Proposed Work Plan for Environmental Sustainability Committee Review of Orange County Power Authority Membership
RECOMMENDATION
Receive the proposed work plan from the Environmental Sustainability Committee for evaluation of potential membership in the Orange County Power Authority and provide direction on whether the Committee and City staff should proceed with the assessment and return to City Council with findings and a recommendation.
SUMMARY OF THE MATTER
At the direction of the City Council, a preliminary work plan has been developed by the Environmental Sustainability Committee to evaluate whether membership in the Orange County Power Authority (OCPA) would be in the best interest of the City. The purpose of the work plan is to provide a structured and transparent process through which ESC, with support from City staff, can review relevant financial, operational, governance, legal, and community considerations before returning to City Council with a recommendation.
The proposed work is intended to support a future City Council policy decision and does not commit the City to joining OCPA. Rather, it establishes a framework for due diligence, community education and outreach, and comparative analysis so that City Council may later consider the issue with a more complete record.
The proposed work plan is organized into five phases, as summarized below.
PROPOSED WORK PLAN
Phase 1: Authorization and Evaluation Framework
March 2026
The first phase would consist of City Council review of the proposed work plan and direction on whether ESC and City staff should proceed.
If authorized to proceed, ESC and staff would establish the framework that will guide the assessment, including the primary evaluation criteria to be used in developing a future recommendation. Those criteria are anticipated to include:
• Potential customer rate impacts
• Rate stability and long term cost considerations
• Renewable energy and sustainability benefits
• Governance structure and local control
Attachment 1
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• Financial, legal, and operational risks
• Community interest and alignment with City priorities Phase 1 Deliverable:
City Council direction on whether to proceed and confirmation of the evaluation framework.
Phase 2: Preliminary Analysis, Data Collection, and Community Outreach April through June 2026
If authorized to proceed, ESC and staff would begin collecting and organizing information necessary to evaluate OCPA membership.
This phase would include requesting relevant customer load data through OCPA coordination with the applicable investor owned utilities, including Southern California Edison and, if applicable, San Diego Gas & Electric. ESC and staff would also work to develop a preliminary bill impact analysis to better understand potential customer cost implications.
In addition, ESC and staff would revisit the City’s prior 2023 questionnaire used to evaluate Joint Powers Authority participation and refine that framework as appropriate for this review. Questions that can be answered through publicly available information, online materials, adopted documents, financial records, and agency publications would be completed during this phase.
Community outreach would also occur during this phase so that public education and feedback may inform the review while it is still underway. Outreach efforts may include informational materials, public discussion at ESC meetings, stakeholder engagement, and opportunities for residents and businesses to provide feedback.
Phase 2 Deliverables:
• Preliminary bill impact and customer analysis
• Updated evaluation questionnaire
• Community outreach summary and public input log
Phase 3: Due Diligence and Agency / Internal Review
July through August 2026
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The third phase would focus on validating information, filling gaps in the record, and addressing legal, operational, and governance questions that require direct agency or internal review.
ESC and staff would seek to schedule discussions with OCPA leadership, including Joe Mosca and/or Tiffany Law, in order to obtain responses to questions requiring clarification, direct confirmation, or technical explanation.
During this same phase, ESC and staff would also confer with the City Attorney and City Manager to evaluate legal, contractual, governance, and implementation considerations associated with potential membership.
The work completed during this phase would inform the City’s understanding of issues such as governance structure, financial oversight, membership obligations, operational implications, and risk exposure.
Phase 3 Deliverable:
Governance, legal, and risk assessment memorandum.
Phase 4: Draft Findings and Recommendation
September 2026
Following completion of the analysis and outreach process, ESC and staff would consolidate the information developed in the prior phases and evaluate OCPA against the approved criteria.
This phase would result in preparation of draft findings and a recommendation to City Council regarding whether the City should further consider membership in OCPA. If warranted, the recommendation may also identify conditions, safeguards, or additional follow up actions that should be considered in connection with any future Council direction.
Phase 4 Deliverable:
Draft ESC recommendation and supporting analysis.
Phase 5: City Council Workshop / Presentation of Findings October 2026
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The final phase would consist of ESC presentation of its findings and recommendation to City Council at a future public meeting or workshop.
The presentation would summarize the results of the review, including financial and customer considerations, governance and legal issues, identified risks and opportunities, and the nature of community feedback received during the process.
At that time, City Council would have the opportunity to consider whether to provide further direction regarding potential OCPA membership.
Phase 5 Deliverable:
Presentation of ESC findings and recommendation to City Council. 7