Members of the Orange County Power Authority (OCPA) disagreed Sept. 6 with a recent grand jury report titled “Orange County Power Authority: Come Clean” and responded to a county request for a third-party financial audit.
Findings from the grand jury’s June 24 report suggested the power authority lacked transparency, failed to hire qualified staff resulting in diminished credibility, and lagged in providing staff reports and agendas in a timely manner.
The OCPA was formed in 2020 as an independent, not-for-profit energy provider emphasizing “green power,” replacing Southern California Edison as the main provider. Four Orange County cities—Buena Park, Irvine, Fullerton, and Huntington Beach—signed on to buy electricity from the authority, with some unincorporated areas set to join in 2023.
Officials from the power authority disagreed with almost every finding in its approved responses, stating that OCPA has already made changes responding to the grand jury’s requests, which include hiring qualified staff.
Huntington Beach Councilman Dan Kalmick, an OCPA board member, said at a meeting the responses to the grand jury report were not how he would personally have responded. But he characterized them as appropriate, adding they'll help the power authority assert itself, which he regards as necessary for continued operation.
“[The responses] are addressing the concerns the grand jury had, but I think going forward we should work in the spirit of the grand jury report to effect some changes,” he said.
OCPA members also responded to an Aug. 25 letter to the power authority from the Orange County Board of Supervisors. The Supervisors requested a comprehensive third-party audit to address financial records and costs accrued on behalf of the county to date.
Results of the audit will determine whether supervisors approve proceeding with plans to add unincorporated-area customers to buy power from the OCPA.
Supervisors have held off the plans after complaints were filed accusing the power authority of misleading customers, costing more than Edison by up to 7 percent, and making their opt-out procedure difficult.
If the authority rejects an external audit, the unincorporated areas in the county will avoid the OCPA.
While “[the power authority] is willing to cooperate with the County with respect to a third audit,” officials said in the response, they are requesting the supervisors to join the ongoing audit launched by the City of Irvine instead of starting a new one.
The authority said it would require “certain limitations regarding the disclosure of certain confidential information.”
Supervisor Katrina Foley told The Epoch Times the Irvine audit is of “a very limited scope” and only addresses the pre-launch expenses.
She said the power authority has already been informed that joining Irvine’s mini-audit would be unacceptable, and the board expects to receive an official response no later than Sept. 9.
“We’re not a competitor with the Power Authority. We’re a member. … We should be entitled to the same review and analysis as any other member on the board,” she said.
“If there’s a concern about confidential information, there’s plenty of ways that lawyers protect confidential information every single day in Orange County,” she added.
Supervisor Don Wagner, who is also representing the county on the OCPA board, said he agreed with the authority’s response.
“[The supervisors] understand things like the need for some redactions and some privacy in terms of various agreements,” Wagner said.
While he said he does agree with a full and open request, he also understands that “some information must necessarily be kept confidential pursuant to state law and pursuant to the agreements we have with various providers.”
