【Epoch Times, December 18, 2024】The city of Irvine held a special meeting last Thursday (December 12), where the newly elected mayor and 5 city council members unanimously passed a proposal to lower the default energy level provided by Orange County Power Authority (OCPA) to the most basic option (44%), with nearly seventy residents expressing their opinions at the meeting.
The motion was put forward by newly elected 3rd district council member James Mai, proposing to not only reduce it to the basic option but also to suggest the city of Irvine’s withdrawal from the power authority next year as per the requirements of the Joint Powers Agreement. The motion also demanded that Irvine take all necessary measures to protect the interests of the city, residents, and businesses, and to regularly report the operation, financial, and management status of the power authority to the city council.
In 2002, California passed legislation allowing counties, cities, and authorized entities to purchase electricity or generate power for residents and businesses within their jurisdiction. The Orange County Power Authority was established under this framework, acting as an intermediary that purchases renewable energy to supply power through existing Southern California Edison power systems.
In 2020, Irvine invested $7.5 million to help establish the Orange County Power Authority, with four cities joining at that time. Users of renewable energy had three options: basic (38% renewable energy), smart (65% renewable energy), and 100% renewable energy. The basic and smart options have now been increased to 44% and 72% respectively, with Huntington Beach and the Orange County government having already withdrawn.
In the 2024 election, Irvine held its first district-based election, with Larry Agran elected as mayor for the sixth time among 22 competitors. Melinda Liu, of Chinese descent, and William Go, of mixed Chinese descent, were elected as council members for the 1st and 2nd districts respectively, while former council member Mike Carroll was elected as council member for the 4th district. Kathleen Treseder retained her position and is awaiting the 2026 elections. On December 10, the city council voted 6-0 to hold a special election in April 2025 to fill the vacancy for the 5th district council member.
Agran mentioned that the concept of Community Choice Aggregation (CCA) is appealing, with some willing to pay an extra $10 to $30 per month to use renewable energy. He began researching the role and risks associated with the Orange County Power Authority since 2020, citing similar entities in Riverside County that ended in disaster. He emphasized the need for Irvine to correct course if it veers off track or risks too much in terms of energy issues.
Agran stated his commitment to environmental protection and bold policies at the municipal level, noting that Irvine residents and businesses have been paying high utility rates, and it is important to protect the interests of taxpayers and the city. Irvine’s current total annual electricity budget for municipal facilities, parks, and streetlights is approximately $10 million. Switching to the basic option could potentially save hundreds of thousands of dollars annually that could be redirected to other services.
Liu mentioned that despite the default to the basic option, the motion still allows residents to choose the highest level of 100% renewable energy if they wish.
Carroll noted that Irvine had expressed intentions to divest two years ago, citing challenges facing the Orange County Power Authority. He referred to the city’s $7.5 million investment as a potential issue and warned of a possible overall collapse, labeling it a “noble failure.” He urged against getting bogged down in legal disputes, emphasizing the need to steer towards protecting Irvine residents.
Council member and current Orange County Power Authority board director Treseder expressed frustration at the lack of information from the authority in the five weeks following the November 5 notification that Irvine needed to decide on whether to withdraw or not by December 31.
City Manager Oliver Chi highlighted several issues, noting financial challenges, policy changes, and the power authority’s requirement for Irvine to make a decision by December 31 to either transition all customers to a new energy level of 55% renewable energy or face significant electricity cost hikes. The authority claimed to have sufficient reserves to repay Irvine’s loan.
Chi stated that while they didn’t receive specifics, they were verbally informed that maintaining a 100% renewable energy level would incur an additional cost of 3 cents per kilowatt, resulting in a yearly increase of $210 for a customer using 620 watts daily. He emphasized that potential rate hikes could add an extra $1 million annually to Irvine’s electricity bill. Despite the power authority’s claims of lower rates compared to Southern California Edison, the aggregated analysis showed only a 1.2% to 1.5% decrease after considering all three options.
“In recent months, the Orange County Power Authority seems to have encountered more issues, deliberately hiding information on electricity costs,” added Chi. He mentioned that the authority was considering implementing new policies to limit member choices for their customer base.
During the December 6 meeting, the power authority leaned towards withholding information from Irvine and proposed accelerating the repayment of Irvine’s $7.5 million loan while reducing a seat on the authority’s board. They also planned to revise policies, allowing them to change a city’s choice from the basic option to 100% renewable depending on their financial, energy procurement, and operational needs.
Chi outlined the two options for Irvine: either resolving user concerns within the power authority’s existing framework or withdrawing entirely. If the decision to withdraw is made before December 31, it will take effect on June 30 next year. If the decision is made in January, the withdrawal will be effective on July 1, 2026.
Since its inception, the Orange County Power Authority has faced criticisms for lack of transparency, pricing strategies, and management experience, with frequent turnover of CEOs. In 2022, the authority faced a $2 million fine for insufficient backup energy, leading to Huntington Beach’s exit. Council member Casey McKeon, a former board director for the power authority, noted the delay in receiving electricity purchase contract details, with the details not showing where renewable energy was sourced or in what quantities.
Former Mayor Tony Strickland noted that documents submitted by the Orange County Power Authority to the California Public Utilities Commission revealed that it only had 61% renewable energy, emphasizing the need to move beyond talk and into action on clean or green energy.
Irvine is currently the largest user of the Orange County Power Authority, having spent significant time discussing its future two years ago before ultimately deciding to remain with the authority. Chi outlined, “Approximately 115,000 Irvine users represent 65% of the Orange County Power Authority’s customer base, with an additional 37,000 customers in Fullerton and 24,000 customers in Buena Park. Additionally, nearly 19,000 customers in Fountain Valley may start using electricity purchased from the authority by the end of 2026.”
Irvine’s decision will significantly impact the Orange County Power Authority, with former Mayor Christina Shea of Irvine, residents from surrounding cities, UC Irvine faculty, and students speaking at the meeting on the 12th. Shea, speaking via phone, suggested withdrawing from the power authority, stating that using it has cost Irvine an additional $1 million. While more than half of those who spoke supported remaining with the power authority, such as UC Irvine students advocating for environmental protection and reducing the impact of climate change, some residents suggested installing solar panels at home as a way to save on utility bills and reduce the reliance on utility companies, whether Southern California Edison, which also offers renewable energy options, or the Orange County Power Authority.