Following allegations of corruption, price increases, “broken promises,” and ensuing public outrage, both Irvine and Huntington Beach city councils voted almost unanimously to audit the Orange County Power Authority (OCPA) June 14.
After private session deliberations, Huntington Beach voted 5 to 0 authorizing possible legal action against OCPA, with Councilors Kim Carr and Erik Peterson absent. Irvine voted 4 to 0 in favor less than 2 hours prior, with Councilman Mike Carroll absent.
Irvine voted similarly in favor of conducting a forensic audit of OCPA, as well as retaining legal counsel to determine the viability of the power purchasing entity, advisement on limiting additional financial losses to the city, and more.
Before voting commenced, however, residents from both cities lined up in their respective council chambers to express their anger toward OCPA and city representatives during the special meetings that day.
“We’re over here fighting [OCPA] issues that have been rammed down our throats … it’s dirty. It’s murky. There’s nothing clear about this in any way,” Gracey Van Der Mark, a Huntington Beach resident, said during public comments. “The whole thing just feels like a scam.”
The “community choice” aggregator has not yet begun serving any residential customers yet and is scheduled to launch in October. OCPA began its commercial electricity service April 1.
In the two months since its launch, the agency has faced a series of controversies—including higher prices for customers than originally advertised, calls by the agency’s board members for CEO Brian Probolsky to resign, and a whistleblower legal complaint filed by Probolsky claiming board members are scheming to remove him as CEO, among other things.
Many Irvine residents expressed their frustration at OCPA’s apparent “lack of transparency,” noting repeatedly that the city is the only member to fund the initial startup costs for OCPA, at a cost of nearly $8 million.
Several others in both cities came forward during the special meetings with claims that their Public Records Act requests regarding OCPA practices were ignored, most for over a month now.
The California Public Utilities Commission fined the OCPA nearly $2 million last month on claims they failed to purchase enough electricity to ensure that customers are provided with uninterrupted service this summer, bolstering community outrage during the meeting.
According to Irvine Mayor Farrah Khan, who sits on the OCPA board with Councilman Carroll, the organization was fined because Senate Bill 612 was postponed. The bill, she claims, would have provided OCPA and other community choice aggregators with “the same … information on resource adequacy” as larger investor-owned utilities, such as Southern California Edison.
The bill appears to have been amended as of June 13 to legislate school safety plans, as opposed to its previous designation for public utilities relating to electricity.
“Get us out of this. This is not helping a single person,” one Irvine resident asserted, adding monthly rates in her area went up between $800 to over $2,000 for some local businesses under OCPA.
Khan and Irvine Councilman Larry Agran had requested the meeting early last month, though it was not announced until the day before.
During the Irvine special meeting, Agran took the time to level his own questions at OCPA, asserting the need for “transparency” in several other key areas.
“What are the monthly and yearly actuals—both revenues and expenditures—compared to OCPA’s historical budgets? How much were its original revenues and projections versus where we stand today, in terms of revenues being received?” Agran said.
He also echoed his previous statements that OCPA “broke its promises” to residents in terms of transparency and affordability, asking for the identities and compensation of all OCPA staff including consultants, contractors, and the board of directors, among other demands.
“We need answers. We need answers and we need them now,” Agran said.
Huntington Beach residents expressed similar concerns during public comment, prompting their own council’s motion to direct possible legal action against the provider.
“Tonight’s special meeting is an attempt at damage control for … the unmitigated boondoggle of a dumpster fire that is the Orange County Power Authority,” lifelong Huntington Beach resident Casey McKeon said during public comment.
Citing a 22 percent monthly price increase on a customer’s bill between April and May, McKeon highlighted prices soaring from $1,500 per month to nearly $1,900 after being switched to OCPA.
Immediately after, another resident, Pat Burns, came forward to “thank” the council, stating they gave him “every incentive and motivation to run to try to replace you,” which was followed by thunderous applause from residents in attendance.
Huntington Beach announced a progress report meeting scheduled for June 28, in which residents will receive updates on the latest findings from the city’s investigation.
Huntington Beach Mayor Pro Tem Mike Posey, who recently stepped down from the OCPA board amid his term expiring this year, expressed interest in collaborating with Irvine in sharing findings from their forensic audit, while affirming his support for the provider.
“I was an early supporter [of OCPA] and still am. And believe that the organization is successful and can be substantially more successful with a little bit more transparency,” Posey stated.
