with this Project.

5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties.

5.12 Assignment or Transfer. Consultant shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of Authority. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days.

All references to Consultant include all personnel, employees, agents, and subcontractors of Consultant, except as otherwise specified in this Agreement. All references to Authority include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
55735.00001\34007512.1 13

5.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, Authority shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of Authority, during the term of his or her service with Authority, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

5.19 Equal Opportunity Employment and Subcontracting. Consultant represents that it is an equal opportunity employer and it shall not discriminate on the basis of race, gender, gender expression, gender identity, religion, national origin, ethnicity, sexual orientation, age, or disability in the solicitation, selection, hiring, or treatment of applicants, employees, subcontractors, vendors, or suppliers. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Further, Consultant shall provide equal opportunity for subcontractors to participate in subcontracting opportunities.

5.20 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for Workers’ Compensation, or to undertake self- insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

5.21 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

5.23 Subcontracting. Consultant shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of Authority.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
55735.00001\34007512.1 14
IN WITNESS WHEREOF, the Parties have made and executed this Agreement as of the date first written above.

ORANGE COUNTY POWER

AUTHORITY
By : _________________________________
Name: _______________________________
Title: ________________________________

REVEILLE, INC
By : _________________________________
Name: _______________________________
Title: ________________________________
ATTEST: _________________________________ Secretary, Authority Board of Directors APPROVED AS TO FORM: _________________________________ General Counsel *A corporation requires the signatures of two corporate officers.

One signature shall be that of the Chairman of Board, the President or any Vice President, and the second signature (on the attest line) shall be that of the Secretary, any Assistant Secretary, the Chief Financial Officer or any Assistant Treasurer of such corporation.

If the above persons are not the intended signators, evidence of signature authority shall be provided to Authority.

Joseph M. Mosca
Interim Chief Executive Officer
Exhibit A
15 55735.00001\34007512.1

EXHIBIT A

SCOPE OF SERVICES
Detailed tasks in this service category may include but are not limited to the following:

1. Agency Branding, Design, Messaging, and Identity:
a. Working with staff and key leadership, develop core messaging for use on the website, in marketing materials, and for community presentations. b. Conduct research to test the impact and effectiveness of messaging and to guide development of messaging, including surveys, polling, and focus groups. c. Refresh and maintain a multi-functional, multi-lingual website that includes a rate calculator, ability to opt-out of the program and other interactive features that allow customers to easily understand their energy costs and environmental impact of their participation.
d. Develop and implement a social media strategy that includes the posting of compelling content, responding to, or reposting people who share your content, and engaging with the most effective social media platforms available, etc. e. Develop/update program collateral including FAQs, program brochures, fact sheets, event give aways, and power point templates as needed. f. If budget allows, develop one or more short informational videos for use on OCPA’s website, social media and at community meetings.

2. Web Design, Content Development, and Maintenance:
a. Assist with content update and redesign of OCPA’s current website (www.ocpower.org) including translation into eight (8) languages besides English (Spanish, Chinese, Vietnamese, Korean, Japanese, Arabic, Farsi, and Tagalog) and integration of opt-out/opt-up capabilities and other interactive features.
b. Assist with the creation of exceptionally professional, clean, and compelling new pages for OCPA that incorporate best practices in user interface, user experience, and Americans with Disabilities (ADA) compliance. c. Demonstrate superior skills in developing functionality within the website to support the needs of the programs and general services of OCPA, such as but not limited to pop-up windows, embedded forms, and dynamic layouts. d. Provide and follow a clearly defined process for creation and execution of new web content and features that includes wireframes, mock-ups, user-acceptance testing, final review by client in pre-production environment, and notification of client directly after code release.

Exhibit A
16 55735.00001\34007512.1
e. Assist in analyzing e website analytics and recommend ways to improve metrics.
f. Assist with providing direction and/or instruction to OCPA staff on basic website features for staff to self-serve for content updates and other needs.

3. Community Outreach and Stakeholder Engagement:
a. Develop a communications and outreach plan for staff and Board approval detailing the methods and timing of various local communications strategies including the integration of a media and advertising campaign as outlined below.
b. At the direction of OCPA staff, work with member cities to support local stakeholder and public outreach which may include but is not limited to meetings with key stakeholder groups, public workshops/webinars, local presentations, event tabling, newsletter articles, and other key outreach/engagement activities. Team members with varied cultural backgrounds and multi-lingual skills will be a key component of this effort. c. Develop and maintain an OCPA list-serve to facilitate outreach/engagement activities. Refine/expand use of regular e-newsletters and information blasts to OCPA’s list-serve and other local communication outlets.

4. Marketing and Advertising Campaign:
a. Develop multi-lingual (English, Spanish, Chinese, Vietnamese, Korean, Farsi, Japanese, Arabic, and Tagalog) and multi-cultural advertising campaign to raise public awareness of OCPA and its offerings; this will include both paid and earned media, print and digital, in a variety of mediums which could include local newspapers, on-line and social media , radio spots, billboards, bus backs/bus shelters, and other strategies to effectively reach future OCPA customers in a positive way
b. Manage and conduct press outreach – schedule editorial board meetings, draft press releases, op-eds and news articles.
c. Develop visual look, support content, and maintain a regular social media presence for OCPA on Facebook, Twitter, Instagram, Nextdoor, etc.

5. Media Relations and Public Affairs a. The successful contractor (or subcontractor within a team) will have an established and respected network of key influencer and press relationships within the Orange County region.
b. Develop and maintain a database for OCPA of local and regional press contacts.

Exhibit A
17 55735.00001\34007512.1
c. Develop a press kit, draft press releases as needed, and develop a plan for regular press engagement and positive earned media.
d. Provide feedback and strategy support for OCPA leadership on public affairs and media relations related to CCA and OCPA.

6. Project Management/Performance Metrics:
a. Participate in content and design meetings with OCPA staff, including weekly or bi-weekly project calls.
b. Provide presentations and project updates to OCPA Board and leadership as requested.
c. Provide flexible capacity to complete multiple design projects simultaneously during busy periods, and ability to rapidly ramp up or down the capacity dedicated to this contract to meet fluctuating client needs. d. Work with staff to develop elements of performance metrics. 18 EXHIBIT B

COMPENSATION BILLING RATES
Consultant shall be paid an amount not to exceed $750,000 for the term of the agreement Contractor Name:

Reveille, Inc.

Contract Amount:
$2,999,686
Contract Begin Date
(current contract term):
1-Jun-23
Contract End Date
(current contract term):
30-Jun-25
Evaluator - Name: Jacquie Henderson
Evaluator - Title:

Director of Communications
and External Affairs
Description of Services:

Contractor Performance Rating Score System:
5: Outstanding; 4: Above Average; 3: Satisfactory; 2: Marginal; 1: Unsatisfactory Please provide a score out of 5 for the following performance assessments: Score

1. Contractor adherence to the terms of the contract 5

2. Quality of Contractor's work 4

3. Contractor personnel's knowledge of the contract requirements 5

4. Cooperation/communication with OCPA 5

5. Adherence to specified contract timelines 5

6. Ability to work within contract amount 5

7. Effectiveness of Contractor Project Manager 5

8. Accuracy and timeliness of invoices 5
Overall Score (average) 4.9
Outstanding
Comments:

Would you do business with this Contractor again? Yes
What would be the amended Contract Begin Date? 1-Jul-25 What would be the amended Contract End Date? 1-Jun-26
Will this new contract or contract amendment exceed $100,000? Yes If yes, when will it be presented to the Board for approval? Yes Overall Quality of Contractor's performance
Reveille's work is consistent and meets the evolving needs of OCPA. They respond to the priorities of the agency and are flexible to meet OCPA's goals as they evolve. Their staff has developed good expertise in the CCA space and contractor partnerships have proved incredibly valuable for the organziation.

Consultant will serve as a branding and marketing partner to assist with the execution of the OCPA's marketing initiatives. Consultant shall provide strategic counsel, design, and content creation the delivery of quality communications that support marketing and communication efforts.

Contractor Performance Evaluation Form
(For New Contract or Contract Amendment)

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 8.3
-------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Tiffany Law, Chief Financial Officer
Approved by: Joe Mosca, Chief Executive Officer
Subject: APPROVE OCPA’S FISCAL YEAR 2025/26 OPERATING BUDGET Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community:
☒ Prioritize Fiscal Sustainability & Affordability: Ensure affordable rates for OCPA customers while covering all expenses and advancing equitable renewable energy initiatives.
☐ Design & Deploy Community-Aligned Customer Programs:
☐ Energize Our Community with Renewable Energy:
☐ Raise Awareness of Community Energy & Advocate for Our Customers:
☐ Not Applicable:

RECOMMENDED ACTIONS

1. Approve the recommended FY2025/26 Operating Budget, which maintains the current 2025 Basic Choice rate discount of 3% below SCE’s equivalent generation rates; or approve one of the three alternate options: Alternate Option 1, approve the FY2025/26 Operating Budget, which reduces the Basic Choice discount to 2% below SCE’s equivalent generation rates, effective August 2025; Alternate Option 2, approve the FY2025/26 Operating Budget, which reduces the Basic Choice discount to 1% below SCE’s equivalent generation rates, effective August 2025; or Alternate Option 3, approve the FY2025/26 Operating Budget, which sets the Basic Choice rate at parity with SCE’s equivalent generation rates, effective August 2025 (Attachments 1 through 4).

2. Approve the reclassification of two existing full-time positions, including the associated draft job descriptions provided in Attachments 6 through 7.

3. Approve the proposed salary grade and salary range for the Administrative Services Manager position.

4. Approve a 3% Cost-of-Living Adjustment (COLA) for all full-time employees, effective January 1, 2026, and authorize corresponding updates on the salary ranges.

5. Dissolve the Ad-Hoc Committee for the development of the FY2025/26 Budget.

BACKGROUND
The Orange County Power Authority (OCPA) employs a zero-based budgeting approach in developing its annual operating budget, strategically managing revenues, operational expenditures, and capital investments for the upcoming fiscal year. This rigorous budgeting method requires justifying every expense annually, ensuring disciplined resource allocation and stringent cost controls.

On February 15, 2023, the OCPA Board approved a comprehensive Budget Policy mandating a balanced budget, where projected revenues exceed expenditures. This directive highlights OCPA’s steadfast commitment to fiscal discipline and enduring financial health. Any year-end surpluses or deficits are systematically managed through operating reserves to maintain financial stability.

Additionally, the policy requires a six-year financial forecast to enhance strategic planning, although only the immediate fiscal year's budget is formally adopted by the Board. Mid-year budget amendments also require explicit Board approval, reinforcing ongoing fiscal oversight.

Building upon this foundation, the Board approved the Rate Development Policy on April 19, 2023, establishing a transparent and accountable framework for customer rate-setting. This policy emphasizes full cost recovery, ensuring rates cover power procurement, operational costs, debt service, and reserve contributions. By balancing financial responsibility with local control, market competitiveness, and responsiveness to market changes, OCPA positions itself strategically for future success.

That same day, the Board approved the Reserve Policy, further reinforcing OCPA’s commitment to financial resilience. This policy sets reserve targets at 30% to 50% of total operating expenses, providing a critical buffer to manage economic volatility, support credit ratings, avoid short-term borrowing, and secure consistent cash flow during revenue fluctuations.

Further strengthening OCPA’s financial planning tools, the Board adopted the Rate Stabilization Fund (RSF) Policy on June 18, 2024. This policy enables OCPA to defer revenue from financially strong years for use in future years experiencing fiscal stress, reducing the need for sudden rate increases. It also mitigates impacts from uncontrollable events such as volatility in IOU rates (e.g., rising PCIA or declining generation rates), unexpected energy price spikes, changes in customer participation, increased default rates during economic downturns, regulatory shifts, or falling demand due to affordability concerns. From an accounting perspective, deferred revenue into the RSF reduces reported income in the current year and increases it in the year of withdrawal, essentially “banking” funds to manage future revenue shortfalls.

As part of OCPA’s ongoing commitment to transparency and meaningful stakeholder engagement, staff presented the preliminary budget framework to the Budget and Finance Committee on April 15, 2025, followed by a presentation to the Board on May 12, 2025. Feedback from both sessions was incorporated into the final recommended budget. To further engage the community, a recorded presentation was shared with the Community Advisory Committee on May 18, 2025, underscoring OCPA’s dedication to transparent financial planning.

DISCUSSION/ANALYSIS
FY2024/25 Operating Budget Update
On March 10, 2025, the Board unanimously approved the FY 2024/25 Mid-Year Budget Amendment, projecting net revenues of $316 million and total operating and non-operating expenses of $299 million. Despite an anticipated $36.4 million drop in net electricity revenue— driven by OCPA’s decision to maintain its 2024 rate design to protect customers from rate shocks and the City of Irvine’s unexpected shift from 100% Renewable Choice to Basic Choice in February—leadership responded with decisive action. By strategically deferring $45 million in operating revenue from FY 2023/24, OCPA effectively closed the gap and still forecasted a $17 million contribution to reserves, raising the operating reserve to a projected $62 million or 21% of total operating expenses.

Additional financial relief came from a projected decline in the California Public Utilities Commission’s (CPUC) Renewable Portfolio Standard (RPS) and Resource Adequacy (RA) Market Price Benchmarks (MBPs), combined with disciplined cost controls and slower-than-expected hiring. As a result, OCPA now anticipates using only $15 million of the previously deferred $45 million, leaving $30 million in the Rate Stabilization Fund to guard against future volatility in IOU rates or unexpected energy price spikes.

Looking ahead to FY 2025/26, rising energy costs are expected to again outpace revenues. In response, OCPA will proactively deploy the remaining $30 million from the Rate Stabilization Fund to maintain stable operations and customer rates. With this adjustment, FY 2024/25 revenues and expenses are now projected to balance at $284 million, resulting in a balanced (breakeven) outcome. Accordingly, OCPA’s operating reserve is expected to hold steady at $45 million—or approximately 16% of total operating expenses—demonstrating OCPA’s continued commitment to fiscal prudence.

FY2025/26 Operating Budget Overview
The FY 2025/26 Recommended Operating Budget is balanced and marks OCPA’s third full year of operations. Developed using zero-based budgeting principles, the budget aligns with the Board’s strategic priorities of fiscal sustainability and customer affordability. It incorporates the Board-approved 2025 rate design1 for July through December 2025, followed by a transition to a cost-based methodology from January through June 2026, consistent with the Rate Development Policy. The budget also reflects a reduced allowance for uncollectible accounts—lowered to

1.5%—based on improved customer payment performance.
1 Basic Choice offers a 3% discount compared to SCE's equivalent generation rates and includes 47% renewable energy content. Smart Choice is priced at 1.0 cent per kWh above Basic Choice rates and provides 55% renewable and 40% carbon-free energy in 2025, increasing to 60% renewable and 40% carbon-free energy in 2026. For customers seeking a fully renewable option, 100% Renewable Choice is available at 1.5 cents per kWh above Basic Choice rates.

To proactively address an anticipated revenue shortfall—driven in part by the continued use of the 2024 rate design and compounded by the City of Irvine’s shift from 100% Renewable Choice to Basic Choice in February 2025—OCPA will deploy the remaining $30 million balance in the Rate Stabilization Fund, which was previously deferred from FY 2023/24.

Total energy costs are projected to decline by $1.7 million compared to FY2024/25, even as system energy costs increase by $66 million (38%) and RA costs rise by $16 million (56%). This overall decrease is largely attributable to an $84 million (124%) reduction in renewable energy (PCC1) costs. The decline primarily results from a strategic decision to suspend additional PCC1 procurement for 2025 in response to a 400% spike in renewable energy market prices observed in late 2024. This decision was made possible through temporarily revised procurement strategies for 2025 and 2026.

Non-energy operating expenses are projected to rise by $3.3 million, largely due to investments in 29 full-time equivalent (FTE) positions, the expansion of customer energy programs, and the implementation of an energy portfolio risk management system. These initiatives are designed to enhance market intelligence, increase operational efficiency, and ensure regulatory compliance.

Meanwhile, capital outlay and debt service costs are expected to decline by $0.4 million, following the completion of renovations at OCPA’s new headquarters.

Taking all factors into account, the FY 2025/26 budget forecasts a modest net position increase of $450,000. The operating reserve is expected to remain at $45 million—approximately 16% of total operating expenses—by June 30, 2026, and subsequently elevate it to $76 million, or 30% of total operating expenses, by December 31, 2026, thereby meeting the Board’s established reserve target and reinforcing OCPA’s commitment to prudent fiscal stewardship.

The table below provides a summary of recommended FY2025/26 revenues and expenditures compared to the updated FY2024/25 budget, incorporating nine months of actual performance data and a three-month forecast based on the latest energy market projections.

FY2025/26 Operating Budget Analysis
This section highlights the key drivers of year-over-year (YOY) changes in OCPA’s FY2025/26 operating budget. The FY2025/26 Recommended Operating Budget Book (Attachment 5) provides a detailed breakdown of these drivers and the underlying assumptions. It also includes a five-year financial pro forma to support long-term strategic planning and informed decision-making.

Net Revenue – Electricity (+$3.3 million)
OCPA’s primary source of revenue is retail electricity sales, with generation rates benchmarked to Southern California Edison (SCE) and adjusted for applicable surcharges such as the Power Charge Indifference Adjustment (PCIA). The FY2025/26 Recommended Budget assumes a full year of service to approximately 24,000 commercial and 155,000 residential customer accounts across OCPA’s member jurisdictions within SCE’s service territory.

For the first half of the fiscal year (July–December 2025), net electricity revenue is based on the 2025 rate design approved in January 2025, which sets OCPA’s base rates at a 3% discount to SCE’s equivalent generation rates.

The second half of the fiscal year (January–June 2026), net electricity revenue is based on a cost-based methodology, consistent with the Board-approved Rate Development Policy. Revenue for this period is structured to ensure full recovery of energy procurement costs, operating expenses, debt service obligations, and reserve contributions.

Despite lower rates during the first half of the year, net electricity revenue is projected to increase YOY, primarily due to the $30 million revenue deferral and the transition to cost-based methodology in the second half of the fiscal year.

Additionally, the budget reflects a reduction in the allowance for uncollectible accounts—from

1.75% to 1.50%—due to continued low levels of aged receivables and strong customer payment performance.

Investment and Miscellaneous Income (-$1.5 million)
Projected investment income for FY2025/26 is derived from a diversified portfolio of interest-bearing assets, including FDIC-insured IntraFi Cash Services (ICS) money market accounts, negotiable certificates of deposit (CDs), and U.S. Treasury bills, all held through OCPA’s custodian, U.S. Bank. This investment strategy is designed to balance liquidity needs, ensure compliance with OCPA’s Investment Policy, and achieve risk-adjusted returns.

The YOY decrease is primarily attributable to a projected decline in interest rates.

Cost of Energy (-$1.7 million)
Energy consumption for FY2025/26 is estimated at 2,279 GWh. The total cost of energy includes system energy, renewable energy (including carbon-free attributes), California Independent System Operator (CAISO) fees, and RA.

The YOY decrease is primarily driven by lower projected Market Price Benchmarks (MPBs) approved by the CPUC. These MPBs are used to calculate renewable energy (PCC1) costs under SCE’s Voluntary Allocation Market Offer (VAMO) and RA costs under SCE’s Modified Cost Allocation Mechanism (MCAM). The CPUC’s PCIA Order Instituting Rulemaking (OIR) proceeding is expected to significantly lower MPBs in 2025 and 2026, reflecting ongoing declines in market prices for PCC1 and RA. Additional cost savings are supported by an 83% drop in PCC1 prices over the past six months, as well as revenues generated from the sale of surplus RA, carbon-free resources, and PCC1 from portfolio optimization.

To enhance cost efficiency and stabilize long-term financial planning, OCPA temporarily amended its energy procurement strategy for 2025 and 2026. In February 2025, Irvine’s 100% Renewable Choice customers were transitioned to Basic Choice, followed by Buena Park’s transition from 100% Renewable Choice to Smart Choice in March 2025. These adjustments are designed to reduce exposure to volatile renewable energy costs while continuing to provide customers with reliable and sustainable service options.

Despite continued market fluctuations, OCPA remains financially resilient. Through proactive procurement, strategic sales of surplus resources, and ongoing cost optimization, OCPA continues to provide reliable, affordable energy to the communities it serves.

Non-Energy Operating Expenses (+$3.4 million)
OCPA’s non-energy operating expenses support essential business functions, including data manager and SCE services, staffing, legal and contract services, marketing and outreach, general & administrative, and energy program implementation.

To maintain financial stability and minimize rate impacts, OCPA continues to pursue cost-saving initiatives and operational efficiencies while upholding strong performance and compliance standards. The YOY increase reflects strategic investments in OCPA’s core operations, underscoring OCPA’s commitment to fiscal responsibility and organizational growth.

Data Manager and SCE Service Fees (+$430k)
OCPA contracts with Calpine Community Energy (Calpine) for essential services such as billing data management and call center operations, with fees determined by the number of customer meters served. In parallel, SCE provides meter reading, data processing, and billing coordination services, as required and regulated by the CPUC.

The YOY increase is primarily driven by the expiration of scheduled fee waivers and operational credits from Calpine in November 2025. These waivers had temporarily reduced service costs in prior fiscal years.

Staffing Costs (+$1.7 million)
Staffing costs include salaries, payroll taxes, employee benefits, and Board member stipends. The FY2025/26 budget reflects strategic investments in OCPA’s workforce to support organizational growth, maintain effective operations, and offer competitive compensation. The YOY increase is primarily driven by cost-of-living adjustments, merit-based salary increases, the addition of new positions, reclassifications of existing roles, and updates to employee benefit plans. Approximately $33,000 in staffing costs are offset by direct labor reimbursement through the state-funded Equitable Building Decarbonization Direct Install (EBD-DI) Program.

Cost-of Living Adjustment (COLA)
To address inflation and support employee retention, OCPA proposes a 3% COLA for full-time employees, effective January 1, 2026. The adjustment will be based on the April 2025 Consumer Price Index (CPI) for the Los Angeles–Long Beach–Anaheim region, with corresponding updates to salary ranges. Employees hired before December 1, 2025, will receive the adjustment on a pro-rata basis (e.g., an employee hired in July 2025 will receive a 1.5% COLA). Employees hired on or after January 1, 2026, will not be eligible for the COLA during this cycle.

Staffing Plan
• FY2024/25 Approved Staffing: 29 full-time equivalent (FTE) positions and 2 interns. • FY2025/26 Proposed Staffing: The total number of FTE positions will remain at 29, along with 2 interns, reflecting the reclassification of two existing roles.  Two Position Reclassifications:

Administrative Services Manager
Department: Administrative Services
Proposed Grade: HR/Administration – Manager (HA4)
Proposed Salary Range: $119,800 – $172,600 annually
Current Title: Management Analyst
Current Grade: Marketing/Program Management – Senior Professional (MP3) Salary Adjustment Rationale: To support staff retention, OCPA proposes adjusting the salary range for Grade HA4 from $114,700–$165,200 to $119,800–$172,600. This adjustment aligns with the incumbent employee’s current compensation under Grade MP3 and reflects the expanded scope and complexity of responsibilities associated with the reclassified role.

Role & Responsibilities: The reclassified position will oversee human resources, information technology, and office operations. This update reflects the expanded responsibilities and increasing complexity of the role, which are critical to supporting OCPA’s operational effectiveness.

Office Manager / Receptionist
Department: Administrative Services
Proposed Grade: HR/Administration – Intermediate Professional (HA2) Board-Approved Salary Range: $69,500 – $100,100 annually Current Title: Administrative Assistant
Current Grade: HR/Administration – Entry Professional (HA1) Role & Responsibilities: This reclassified position will serve as OCPA’s front-line representative, managing reception, internal communications, office logistics, and general clerical duties. The change reflects the elevated responsibility and importance of maintaining a professional, organized, and customer-facing office environment.

Staffing projections will be updated during the FY2025/26 Mid-Year Budget Update to reflect actual hiring progress and expenditure trends.

Contract Services (+$40k)
OCPA follows industry best practices by utilizing external consultants to supplement internal operations while progressively building internal capacity for non-technical functions. This strategic approach supports operational efficiency, cost-effectiveness, and long-term organizational resilience as OCPA transitions toward greater self-sufficiency.

Contract services provide specialized expertise and support in the following areas:

Energy Procurement and Portfolio Management
Includes short- and long-term energy procurement and contracting, power supply portfolio and risk management, load forecasting, integrated resource planning, scheduling coordination, Congestion Revenue Rights (CRR) transactions, and CAISO settlements and compliance reporting.

Financial and Administrative Services
Includes accounting, annual financial audits, rate strategy development, analysis of SCE General Rate Case (GRC) filings and Energy Resource Recovery Account (ERRA) forecasts, as well as IT support, cybersecurity services, human resources consulting, credit rating development, and banking services.

Through disciplined planning and effective cost control measures, OCPA has maintained contract service expenditures consistent with the prior year’s budget.

Legal Services (+$250k)
OCPA engages legal services to support its operations, governance, and policy advocacy. Legal counsel provides general and special representation across a wide range of areas, including power supply procurement transactions and negotiations, participation in regulatory proceedings, and guidance on non-energy contracts, employment matters, general liability management, and clerk-related functions. Legal services also support regulatory and legislative advocacy efforts.

The YOY increase is primarily attributable to the planned engagement of a Sacramento-based lobbyist and the expanded provision for special counsel representation in complex regulatory and contractual matters.

To further enhance its policy engagement, OCPA will retain a Sacramento-based lobbyist in January 2026. The lobbyist will provide strategic insights into legislative sessions and proposed bills, strengthen OCPA’s interaction with the California State Legislature and state agencies, and amplify OCPA’s influence in shaping policies that promote clean energy and community empowerment.

Marketing and Outreach (-$76k)
As a community-focused public agency, OCPA prioritizes meaningful engagement with its customers to build trust, strengthen relationships, and advance its mission of delivering clean, affordable energy. Through a variety of communication channels, OCPA actively connects with local communities to raise awareness of its services, educate the public on the benefits of community choice energy, and promote sustainability initiatives. These efforts help ensure that residents and businesses across Orange County are well-informed about OCPA’s role in advancing environmental stewardship.

The FY2025/26 Marketing and Outreach budget supports these goals by funding regulatory notifications—such as Joint Rate Comparisons—to ensure compliance, along with public education and marketing campaigns designed to boost brand recognition and public confidence.

The budget also allocates resources for sponsoring community events, partnering with local organizations, and conducting targeted outreach to promote participation in OCPA’s clean energy programs.

The YOY decrease is primarily due to a reduction in paid media efforts. Despite this reduction, OCPA remains committed to robust community engagement through efficient and impactful outreach strategies.

General & Administrative (+$459k)
General & Administrative (G&A) expenses support the essential functions of OCPA’s day-to-day operations. These costs include office rent and lease amortization in compliance with Governmental Accounting Standards Board (GASB) Statement No. 87, as well as facility maintenance, insurance, bank fees, office supplies, and membership dues for the California Community Choice Association (CalCCA). G&A expenses also cover IT equipment and software, including OCPA’s energy portfolio risk management and data analytics systems.

The YOY increase in G&A expenses is primarily driven by the implementation of the new energy portfolio risk management system—an investment that enhances OCPA’s ability to strengthen market intelligence, optimize portfolio performance, manage risk, and ensure regulatory compliance. Additionally, the increase reflects new membership dues for the California Community Choice Financing Authority (CCCFA), which supports industry collaboration and position OCPA to explore opportunities such as green bond prepayment strategies.

Discretionary spending—including conferences, professional development, travel, and business meals—is carefully managed to maintain fiscal discipline.

OCPA Energy Programs Development Progress
OCPA is committed to reinvesting in its communities through energy programs that deliver direct customer benefits while supporting the broader transition from fossil fuels to clean energy. These programs are thoughtfully tailored to meet the diverse energy needs of households and businesses across OCPA’s member jurisdictions.

At the center of this effort is the launch of the Community Power Plan (CPP), a strategic initiative designed to identify local priorities and ensure that future programs are responsive, equitable, and impactful.

Energy Programs Consulting and Administrative Costs
To guide the development of future offerings, OCPA is investing approximately $100k in consulting services and administrative support for the CPP. This includes a comprehensive Community Needs Assessment and three additional evaluations focused on existing energy programs, internal operational alignment, and future funding opportunities. These targeted assessments will help shape a robust and responsive program roadmap.

Incentive Programs and Grant Initiatives
Based on findings from the CPP, OCPA will launch new incentives and grant programs totaling approximately $1.1 million. This includes $745k for direct program implementation, with a focus on advancing residential energy efficiency and clean transportation initiatives.

A key new offering is the EV Charger and Solar Battery Rebate Program, with a $218k budget and implementation planned for completion by December 2025. OCPA will also continue its Bright Futures Grant Program, which provides $100k to support community-based organizations advancing clean energy and sustainability education.

To promote energy savings, OCPA will maintain its online Marketplace with a $52k allocation, offering discounted energy-efficient products. In addition, the Incentive Finder platform of $6k will help customers identify local, state, and federal rebates for home and business energy upgrades.

In Q3 2025, OCPA will launch its first state-funded program: the Equitable Building Decarbonization Direct Install (EBD-DI) initiative, funded by the California Energy Commission.

This program provides free energy-efficient upgrades to low- and middle-income households in communities of concern. OCPA has been awarded $771k to implement the program and expects to receive approximately $33.8k in grant income by June 30, 2026, to reimburse labor, fringe benefit, and travel costs associated with the program’s development and promotion.

Capital Outlay and Debt Services (-$0.4 million)
Capital outlay and debt service expenses are projected to decline in FY2025/26, primarily due to the completion of scheduled office renovation projects in FY2024/25. With these one-time capital improvements finalized, ongoing costs are expected to return to a more stable baseline.

Potential 2026 Market Challenges
Looking ahead to 2026, OCPA is preparing for potential financial headwinds driven by SCE’s projected generation rate reductions, as outlined in its May 2025 Energy Resource Recovery Account (ERRA) filing. SCE’s 2026 generation rates are now expected to decline even further compared to 2025, creating additional downward pressure on OCPA’s revenues. SCE will update its forecast in October and finalize its 2026 rates in December 2025, providing more definitive insight into the impact on OCPA’s cost competitiveness and revenue projections.

The current market outlook marks a significant departure from earlier expectations. In late January 2025, when OCPA established its 2025 rate design, available forecasts suggested modest upward pressure on SCE’s generation rates—driven by projected increases in market energy prices and the scheduled conclusion of SCE’s amortization of 2024 over-collections. At that time, rising energy prices in 2026 were expected to support OCPA’s competitive position.

However, market conditions have since shifted. Ongoing declines in PCC1 and RA market prices are expected to significantly reduce Market Price Benchmarks (MPBs) for both 2025 and 2026.

Additionally, the joint IOUs have urged the Commission to revise the MPB calculation methodology in the short term to alleviate increases in bundled generation rates. As a result, the Commission is expected to significantly lower MPBs for both years through the PCIA OIR proceeding. These short-term changes may unexpectedly affect CCAs’ ability to remain competitive with IOU generation services, given current market dynamics and the CPUC’s proposed decision.

The timing and structure of OCPA’s mitigation measures are being directly informed by evolving market data and reflect a prudent, responsive approach to managing risk and ensuring long-term financial sustainability.

Near-Term Financial Impact
As a result of these evolving market conditions, OCPA now projects that certain months in FY2025/26 will see energy costs exceed revenues, due largely to the continued use of 2024 rate design and the City of Irvine’s transition to Basic Choice. While the $30 million Rate Stabilization Fund will help offset annual shortfalls, it may not be sufficient to meet the 12-month trailing Debt Service Coverage Ratio (DSCR) requirement of 1.40 in specific quarters.

The DSCR threshold is expected to be restored by Q2 2026. In the meantime, staff will coordinate with our loan facility provider, US Bank—which has remained unused since March 2023—to explore the option of a temporary DSCR waiver for the affected periods.

Mitigation Strategy - Financial Recovery Plan
To ensure financial stability and resilience, staff will implement a comprehensive financial recovery plan in the second half of 2025. This plan includes:
• Developing a 2026 rate design that ensures full cost recovery, supports reserve contributions, and reflects updated market conditions.
• Aligning OCPA’s product offerings with the new rate structure. • Benchmarking OCPA’s rates against peer CCAs to maintain competitiveness. • Evaluating procurement contracts for additional cost-saving opportunities. • Accelerating the implementation of the prepay arrangement to reduce long-term energy costs.

FISCAL IMPACT
The recommended FY2025/26 budget—which maintains the current 2025 Basic Choice rate discount of 3% below SCE’s equivalent generation rates—projects a modest net position increase of $450,000. This will maintain the operating reserve at $45 million (16% of total operating expenses) by June 30, 2026, and increase it to $76 million (30% of total operating expenses) by December 31, 2026, thereby meeting the Board’s minimum reserve target.

In response to Board feedback, staff has also developed three alternate rate discount adjustment options for the FY2025/26 budget. These options, effective from August through December 2025, are intended to strengthen near-term financial performance and enhance reserve growth.

Alternate Options:
• Alternate Option 1: Reduce the Basic Choice discount to 2% below SCE’s equivalent generation rates
• Alternate Option 2: Reduce the Basic Choice discount to 1% below SCE’s equivalent generation rates
• Alternate Option 3: Set the Basic Choice rate at parity with SCE’s equivalent generation rates Each alternate option is projected to improve the bottom line and accelerate growth of the operating reserve.

The following comparison table illustrates the differences in projected bottom-line outcomes and reserve levels:

ATTACHMENTS

1. FY 2025/26 Recommended Operating Budget

2. FY 2025/26 Operating Budget - Scenario 1: Reduce Basic Choice Discount to 2% below SCE’s equivalent generation rates, effective August 2025

3. FY 2025/26 Operating Budget - Scenario 2: Reduce Basic Choice Discount to 1% below SCE’s equivalent generation rates, effective August 2025

4. FY 2025/26 Operating Budget - Scenario 3: Set Basic Choice at parity with SCE’s equivalent generation rates, effective August 2025

5. FY 2025/26 Recommended Operating Budget Book

6. Draft Job Description – Administrative Services Manager

7. Draft Job Description – Office Manager/Receptionist

8. Glossary
2025 Rate Discount Adjustment Options
FY2025/26 Budget
($ in thousands)
Recommended
Option
No Change
Alternate Option 1
Basic Choice at
2% Discount
Alternate Option 2
Basic Choice at
1% Discount
Alternate Option 3
Basic Choice at
Parity
Total Revenues $ 286,037 $ 287,093 $ 288,149 $ 289,205
Total Expenditures $ 285,587 $ 285,587 $ 285,587 $ 285,587 Bottom Line $ 450 $ 1,506 $ 2,562 $ 3,618
Operating Reserve $ 45,316 $ 46,372 $ 47,428 $ 48,484
Operating Reserve % 16% 16% 17% 17%
Proposed FY 2025/26 Operating Budget
($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2024/25 % of Rev
Reforecast
FY2024/25 % of Rev
Proposed
Budget
FY2025/26 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 252,312 248,064 246,322
Revenue - Smart Choice Premium 5,931 5,257 7,430
Revenue - 100% Renewable Premium 13,411 16,008 3,252
Less: Uncollectible Accounts (4,754) (4,713) (3,855) (11,467) (4.3%) Revenue deferral 45,000 15,112 29,888 14,776 97.8%
Net Revenue - Electricity 311,900 98.6% 279,728 98.4% 283,037 99.0% 3,309 1.2% Investment and Miscellaneous Income 4,499 1.4% 4,510 1.6% 3,000 1.0% (1,510) (33.5%) Total Net Revenue and Other Sources 316,399 100.0% 284,238 100.0% 286,037 100.0% 1,799 0.6%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 285,539 90.2% 271,038 95.4% 269,368 94.2% (1,669) (0.6%) Data Manager 1,850 0.6% 1,831 0.6% 2,237 0.8% 406 22.2% Utilities Service Fees 572 0.2% 456 0.2% 480 0.2% 24 5.2% Staffing Costs 4,738 1.5% 4,560 1.6% 6,212 2.2% 1,652 36.2% Contract Services 1,610 0.5% 1,521 0.5% 1,562 0.5% 40 2.6% Legal Services 596 0.2% 506 0.2% 756 0.3% 250 49.3%
Marketing and Outreach 1,794 0.6% 1,726 0.6% 1,650 0.6% (76) (4.4%) Other G&A 1,429 0.5% 1,328 0.5% 1,787 0.6% 459 34.6%
Energy Programs 592 0.2% 586 0.2% 1,221 0.4% 635 108.4% 298,721 94.4% 283,552 99.8% 285,272 99.7% 1,720 0.6%

OTHER USES
Capital Outlay 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)
Total Other Uses 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)

DEBT SERVICE
Interest costs - nonoperating 315 0.1% 309 0.1% 314 0.1% 5 1.6% Finance costs - Principal 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total Expenditures and Other Uses 299,413 94.6% 284,238 100.0% 285,587 99.8% 1,349 0.5% Net Income (Surplus/Deficit) 16,986 5.4% 0 0.0% 450 0.2% 450 105823.4% Proposed FY 2025/26 Operating Budget
(Reduce Basic Choice Discount to 2% below SCE’s equivalent generation rates, effective August 2025) ($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2024/25 % of Rev
Reforecast
FY2024/25 % of Rev
Proposed
Budget
FY2025/26 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 252,312 248,064 247,394
Revenue - Smart Choice Premium 5,931 5,257 7,430
Revenue - 100% Renewable Premium 13,411 16,008 3,252
Less: Uncollectible Accounts (4,754) (4,713) (3,871) (10,411) (3.9%) Revenue deferral 45,000 15,112 29,888 14,776 97.8%
Net Revenue - Electricity 311,900 98.6% 279,728 98.4% 284,093 99.0% 4,365 1.6% Investment and Miscellaneous Income 4,499 1.4% 4,510 1.6% 3,000 1.0% (1,510) (33.5%) Total Net Revenue and Other Sources 316,399 100.0% 284,238 100.0% 287,093 100.0% 2,854 1.0%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 285,539 90.2% 271,038 95.4% 269,368 93.8% (1,669) (0.6%) Data Manager 1,850 0.6% 1,831 0.6% 2,237 0.8% 406 22.2% Utilities Service Fees 572 0.2% 456 0.2% 480 0.2% 24 5.2% Staffing Costs 4,738 1.5% 4,560 1.6% 6,212 2.2% 1,652 36.2% Contract Services 1,610 0.5% 1,521 0.5% 1,562 0.5% 40 2.6% Legal Services 596 0.2% 506 0.2% 756 0.3% 250 49.3%
Marketing and Outreach 1,794 0.6% 1,726 0.6% 1,650 0.6% (76) (4.4%) Other G&A 1,429 0.5% 1,328 0.5% 1,787 0.6% 459 34.6%
Energy Programs 592 0.2% 586 0.2% 1,221 0.4% 635 108.4% 298,721 94.4% 283,552 99.8% 285,272 99.4% 1,720 0.6%

OTHER USES
Capital Outlay 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)
Total Other Uses 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)

DEBT SERVICE
Interest costs - nonoperating 315 0.1% 309 0.1% 314 0.1% 5 1.6% Finance costs - Principal 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total Expenditures and Other Uses 299,413 94.6% 284,238 100.0% 285,587 99.5% 1,349 0.5% Net Income (Surplus/Deficit) 16,986 5.4% 0 0.0% 1,506 0.5% 1,506 354160.7% Proposed FY 2025/26 Operating Budget
(Reduce Basic Choice Discount to 1% below SCE’s equivalent generation rates, effective August 2025) ($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2024/25 % of Rev
Reforecast
FY2024/25 % of Rev
Proposed
Budget
FY2025/26 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 252,312 248,064 248,466
Revenue - Smart Choice Premium 5,931 5,257 7,430
Revenue - 100% Renewable Premium 13,411 16,008 3,252
Less: Uncollectible Accounts (4,754) (4,713) (3,887) (9,355) (3.5%) Revenue deferral 45,000 15,112 29,888 14,776 97.8%
Net Revenue - Electricity 311,900 98.6% 279,728 98.4% 285,149 99.0% 5,421 1.9% Investment and Miscellaneous Income 4,499 1.4% 4,510 1.6% 3,000 1.0% (1,510) (33.5%) Total Net Revenue and Other Sources 316,399 100.0% 284,238 100.0% 288,149 100.0% 3,910 1.4%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 285,539 90.2% 271,038 95.4% 269,368 93.5% (1,669) (0.6%) Data Manager 1,850 0.6% 1,831 0.6% 2,237 0.8% 406 22.2% Utilities Service Fees 572 0.2% 456 0.2% 480 0.2% 24 5.2% Staffing Costs 4,738 1.5% 4,560 1.6% 6,212 2.2% 1,652 36.2% Contract Services 1,610 0.5% 1,521 0.5% 1,562 0.5% 40 2.6% Legal Services 596 0.2% 506 0.2% 756 0.3% 250 49.3%
Marketing and Outreach 1,794 0.6% 1,726 0.6% 1,650 0.6% (76) (4.4%) Other G&A 1,429 0.5% 1,328 0.5% 1,787 0.6% 459 34.6%
Energy Programs 592 0.2% 586 0.2% 1,221 0.4% 635 108.4% 298,721 94.4% 283,552 99.8% 285,272 99.0% 1,720 0.6%

OTHER USES
Capital Outlay 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)
Total Other Uses 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)

DEBT SERVICE
Interest costs - nonoperating 315 0.1% 309 0.1% 314 0.1% 5 1.6% Finance costs - Principal 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total Expenditures and Other Uses 299,413 94.6% 284,238 100.0% 285,587 99.1% 1,349 0.5% Net Income (Surplus/Deficit) 16,986 5.4% 0 0.0% 2,562 0.9% 2,562 602498.0% Proposed FY 2025/26 Operating Budget
(Set Basic Choice at parity with SCE’s equivalent generation rates, effective August 2025) ($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2024/25 % of Rev
Reforecast
FY2024/25 % of Rev
Proposed
Budget
FY2025/26 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 252,312 248,064 249,538
Revenue - Smart Choice Premium 5,931 5,257 7,430
Revenue - 100% Renewable Premium 13,411 16,008 3,252
Less: Uncollectible Accounts (4,754) (4,713) (3,903) (8,299) (3.1%) Revenue deferral 45,000 15,112 29,888 14,776 97.8%
Net Revenue - Electricity 311,900 98.6% 279,728 98.4% 286,205 99.0% 6,477 2.3% Investment and Miscellaneous Income 4,499 1.4% 4,510 1.6% 3,000 1.0% (1,510) (33.5%) Total Net Revenue and Other Sources 316,399 100.0% 284,238 100.0% 289,205 100.0% 4,966 1.7%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 285,539 90.2% 271,038 95.4% 269,368 93.1% (1,669) (0.6%) Data Manager 1,850 0.6% 1,831 0.6% 2,237 0.8% 406 22.2% Utilities Service Fees 572 0.2% 456 0.2% 480 0.2% 24 5.2% Staffing Costs 4,738 1.5% 4,560 1.6% 6,212 2.1% 1,652 36.2% Contract Services 1,610 0.5% 1,521 0.5% 1,562 0.5% 40 2.6% Legal Services 596 0.2% 506 0.2% 756 0.3% 250 49.3%
Marketing and Outreach 1,794 0.6% 1,726 0.6% 1,650 0.6% (76) (4.4%) Other G&A 1,429 0.5% 1,328 0.5% 1,787 0.6% 459 34.6%
Energy Programs 592 0.2% 586 0.2% 1,221 0.4% 635 108.4% 298,721 94.4% 283,552 99.8% 285,272 98.6% 1,720 0.6%

OTHER USES
Capital Outlay 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)
Total Other Uses 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)

DEBT SERVICE
Interest costs - nonoperating 315 0.1% 309 0.1% 314 0.1% 5 1.6% Finance costs - Principal 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total Expenditures and Other Uses 299,413 94.6% 284,238 100.0% 285,587 98.7% 1,349 0.5% Net Income (Surplus/Deficit) 16,986 5.4% 0 0.0% 3,618 1.3% 3,618 850835.3% SEPTEMBER 9, 2024
0 FY25-26 MARKETING & PUBLIC OUTREACH (July 2025-2026)
Table of Contents
Fiscal Year Operating Budget 2025-2026
02 CEO Message
04 Operating Budget Roadmap
05 Operating Budget Background and Highlights
07 FY2025/26 Recommended OCPA Operating Budget
09 Revenue and Cost of Energy Assumptions
16 Operating Expense Highlights
29 5-Year OCPA Financial Proforma FY2026/27 – FY2030/31 32 About OCPA
33 2025 OCPA Board
CEO Message
2 As we prepare for the FY25/26 fiscal year, the Orange County Power Authority (OCPA) reaffirms its unwavering commitment to delivering affordable, reliable, and sustainable energy to our customers. The proposed budget reflects a strategic, forward-thinking approach, adeptly balancing immediate fiscal challenges with a vision for long-term resilience and growth. Anchored by our core principles of transparency, customer empowerment, and community-driven innovation, OCPA is poised to navigate a dynamic regulatory and market landscape while delivering exceptional value to the communities we serve.

A critical challenge in 2026 is the volatility of the Power Charge Indifference Adjustment (PCIA), driven by fluctuating market dynamics and legacy utility contract vintages. In collaboration with the California Community Choice Association (CalCCA), OCPA is spearheading advocacy efforts at the California Public Utilities Commission (CPUC) to enact meaningful PCIA reforms. These reforms prioritize capping the PCIA, enhancing transparency in its methodology, and ensuring equitable cost allocation. By stabilizing PCIA expenses, we safeguard our ability to offer competitive rates relative to Southern California Edison (SCE), reinforcing affordability for our customers.

Affordability remains the cornerstone of OCPA’s mission. Our Basic Choice plan, delivering 47% renewable energy, is projected to maintain a 3% cost advantage over SCE’s equivalent generation rates, ensuring tangible savings for our customers. The FY25/26 budget is meticulously crafted to fully fund operating expenses, debt obligations, and a prudent reserve contribution, supported by a robust energy cost mitigation strategy that preserves our competitive edge.

OCPA’s financial position continues to strengthen, supported by consistent operating surpluses. For FY25/26, we aim to build reserves to 30–50% of annual operating expenses, enhancing liquidity and operational flexibility. Concurrently, we are advancing a strategic roadmap to secure an investment-grade credit rating by 2027, which will strengthen our capacity to negotiate favorable energy procurement terms and fortify our fiscal foundation.

To optimize long-term power procurement costs, OCPA is exploring innovative financing solutions, such as green prepayment bonds. A rigorous feasibility study will assess market conditions and OCPA’s financial preparedness, with findings to be presented in a transparent workshop for our Board of Directors. This session will feature detailed case studies and comprehensive cost-benefit analyses, ensuring decisions are informed, accountable, and aligned with our mission.
3 OCPA is steadfast in its commitment to reinvesting in the communities we serve. In FY25/26, we will expand transformative customer programs to advance equitable access to clean energy. These initiatives include solar incentives, enhanced electric vehicle (EV) charging infrastructure, and the Disadvantaged Communities Green Tariff (DAC-GT) program. The DAC-GT will deliver 100% renewable energy and a 20% bill discount to eligible residential customers in disadvantaged communities, furthering the objectives of our Community Power Plan and promoting energy equity.

OCPA is thrilled to announce the planned expansion of service to Fountain Valley in October 2026. This milestone will broaden our customer base and enhance economies of scale, driving operational efficiencies. To ensure a seamless transition, we are implementing meticulous financial planning and strategic forecasting to align revenue and expenditure projections, maintaining our commitment to fiscal stability.

With the steadfast support of our Board and community, OCPA is uniquely positioned to lead the transition to a cleaner, more affordable, and equitable energy future. Through prudent resource management, robust policy advocacy, and impactful community programs, we will continue to combat climate change while empowering our communities with sustainable, accessible energy solutions.

Joe Mosca
Chief Executive Officer
CEO Message (Continued)
01 April 15
Discuss Budget Framework with Ad-Hoc
Budget & Finance Committee
Incorporate changes
based on Board feedback
Present Recommended
Budget to OCPA Board
Present Budget Framework
to OCPA Board*
Brief Draft Budget to
OCPA Board
02 03
04 05
May 12
Mid-May
June 9
Early June
*The presentation was delivered to the committee through a video submission on May 18, 2025.

FY2025/26 Budget
Roadmap
The Orange County Power Authority (OCPA) is pleased to present a balanced budget for Fiscal Year 2025-26, marking the third year of full operations. This budget aligns with the Board-approved strategic goal of prioritizing fiscal sustainability and affordability.

OCPA’s budget is updated annually and reviewed mid-year to balance immediate operational needs with long-term financial stability and rate affordability. It outlines estimated revenues and expenses for the fiscal year, spanning July 1, 2025, to June 30, 2026, and is developed using a zero-based budgeting approach, requiring all expenses to be justified from the ground up to ensure efficient and purpose-driven resource allocation.

The proposed budget is organized into two primary categories: revenues and expenses. These categories are intentionally broad to provide flexibility, minimizing the need for frequent adjustments while ensuring adaptability to changing conditions.

OCPA FY2025/26
Operating Budget - Background
5 1. Financial Strength: Despite reduced rates, OCPA maintains robust financial health, projecting a net surplus of $0.45 million. The operating reserve is expected to reach $45 million, covering 16% of total operating expenses by June 30, 2026, and subsequently elevate it to $76 million (30% of total operating expenses) by December 31, 2026, thus meeting the Board’s minimum reserve target.

2. Affordable Rates: OCPA’s 2025 rate structure remains unchanged, offering competitive pricing. Basic Choice rates, with 47% renewable energy, provide a 3% discount compared to SCE’s equivalent generation rates. Smart Choice rates deliver 55% renewable and 40% carbon-free energy in 2025, increasing to 60% renewable and 40% carbon-free energy in 2026, and add 1¢/kWh to Basic Choice rates. 100% Renewable Choice rates add 1.5¢/kWh to Basic Choice rates. The 3% discount applied to Basic Choice rates is proportionally extended across all three rate plans.

3. Competitive Net Energy Metering Program: OCPA preserves NEM 2.0 benefits for all customers, providing full retail compensation, accelerated solar payback, and a net surplus compensation rate 10% higher than SCE’s, reinforcing local solar adoption.

4. Clean and Renewable Procurement Strategy: Secures long-term contracts for clean and renewable energy resources to meet a significant portion of its electric demand, ensuring sustainability and cost stability.

5. Innovative Financing Options: To optimize long-term power procurement costs, OCPA will explore green prepayment bonds, enhancing financial flexibility for clean energy investments.

6. Community Power Plan: Advances equitable clean energy access through solar-focused initiatives, including a low-interest loan program for solar incentives, expanded EV charging infrastructure, and the Disadvantaged Community Green Tariff program, which provides 100% renewable energy and bill discounts to income-qualified residents.

7. Talented Workforce: OCPA plans to reclassify two existing positions and maintain adequate staffing to support core operations and strategic priorities. 6 OCPA FY2025/26 Operating Budget - Highlights
7 Recommended OCPA Operating
Budget FY2025/26
($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2024/25
% of
Rev
Reforecast
FY2024/25 % of Rev
Proposed
Budget
FY2025/26 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 252,312 248,064 246,322
Revenue - Smart Choice Premium 5,931 5,257 7,430
Revenue - 100% Renewable Premium 13,411 16,008 3,252
Less: Uncollectible Accounts (4,754) (4,713) (3,855) (11,467) (4.3%) Revenue deferral 45,000 15,112 29,888 14,776 97.8%
Net Revenue - Electricity 311,900 98.6% 279,728 98.4% 283,037 99.0% 3,309 1.2% Investment and Miscellaneous Income 4,499 1.4% 4,510 1.6% 3,000 1.0% (1,510) (33.5%) Total Net Revenue and Other Sources 316,399 100.0% 284,238 100.0% 286,037 100.0% 1,799 0.6%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 285,539 90.2% 271,038 95.4% 269,368 94.2% (1,669) (0.6%) Data Manager 1,850 0.6% 1,831 0.6% 2,237 0.8% 406 22.2% Utilities Service Fees 572 0.2% 456 0.2% 480 0.2% 24 5.2% Staffing Costs 4,738 1.5% 4,560 1.6% 6,212 2.2% 1,652 36.2% Contract Services 1,610 0.5% 1,521 0.5% 1,562 0.5% 40 2.6% Legal Services 596 0.2% 506 0.2% 756 0.3% 250 49.3%
Marketing and Outreach 1,794 0.6% 1,726 0.6% 1,650 0.6% (76) (4.4%) Other G&A 1,429 0.5% 1,328 0.5% 1,787 0.6% 459 34.6%
Energy Programs 592 0.2% 586 0.2% 1,221 0.4% 635 108.4% 298,721 94.4% 283,552 99.8% 285,272 99.7% 1,720 0.6%

OTHER USES
Capital Outlay 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)
Total Other Uses 377 0.1% 377 0.1% 0 0.0% (377) (100.0%)

DEBT SERVICE
Interest costs - nonoperating 315 0.1% 309 0.1% 314 0.1% 5 1.6% Finance costs - Principal 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total Expenditures and Other Uses 299,413 94.6% 284,238 100.0% 285,587 99.8% 1,349 0.5% Net Income (Surplus/Deficit) 16,986 5.4% 0 0.0% 450 0.2% 450 105823.4% Key Statistics:

Total Load (MWh) - Retail 2,181,527 2,181,527 2,150,129 $/MWh - Net Electricity Sales $ 142.97 $ 121.30 $ 117.74 $ in thousands
Period Ending June 30
Approved
FY2024/25
Mid-Year
Budget
%
rev
%
of Total
Operating
Expenses
FY2024/25
Reforecast
%
rev
%
of Total
Operating
Expenses
Difference
($)
FY2025/26
Recommended
Budget
%
rev
%
of Total
Operating
Expenses
YOY
Difference
($)
Net Electricity Revenue $266,900 $264,616 $253,149
Revenue Deferral from FY2023/24 45,000 45,000
Revenue Deferral from FY2024/25 (29,888) 29,888
Net Electricity Revenue 311,900 98.6% 279,728 98.4% (32,172) 283,037 99.0% 3,309 Investment Income 4,499 1.4% 4,510 1.6% 11 3,000 1.0% (1,510) Less: Cost of Energy 285,539 90.2% 95.6% 271,038 95.4% 95.6% (14,501) 269,368 94.2% 94.4% (1,669) Less: Non-Energy Operating 13,182 4.2% 4.4% 12,514 4.4% 4.4% (667) 15,904 5.6% 5.6% 3,390 Less: Capital Outlay & Debt Service 692 0.2% 686 0.2% (6) 314 0.1% (372) Net Position (bottom line) $16,986 5.4% $0 0.0% (16,986) $450 0.2% 450 Operating Reserve $61,852 $44,866 (16,986) $45,316 450
Reserve as a % of operating expenses 21% 16% 16%
Operating Reserve as of December 31, 2026 $75,977
Reserve % as of December 31, 2026
(Board’s minimum reserve target) 30%
FY2024/25 Reforecast:

Despite a $36.4 million drop in net electricity revenue—driven by the retention of the 2024 rate design and Irvine’s shift from 100% Renewable Choice to Basic Choice—OCPA mitigated the impact by deferring $45 million in revenue from FY 2023/24. This strategy enabled a projected $17 million contribution to the operating reserve, increasing the reserve to $62 million, or 21% of total operating expenses. Additional relief came from lower projected CPUC Market Price Benchmarks (MPBs), effective cost controls, and slower-than-expected hiring, reducing the need for deferred funds to just $15 million and preserving $30 million in the Rate Stabilization Fund. As energy costs are expected to outpace revenues in FY 2025/26, OCPA will deploy the remaining $30 million to maintain rate stability, resulting in a breakeven FY 2024/25 budget and a stable operating reserve of $45 million, or 16% of total operating expenses.

FY2025/26 Budget:

To offset an anticipated revenue shortfall—driven by the continued use of 2024 rate design and Irvine’s shift to Basic Choice—OCPA will utilize the remaining $30 million in the Rate Stabilization Fund. Despite increases in system energy and RA costs, total energy costs are projected to decline by $1.7 million, primarily due to an $84 million reduction in PCC1 costs following the suspension of new PCC1 procurement in response to a sharp market price spike in late 2024. Non-energy operating expenses are expected to rise by $3.4 million to support staffing, customer program expansion, and the implementation of a risk management system. The budget forecasts a modest $450k increase in net position, with the operating reserve projected to remain at $45 million by June 30, 2026, and grow to $76 million—or 30% of total operating expenses—by December 31, 2026, meeting the Board’s reserve target.
8 OCPA FY2024/25 and FY2025/26 Operating Budget - Overview Primary Revenue Source: OCPA’s revenue primarily derives from retail electricity sales, driven by generation rates designed to cover power procurement, operating and non-operating expenses, capital expenditures, and contributions to the operating reserve.

Demand Forecast: Total retail load consumption is projected at 2,150 GWh for FY2025/26, including residential and commercial customers from Buena Park, Fullerton, and Irvine.

Data Utilization: Customer counts and load consumption estimates combine actual customer data from SCE and Calpine reports.
2025 OCPA Rates (July through December 2025): Based on the board-approved 2025 Rate Design:

Basic Choice: 3% discount below SCE’s equivalent generation rates.

Smart Choice: Basic Choice + 1c/kWh.
100% Renewable Choice: Basic Choice + 1.5c/kWh.
2026 OCPA Rates (January through June 2026): Guided by the Board-approved OCPA Rate Development Policy. Revenue will ensure coverage of power purchases, operational expenses, debt service, and targeted reserves.

FY2026/27 through FY2030/31 OCPA Rates: Aligned with the Board-approved OCPA Rate Development Policy for long-term financial stability.

Uncollectible Accounts: Reduced from 1.75% to 1.50% of operating, reflecting a low incidence of long-term aging accounts. 9 OCPA Revenue Assumptions – Key Highlights
OCPA’s 2025 rate design offers a 3% discount on the Basic Choice renewable energy plan generation rate compared to SCE's equivalent generation rate, providing significant relief to all customers. 10 OCPA Revenue Assumptions – 2025 Rate Design
o $45 million in revenue was deferred to the Rate Stabilization Fund from FY 2023/24 to FY 2024/25 to offset a projected revenue shortfall.
o This action aligns with the Board-approved Rate Stabilization Policy, which promotes financial stability and customer affordability.
o The 2024 rate design was maintained in 2025, despite SCE’s generation rate decline, to shield customers from rate shock in 2025.
o Irvine’s shift from 100% Renewable Choice to Basic Choice in February 2025 also contributed to revenue impacts. o Financial relief came from a projected decline in the CPUC’s RPS & RA Market Price Benchmarks, combined with disciplined cost controls and slower-than-expected hiring. o Only $15 million of the $45 million deferral is now expected to be used in FY2024/25, leaving $30 million in the Rate Stabilization Fund to protect against future volatility in SCE rates or energy price spikes. o Energy costs in FY 2025/26 are projected to exceed revenues; OCPA will proactively deploy the remaining $30 million to maintain rate and operational stability.
o FY 2024/25 revenues and expenses are projected to balance at $284 million, resulting in a breakeven ($0) outcome. o Following the $30 million deferral, FY 2025/26 net revenue is projected at $286 million – sufficient to fully cover energy and non-energy operating expenses.

OCPA Revenue – Revenue Deferral
11 OCPA procures electricity from renewable sources, such as solar and wind, to meet customer demand, with SCE managing delivery, billing, and infrastructure maintenance. OCPA’s energy costs are shaped by market fluctuations, seasonal demand surges (e.g., summer heat waves), and increasing customer load, which may necessitate purchasing additional power at elevated market rates. Regulatory requirements, including California’s Resource Adequacy mandates, require OCPA to secure sufficient energy capacity, potentially raising costs during peak periods. To address these challenges, OCPA employs long-term power purchase agreements and maintains a diverse renewable energy portfolio, ensuring competitive rates while supporting California’s sustainability goals. Below are the key assumptions for FY2025/26 power supply costs:

Cost of Energy Components:
● Energy: Includes system energy, renewable energy (including carbon-free attributes), and CAISO fees, estimated at $225 million or 83% of total power supply cost.
● Resource Adequacy (RA): A reliability obligation requiring committed generating capacity for system reliability, estimated at $45 million or 17% of total power supply cost.

Forecast Contracts: OCPA employs forward contracts to secure energy supply in advance, ensuring resource sufficiency and cost predictability for the budget.

Competitive Net Energy Metering (NEM) program: OCPA maintains NEM 2.0 benefits, offering full retail rate compensation for excess solar generation and Net Surplus Compensation (NSC) at 10% above SCE’s NSC rate. The estimated payout for NEM customers in FY2025/26 is $525,000.
12 OCPA Cost of Energy Assumptions – Key Highlights
CAISO forward energy prices for the next 12-month period have continued to decline and are now 28% lower compared to one year ago.

The downward trend is driven by stable natural gas prices and an improving outlook on the supply stack’s ability to meet demand. 13 $-
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Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 $/MWh
Southern California Energy Prices (SP 15)
Dec-23 Feb-24 Jun-24 Aug-24 Dec-24
OCPA Cost of Energy Assumptions – System Energy
• PCC1 prices surged 400% from trough to peak over three years, driven by late 2024 market imbalances and rising demand.
• Over the past six months, PCC1 prices have declined by 83%.
• Rising renewable energy costs are reflected in SCE’s
higher VAMO (PCC1) prices, which are based on the
CPUC’s Market Price Benchmarks (MPBs).
• For OCPA, PCC1 from SCE’s VAMO contracts is priced
according to the CPUC’s MPB mechanism. Despite recent
market declines, the MPB continues to reflect elevated or rising renewable energy costs, impacting OCPA’s RPS-related expenses. 14 $-
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Jan 2023 May 2023 Sep 2024 April 2025
PCC1 Renewable Energy Prices ($/MWh)
OCPA Cost of Energy Assumptions – Eligible Renewable Energy Chart shows price changes for 2025 RA volumes from Jan
2023 to present.

Significant price drop observed since the YA deadline in Oct 2024.
2026-2027 RA prices have started to decline but remain
above 2025 levels – primarily due to higher MCAM prices, based on CPUC Market Price Benchmarks.

The new slice-of-day framework may require some portfolio-balancing transactions. The 2025 requirements will be known in July.
15 $-
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
$/kW-mo
Resource Adequacy Prices ($/kW-mo)
Jan 2023 Oct 2023 June 2024 April 2025
OCPA Cost of Energy Assumptions – Resource Adequacy
OCPA's operating expenses are categorized into seven categories: Data Management & SCE Service Fees, Staffing Costs, Professional Contracts, Legal & Lobbying Support, Marketing and Outreach, General and Administrative Expenses, and Energy Programs. In addition to these operating costs, the budget includes non-operating debt service expenses, which account for interest and related financing costs. Key assumptions for each expense category are outlined below.

Data Management & SCE Service Fees
• Data Management Services: Provided by Calpine, these services encompass billing data validation, bill coordination with Southern California Edison (SCE), call center operations, customer enrollment database management, move-in/move-out services, and data reporting. Under the contract’s service fee waiver clause, Calpine will waive $217,000 in data management fees. • SCE Services: SCE provides meter reading, data processing, and customer billing services, as mandated by the California Public Utilities Commission (CPUC), with associated fees reflecting these regulatory requirements. $ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
Data Management Fee $2,454
Less: Fee Waiver ($217)
Net Data Management Fee $2,237 1.0%
SCE Service Fee $480
Customer Accounts 179,000
16 CCA Comparison (3CE, MCE, CPA, SDCP,
and SVCE): Total data management & utilities
service fees range from 0.9% to 1.5% of revenue.
3CE: Central Coast Community Energy
MCE: Marin Clean Energy
CPA: San Diego Community Power
SDCP: San Diego Community Power
SVCE: Silicon Valley Clean Energy
Operating Expenses Highlights: Data Management & SCE Service Fees Staffing costs include salaries, payroll taxes, benefits for staff, and board member stipends. The projections account for anticipated cost-of-living adjustments (COLA), recruitment of new positions, full-year financial impacts of existing staff, merit-based salary increases, and changes in employee benefits. Approximately $33,000 in staffing expenses are eligible for reimbursement through funding from the Equitable Building Decarbonization Direct Install (EBD-DI) Program. These salary projections will be further refined during the FY2025/26 Mid-Year Budget Update to reflect actual expenditures.

Approved Staffing – FY2024/25: The current fiscal year includes 29 full-time equivalents (FTEs) and 2 interns.

Proposed Staffing Strategy - FY2025/26: To support the agency’s continued operational needs, OCPA will reclassify two existing positions. The total number of FTE positions will remain at 29 for FY2025/26. 17 Operating Expenses Highlights: Staffing Costs
Reclassifications
To align staff responsibilities with organizational needs and support agency growth, OCPA proposes reclassifying two existing positions within the Administrative Services Department. These updates reflect the evolving scope of duties and ensure compensation is equitable and competitive.

Administrative Services Manager
Current Title: Management Analyst
Department: Administrative Services
Recommended Salary Grade: HR/Administration – Manager (HA4) Recommended Salary Range: $119,800 to $172,600 annually Salary Adjustment Recommendation: To promote internal equity and maintain staff morale, OCPA recommends adjusting the salary range of Grade HA4 from $114,700–$165,200 to $119,800–$172,600. This aligns HA4 with the current salary range of the Management Analyst position, classified under Marketing/Program Management – Senior Professional (MP3).

Role & Responsibilities: This position will oversee key administrative functions including human resources, information technology, and office operations. The reclassification reflects the expanded scope and complexity of the role, which is critical to maintaining efficiency and supporting OCPA’s evolving organizational needs. 18 Operating Expenses Highlights: Staffing Costs
Reclassifications
Office Manager/Receptionist
• Current Title: Administrative Assistant
• Department: Administrative Services
• Recommended Salary Grade: HR/Administration – Intermediate Professional (HA2) • Board-Approved Salary Range: $69,500 – $100,100 annually • Role & Responsibilities: This position will serve as the primary point of contact for visitors and staff, managing front-desk reception, office logistics, internal communication support, and general clerical duties. The reclassification reflects the role’s increased responsibility in maintaining a professional and organized office environment and supporting overall administrative operations. 19 Operating Expenses Highlights: Staffing Costs
20 FY2025/26 Budget Assumption – Proposed Organizational Chart OCPA proposes to continue offering a Cost-of-Living Adjustment (COLA) for full-time employees, effective January 1, 2026, to help offset the effects of inflation. The adjustment will be based on the April 2025 Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area and will result in updated budgetary salary pay ranges to reflect the approved COLA.

For FY2025/26, the COLA is budgeted at 3%. Full-time employees hired before December 1, 2025, will receive the adjustment on a pro-rata basis. For example, an employee hired in July 2025 will receive a 1.5% COLA (50% of the full 3% adjustment), while those hired on or after January 1, 2026, will not receive a COLA in that cycle.
$ in thousands
Period Ending June 30 FY2025/26 Budget % of total % of rev Salaries $4,883 78.6%
Benefits $998 16.1%
Board Stipends & Misc. $116 1.9%
Payroll Taxes $110 1.8%
COLA $106 1.7%
Total Staffing Costs $6,212 100% 2.2%
Total FTEs 29
Estimated Customer Accounts
per FTE
6,200
21 CCA Comparison (3CE, MCE, CPA, SDCP, and SVCE): Total staffing costs range from 1.5% to 3.5% of revenue.

Operating Expenses Highlights: Cost-of-Living Adjustments (COLA) OCPA follows industry best practices by leveraging external consultants while progressively building internal staffing capacity to handle non-technical tasks.

This strategic approach ensures operational efficiency and cost-effectiveness as OCPA transitions to greater self-reliance. Contract services include the following professional support services:
• Energy Procurement and Portfolio Management: Encompasses power supply portfolio and risk management, short and long-term energy procurement and contracting, load forecasting, integrated resource planning, scheduling coordination, Congestion Revenue Rights (CRR) purchases and sales, and California Independent System Operator (CAISO) settlements and reporting. • Financial and Other Services: Includes accounting, annual financial audit, rate strategy development, SCE General Rate Case (GRC) assessments, SCE Energy Resource Recovery Account (ERRA) forecast reviews, information technology support, cybersecurity services, human resources, credit rating development, and banking services.
$ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
Energy Procurement and Portfolio Management $714
Accounting, Auditing & Banking $332
IT, HR, Credit Rating Strategies & Related $269
Rate Strategies & Assessments $247
Total Professional Contracts $1,562 0.5%
22 CCA Comparison (3CE, MCE, CPA, SDCP, and SVCE): Total professional contract costs range from 0.3% to 1.4% of revenue.

Operating Expenses Highlights: Professional Contracts
OCPA engages legal services to support its operations, governance, and advocacy efforts. These services include general and special counsel representation, support for power supply procurement transactions and negotiations, participation in regulatory proceedings (e.g., SCE’s ERRA Applications, SCE GRC assessment, and other compliance obligations), non-energy contracting support, employment matters, governance and general liability management, clerk support, and regulatory and legislative advocacy.

In January 2026, OCPA plans to hire a Sacramento-based lobbyist to enhance its advocacy efforts. The lobbyist will provide insights into legislative sessions and specific bills, strengthen engagement with the California State Legislature and state departments, and amplify OCPA’s voice in shaping policies that support clean energy and community power initiatives.
$ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
General Counsel $294
Regulatory & Legislative $110
Clerk Support $104
Power Procurement Transactional &
Negotiation
$100
Labor Related $98
Sacramento Lobbying Support $50
Total Legal & Lobbying Support
Services
$756 0.3%
Additional In-House Legal FTEs None
23 CCA Comparison (3CE, MCE, CPA, and SDCP): Total legal & lobbying support services costs range from 0.1% to 0.3% of revenue.

Operating Expenses Highlights: Legal & Lobbying Support Services As a community-focused public agency, OCPA prioritizes meaningful engagement with its customers to build trust, strengthen relationships, and advance its mission of delivering clean, affordable energy. Through a variety of communication channels, OCPA actively connects with local communities to raise awareness of OCPA, educate the public on the benefits of community choice energy, and promote sustainability initiatives. These efforts ensure that residents and businesses across Orange County are well-informed about OCPA’s role in supporting environmental stewardship.

The FY2025/26 Marketing and Outreach budget supports these goals by funding mandatory notifications, such as Joint Rate Comparisons, to ensure compliance, as well as marketing and public education campaigns designed to enhance brand recognition and public confidence. Additionally, the budget provides for sponsorships of community events and partnerships with local organizations, along with targeted outreach to promote OCPA’s clean energy programs. These efforts reinforce OCPA’s commitment to transparent communication and to cultivating an engaged, environmentally conscious community. $ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
Marketing & Communications Consulting $734
Direct Mailers & Postage $412
Advertising & Paid Media $266
Sponsorships & Memberships $149
Translation, Website Enhancement & Related $67
Promotions & Branding $22
Total Marketing & Outreach $1,650 0.6%
24 CCA Comparison (3CE, MCE, CPA, SDCP, and SVCE): Total marketing & outreach costs range from 0.1% to 0.4% of revenue.

Operating Expenses Highlights: Marketing & Outreach
General & Administrative (G&A) expenses support OCPA’s daily operations and include office rent and lease amortization (in accordance with Governmental Accounting Standards Board (GASB) Statement No. 87), maintenance, insurance, bank fees, and office supplies. This category also covers IT equipment and software, including OCPA’s energy portfolio risk management and data analytics systems, which enhance market intelligence, optimize the power portfolio, mitigate risks, and ensure regulatory compliance.

Discretionary spending for conferences, professional development, travel, and business meals is managed prudently. G&A expenses also include dues for California Community Choice Association (CalCCA) and the California Community Choice Financing Authority (CCCFA) to support industry engagement and potential green bond prepayment opportunities. $ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
CalCCA Membership Due $420
OCPA Energy Portfolio Risk Management & Data Analytics Systems $397 Office Rental and Lease Amortization $224
Bank and Commitment Fees $180
Business Insurance $120
IT Equipment and Software $93
CCCFA Membership Due $70
Discretionary Spending:

Conferences, Professional Development & Travel $146
Business Meals $37
Other Ordinary Business Expenses $100
Total General & Administrative Expenses $1,787 0.6%
• CalCCA advocates on behalf of California’s community choice aggregators (CCAs) before the state legislature and regulatory agencies. • CCCFA supports its member CCAs by offering prepayment financing structures designed to lower the cost of power procurement. 25 • CCA Comparison (3CE, MCE, CPA, SDCP, and SVCE): Total general & administrative expenses range from 0.4% to 1.1% of revenue.

Operating Expenses Highlights: General & Administrative Expenses OCPA is committed to reinvesting in the community through energy programs that directly support its customers. These programs are designed to address the specific energy needs of households and businesses while advancing the transition from fossil fuels to clean energy solutions.

As part of this commitment, OCPA has launched the Community Power Plan (CPP) to better understand the unique priorities of its member communities, ensuring that future programs are responsive and impactful. Continued support is also planned for community grant initiatives that promote clean energy education, as well as ongoing efforts such as the OCPA Marketplace, which offers discounts on energy-efficient products for the home.
26 $ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
OCPA CPP Programs Development $100
OCPA Programs:

OCPA CPP Programs $745
EV Charger and Solar Battery Rebate Programs $218
OC Bright Futures Grant $100
OCPA Marketplace and Incentive Finder $58
Total Energy Programs $1,221 0.4%
CCA Comparison (3CE, MCE, CPA, and SVCE): Total energy programs costs range from 1.1% to 10.4% of revenue.

Operating Expenses Highlights: Energy Programs
The Equitable Building Decarbonization Direct Install (EBD-DI) Program, administered by the California Energy Commission (CEC), is a statewide initiative funded by state and federal sources to support the installation of all-electric appliances, energy efficiency measures, and weatherization upgrades in low-income households across under-resources communities.

As a partner, OCPA conducts culturally relevant outreach and education, facilitates participant handoffs, gathers feedback through follow-up surveys, and submits monthly reports to the Program Implementer.

OCPA has been awarded $771k to support the EBD-DI Program, with $474k allocated for OCPA-led activities and $297k for subcontractor outreach. For FY2025/26, reimbursable labor and travel expenses are projected at $34k, with no impact on OCPA’s budget. 27 $ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
EBD-DI Program Grant Income $34
Reimbursable Expenses:

Direct Labor and Fridge Benefits ($33)
Travel ($1)
Total EBD-DI Program Fund Impact $0 0%
Operating Expenses Highlights: Equitable Building
Decarbonization Direct Install Grant
Debt service includes interest costs on the $7.5 million loan from the City of Irvine, as well as imputed interest on OCPA’s office lease. The lease-related interest is calculated in accordance with Governmental Accounting Standards Board (GASB) Statement No. 87, which requires the net present value of lease obligations to be capitalized and amortized over the lease term.
$ in thousands
Period Ending June 30 FY2025/26 Budget % of rev
Interest Costs – City of Irvine $265
Interest Costs – OCPA’s Office Lease $49
Total Debt Services $314 0.1%
28 CCA Comparison (MCE and SDCP): Total debt services costs range from 0.1% to 0.7% of revenue.

Operating Expenses Highlights: Debt Services
29 5-Year OCPA Financial Proforma
FY2026/27 to 2030/31
($ in thousands)
Period Ending Jun 30
Reforecast
FY2024/25 % of Rev
Budget
FY2025/26 % of Rev
Projection
FY2026/27 % of Rev
Projection
FY2027/28 % of Rev
Projection
FY2028/29 % of Rev
Projection
FY2029/30 % of Rev
Projection
FY2030/31 % of Rev

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 248,064 87.3% 246,322 86.1% 289,120 97.0% 306,105 96.9% 307,355 96.9% 309,504 96.9% 312,014 96.9% Revenue - Smart Choice Premium 5,257 1.8% 7,430 2.6% 6,543 2.2% 5,001 1.6% 5,022 1.6% 5,064 1.6% 5,104 1.6% Revenue - 100% Renewable Premium 16,008 5.6% 3,252 1.1% 4,048 1.4% 6,644 2.1% 6,672 2.1% 6,728 2.1% 6,781 2.1% Less: Uncollectible Accounts (4,713) (1.8%) (3,855) (1.5%) (4,496) (1.5%) (4,766) (1.5%) (4,786) (1.5%) (4,819) (1.5%) (4,858) (1.5%) Revenue deferral 15,112 29,888 0 0 0 0 0
Net Revenue - Electricity 279,728 98.4% 283,037 99.0% 295,215 99.0% 312,983 99.1% 314,263 99.1% 316,476 99.1% 319,041 99.1% Investment and Miscellaneous Income 4,510 1.6% 3,000 1.0% 3,000 1.0% 3,000 0.9% 3,000 0.9% 3,000 0.9% 3,000 0.9% Total Net Revenue and Other Sources 284,238 100.0% 286,037 100.0% 298,215 100.0% 315,983 100.0% 317,263 100.0% 319,476 100.0% 322,041 100.0%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 271,038 95.4% 269,368 94.2% 260,317 87.3% 259,399 82.1% 265,720 83.8% 267,633 83.8% 270,720 84.1% Data Manager 1,831 0.6% 2,237 0.8% 2,668 0.9% 2,790 0.9% 2,865 0.9% 2,942 0.9% 3,021 0.9% Utilities Service Fees 456 0.2% 480 0.2% 525 0.2% 540 0.2% 540 0.2% 540 0.2% 540 0.2% Staffing Costs 4,560 1.6% 6,212 2.2% 7,415 2.5% 8,194 2.6% 9,010 2.8% 9,868 3.1% 10,768 3.3% Contract Services 1,521 0.5% 1,562 0.5% 1,525 0.5% 1,458 0.5% 1,477 0.5% 1,502 0.5% 1,529 0.5% Legal Services 506 0.2% 756 0.3% 843 0.3% 881 0.3% 922 0.3% 922 0.3% 922 0.3% Marketing and Outreach 1,726 0.6% 1,650 0.6% 1,731 0.6% 1,817 0.6% 1,906 0.6% 2,001 0.6% 2,099 0.7% Other G&A 1,328 0.5% 1,787 0.6% 2,102 0.7% 2,101 0.7% 2,132 0.7% 2,190 0.7% 2,250 0.7% Energy Programs 586 0.2% 1,221 0.4% 1,183 0.4% 1,438 0.5% 1,693 0.5% 1,949 0.6% 2,205 0.7% 283,552 99.8% 285,272 99.7% 278,309 93.3% 278,618 88.2% 286,266 90.2% 289,547 90.6% 294,055 91.3%

OTHER USES
Capital Outlay 377 0.1% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total Other Uses 377 0.1% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%

DEBT SERVICE
Interest costs - nonoperating 309 0.1% 314 0.1% 196 0.1% 35 0.0% 26 0.0% 16 0.0% 5 0.0% Finance costs - Principal 0 0.0% 0 0.0% 2,528 0.8% 0 0.0% 0 0.0% 0 0.0% 0 0.0% Total Expenditures and Other Uses 284,238 100.0% 285,587 99.8% 281,033 94.2% 278,653 88.2% 286,292 90.2% 289,562 90.6% 294,060 91.3% Net Income Surplus/(Deficit) 0 0.0% 450 0.2% 17,181 5.8% 37,331 11.8% 30,971 9.8% 29,914 9.4% 27,981 8.7% Reserve Balance:

Carryover balance 44,866 15.8% 44,866 15.7% 45,316 15.2% 62,498 19.8% 99,828 31.5% 130,799 40.9% 160,713 49.9% Net Income Surplus/(Deficit) 0 0.0% 450 0.2% 17,181 5.8% 37,331 11.8% 30,971 9.8% 29,914 9.4% 27,981 8.7% Ending balance 44,866 45,316 62,498 99,828 130,799 160,713 188,694 % of operating expenses 16% 16% 22% 36% 46% 56% 64%
Below Target Below Target Below Target Below Target Below Target 30 SCE PCIA/Gen
rates uncertainty
Power prices are near
record high levels, volatile
market, scare RA supply
during summer months
Customer defaults,
collateral postings
Regulatory & legislative
uncertainty, central buyer,
direct access, PSPS
Rate increases will
ultimately impact
IOU
RATES
POWER
SUPPLY
SHOCKS

CUSTOMER

PAYMENTS

REG &LEG
ISSUES
RATE

AFFORDABILITY
OCPA Operating Reserves
Maintaining a healthy operating reserve to absorb numerous risks PCIA/Gen rates
uncertainty
Record high power prices, volatile
market, scarce RA supply during
summer months, collateral
postings
Customer defaults
in the event of an
economic downturn
Regulatory & Legislative
uncertainty, IRP, RPS, RA
reform, PCIA, direct
access, POLR
Energy price
increases will
impact usage and
electrification
Possibility of incurring
significant financial risks

CHANGE IN
MEMBER

PARTICIPATION
FY24/25 Projected Reserve
$45mil or 16% of total
operating budget expenses
Starting 12/2026 Projected Reserve
30%-50% of total operating budget
expenses
31 OCPA maintains an Operating Reserve as part of its long-term financial strategy to achieve an investment-grade credit rating and secure cost-effective energy procurement, promoting fiscal responsibility and operational resilience. The reserve targets 30%-50% of total operating expenses to buffer against external risks such as changes in member participation, fluctuations in SCE generation rates and the Power Charge Indifference Adjustment (PCIA), rising renewable and Resource Adequacy (RA) prices, customer payment defaults, regulatory uncertainties, and market volatility that could impact energy use and electrification goals.

As of December 2026, OCPA’s 4th year of full operations, the Operating Reserve is projected to reach $76 million, equal to 30% of total operating budget expenditures, strengthening financial stability and advancing OCPA’s clean energy mission. 5-Year OCPA Financial Proforma
Established in November 2020 as a Joint Powers Authority, OCPA provides electric generation services to residents and businesses in Buena Park, Fullerton, and Irvine through California’s Community Choice Aggregation (CCA) model. Beginning in October 2026, Fountain Valley will also offer its community a choice in electricity generation.

OCPA allows customers to procure electricity from competitive suppliers, with SCE continues to manage transmission and distribution and billing. Focused on reducing greenhouse gas emissions, OCPA promotes local control of renewable energy, offers affordable rates, and delivers innovative energy programs. By supporting economic development, advancing clean energy, and ensuring long-term rate stability, OCPA helps build a sustainable and resilient energy future for Orange County.

About OCPA
Councilmember
City of Buena Park
2025 OCPA Board
Susan Sonne
Chair
James Mai
Vice Chair
Vice Mayor
City of Irvine
Fred Jung
Director
Mayor
City of Fullerton
Glenn Grandis
Director
Councilmember
City of Fountain Valley
William Go
Director
Councilmember
City of Irvine
Job Description
Administrative Services Manager

SUMMARY
The Administrative Services Manager (ASM) oversees Orange County Power Authority’s (OCPA) internal operations to ensure efficiency and compliance with policies and applicable regulations. The ASM is responsible for managing administration, information technology (IT), human resources (HR), non-energy Request for Proposals (RFPs) and contracts, and general office operations. In addition, the ASM provides executive support, manages the Administrative Services Department’s budget, and leads strategic initiatives.

This role is essential for streamlining administrative and operational processes, ensuring compliance with relevant laws, and fostering cross-departmental collaboration supporting OCPA’s clean energy mission. The ASM enables technical teams to remain focused on their core functions by maintaining a safe, functional, and compliant workplace.

This position is part of the Administrative Services Department.

EXAMPLES OF DUTIES / FUNCTIONS
Management reserves the right to modify work assignments and make reasonable accommodations to enable qualified employees to perform essential functions. Duties and responsibilities include, but are not limited to:
• Oversee administrative operations to ensure efficiency and compliance with OCPA policies and applicable regulations.
• Supervise IT and administrative staff, including the OCPA Internship Program. • Provide strategic oversight of HR functions while promoting staff autonomy. • Develop and monitor the Administrative Services Department budget for fiscal responsibility. • Manage non-energy RFPs and contracts under General Counsel’s guidance. • Implement process improvements to enhance operational efficiency and service delivery. • Maintain physical and cybersecurity protocols to protect organizational assets and data. • Support senior leadership with strategic initiatives and special projects to advance OCPA’s clean energy goals.
• Facilitate cross-departmental communication to promote collaboration and strategic alignment. • Prepare operational reports to inform decision-making and track performance. • Lead the creation and updating of internal policies and procedures to ensure regulatory compliance.
• Train administrative staff to build capacity and maintain consistent service standards. • Manage facility operations to ensure a safe and functional work environment. • Track staffing needs and workforce trends to support long-term planning. • Represent administrative functions in leadership meetings to align operations with strategic priorities.
• Develop and maintain a safety program and emergency preparedness plan. • Support departments in developing systems and integrating platforms for operational efficiency. • Ensure compliance with CCA-specific regulations and support stakeholder engagement for administrative processes.
• Manage special projects and perform other duties as assigned.

QUALIFICATIONS
Minimum Qualifications
Any combination demonstrating the ability to effectively and successfully perform the position's duties is considered qualifying.  A typical combination is as follows:

A Bachelor of Arts or Bachelor of Science degree from an accredited college or university in business or public administration, political science, or related field, AND at least three (3) years of experience directly related to the duties and responsibilities described above, particularly in public agency administration.

Start-up working experience in a Community Choice Aggregate (CCA), electric utility, and/or energy-related firm is highly desirable.

Technical expertise in IT, contract management, procurement, and project management is highly desirable.

Possession of a valid State of California driver’s license is preferred.

KNOWLEDGE, SKILLS, AND ABILITIES
The successful candidate will possess varied knowledge, skills, and abilities. The following are examples indicative of successful performance in this position:

Knowledge:
• California’s electric utility sector and CCA operations. • Public administration principles, including budgeting, procurement, contract management, and Brown Act compliance.
• Human Resources management principles, including recruitment, onboarding, and benefits administration.
• Office management, administrative procedures, and records management. • IT systems and cybersecurity best practices in a public agency setting. • Project management methodologies and tools.

Abilities:
• Demonstrate a strong work ethic, take initiative, and adapt to a fast-paced, start-up environment. • Exhibit integrity, patience, tact, and courtesy in all interactions. • Collaborate effectively with diverse internal and external stakeholders. • Apply strong organizational and analytical skills to manage multiple priorities. • Complete projects and reports accurately and on time. • Work independently and as part of a team to meet deadlines and handle open-ended tasks. • Communicate clearly and professionally, both orally and in writing. • Resolve operational, facility, or administrative issues swiftly and effectively. • Manage sensitive documents and compliance tasks with accuracy and confidentiality. • Adapt to uncertainty and resolve challenges effectively.

Other Qualifications
Analytical Thinking: Approaches a problem or situation by using a logical, systematic, sequential approach.

Collaboration: Build networks and fosters cross-functional collaboration with internal and external stakeholders.

Communication Skills: Conveys information clearly and professionally, both orally and in writing, while actively listening to others.

Fiscal Management: Demonstrates strong financial management skills, ensuring compliance with procurement and budgeting policies.

Leadership: Leads by example; demonstrates high ethical standards; remains visible and approachable and interacts with others regularly; promotes a cooperative and collaborative work environment, allowing others to learn from mistakes; provides motivational support and direction.

Vision/Strategic Thinking: Supports, promotes, and ensures alignment with the organization’s vision, values, and strategic goals; understands how an organization must change in light of internal and external trends and influences; builds a shared vision with others and influences others to translate vision to action.

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer/laptop; operate a motor vehicle, and visit various meeting sites in Orange County to conduct the Authority’s business. This is primarily a sedentary office classification, although standing in and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve information using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification include bending, stooping, kneeling, reaching, pushing, and pulling drawers open and closed to retrieve and file information. Employees must be able to lift, carry, push, and pull materials and objects up to 25 pounds.

Environmental Elements
This is primarily a sedentary classification. The employee works in an office environment with moderate noise levels, controlled temperature conditions, and no known direct exposure to hazardous physical substances. The employee interfaces with staff, management, other Authority representatives, government officials, business representatives, and the general public to explain the Authority’s programs and request and provide information.

This is an exempt position. This is not a civil service position; however, some OCPA employees may be required to submit a Statement of Economic Interests form, also known as Form 700.

Orange County Power Authority is an equal opportunity employer to all, regardless of age, ancestry, color, disability (mental and physical), exercising the right to family care and medical leave, gender, gender expression, gender identity, genetic information, marital status, medical condition, military or veteran status, national origin, political affiliation, race, religious creed, sex (includes pregnancy, childbirth, breastfeeding, and related medical conditions), and sexual orientation.

Job Description
Office Manager/Receptionist

SUMMARY
The Office Manager/Receptionist plays a role at Orange County Power Authority (OCPA), ensuring a welcoming, organized, professional office environment that supports OCPA’s clean energy mission. This position manages front desk operations, oversees office functionality, and supports administrative tasks to foster a productive workplace. Key responsibilities include coordinating Board of Directors and Community Advisory Committee meetings, managing vendor contracts, and maintaining office supplies.

The ideal candidate is a proactive, detail-oriented professional who thrives in a fast-paced, collaborative environment and is passionate about advancing OCPA’s clean energy goals.

This position is part of the Administrative Services Department.

EXAMPLES OF DUTIES / FUNCTIONS
Management reserves the right to modify work assignments and make reasonable accommodations to enable qualified employees to perform essential functions. Duties and responsibilities include, but are not limited to:
• Maintain a clean, organized, safe office environment to support a productive hybrid workforce. • Oversee contracted cleaning and maintenance vendors to ensure consistent facility upkeep and safety compliance.
• Answer incoming calls and monitor general email and communication channels for timely, professional responses to stakeholders and the public.
• Maintain inventory of office supplies, food, and beverages for daily operations. • Prepare meeting rooms for Board of Directors, Community Advisory Committee, and staff meetings, ensuring technology, climate control, refreshments, and public notices comply with Brown Act requirements.
• Coordinate refreshments and catering for meetings and events to enhance hospitality. • Greet visitors and staff, creating a positive and professional first impression. • Assist with administrative tasks, including drafting, filing, and processing documents to support agency operations.
• Report and resolve facility issues promptly to ensure workplace safety and continuity. • Support the logistics of regular and special events, including maintaining stakeholder lists, coordinating invitations, and managing event supplies.
• Ensure compliance with public agency requirements, including Brown Act and document retention policies.
• Perform other administrative duties as assigned.

QUALIFICATIONS
Minimum Qualifications
Any combination demonstrating the ability to effectively and successfully perform the position's duties is considered qualifying.  A typical combination is as follows:

At least three (3) years of experience directly related to the duties and responsibilities described above, particularly in a public agency or hospitality/retail setting.

Start-up working experience in a Community Choice Aggregate (CCA), electric utility, or energy-related firm is highly desirable.

Possession of a valid State of California driver’s license is preferred.

Additional Qualifications
This role requires a regular five-day weekday work schedule.

The successful candidate will possess varied knowledge, skills, and abilities. The following are examples indicative of successful performance in this position:
• Familiarity with California’s electric utility sector and CCA operations. • Understanding public administration principles, including budgeting, procurement, contract management, and compliance with Brown Act requirements. • Knowledge of office management, administrative procedures, and records management policies.
• Basic proficiency in IT systems, office software (e.g., Microsoft Office), and meeting room technology.
• Awareness of cybersecurity best practices in a public agency setting.

Abilities
• Maintain a strong work ethic, take initiative, and adapt to a fast-paced, start-up environment. • Demonstrate integrity, patience, tact, and courtesy in all interactions. • Collaborate effectively with diverse internal and external stakeholders. • Exhibit strong organizational skills and attention to detail in managing multiple priorities. • Complete projects and reports accurately and on time. • Work independently and as part of a team to meet deadlines and handle open-ended tasks. • Communicate clearly and professionally, both orally and in writing. • Resolve facility, supply, or administrative issues swiftly and effectively. • Manage sensitive documents and compliance-related tasks with accuracy and confidentiality. • Adapt to uncertainty and resolve challenges effectively.

Other Qualifications
Communication: Clear and courteous verbal and written communication with staff, vendors, and the public.

Organization: Maintain a tidy, well-stocked office ready for daily operations and special events.

Multitasking: Handles multiple responsibilities in a fast-paced, dynamic environment.

Attention to Detail: Ensures accuracy in meeting preparation, inventory tracking, and document handling.

Technical Proficiency: Comfortable with email, calendars, office software (e.g., Microsoft Office), and meeting room technology.

Problem-Solving: Proactively addresses facility, supply, or administrative challenges.

Physical Demands
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer/laptop; operate a motor vehicle, and visit various meeting sites in Orange County to conduct the Authority’s business. This is primarily a sedentary office classification, although standing in and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve information using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification include bending, stooping, kneeling, reaching, pushing, and pulling drawers open and closed to retrieve and file information. Employees must be able to lift, carry, push, and pull materials and objects up to 25 pounds.

Environmental Elements
This is primarily a sedentary classification. The employee works in an office environment with moderate noise levels, controlled temperature conditions, and no known direct exposure to hazardous physical substances. The employee interfaces with staff, management, other Authority representatives, government officials, business representatives, and the public to explain the Authority’s programs and request and provide information.

This is an exempt position. This is not a civil service position; however, some OCPA employees may be required to submit a Statement of Economic Interests form, also known as Form 700.

Orange County Power Authority is an equal opportunity employer to all, regardless of age, ancestry, color, disability (mental and physical), exercising the right to family care and medical leave, gender, gender expression, gender identity, genetic information, marital status, medical condition, military or veteran status, national origin, political affiliation, race, religious creed, sex (includes pregnancy, childbirth, breastfeeding, and related medical conditions), and sexual orientation.

Glossary
California Public Utilities Commission (CPUC)
CPUC is a state agency that regulates investor-owned utilities (IOU) in California. Its responsibilities include overseeing utility services, protecting consumers, safeguarding the environment, and ensuring Californians have access to safe and reliable utility infrastructure and services.

While the CPUC does not regulate the pricing of Community Choice Aggregators (CCAs), it enforces various operational requirements mandated by the legislature. These include compliance with the Renewable Portfolio Standard (RPS), Energy Storage mandates, Resource Adequacy (RA) requirements, public goods charge energy efficiency funding, and rate comparison disclosures.

In addition, numerous CPUC proceedings can directly or indirectly affect CCAs. These include IOU procurement and rate-setting processes, as well as the establishment of exit fee calculations, which impact CCA operations and costs.

Renewable Portfolio Standards (RPS)
RPS are regulations that require energy providers to generate a minimum percentage of their energy from renewable sources.

California's RPS program was established in 2002 by Senate Bill (SB) 1078 (Sher, 2002), which initially mandated that 20% of electricity retail sales be served by renewable resources by 2017.

The program was later expanded by SB 100 (de León, 2018), which increased the RPS requirement to 60% by 2030 and mandated that 100% of California’s electricity come from carbon-free resources by 2045.

The California Energy Commission (CEC) verifies the eligibility of renewable energy procured by LSEs, including retail sellers, publicly owned utilities (POUs), and other entities serving retail electricity sales in California that are obligated to participate and report to the RPS program.

Eligible renewable resources are defined in California Public Resources Code § 25741 and include facilities using the following technologies: Biomass, Solar Thermal, Photovoltaic, Wind, Geothermal, Fuel cells using renewable fuels, Hydroelectric under 30 MW, Digester gas, Municipal solid waste conversion, Landfill gas, Ocean wave, Ocean thermal, Tidal current.

Resource Adequacy (RA)
The CPUC adopted a RA policy framework in 2004, as outlined in Public Utilities Code section 380, to ensure the reliability of electric service in California. This framework established RA obligations for all LSEs within the CPUC’s jurisdiction, including IOUs, energy service providers (ESPs), and CCAs.

The RA policy framework, implemented through the RA program, guides resource procurement and promotes infrastructure investment by requiring LSEs to procure capacity to ensure that resources are available to the California Independent System Operator (CAISO) when and where they are needed.

To ensure LSEs can meet peak demand, the CPUC requires CCAs to submit annual and monthly filings demonstrating compliance with specified capacity procurement percentages. The RA program includes separate requirements for system, local, and flexible RA.

Market Price Benchmark (MPB)
The MPB is an average of utility portfolio costs used in calculating the ERRA Forecast Updates. It is a key component in PCIA calculations. The MPB is determined using the volume-weighted average of most recent market transactions and is used to calculate the final portfolio values in the PCIA.

Product Content Category 1 (PCC1)
PCC1 refers to renewable resources that are either located within the state of California or directly delivered to California without being substituted by another resource. To meet the minimum RPS requirements, a portfolio must consist of at least 75% PCC1 resources starting from January 1, 2025, and thereafter.

PCC1 Renewable Energy Credits (RECs) are most commonly used by CCAs to fulfill their RPS obligations.

Full-Time Equivalent (FTE)
An FTE measures the total number of hours employees work in relation to a full-time work schedule.

Power Charge Indifference Adjustment (PCIA)
The PCIA is a fee charged by IOUs to CCA customers to ensure that remaining utility (bundled) customers do not face cost increases due to customers migrating to a CCA. The PCIA calculation methodology is established by the CPUC and is updated annually. Vintages are assigned based on the year of customer departures from the utility.

CCA customers are responsible for paying this fee, which is set by utilities. However, CCAs, including OCPA, typically set their rates lower to help offset the impact of the PCIA on their customers.

Federal Deposit Insurance Corporation (FDIC)
The FDIC is an independent agency of the federal government with a mission to maintain stability and public confidence in the nation’s financial system. The FDIC insures deposits, examines and supervises financial institutions, and resolves financial institution failures.

IntraFi Cash Services (ICS)
IntraFi is a financial services company that helps financial institutions offer FDIC-insured deposit accounts to customers. ICS places funds into deposit accounts across a network of FDIC-insured banks, which allows businesses to protect large deposits that typically exceed the FDIC insurance limit of $250,000.

Money Market Accounts
A money market account is a type of bank account that earns interest and combines features of savings and checking accounts.

Negotiable Certificate of Deposit (NCD)
A negotiable certificate of deposit (NCD) is a type of certificate of deposit (CD) that can be sold in the secondary market, meaning it can be traded between investors before its maturity date.

This differs from a traditional CD, which is typically held until maturity and can only be redeemed at the issuing bank. In essence, an NCD is a type of CD that offers greater flexibility and liquidity, allowing investors to sell the CD before maturity to meet their liquidity needs.

U.S. Treasury Bills
A Treasury Bill is a short-term U.S. government debt obligation backed by the U.S. Department of the Treasury with terms ranging from four to 52 weeks.

SCE Voluntary Allocation Market Offer (VAMO)
On August 23, 2021, California’s IOUs jointly filed a Tier 2 advice letter proposing a methodology for allocating a portion of each IOU's PCIA-eligible RPS portfolio. Decision 21- 05-030 established a two-part process:

1. Voluntary Allocations: Offering PCIA-eligible RPS resources to Load Serving Entities (LSEs) proportional to their “vintaged, forecasted annual load share”.

2. Market Offer Sales: Selling any remaining volumes through a subsequent market offer.

Collectively, these processes are referred to as VAMO.

Modified Cost Allocation Mechanism (MCAM)
The Modified Cost Allocation Mechanism (MCAM) is a system used by the California Public Utilities Commission (CPUC) to allocate the costs of electricity procurement by Investor-Owned Utilities (IOUs) on behalf of non-utility Load Serving Entities (LSEs). In essence, the MCAM defines the principles and methods for allocating the costs of electricity procurement by IOUs, including costs related to Resource Adequacy (RA).

Order Instituting Rulemaking (OIR)
An OIR is an investigatory proceeding opened by the CPUC to consider the creation or revision of rules or guidelines affecting more than one utility or a broad sector of the industry.

Equitable Building Decarbonization Direct Install (EBD-DI) Program The EBD-DI Program is a state-wide program that aims to reduce greenhouse gas emissions in homes and advance energy equity through incentivizing increased adoption of low-carbon technologies. The Direct Install program provides decarbonization retrofits to low- and moderate-income households.

Cost-of-Living Adjustment (COLA)
A COLA is an increase in compensation intended to help employees maintain the value of their pay against inflation. COLAs are typically based on inflation rates measured by the Consumer Price Index (CPI) for a specific period.

Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers and is used to measure inflation and deflation. The Bureau of Labor Statistics calculates the CPI as a weighted average of prices for a basket of goods and services.

Congestion Revenue Rights (CRR)
Congestion Revenue Rights (CRRs) are financial instruments used in electricity markets to manage the financial risks associated with transmission congestion. CRRs are financial contracts that entitle the holder to receive payments or be charged based on the difference in electricity prices between two points on the transmission grid. CRRs are primarily used to hedge against the cost of transmission congestion, which arises when the grid is constrained, and electricity cannot flow freely between different locations.

California Independent System Operator (CAISO)
The CAISO manages the flow of electricity across high-voltage, long distance power lines, administers a wholesale energy market, and oversees transmission planning to maximize efficiency and reliability.

General Rate Case (GRC)
GRCs are proceedings used to address the costs of operating and maintaining the utility system and the allocation of those costs among customer classes. Phase 1 of a GRC determines the total amount the utility is authorized to collect and Phase 2 determines the share of the cost each customer class is responsible for and the rate schedules for each class. Each of the three, large investor-owned-utilities (IOUs) file a GRC application every four years.

Energy Resource Recovery Account (ERRA) Forecast
ERRA is a utility account used to track and recover the actual costs of fuel and power provided for customers. Utilities use ERRA proceedings to determine the rates they can charge customers for these costs. Utilities do not make any profit on these costs but are authorized to full recover the actual expenses incurredon a reasonable basis.

Southern California Edison (SCE) submits an annual forecast filing and a compliance filing as part of the ERRA process to set generation rates. Additionally, if the ERRA balancing account reaches the predetermined thresholds or “triggers”, SCE may file Advice Letters and seek authorization from the CPUC to adjust rates outside of the regular schedule.

Governmental Accounting Standards Board (GASB)
The GASB is an independent, private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments that follow generally accepted accounting principles (GAAP).

California Community Choice Association (CalCCA)
The CalCCA represents the interests of California’s community choice electricity providers in the legislature and at state regulatory agencies, including the California Public Utilities Commission, California Energy Commission, and California Air Resources Board. CalCCA’s mission is to create a legislative and regulatory environment that supports the development and long-term sustainability of locally run Community Choice Aggregators (CCAs) in California.

California Community Choice Financing Authority (CCCFA) The CCCFA was established in 2021 with the goal of reducing the cost of power purchases for member CCAs through pre-payment structures. The prepay structure effectively leverages the difference between tax-exempt and taxable debt rates to fund the reduction in the cost of power purchases.

Community Power Plan (CPP)
OCPA’s CPP is a strategy and roadmap for future community programs to save customers energy and money, and help Orange County achieve climate goals. The plan will be community-driven and informed by surveys, feedback, and research.

California Energy Commission (CEC)
The CEC is California’s primary energy policy and planning agency responsible for developing and implementing policies related to renewable energy, energy efficiency, energy innovation, clean transportation, electricity infrastructure, and emergency response.

Debt Service Coverage Ratio (DSCR)
The DSCR measures the cash flow available to meet current debt obligations and is used by lenders to assess whether a business generates sufficient net operating income to repay its loans.

Per the terms of OCPA’s revolving loan facility with US Bank, the DSCR requirement is calculated as:

Net Revenue / Annual Debt Service ≥ 1.40, effective June 30, 2024, and thereafter.

Where:
a. Net Revenue = Revenues minus Operating and Maintenance Costs b. Annual Debt Service = Interest and fees due over the 12-month test period, plus the average outstanding principal, divided by 5

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 9
--------------------------------------------------------------------------------------------------------------------- To: Orange County Power Authority Board of Directors
From: Joe Mosca, Chief Executive Officer
Subject: CHIEF EXECUTIVE OFFICER’S REPORT
Date: June 9, 2025
--------------------------------------------------------------------------------------------------------------------- Revenue Deferral Transfer
As discussed during today’s FY2025/26 Budget item, OCPA will utilize the $45 million in previously deferred revenue from FY2023/24 - $15 million in FY2024/25 and $30 million in FY2025/26 - to help offset the anticipated revenue shortfall. This shortfall is primarily driven by the continuation of the 2024 rate design in 2025 and the City of Irvine’s shift from 100% Renewable Choice to Basic Choice. This strategic use of deferred revenue aligns with the Board-approved Rate Stabilization Policy and serves as a key financial tool to support long-term rate stability and affordability. By proactively reallocating these funds, OCPA strengthens its ability to manage financial risks, stabilize rates, and protect customers from market volatility.

SCE June 2025 Rates Update
Southern California Edison (SCE) is proposing rate component changes effective June 1, 2025, pending CPUC approval. While average generation rates and the Power Charge Indifference Adjustment (PCIA) remain unchanged, SCE is adjusting the Time-of-Use (TOU) differentials for residential default TOU generation rates compared to the March 2025 rate file. Staff will update the June 2025 rate schedules accordingly and coordinate with Calpine to implement the new rates in mid-July.

CPUC Load Management Standards Update
The California Energy Commission (CEC) reviewed OCPA’s May 2024 Load Management Standards (LMS) compliance plan and requested a revised draft by June 30, 2025. The updated plan must include marginal cost-based rate designs or programs for each customer class— residential, commercial, industrial, and agricultural - along with dynamic rate options, IOU CalFUSE pilot contingencies, or other compliant programs. The revision will also incorporate LMS-relevant rates, programs, and standardized language for the statewide RIN tool. OCPA staff will work closely with the CEC technical team to complete the update.

Strategic Plan Monthly Status Report
As requested during the 2025-26 strategic planning process, staff will prepare a monthly report on the progress of OCPA’s strategic goals and objectives. The report will appear on the consent calendar, and board members can see monthly status changes and call it for discussion, if needed.

Communications & External Affairs Updates
Communications
➢ Following OCPA’s successful hosting of the Santa Ana Chamber of Commerce Government Affairs Committee, a blog post was added to the Chamber’s website advocating for OCPA: Santa Ana Businesses Could Save Thousands (And the Planet) With One Simple Switch
➢ The Orange County United Way posted to LinkedIn about the grant they received from OCPA: We’re energized with gratitude for Orange County Power Authority’s support of our United for Student Success initiative!
➢ OCPA has been officially nominated for a 2025 Golden Hub of Innovation Award through the Association of California Cities – Orange County (ACC-OC) in the Environmental Sustainability & Energy Efficiency category. The awards ceremony will take place on June 11 in Yorba Linda, and OCPA staff will be present in case the organization is awarded.

Community Engagement
➢ OCPA attended the well-attended County of Orange climate action plan update, including Supervisor Katrina Foley, Sustainability Manager Tara Tisopulos, and Director of OC Waste and Recycling Tom Koutroulis. Of significance to OCPA is their plan to reduce flaring and capture more methane to convert to Renewable Natural Gas (RNG), 60% by 2030.
➢ Staff attended the Fullerton Collaborative, where OCPA distributed LED lights and flyers on the community power plan, energy efficiency kits, and Bright Futures Grant. ➢ Staff has been looking to build a relationship with Ikea in Costa Mesa based on their dedication to sustainability. An in-person meeting led to discussions on a potential panel conversation on business sustainability with OCPA playing a role. Conversations are ongoing.
➢ OCPA Customer Programs staff joined the California Efficiency + Demand Management Council Spring Symposium in Costa Mesa. Takeaways include:
o The often-misunderstood value of demand-side energy savings. The speaker cited the 2022 Flex Alert in California, which achieved a 6–8% drop in demand (about

2.6 GW) without any incentives, as proof of the untapped potential of flexible load management.
o Speakers urged policy changes to align utility incentives with energy efficiency (EE) and demand flexibility, moving beyond compliance-driven models. Stories that humanize impacts, private capital through Energy-as-a-Service, and bipartisan support for programs like Energy Star were also emphasized. Vermont’s managed EV charging and New York’s nimble approach through the New York State Energy Research and Development Authority (NYSERDA) were cited as best practices, in contrast to California’s regulatory rigidity.
o Every 1 kWh saved through demand-side management (DSM) can avoid up to 3 kWh in supply-side generation, delivering up to $8 in savings for every $1 spent.

Speakers urged simplification of EE and DSM regulations to unlock greater impact, calling for more explicit rules, streamlined processes, customer-focused design, improved savings calculations, and expanded eligibility. They emphasized that aggregated demand response should be recognized as a reliable resource and that utility cost transparency must improve.
o Both LADWP and SCE serve large low-income populations, with LADWP noting that half its customers fall into this category. SCE reports that one-third are low-income and half live in disadvantaged communities (DACs). LADWP projected that achieving full decarbonization by 2035 could cost between $50 billion (high EE/DR scenario) and $80 billion (low EE/DR), reinforcing the financial value of robust efficiency and demand response strategies.
➢ Last Saturday, OCPA sponsored a garden rejuvenation project during Love Costa Mesa.

The event brought out nearly 800 volunteers to work on 78 projects. Also in attendance were multiple city staff and elected officials. OCPA connected with key community members, including members of garden groups, non-profits, faith-based organizations, business and chamber members, and city personnel.
➢ Staff is researching workforce development and college sustainability programs to promote at high schools to inspire students about the green economy. This is in addition to preparing for the summer internship program through the CEO Leadership Alliance of Orange County. CLAOC is hosting students for a paid summer internship, where interns will compete in one of four bold challenges. OCPA supports the Community Power Planning challenge, where 17 students will be community advisors and consultants for OCPA.

Drawing inspiration from real-world initiatives like Community Power Plans and the work of leading firms like Ernst & Young, students will work in small groups to research, analyze, and present solutions for engaging different stakeholder groups around renewable energy adoption and policy in Orange County. Students will explore the truths and myths around clean energy, gain experience in community data collection, and present their final recommendations directly to OCPA. The students participating are from Irvine, Buena Park, Garden Grove, Newport Beach, and Yorba Linda.
➢ Staff engaged with over 60 community members during the Pathways of Hope Food Distribution Day in Fullerton, sharing information and distributing flyers about the Community Power Plan (CPP) survey to residents of OCPA member cities. ➢ OCPA attended the Pride in Irvine event last week, kicking off what will be a celebratory June.
➢ Staff met with Fountain Valley City staff to discuss a partnership with PCTA to promote OCPA on Channel 3 public access television. OCPA will develop a digital billboard that can be aired for free and custom content that we can air at a minimal cost. This is an excellent opportunity to connect and build trust with the community before the OCPA transition.
➢ During a recent community engagement in Fullerton, a stakeholder remarked on OCPA’s increased visibility and professionalism. They noted that our recent engagement at community and business events felt like a “night and day” shift from prior years. This anecdotal feedback reinforces the great work of our CEA team and the agency’s comprehensive communications efforts!
External Affairs
➢ OCPA met with Costa Mesa City staff and two Councilmembers to review the city’s feasibility study results.
➢ OCPA hosted the Santa Ana Chamber of Commerce Government Affairs Committee meeting this past week, which brought together City business leaders and Councilmember Phil Becerra.
➢ External Affairs staff attended the Chamber Business Alliance Multi-Chamber Mixer in Anaheim, where we networked with regional businesses and civic leaders, particularly from Brea and additional regional cities.
➢ We are working with Meghan Wishner, Fountain Valley City Staffer, on a programming collaboration with PCTA. Our goal is to run a digital bulletin, which is no cost, and explore a more custom programming opportunity. This is a trusted public communications channel and will be a great avenue to educate residents on OCPA before transitioning to service in October 2026.

Customer Programs
➢ Community Power Plan: OCPA continues outreach for its Community Power Plan, including a call with the Apartment Association of Orange County in hopes of partnering to get more feedback from property owners. A key challenge discussed was the difficulty of upgrading electrical panels in older multi-unit buildings due to permitting delays, contractor shortages, tenant displacement concerns, and meeting impending AQMD regulations. The group emphasized the need for expedited city permitting and better coordination with utilities. We will continue our outreach efforts, especially as we begin work with the Asian Business Association Coalition. We are adjusting our needs assessment survey based on their feedback and will have materials translated to meet their communication needs.
➢ Equitable Building Decarb Direct Install: Great news! Los Angeles County has countersigned the MOU. We await the next steps, with a goal program launch in late Summer 2025.
➢ Energy Efficiency Kits: Free and reduced-cost energy efficiency kits are now available on the OCPA Marketplace through June 30th. Customers on low-income programs (CARE, FERA) can receive the kit with $50 worth of energy efficiency supplies for free, and all other OCPA customers can receive it for half price ($25). ➢ Bright Futures Grant: The grant application window has closed, and 21 applications were received. Community Advisory Committee members are on the evaluation committee, which is actively screening applications. Grantees will be selected in June/July and shared with the Board at the following Board meeting.
➢ OCPA Charge@home EV charger rebate program: To date, 22 chargers have been ordered through this program on the OCPA Marketplace landing page. We will boost this on social channels in June and are in conversation with the Orange County Auto Dealers Association about promoting it at dealerships in member cities. ➢ Solar battery rebate program: Our contractor, The Energy Coalition, has developed a budget and scope to support this project, which is currently under review. We will have a kick-off meeting next week to begin defining the program.

Human Resources Updates
Recruitment
➢ Our first summer intern, Tula Larsen, began work in our Regulatory and Legislative Affairs Department this week. Tula is a resident of Irvine and attends Emory University, majoring in Environmental Science and Political Science. She already possesses an impressive level of involvement with organizations such as Citizens Climate Lobby and the Orange County Chapter of The Climate Reality Project. Last summer, she served as a policy intern in the office of Supervisor Katrina Foley, specializing in environmental studies and reviewing the County’s Climate Action Plan.
➢ On June 9, Analisa Cassidy will intern in our Communications & External Affairs Department (CEA). She is a California State University, Northridge student working on her Master of Arts Degree in sustainability. She has a strong background in public-facing medical, hospitality, and food service positions. Analisa possesses her LEED Green Associate certification and is passionate and determined to expand her skills and build a career in sustainability.
➢ Interviews were held for the Energy Contracts and Compliance Analyst and Origination and Trading Manager positions. The top candidates will be invited to a final interview with Louis Ting, Director of Power Resources, Tiffany Law, CFO, and CEO Joe Mosca, after which a hiring decision may be made.

Events & Stakeholder Outreach
The OCPA team has attended the following events and community meetings since our last Board meeting.

City Event & Meetings Date Time
Fullerton
Fullerton Collaborative General
Meeting - United Visions,
Stronger Communities
Monday, May 12, 2025 2:00 PM - 4:00 PM
Santa Ana County of Orange CAP Update Monday, May 12, 2025 6:00 PM - 7:00 PM Buena Park America On Track FIT
Committee Tuesday, May 13, 2025 9:30 AM - 10:30 AM
Costa Mesa
California Energy Efficiency and
Demand Management Council ||
Spring Symposium
Wednesday, May 14, 2025 N/A
Costa Mesa Love Costa Mesa Day Saturday, May 17, 2025 7:30 AM - 12:30 PM Fullerton Pathways of Hope Tuesday, May 20, 2025 1:00 PM - 4:00 PM Los Alamitos Sustain SoCal Sustainable
Campus Challenge Tuesday, May 20, 2025 4:00 PM - 7:30 PM Los Angeles PANC SoCal Networking Event Tuesday, May 20, 2025 5:00 PM - 7:00 PM Costa Mesa Costa Mesa Feasibility Study
with Staff Wednesday, May 21, 2025 2:00 PM - 3:00 PM
Irvine Pride in Irvine Thursday, May 22, 2025 5:00 PM - 7:00 PM Regional
Orange County Chinese
Community Service Taste &
Thrive Event
Friday, May 23, 2025 10:00 AM - 2:00 PM
Buena Park OCPA Pop-Up (Buena Park) Tuesday, May 27, 2025 5:00 PM - 7:00 PM Irvine Solarize Irvine Annual Kick-off Thursday, May 29, 2025 N/A Buena Park Friendly Center – OCPA Pop-up Monday, June 9, 2025 10:30 AM - 1:00 PM We are looking forward to many opportunities to engage with the community and key stakeholders, including:

City Event & Meetings Date Time
Irvine Irvine High School Youth
Outreach CleanTech Presentation Tuesday, June 10, 2025 N/A Regional
ACC-OC Annual Leadership
Summit and Golden Hub of
Innovation Awards
Wednesday, June 11, 2025 4:30 PM - 8:00 PM
Santa Ana Meeting with Mayor Amezcua Thursday, June 12, 2025 N/A Regional Cal Cities Division Meeting Thursday, June 12, 2025 5:30 PM - 8:00 PM Irvine Cool Irvine Annual Eco Fair Saturday, June 14, 2025 10:00 AM - 1:00 PM Fountain
Valley FV Senior Health Expo 2025 Wednesday, June 18, 2025 9:30 AM - 12:00 PM Fountain
Valley
Fountain Valley Summerfest (FV
Community Foundation) Thursday, June 19, 2025 N/A
Buena Park Buena Park Juneteenth Event Thursday, June 19 – Sunday, June 22, 2025 Varies
Irvine OC Leadership Academy visit to
OCPA Tuesday, June 24, 2025 3:00 PM - 4:30 PM
Costa Mesa Costa Mesa State of the City Wednesday, June 25, 2025 11:00 AM – 1:30 PM Regional OC United Way Summer
Academy Thursday, June 26, 2025 10:00 AM - 11:30 AM
Fullerton Fullerton State of the City Thursday, June 26, 2025 2:30 PM - 5:00 PM San Jose California Climate and
Energy Forum Wednesday, July 9 N/A
Regional SOCEC Board Installation Wednesday, July 9, 2025 4:30 PM - 6:30 PM Attachments:

Attachment A – Non-Power Supply Contracts In Excess of $50,000 to Under $100,000 Orange County Power Authority
Non Power Supply Contracts In Excess of $50,000 to Under $100,000 Item No Vendor Term Contract Amount Brief Service Description Remark 1 Amperon 5/12/2025-5/11/2026 $62,000 Load-forecasting Risk Management Services