STAFF REPORT
Meeting Date:
February 10, 2026
CONSENT
9 SUBJECT: ORANGE COUNTY POWER AUTHORITY (OCPA) - STUDY SESSION
SUMMARY AND COUNCIL DIRECTION
RECOMMENDATION: It is recommended that the City Council:
1. Affirm Council direction to refer the matter to the Environmental Sustainability Committee for review and recommendation regarding potential participation in OCPA;
2. Direct staff to initiate a no-cost feasibility study with OCPA in parallel, and return to the City Council with the Committee’s findings and any recommended next steps for formal consideration; and
3. Find that the recommended action is not subject to the California Environmental Quality Act pursuant to Section 15378 of the CEQA Guidelines.
SUMMARY OF THE MATTER
On January 27, 2026, the City Council held a Study Session and received a presentation from the Orange County Power Authority (OCPA) regarding Community Choice Aggregation (CCA) and the potential for Laguna Beach to participate. The presentation provided an overview of OCPA’s structure, energy product offerings, customer choice features, renewable content, financial incentives, and steps for potential membership.
Following Council and public discussion, no formal action was taken to join OCPA. However, Council provided direction to proceed with further due diligence, including committee review and potential future action.
DISCUSSION
Background:
During the January 27, 2026, Study Session, the CEO of OCPA and team members provided a detailed overview of their Community Choice Aggregation (CCA) model. Highlights included the structure and regulatory history of CCAs under AB117; OCPA’s local control and not-for-profit structure under a Joint Powers Authority; procurement of cleaner energy sources, including 100% renewable options; and the availability of customer default product tiers with flexibility to opt out or downgrade. The OCPA team also explained that billing would continue through Southern California Edison (SCE) and emphasized affordability, customer choice, resiliency, and climate alignment. The presentation clarified that while cities select the default energy tier for residents and businesses, individual customers retain full ability to opt down or remain with their existing provider. The presentation is included in Attachment 1.
Council Direction Provided at the Study Session:
Following the presentation, the following direction was provided:
ORANGE COUNTY POWER AUTHORITY (OCPA) - STUDY SESSION SUMMARY AND
COUNCIL DIRECTION
February 10, 2026
1. Environmental Sustainability Committee Review
Council directed the Environmental Sustainability Committee to conduct a comprehensive review of OCPA, including program compatibility, rate competitiveness, sustainability benefits, and customer experience.
2. Initiate the Feasibility Study
Council directed staff to initiate a feasibility study with OCPA in parallel with the Environmental Sustainability Committee's findings. The feasibility study would be conducted at no cost to the City by OCPA and a third-party consultant and would involve obtaining historical electric load data from SCE and SDG&E.
3. No Financial or Policy Commitment at This Time
Council emphasized that no decision has been made to join OCPA, nor has any financial commitment been authorized. Further evaluation and public input will occur prior to formal action.
FINANCIAL ANALYSIS
There is no fiscal impact associated with receiving with this action. Any fiscal implications related to feasibility analysis or potential future membership in OCPA will be identified and presented to the City Council as part of a future agenda item.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This informational report aligns with the City Council’s adopted goals related to Climate Action and Sustainability by evaluating opportunities to expand renewable energy use, supporting local energy resilience and customer choice, and advancing the City’s Climate Action and Adaptation Plan goals.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it does not constitute a "project." The report involves the receipt of information and direction to evaluate administrative and financial implications of a future action. No physical changes to the environment are authorized or proposed at this time.
ATTACHMENTS
1. OCPA Presentation from the January 27, 2026, Study Session (Pgs. 3-18) Submitted By:
. Approved: .David A Kiff
Gavin Curran, ACM Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager