The recently-formed Orange County Power Authority (OCPA) announced it will reduce its rates following a county-led audit which revealed several issues with the agency.
The energy provider—which services Huntington Beach, Buena Park, Irvine, and Fullerton—was formed in 2020 as an energy provider emphasizing “green power,” as an alternative to Southern California Edison.
The audit revealed Dec. 9 the OCPA had twice as many people opt-out—at 16.5 percent—compared to its own projections. The loss of customers is also nearly three times more than the 19 similar energy suppliers in the state, known as Community Choice Aggregates, or CCAs.
“The mismanagement of the Orange County Power Authority is of great concern,” Orange County Supervisor Katrina Foley, who initiated the audit, told The Epoch Times.
The impetus of the county’s audit comes from what Foley calls the OCPA’s failure to follow best practices, hire staff with energy market expertise, and adequately communicate to ratepayers.
Foley said she plans to discuss further with industry experts and review the audit and other reports on the agency before the board’s upcoming Dec. 20 meeting, which will decide if the county’s unincorporated areas will strike a deal with the energy provider.
“While taking proactive steps to combat the climate crisis is of key concern, my duty is also to protect taxpayers and businesses,” she said.
OCPA officials issued a statement Dec. 13, saying they were reviewing the audit and would “provide context, clarity and correct any misinformation in the findings.”
The high opt-out percentage may have come from accusations of misleading customer communication and customers opted into the authority’s most expensive plan upon start.
The OCPA said it “took bold steps to address climate change” when it launched by setting new customers’ default rates at 100 percent renewable in most cities, the most expensive of the three energy plans offered.
The OCPA—just like Edison—offers three plans for consumers. Their “Basic Choice” plan started off with comparable rates to Edison, while its middle tier “Smart Choice” and top tier “100 Percent Renewable Energy Choice” plans cost 1 and 1.5 cents more per kilowatt-hour than the basic plan.
Consumers can choose to upgrade or downgrade their plans, with the only difference as more money for “greener energy.”
“My office has received numerous complaints from residents expressing outrage and confusion at the conflicting and misleading messaging coming from OCPA,” Bartlett said regarding residents’ concern over higher rates and complaints of a difficult opt-out process.
The agency said in its recent statement that cheaper rates coming.
Starting mid-January, its Basic Choice plan, which provides 38 percent renewable energy, will be cheaper than its competitor by 2 percent, according to the agency.
“OCPA’s 2023 rate design strengthens our competitive position and ensures our financial resilience through continuing energy market volatility,” CEO Brian Probolsky said in a statement.
The new competitive rates also will assist in accomplishing its short- and long-term goals, while reducing community dependence on fossil fuels, the authority said.
Despite the competition, rates are expected to rise for both Orange County energy providers in 2023, according to the authority.
“The costs of energy are rising due to natural disasters limiting import capabilities from the Pacific Northwest, outages at natural gas hubs, and the supply chain disruptions [for solar and battery storage],” the statement read.
The authority also said it has struggled to fight misinformation campaigns amid general startup struggles.
“No other California [CCA] has faced the likes of the political misinformation campaigns that have been waged against OCPA,” staff said in the statement. “We encourage customers to get the facts and decide whether community choice energy is right for them.”
