STAFF REPORT
Meeting Date:
April 14, 2026
CONSENT
CALENDAR
15 SUBJECT: WORKPLAN TO EVALUATE JOINING THE ORANGE COUNTY POWER
AUTHORITY (ENVIRONMENTAL SUSTAINABILITY COMMITTEE)
RECOMMENDATION: It is recommended that the City Council:
1. Direct staff and the Environmental Sustainability Committee (ESC) to implement the proposed work plan and return to the City Council with findings, community input, and a recommendation regarding potential Orange County Power Authority (OCPA) membership at the October enrollment decision timeline.
SUMMARY OF THE MATTER
At the direction of the City Council during its January 27, 2026 study session, and subsequently affirmed by City Council action at its January 10, 2026 meeting, a preliminary work plan has been developed by the Environmental Sustainability Committee (ESC) to evaluate whether membership in the Orange County Power Authority (OCPA) would be in the best interest of the City (Attachment 1) and area ratepayers. 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.
DISCUSSION
Background
Community Choice Energy (CCE) is a model where local governments choose the source of electricity for their community instead of leaving that decision entirely to a traditional utility company. The existing utility, such as Southern California Edison (SCE), still delivers the electricity, maintains the poles and wires, sends the bill, and responds to outages. The main difference is who buys the electricity and how much renewable energy is included in the power mix.
OCPA is Orange County’s local CCE provider. It purchases electricity on behalf of participating cities and offers different energy plan options, including choices with higher renewable energy content. OCPA’s role is to give cities and customers more local control over energy procurement, cleaner energy options, and potentially more stable long term energy planning. It does not replace the utility’s role in transmission, infrastructure, or outage response.
Timeline
Workplan to Evaluate Joining the Orange County Power Authority (Environmental Sustainability Committee)
April 14, 2026
The enrollment process begins with the City Council adopting a resolution declaring its intent to join OCPA.
That action is taken in October of each year. The ESC has developed a workplan to conduct due diligence and community outreach working back from that October meeting date. A five phase workplan is included as Attachment 1. Additionally a streamlined task oriented workplan is included as Attachment 2. These plans are subject to change as the process unfolds, but what is proposed will be the general process followed.
The table below summarizes the timing and objectives of each phase.
Phase Name Objective
Phase 1
(March-April) Authorization and Framework Secure City Council direction and establish the evaluation framework.
Phase 2
(April – June)
Data Collection, Baseline
Analysis, and Community
Outreach
Build the factual record, begin comparative analysis,
and engage the community early in the process.
Phase 3
(Jul – Aug) Due Diligence and Validation Validate assumptions, fill information gaps, and assess legal, operational, and governance issues.
Phase 4
(Sep)
Synthesis and Draft
Recommendation
Bring together the technical analysis, risk
assessment, and community input into a clear
recommendation.
Phase 5
(Oct) Council Review and Direction Present the completed assessment and recommendation for City Council consideration.
Fiscal and Staffing Considerations
There is no direct cost to the City to authorize OCPA to conduct a preliminary evaluation of the City’s energy profile and potential service options. However, staff anticipates that a meaningful review of potential participation in OCPA would require a substantial legal and administrative analysis beyond the City’s current internal capacity.
Specifically, staff expects that the City Attorney’s Office would need to conduct extensive legal research and review to evaluate the governance structure, financial obligations, risk exposure, withdrawal provisions, regulatory considerations, and other potential liabilities associated with enrollment in a CCE program. At this time, we do not believe that the City has sufficient internal capacity to complete that level of evaluation with existing staff resources.
As a result, the City Attorney would likely need to retain outside legal counsel with subject matter expertise in CCE and Joint Powers Authority participation to perform this analysis. Staff estimates that this work would carry a cost of approximately $40-50,000, depending on the scope of review and the level of due diligence directed by the City Council (assumes 100-150 hours at $275-$400/hour).
Given current budget and staffing constraints, the City Council would need to consider the broader organizational impact of undertaking this evaluation. The City is currently operating with limited staff and operational resources, and moving forward with a formal assessment is likely to require the reprioritization or reprogramming of existing funds and staff time. If directed to proceed, the City Council would need to Workplan to Evaluate Joining the Orange County Power Authority (Environmental Sustainability Committee)
April 14, 2026
determine whether sufficient resources should be reassigned from other operational priorities to support this effort.
FINANCIAL ANALYSIS
Outside legal review is estimated to cost approximately $40,000 to $50,000, exclusive of any additional staff time or internal oversight required to manage that work.
This cost is not currently included in the adopted budget and would need to be considered as part of the City’s Fiscal Year 2026-27 budget process, alongside other competing priorities.
ENVIRONMENTAL ANALYSIS
The recommended action is not a project under the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15378 because it consists only of the City Council’s review and consideration of a proposed workplan and does not authorize any physical activity, development, or other action that could result in a direct or reasonably foreseeable indirect change to the environment. In the alternative, the action is also exempt from CEQA pursuant to State CEQA Guidelines Section 15061(b)(3), the common sense exemption, because it can be seen with certainty that there is no possibility the recommended action would have a significant effect on the environment.
ATTACHMENTS
1. ESC Proposed Work Plan for OCPA
2. Task List Version
Submitted By:
. Approved: .
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager, City
Manager's Office