2000 Main Street,
t oti'' Huntington Beach, CA
s
p 92648
City of Huntington Beachr
nireovED
File #: 22- 1108 MEETING DATE: 12/ 20/ 2022
Submitted by Mayor Pro Tem Van Der Mark and Councilmember McKeon - Request to Switch the City of HuntingtonBeach's (TheOrganization) OCPAEnergyRateto Basic Choiceand provideRecommendationsto Withdrawas a FoundingMemberof the OCPA Werequestthe CityManagerto presentoptionsatthe nextCityCouncilmeetingontheCity's pursuit to immediately switch the City of Huntington Beach facilities to OCPA' s Basic Choice Option. We also request for staff to return at a study session before the end of February 2023 to provide options, costsandpathsforwardto remove/withdrawtheCityentirelyfromtheOrangeCountyPower Authority.
City of Huntington Beach Page 1 of 1 Printed on 12/ 14/ 2022 powered by LeglstarT"
7.41 CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING— COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GRACEY VAN DER MARK, MAYOR PRO TEM
CASEY MCKEON, CITY COUNCILMEMBER
DATE: DECEMBER 20, 2022
SUBJECT: REQUEST TO SWITCH THE CITY OF HUNTINGTON BEACH' S( THE ORGANIZATION)
OCPA ENERGY RATE TO BASIC CHOICE AND PROVIDE RECOMMENDATIONS TO
WITHDRAW AS A FOUNDING MEMBER OF THE OCPA
In December 2020, the City of Huntington Beach was entered into the Orange County Power Authority( OCPA) asa founding member. The OCPAis ajoint powers authority with three other founding members including the cities of Irvine, Buena Park, and Fullerton.
The City Council, in February 2022, approved the 100% Renewable Choice energy rate as the default rate for Huntington Beach customers, including the City. This rate is the most ambitious and aggressiveplan that has the potential to impose a substantial financial burden on our residents in their purchase of energy.
Sincethe City of Huntington Beachpaysthe highest ratesfrom OCPA, it is irresponsibleto the taxpayer to spend more money than is necessary for a product of service. In all other contracts with our City, the lowest responsible bid is chosen. In this case the highest rates were chosen, yet the power comesfrom the same source as the lowest rate. This highly ambitious energy- pricingplanfor residents, in lightof the questionablereturnon investment, shouldbecorrected bythe CityCouncilin orderto protectresidents. Assuch, the Cityshouldswitchitsdefaultrate for City facilities from 100% Renewable Choice to Basic Choice, the lowest rate that is also most comparable to the current SCE default rate.
RECOMMENDED ACTION
We request the City Managerto present options at the next City Councilmeeting on the City's pursuitto immediatelyswitchthe Cityof HuntingtonBeachfacilitiesto OCPA's BasicChoice Option. We also request for staff to return at a study session before the end of February 2023 to provideoptions, costsandpathsforwardto remove/withdrawthe Cityentirelyfrom the Orange County Power Authority.