Agenda Item No: 3.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: November 4, 2025
Submitted by: Jeannette Ortega
From: Administrative Services
Subject:
STUDY SESSION: PRESENTATION FROM THE ORANGE COUNTY POWER AUTHORITY
TO EXPLORE POTENTIAL MEMBERSHIP
Financial Impact:
Fiscal Impact:
There is no fiscal impact to the City related to this agenda item.
Summary:
The Community Choice Aggregation (“CCA”) program has been available in California since 2002, following the passage of Assembly Bill 117. This program provides an alternative to the traditional Investor-Owned Utility (“IOU”) model by enabling local governments to manage their energy procurement. Through CCA, participating agencies can purchase electricity, set generation rates, and reinvest revenue locally. There are 25 operational CCAs in California, including the Orange County Power Authority (“OCPA”), collectively serving over 14 million customers across more than 200 cities and counties.
OCPA is a not-for-profit, Joint Powers Authority with the mission to provide renewable energy options at competitive, affordable rates and equitably reinvest to support sustainable communities. Joining OCPA provides cities with a unique opportunity to take control of their energy choices while delivering substantial benefits to the community. OCPA gives customers the flexibility to choose an energy plan based on how much renewable energy they’d like to have sourced for them. It reinvests funds locally to drive economic growth, support initiatives that reduce energy costs, shift consumption patterns, and improve reliability. By becoming a part of OCPA, the City can actively contribute to building a cleaner, more affordable energy future while supporting local control and advocacy at the state level.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Receive the presentation from the OCPA; and
2. Ask any questions of staff at the OCPA; and
3. Authorize the City Administrator and/or her designee to take the next step in the process of exploring potential membership in OCPA by requesting that Southern California Edison release the City’s historical electric load data to OCPA for the purpose of conducting a feasibility study; and
4. Authorize the City Administrator and/or her designee to execute all necessary 1 documents for the City and OCPA to obtain the City’s historical electric load data.
Strategic Plan Statement:
There is no specific strategic planning goal or objective associated with this agenda item.
Discussion:
The City has requested learning more about the Orange County Power Authority (OCPA) and the potential benefits of offering residents and businesses a choice in electric service providers. During this study session, OCPA will provide a comprehensive overview of its mission, goals, and role as a nonprofit agency established by local cities to serve their communities.
As a not-for-profit organization, OCPA is committed to its customers and advocates for the communities it serves. It reinvests revenues locally through customer-focused programs designed to help residents and businesses reduce or shift their electricity use, leading to lower utility bills. In addition, OCPA actively promotes energy affordability across all levels of government, with a focus on reducing electricity delivery charges, which account for approximately two-thirds of the average customer’s bill.
OCPA’s presentation will highlight its value proposition: providing customers with more energy choices, including higher renewable content, at competitive and affordable rates. The organization also partners with local nonprofits and maintains strong community engagement to ensure its programs reflect local needs and priorities.
Lastly, OCPA will outline the steps the City would take if it chooses to further explore or join the agency. There is no cost to the City for either exploring potential membership or formally joining OCPA.
Fiscal Impact Summary:
There is no fiscal impact to the City related to this agenda item.
Attachments
OCPA Presentation
2 November 4, 2025
OCPA Introduction for the City of Placentia
3 •Assembly Bill 117 passed in 2002 to establish
Community Choice Aggregation (CCA), introducing
competition and choice into the energy market.
•AB 117 allows communities to join together and
provide residents and businesses the opportunity
to choose their electric provider and how much
renewable energy they want to procure to put
onto the grid.
A growing movement in California:
14 million people in 200 communities
are currently benefiting from CCAs
What is Community Choice Aggregation (CCA)?
CCAs are 26% of the state’s energy load and growing!
4 ENERGY SOURCED (CCA)ENERGY DELIVERED (Utility Company)ENERGY USED (Customer) 3 How it Works
5 Benefits of
Community
Energy
THE POWER IS IN YOUR HANDS
•Bring choice and competition
to the energy market
•Local control
•Local reinvestment
•Local job creation
•Put more renewable energy
onto the grid at a faster rate
•Supporting climate action
and adaptation goals
4 6
•Not-for-profit supporting over 177,000
customers today
•23 staff with over 100 years of collective
experience
•Investing $1.5M in energy programs this
fiscal year
•Community grants have awarded over
$300,000 to nonprofit organizations
•Invested over $300,000 in partnering
with local nonprofit organizations
•Decreased carbon emissions by over
2 Billion lbs.
Orange County Power Authority
7 OCPA’s 2025 rate design offers a three renewable energy plans to meet customers’ specific environmental and financial goals
Clean Energy Options
8 Affordability Advocacy
•OCPA advocates for affordability measures on behalf of customers in the California and Federal Legislatures,
and at regulatory agencies like the California Public
Utilities Commission (CPUC).
•OCPA has advocated for various measures that would
benefit customers including:
o Public financing of transmission infrastructure
to remove this cost from customer bills
o Preserving federal energy tax incentives
o Continued funding of grant initiatives that support
measures to reduce greenhouse gas emissions
9 Reinvesting in the Community
As a not-for-profit, OCPA’s focus is customers, not shareholders •OCPA customers are eligible for programs and rebates that help save energy, cut costs, and transition to cleaner energy options. •OCPA honors all low-income programs including CARE, FERA, and Medical Baseline.
•Current budget is $1.2M and will gradually increase to $2.2M by FY 2031. •Projections will be refined as the Board following development of five-year roadmap.
•Other established CCAs have allocated between 1.1% and 2.3% of their total projected revenues to energy programs.
10 The Latest Orange County Power Authority
Programs Providing Value to Customers
OCPA Charge@home rebate program
Offers a $1,000 rebate for a residential Level 2 hard-
wired EV charger purchased through the OCPA
Marketplace -where chargers range from $500-$700,
making it no cost to customers.
Solar Battery rebate program
A $1,000 rebate for rooftop solar installations that
include a battery storage system or standalone battery
storage.
Other Money and Energy-Saving Programs
OCPA Marketplace
An online tool for discounts on smart home devices and
energy-efficient products. Energy Efficiency Kits are
available for free or reduced cost while supplies last.
Solar/Net Energy Metering (NEM)
For customers with rooftop solar, OCPA’s Net Surplus
Compensation (NSC) rate is 10% higher than Southern
California Edison’s prevailing NSC rate.
OhmConnect
OCPA customers can sign up to receive cash and gift cards for reducing their energy use during peak periods.
Incentive Finder
A one-stop shop to see qualifying state, federal, and
local rebates.
11 Community Programs
In Development –Longterm Roadmap of Programs (Community Power Plan) •Gathering input to ensure future programs address specific community needs •Programs from other California CCAs include:
Electrification of new construction
affordable housing Low-interest loans for solar
Multifamily building energy audits
and in-unit electric panel upgrades
Multifamily housing
EV charging installation
with technical support
Electrify Your Home Program
•Heat pump HVAC systems
•Heat pump water heaters
•Induction cooktops & ranges
•Portable heat pump space conditioners
Low interest loans for solar
Demand response incentive program
for businesses
Technical assistance
for building decarbonization
12 Net Energy Metering (Solar Customers)
Maintaining OCPA’s Favorable Net Energy Metering (NEM) Program As part of its mission to encourage local renewable energy development, including rooftop solar, OCPA continues to extend the benefits of the NEM 2.0 program to both current and new customers. This approach sets OCPA apart from SCE, which has transitioned to NEM 3.0 (also known as the Net Billing Tariff or NBT and Solar Billing Plan or SBP).
Key Benefits of OCPA’s NEM Program:
•Higher Compensation for Export Energy: OCPA offers full retail rates for all excess solar generation up to a customer’s annual energy usage amount. This helps customers reduce their energy bills and encourages the adoption of solar PV systems. In contrast, under NEM 3.0, excess energy exported to the grid is compensated at a significantly lower avoided cost rate, making OCPA’s program more financially attractive. •Faster Payback Period: OCPA’s NEM program provides shorter payback periods for solar installations due to the full retail credit for exported energy. While NEM 3.0 incentivizes pairing solar PV and storage systems to reduce payback times, the high upfront costs of storage systems can make this option less accessible, especially for low-income customers. •Competitive Net Surplus Compensation: For customers with surplus solar energy –generation that exceeds their annual energy usage –OCPA offers Net Surplus Compensation (NSC) rates that are 10% higher than SCE’s NSC rate, providing additional financial benefits to customers producing excess solar energy. •Standardized Yearly True-Up in April: Under OCPA’s NEM program, all customers have their true-up in April, allowing customers to build up excess generation credits in the summer to be used in the winter. 13 OCPA Clean Energy Access Program
•In August 2025, OCPA submitted an application to the California Public Utilities Commission (CPUC) to administer a green tariff program for disadvantaged communities.
•Designated the Clean Energy Access Program, it is designed to help eligible low- income residential customers in disadvantaged communities who cannot afford, or are unable, to install rooftop solar systems.
•Participants will receive 100% solar energy and an additional 20% bill discount.
When combined with existing low-income discounts, qualified customers could save more than 50% -or about half -of their monthly electric bill. •Once enrolled, customers will enjoy these benefits for up to 20 years –providing long-term financial relief and reliable access to clean energy. •Pending CPUC approval, OCPA anticipates program launch in Q3 2026, with plans to expand capacity to serve more customers when Costa Mesa joins OCPA in 2027.
•The program will additionally enable OCPA to source a local solar project, increasing the economic and environmental benefits for the community. •Looking ahead, OCPA plans to broaden clean energy opportunities by developing new solar projects –potentially paired with energy storage – to ensure lasting benefits for low-income and disadvantaged communities. 14 City Council
Considers
Expressing
Interest in
Joining
OCPA
OCPA
Conducts
Feasibility
Study/Board
Considers
Inviting New
Member
City Council
Considers
Adopting
Ordinance
Joining JPA
OCPA Board
Approves
and Files
Implementation
Plan by
End of CY
Onboarding
Process/
Public
Outreach
OCPA
Service Goes
Live
City Does
Not Move
Forward
City Cannot
Join OCPA
City Does
Not Join
OCPA
City Waits
Another Year to
Launch OCPA
Service
Jan - Jun
Yes
Jan - Sep Oct - Nov Nov - Dec CY +1 CY +2
Yes Yes Yes Yes
No No No No
Process of Becoming a Member City
15 Joe Mosca
CEO
www.ocpower.org
[email protected]
16