Cities Index.
1/17 Sup Com

City Council/Public Financing Authority
January 17, 2023

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1/17 Sup Com
Meeting
January 17, 2023
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City Council/Public Financing Authority
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Text extracted from the city's file for reading and search. Open the original on huntingtonbeach.legistar1.com. That file is the official record.

Switzer, Donna
From: Tristan Miller <[email protected]>

SUPPLEMENTAL
Sent: Monday, January 16, 2023 6:49 PM
To: CITY COUNCIL; [email protected] COMMUNICATION Subject: Agenda Item #19 - Please Stay with 100% Renewable Energy Meoting Date:: 1|17|23
Dear Mayor and City Council,
19(23-042)
Agenda Item No.:

I am writing you about agenda item #19 "Consider selection of Huntington Beach's Orange County Power Authority (OCPA) Default Energy Product Rate and the City of Huntington Beach's Municipal Accounts Rate Selection." Please vote to stay in the highest renewable energy rate. Please preserve and protect our community and oceans from pollution and give us energy choice. Our beaches and oceans are central to our community and economy. Stay with 100% renewable as that will be key to protecting our beautiful beaches now and in the future.

Do not vote to drop City Municipal Accounts down to 38% renewables Basic Rate, and all new incoming customers to Basic SCE has raised its rates every year since 2010 according to the CUC Public Advocates Office. SCE just announced a CPUC approved 24% rate hike in January 2023! We need rate stabilization, keep rate payer dollars in our community, bring more jobs, and give our city energy choice and ability to invest those ratepayer dollars in our communities.

Huntington Beach needs energy choice in Community Choice Energy! For over 100 years, we have only had one choice, the Investor-Owned Utility (IOU).

Without Community Choice Energy (CCE) there is no market competition for SCE.

We need our revenue dollars to come back to our community for more energy savings and to invest in our community. For a city the size of Huntington Beach, that could be millions of dollars per year! 1) The recent OCA audit was clean according to this announcement:
https://cal-cca.org/independent-auditor-issued-a-clean-audit-opinion-on-material-accuracy-of-orange-county-power- authoritys-financial-statements-and-identified-no-material-weakness-in-internal-control/ CCEs are financially strong - for example 4 have 'A' credit ratings. SCE currently has a BBB+ credit rating. PG&E went bankrupt! 2) And the OCPA just announced the our rates will be 2% lower than SCE's basic rate - SCE just announced 24% rate increase
https://www.ocpower.org/news/blog/orange-county-power-authorityannounces-its-basic-choice-ratedesign-will-be-lower- thansces-generation-rateseffective-mid-january-2023/
3) Please meet with the newly hired Director of Communications who has energy experience. Joe Mosca was the Deputy Mayor of Encinitas. Encinitas has a strong new building electrification REACH code ordinance. Joe was a founding member of San Diego Community Power - a Community Choice Energy Provider:
https://cal-cca.org/ocpa-hires-director-of-communications-and-external-affairs/ IOUs are lobbying against competition. And SCE and the other utilities spent over 40 million dollars in recent years lobbying for a California solar tax and a 75% drop in credit for sharing extra solar to the Grid! The CPUC just voted for the 75% cut on December OCPA currently gives back 10% more to solar customers than the utility and is not subject to the same CPUC rules.

OCA is doing well financially; the new rate in January 2023 will be 2% lower than the SCE rate, and the rate is also dropping 2% at the higher renewable levels.
1 Many OC and Huntington Beach residents have spent years advocating for Community Choice Energy. Many of local officials and city council members past and present have advocated for Community Choice Energy.

Community Choice Energy is the proven most cost-effective and fastest way to reduce emissions and protect our beaches and re-invest in our community. It's important to me! Please save our energy choice and market competition.

Stay in Orange County Power Authority (OCPA) at the 100% renewable default level.

Thank you,
Tristan Miller
Business Owner and OC Resident
Community Volunteer, Meet the Masters Art Program Manager & Volunteer CCL and CRP OC Member
2 Switzer, Donna
From: Hoiyin Ip ‹[email protected] >
Sent: Monday, January 16, 2023 8:14 PM
To: [email protected]; CITY COUNCI
Subject: ublic comment: OCPA - item 1
It's unfortunate that council is considering lowering the default from 100% renewable. If this is what it needs to stay in OCPA for Community Choice Energy, ok. Don't go back to monopoly.

Thanks,
Hoiyin

SUPPLEMENTAL

COMMUNICATION
Meeting Date:.... 1/17/23
Agandia Nom Na: 19/23-042)
1 Switzer, Donna
From: Marilyn Palomino < [email protected]>
Sent: Monday, January 16, 2023 8:17 PM
To: CITY COUNCIL; [email protected]
Subject: Agenda Item #19 - Please Stay with 100% Renewable Energy Dear Mayor and City Council,
I am writing to you about agenda item #19 "Consider selection of Huntington Beach's Orange County Power Authority (OCPA) Default Energy Product Rate and the City of Huntington Beach's Municipal Accounts Rate Selection." Please vote to stay in the highest renewable energy rate. Please preserve and protect our community and oceans from pollution and give us energy choice. Our beaches and oceans are central to our community and economy. Stay with 100% renewable as that will be key to protecting our beautiful beaches now and the health of all citizens.

Do not vote to drop City Municipal Accounts down to 38% renewables Basic Rate, and all new incoming customers to Basic SCE has raised its rates every year since 2010 according to the CPUC Public Advocates Office. In 2022 and 2021 SCE raised rates 3 times during each year! SCE just announced a CPUC approved 4% rate hike in January 2023! This information is available on the SCE website. We need rate stabilization, keep rate payer dollars in our community, bring more jobs, and give our city energy choice and ability to invest those ratepayer dollars in our communities.

For over 100 years, we have only had one choice, the Investor-Owned Utility (IOU).

Without Community Choice Energy (CCE) there is no market competition for SCE and there is no incentive to seek out sources of clean energy. Yes we need SCE's infrastructure to transmit energy but we can obtain energy from cleaner sources! We need our revenue dollars to come back to our community for more energy savings and to invest in our community. 1) The recent OCA audit was clean according to this announcement:
https://cal-cca.org/independent-auditor-issued-a-clean-audit-opinion-on-material-accuracy-of-orange-county-power-authoritys- financial-statements-and-identified-no-material-weakness-in-internal-control/ CCEs are financially strong - for example 4 have 'A' credit ratings. SCE currently has a BBB+ credit rating. PG&E went bankrupt! 2) And the OCPA just announced the our rates will be 2% lower than SCE's basic rate - SCE just announced 24% rate increase https://www.ocpower.org/news/blog/orange-county-power-authorityannounces-its-basic-choice-ratedesign-will-be-lower-thansces- generation-rateseffective-mid-january-2023/
3) Please meet with the newly hired Director of Communications who has energy experience. Joe Mosca was the Deputy Mayor of Encinitas. Encinitas has a strong new building electrification REACH code ordinance. Joe was a founding member of San Diego Community Power - a Community Choice Energy Provider.
https://cal-cca.org/ocpa-hires-director-of-communications-and-external-affairs/ Please look towards the future in your decision-making. I appreciate concerns about costs for all citizens. Costs are not only financial.

Dirty energy causes pollution that costs people in many other ways. Public health is at stake. Cancer, heart disease and asthma are on the rise and have been tied to pollution. Burning fossil fuels for energy is contributing to warming oceans and crazy weather patterns.

The time to act is now! I have lived in Huntington Beach for the past 35 years and I support 100% renewable energy.

Respectfully, SUPPLEMENTAL
Marilyn Palomino COMMUNICATION
Meeting Dete:.. 1/17/23
Agonda nom No: 19/23-042)..

Switzer, Donna
From: Charles Jackson <[email protected]>
Sent: Tuesday, January 17, 202312:48 AM
To: [email protected]
Subject: Huntington Beach City Council Agenda item 19, 23-042, OCA Dear Huntington Beach City Council
The Orange County Power Authority, OCPA, has demonstrated that it can deliver power to Huntington Beach, and that it has assembled an excellent, experienced team to deliver the power. However more transparency, would be a good thing. The Huntington Beach appointed OCPA board member can examine confidential power agreements, but not the SCE confidential agreements. This is one aspect of why Community Choice Energy allows more local control.

With respect to the recommended options, they are all reasonable. While I support the best option for the environment, other people in the city of Huntington Beach might support the lowest cost option. The City Council of Huntington Beach was elected to make the best choice for the residents of Huntington Beach.

I fully support OCPA and hope that the residents of Huntington Beach will continue to have good choices for the kind of power that they receive.

Charlie Jackson

SUPPLEMENTAL

COMMUNICATION
Meeting Det..... 1/17/23
Agonda Nom Ma: 19/23-042.
1 Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 2023 9:27 AM
To: Agenda Alerts
Subiect: FW: Agenda Item 19, File number 23-042
From: DANNY GRAY <[email protected]>
Sent: Tuesday, January 17, 2023 7:03 AM
To: CITY COUNCIL < city. [email protected]>
Subject: Agenda Item 19, File number 23-042
Re: Agenda Item 19, File number 23-042
Hello Mayor Strickland and Council Members,
The decision to change the electric rate for Huntington Beach's Municipal Accounts to the OCA Basic Choice (at least 38.5% renewable energy) seems to be a financial decision with little consideration for the environment. If this agenda item passes, it would be appropriate to remove any references that claim that the City of Huntington Beach is a "Green" city.

I think changing the default rate to the Basic Choice for new rate payers is a dis-service to residents and businesses. Is the city going to promote 100% renewable energy or is it going to be left to the residents and businesses to find out about it on their own?
I also noticed that the city council has directed the staff to research leaving OCPA (reference file number 23- 042). Most of the council's comments on item 30 from the December 20, 2022 city council meeting, with the exception of Dan Kalmick's comments, were based on misinformation. I hope the staff is more knowledgeable than the council or has access to correct information.

Some businesses such as large hotel chains have sustainability goals of being carbon neutral or carbon free within a certain time frame, typically by 2030. OCA's 100% renewable option provides a pathway to that goal. Leaving OCPA takes that option away and makes that pathway more difficult or unachievable in the City of Huntington Beach.

Thank you,
Danny Gray SUPPLEMENTAL

COMMUNICATION
Moating Dete:.... 1|17/23
Agenda Item No.: 19(23-042).
1 Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 2023 9:27 AM
To: Agenda Alerts
Subject: FW: Public Comment File 23-042 Item #19 for January 17, 2023 From: cheriej2042 @yahoo.com < [email protected]>
Sent: Sunday, January 15, 2023 3:02 PM
To: CITY COUNCIL <[email protected]>
Subject: Public Comment File 23-042 Item #19 for January 17, 2023 Dear Mayor Strickland and Councilmembers:

I am supporting the move of all City of Huntington Beach municipal accounts from the 100% Renewable Choice to the Basic Choice. Despite the claims of OCPA, their own rate sheets indicate the savings would not be 2% in the aggregate given SCE will continue to charge for transmission of electricity. The actual savings is reported to be .8%. While much lower than expected, there is no disclosure of what the City of Huntington Beach paid in 2022 since the April launch of OCPA (above what the city would have paid had they stayed in the Basic Choice). Given that OCPA is unable to deliver 100% Renewable energy, it is unwarranted for the City to continue spending taxpayer money on a product that is not being delivered.

Therefore, I urge you to as soon as practical to opt the municipal accounts into the Basic Choice and further should OCPA decide to raise their Basic Choice rates above SCE for the City to opt back to Southern California Edison.

In addition, I would also support that any new commercial or residential accounts in the City be put into the Basic Choice tier as well for the same reasons as outlined above.

Thank you.

Michelle Johnson
Irvine, CA

SUPPLEMENTAL

COMMUNICATION
Meeting Date:.. 1/17/23
Aganda to No: 19/ 23-042)
1 Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 20239:28 AM
To: Agenda Alerts
Subject: FW: OCA's Downward Spiral with OC BOS's OUT!
From: Dee Fox <[email protected]>
Sent: Saturday, January 14, 2023 5:29 PM
To: [email protected]; Clerk <[email protected]>; [email protected]; [email protected]; [email protected]; CITY COUNCIL <[email protected]> Subject: OCA's Downward Spiral with OC BOS's OUT!
The Orange County Board of Supervisors (BOS) has voted to get out of the Orange County Power Authority (OCPA). OCA Legal Council, Ryan Baron, and OCPA CEO, Brian Probolsky, were at the December 20, 2022, BOS meeting. They were questioned by the BOS regarding the recent audit report. Unfortunately, their answers only raised more concerns. Probolsky claimed the OCPA sealed certain information in power contracts because it was mandated by the state. However, BOS Chairman Chaffee stated that it is NOT mandated by the state, at all. It is an option. The sealed information relates to power emissions content and cost. So, nobody knows if the OCPA is really purchasing renewable energy, or whether they are buying cheap fossil fuel and charging ratepayers the cost for 100% renewables. This is significant because it IS the reason for this organization to exist.

Considering the importance of the audit and the outcome, it was imperative that the OCA release this information to the auditors. However, the OCPA refused to do so.

This was NOT considered to be common practice of successful Community Choice Energy programs. As a non-profit public organization, not only the auditors, but the public has a right to see what the OCPA is purchasing on their behalf. By sealing this information seeks to suggest that they are not acting in the best interest of the ratepayers and abusing their authority. Ryan Baron did not offer any solution to what could have been the deal breaker.

The records are sealed for 3 years and after that time they are destroyed. The OCPA conveniently placed a 3 year retention period on their documents, which means, nobody will ever know what those power contracts contain except the people that signed them. Apparently this was done to "cover-up" their power purchases so they can remain in business and continue making their enormous salaries. Other, reputable CCE's, have a records retention period of 7 years.

It was stated that the County would be liable for fees, not to exceed, $65 million if they pulled out. The majority of the fees go to power already procured on their behalf.

However, the JPA Agreement states that the Authority has to sell off the excess power and make a good faith effort to secure the best possible deal. So, the fees 1 would be significantly reduced. In order for the County to be responsible to pay these fees, the OCPA will be required to show the power that was purchased, the cost they paid, and the amount they received when it was sold. For obvious reasons, it appears the OCPA would rather eat the cost then have to divulge this information, as that would upset their whole operation.

BOS and OCPA Board member, Don Wagner, stated, , "We are operating in the dark, we don't know what the risk is to our constituents to pull out... if we pull the plug and this agency craters, then our constituents are at risk... and more importantly, no one is going to want to get near this smoking crater for ages." Well, the BOS has pulled out!
Regarding the money being spent by the OCA, it was interesting to me to see over $7,000 go to Presido. Presido is who Farrah Khan uses as her political consultant firm. Previously Khan was with Melahat Rafiei and Cory Allen, who have since closed their doors because of Rafiei's arrest in a Anaheim corruption scam. Cory Allen now opened up Presido and it is rumored that Rafiei is still in charge. Why would the OCPA pay a political consulting firm that Khan uses, $7,000? The answer is, they shouldn't! And the ratepayers should DEMAND that money be reimbursed!
The City of Irvine has now replaced Farrah Khan and Mike Carroll with new Irvine Council Member, Kathleen Treseder and Council Member, Tammy Kim, who was not very happy about taking the position. Probably because she plans on running for the Mayor of Irvine and this could be a thorn in her side, even though she claims to support it. Treseder stated that she will only accept the position if the OCPA removes CEO Brian Probolsky. That might prove to be a little difficult because of a whistleblower lawsuit Probolsky has with the OCPA, plus it takes a majority vote to remove him as CEO. So, I wonder if that means she will hold true to her word and not accept the position?
With the unincorporated areas in Orange County now out, the Power Authority is on a downward spiral and ratepayers are going to see increases to make up lost revenue. We can't even predict how much because this public organization is very private, and I don't expect this to change as long as people like Ryan Baron are calling the shots.

If Buena Park were to get out from under the OCPA, chances are very high that they will not have to pay the cost of power already procured. As with the BOS, without seeing those un-redacted contracts, the OCPA cannot ask for a dime.

SUPPLEMENTAL

COMMUNICATION
Meeting Det...... 1/17/23
Agenda Item No... 19(23-842)
2

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