Consideration of Huntington Beach’s
Participation in the Orange County
Power Authority (OCPA)
City Council Meeting
February 21, 2023
• Dec. 2020 - City approved documents to join OCPA
• Feb. 2021 - City approved Founding Member participation in OCPA • Dec. 2021 - County of Orange (unincorporated areas) was added as 5th member agency
• Apr. 2022 - OCPA launches municipal and commercial service to Huntington Beach, Buena Park, Fullerton, and Irvine
• Oct. 2022 - OCPA launches residential service to Huntington Beach, Buena Park, Fullerton, and Irvine
Timeline
• Dec. 2022 - Huntington Beach City Council requested to change the default rate to Basic Choice for new and municipal customers. City Council also requested a return to a study session with the cost options and path to withdraw membership from OCPA
• Jan. 2023 - Huntington Beach City Council approved changing the default rate for new Huntington Beach OCPA customer and all municipal accounts to the OCPA Basic Choice rate.
• Feb. 2023 – Update City Council on the discussion had regarding the process and impacts of the City withdrawing from OCPA.
Timeline
OCPA Member Agency Actions
• OCPA JPA includes four founding member agencies: Cities of Huntington Beach, Buena Park, Fullerton, and Irvine with the County of Orange joining after the original JPA formation.
• The County of Orange
• In August 2022, Orange County initiated a review of OCPA’s operations and the effectiveness of their internal controls, policies, procedures, and of any costs incurred by OCPA on behalf of Orange County.
• In December 2022, the OC Board of Supervisors sent notice to withdraw from OCPA. • The City of Irvine
• The City of Irvine held at least three City Council meetings between December and February to consider withdrawing from OCPA. The discussion has been continued to a future meeting date.
Huntington Beach Update
• The City Manager’s Office has engaged with OCPA to obtain information on the cost and process of withdrawing membership.
• OCPA members have the right to withdraw by providing a notice no less that 180 days. The official withdrawal date will become effective at the beginning of OCPA’s fiscal year - after the notice period.
• By withdrawing, the City will be subject to continuing OCPA liabilities including:
• Costs arising from the resale of capacity, electricity, or any power load attributed to the City. • Any costs incurred by the Authority which is a result directly related to the withdrawing party, which may include both short term costs and potential future cost impacts • Staff is continuing to meet with OCPA to identify the power purchases attributable to Huntington Beach.
Consideration of Huntington Beach’s
Participation in the Orange County
Power Authority (OCPA)
City Council Meeting
February 21, 2023