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File #: 23-042 MEETING DATE: 1/17/2023
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Consider selection of Huntington Beach's Orange County Power Authority (OCPA) Default
Energy Product Rate and the City of Huntington Beach's Municipal Accounts Rate Selection.
Statement of Issue:
In February 2021, the City of Huntington Beach approved its participation as a Founding Member of
the Orange County Power Authority (OCPA) after deciding to join the OCPA in Dec. 2020.
More recently on December 20, 2022, the City Council requested the following:
1. Options to change the Huntington Beach OCPA default rate offering for new OCPA customers
to Basic Choice.
2. Options to change the OCPA default rate for City of Huntington Beach municipal accounts to
Basic Choice.
3. Return to City Council at a Study Session in February 2023 with options, costs, and path
forward to remove/withdraw the City from OCPA.
This item is in regard to the first two items requested on December 20, 2022.
Financial Impact:
There is no direct fiscal impact to the City for changing the Default Rate offered by OCPA to
customers in Huntington Beach. Any customer may change their default rate selection or opt-out of
OCPA to return as a customer of Southern California Edison.
If the City municipal accounts switch from the current 100% Renewable Choice to Basic Choice, the
estimated annual savings to the City are $234,830. This estimate was provided to the City by OCPA.
Recommended Action:
The following options are available to the City Council for the default energy product for new OCPA
Customers in Huntington Beach:
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File #: 23-042 MEETING DATE: 1/17/2023
A) Take no action. The current, default energy offering of 100% Renewable will remain for all
new OCPA customers;
B) Select the Smart Choice option (at least 69% renewable energy) as the default offering for
new OCPA customers; or
C) Select the Basic Choice option (at least 38.5% renewable energy) as the default offering for
new OCPA customer.
The following options are available to the City Council for City of Huntington Beach municipal
accounts.
A) Take no action, and retain the current energy offering of 100% Renewable for municipal
accounts;
B) Select Smart Choice (at least 69% renewable energy) for municipal accounts; or
C) Select Basic Choice (at least 38.5% renewable energy) for municipal accounts.
Alternative Action(s):
Do not approve one or more recommendation above and direct staff accordingly.
Analysis:
The City finalized its decision and joined OCPA, a Community Choice Energy (CCE) Joint Power
Authority (JPA) in December 2020. Then on February 2021, the City Council approved its Founding
Member participation in the OCPA (see Attachment).
In December 2021, the OCPA Board of Directors approved the addition of the County of Orange
unincorporated areas as its fifth member agency with the anticipation of launching its service to all
customers in 2023. OCPA launched services to customers in 2022 in the cities of Huntington Beach,
Buena Park, Fullerton, and Irvine in two phases: municipal and commercial customers were enrolled
in April 2022; residential customers were enrolled in October 2022.
As a member of the OCPA, the City of Huntington Beach selected the 100% Renewable Choice as
the default energy product for Huntington Beach OCPA customers as well as Huntington Beach
Municipal accounts. New members are enrolled at the default energy product and may select any of
the three OCPA energy product choices as well as opting-out to Southern California Edison (SCE)
generation services at any time.
The following are the three energy product offerings for new OCPA customers:
1. Basic Choice: If the City selects 38.5% renewables as its default energy product offering, then
all Huntington Beach customers will automatically be enrolled in the Basic Choice product
(38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least
69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA
service altogether and stays with SCE. Renewable energy content will increase over time.
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File #: 23-042 MEETING DATE: 1/17/2023
2. Smart Choice: If the City selects at least 69% renewables as its default energy product, then
all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at
least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts
down to the Basic Choice product, or the customer opts-out of OCPA service altogether and
stays with SCE. Renewable energy content will increase over time.
3. 100% Renewable Choice: If the City selects 100% renewables as its default energy product,
then all Huntington Beach customers will automatically be enrolled in the 100% Renewables
product unless the customer opts-down to either the Basic Choice or the Smart Choice
products or the customer opts-out of OCPA service altogether and stays with SCE.
The City Council may choose to change the default energy product by majority vote of the City
Council. This will be transmitted to OCPA with details of the City Council direction. OCPA has
estimated it will take approximately 10 business days but no longer than one full billing cycle (up to 60
days) to implement the new Huntington Beach default rate for new customers.
The City has 462 municipal accounts providing services to City facilities that are on the 100%
Renewable Choice plan. The City may also change the City municipal accounts to one of the OCPA
three choices. OCPA reviewed these accounts and estimated the annual cost reduction of$234,830
if the Basic Choice was chosen over the current 100% Renewable Choice.
New Southern California Edison (SCE)rates are effective January 1, 2023. OCPA new generation rates are
scheduled to take effect in the billing system on January 9, 2023. With the implementation of the new rates, the
OCPA Basic Choice will be 2% less than the standard SCE generation rates. The OCPA new Smart Choice is 1
cent per kWh more than Basic Choice and 100% Renewable Choice is 1.5 cents per kWh more than Basic
Choice. All customers will receive the new OCPA generation rates.
If the City Council chooses to change the municipal accounts to Basic Choice or other option, OCPA has
estimated that all municipal accounts will be moved to the new rate within one full billing cycle (up to 60 days)
after notification by the City.
OCPA's 2023 rates will be published and communicated on all customer bills, and available in the annual Joint
Rate Comparison (JRC) mailer sent to all customers in spring 2023. Each IOU (Investor-Owned-Utility) and
CCA are required to develop a JRC that shows how the rates compare to each other- each time rates are
changed. With SCE new rates effective January 1, 2023, the new JRC will be completed and published by the
end of March 2023. Rate comparisons are also available on the CCA and IOU websites.
The City Council also requested options, costs and paths for the City to withdraw as a Founding
member of the OCPA. Staff is performing research on this topic and will bring forward to City Council
in a study session in February 2022.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result
in direct or indirect physical changes in the environment do not constitute a project.
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File #: 23-042 MEETING DATE: 1/17/2023
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. December 20, 2022 Van Der Mark McKeon Council Item
2. February 1, 2022 OCPA City Council Report
3. February 1, 2021 OCPA City Council Report
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City Council/Public Financing ACTION AGENDA January 17, 2023
Authority
Recommended Action:
A) Adopt Resolution No. 2023-01, "A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the Successor Agency
Administrative Budget for the Period July 1, 2023, through June 30, 2024;" and,
B) Adopt Resolution No. 2023-02, "A Resolution of the Successor Agency to the
Redevelopment Agency of the City of Huntington Beach Approving the Recognized
Obligation Payment Schedule for the Period July 1, 2023 - June 30, 2024 CROPS 23-24')."
Approved 7-0
Police Department
17. 22-1114 Approved Use of Volunteer Release & Waiver of Liability Agreement
Recommended Action:
Staff recommends City Council approve use of the Volunteer Release & Waiver of Liability
Agreement (Attachment) as drafted and approved by the City Attorney.
Approved 7-0
ADMINISTRATIVE ITEMS
18. 23-028 Tabled action to receive and file comprehensive report on City resources
used to address homelessness and approve a 90-day plan to enforce City
and State laws relating to homelessness
Recommended Action:
A) Receive and file this report• and
B) Approve the proposed 90 Day Plan and appropriatc ene t4mc-funding of $500,000 in the
FY 2022/23 General Fund budget.
Approved 7-0— Table item and return to Council with a comprehensive report
that addresses questions and concerns shared by Council, to be presented at a
Study Session held on either February 21 or March 7; receive additional briefings
from staff
19. 23-042 Selected Option (C) for Huntington Beach's Orange County Power Authority
(OCPA) Default Energy Product Rate, and Option (C) for City of Huntington
Beach's Municipal Accounts Rate
Recommended Action:
The following options are available to the City Council for the default energy product for new
OCPA Customers in Huntington Beach:
A) Take no action. The current, default energy offering of 100% Renewable will remain for all
new OCPA customers;
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City Council/Public Financing ACTION AGENDA January 17, 2023
Authority
B) Select the Smart Choice option (at least 69% renewable energy) as the default offering for
new OCPA customers; or
C) Select the Basic Choice option (at least 38.5% renewable energy) as the default offering
for new OCPA customer.
Approved 4-3 Option "C"(Kalmick, Moser, Bolton— No)
The following options are available to the City Council for City of Huntington Beach municipal
accounts.
A) Take no action, and retain the current energy offering of 100% Renewable for municipal
accounts;
B) Select Smart Choice (at least 69% renewable energy) for municipal accounts; or
C) Select Basic Choice (at least 38.5% renewable energy) for municipal accounts.
Approved 4-3 Option "C"(Kalmick, Moser, Bolton— No)
ORDINANCES FOR INTRODUCTION
20. 23-012 Approved for Introduction Ordinance No. 4276 Amending Chapter 2.07 of
the HBMC Relating to Campaign Reform
Recommended Action:
Approve for Introduction Ordinance No. 4276,"An Ordinance of the City of Huntington Beach
Amending Chapter 2.07 of the Huntington Beach Municipal Code Relating to Campaign
Reform."
Approved 4-3(Kalmick, Moser, Bolton-No)
21. 23-017 Approved for Introduction Ordinance No. 4277 Amending Chapter 1.18 of the
Huntington Beach Municipal Code Relating to Anonymous Complaints
Recommended Action:
Approve for Introduction Ordinance No. 4277, "An Ordinance of the City of Huntington Beach
Amending Chapter 1.18 of the Huntington Beach Municipal Code Relating to Anonymous
Complaints."
Approved 4-3(Kalmick, Moser, Bolton— No)
COUNCILMEMBER ITEMS
22. 23-038 Item submitted by Mayor Strickland approved - Develop a proposal for a
public memorial honoring Don Andrews McAllister
Recommended Action:
Direct staff to work with the Community and Library Services Commission and leadership of
the Greater Huntington Beach Interfaith Council to develop a proposal for a public memorial
honoring Don MacAllister on Tower Zero. Return to City Council within 90 days to present
the proposal for consideration.
Approved 7-0
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File#: 22-1108 MEETING DATE: 12/20/2022
Submitted by Mayor Pro Tern Van Der Mark and Councilmember McKeon - Request to Switch
the City of Huntington Beach's (The Organization) OCPA Energy Rate to Basic Choice and
provide Recommendations to Withdraw as a Founding Member of the OCPA
We request the City Manager to present options at the next City Council meeting on the City's pursuit
to immediately switch the City of Huntington Beach facilities to OCPA's Basic Choice Option. We
also request for staff to return at a study session before the end of February 2023 to provide options,
costs and paths forward to remove/withdraw the City entirely from the Orange County Power
Authority.
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CITY OF HUNTINGTON BEACH
CITY COUNCIL MEETING—COUNCIL MEMBER ITEMS REPORT
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: GRACEY VAN DER MARK, MAYOR PRO TEM
CASEY MCKEON, CITY COUNCILMEMBER
DATE: DECEMBER 20, 2022
SUBJECT: REQUEST TO SWITCH THE CITY OF HUNTINGTON BEACH'S(THE ORGANIZATION)
OCPA ENERGY RATE TO BASIC CHOICE AND PROVIDE RECOMMENDATIONS TO
WITHDRAW AS A FOUNDING MEMBER OF THE OCPA
In December 2020, the City of Huntington Beach was entered into the Orange County Power
Authority(OCPA) as a founding member. The OCPA is a joint powers authority with three other
founding members including the cities of Irvine, Buena Park, and Fullerton.
The City Council, in February 2022, approved the 100% Renewable Choice energy rate as the
default rate for Huntington Beach customers, including the City. This rate is the most ambitious
and aggressive plan that has the potential to impose a substantial financial burden on our
residents in their purchase of energy.
Since the City of Huntington Beach pays the highest rates from OCPA, it is irresponsible to the
taxpayer to spend more money than is necessary for a product of service. In all other contracts
with our City, the lowest responsible bid is chosen. In this case the highest rates were chosen,
yet the power comes from the same source as the lowest rate. This highly ambitious energy-
pricing plan for residents, in light of the questionable return on investment, should be corrected
by the City Council in order to protect residents. As such, the City should switch its default rate
for City facilities from 100% Renewable Choice to Basic Choice, the lowest rate that is also most
comparable to the current SCE default rate.
RECOMMENDED ACTION
We request the City Manager to present options at the next City Council meeting on the City's
pursuit to immediately switch the City of Huntington Beach facilities to OCPA's Basic Choice
Option. We also request for staff to return at a study session before the end of February 2023 to
provide options,costs and paths forward to remove/withdraw the City entirely from the Orange
County Power Authority.
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File #: 22-074 MEETING DATE: 2/1/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
PREPARED BY: Sean Joyce, Interim City Manager
Subiect:
Orange County Power Authority (OCPA) Default Rate Selection
Statement of Issue:
In February 2021, the City Council approved its Founding Member participation in the Orange County
Power Authority (OCPA) (see Attachment 1 for accompanying staff report). The City finalized its
decision and joined in Dec. 2020.
In April 2022, OCPA is expected to launch service to municipal and commercial customers in the
cities of Huntington Beach, Buena Park, Fullerton, and Irvine. In October 2022, OCPA will phase in all
residential customers within its service territory, in December 2021, the OCPA Board of Directors
approved the addition of the County of Orange unincorporated areas as its fifth member agency and
anticipates launching its service to all customers in 2023. At full launch, OCPA's service territory will
cover approximately 366,000 retail service accounts (governmental, businesses and residents),
making it the sixth-largest community choice energy provider in the State of California.
As a member of the OCPA, the City of Huntington Beach may select a default energy product offering
prior to OCPA's distribution of its first customer enrollment notice describing the OCPA Program,
informing customers of their opt-out rights to remain with utility bundled generation service in early
February 2022. OCPA's energy product offerings include the Basic Choice product, which will include
38.5% renewable energy content in 2022 that increases over time; the Smart Choice product, which
will include at least 69% renewable energy content in 2022 that increases over time; and the 100%
Renewable Choice product, which will maintain a 100% renewable energy content. The "default
product offering" is the power choice that will go into effect unless the consumer makes a different
choice. All customers will have the option to upgrade, downgrade, or opt-out and return to service
with Southern California Edison (SCE) at any time.
Staff is seeking direction from the City Council on the most appropriate selection of a "default energy
product offering" for all customers in the City.
The following are the three energy product offerings:
1. Basic Choice: If the City selects 38.5% renewables as its default energy product offering, then
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File #: 22-074 MEETING DATE: 2/1/2022
all Huntington Beach customers will automatically be enrolled in the Basic Choice product
(38.5% renewables) unless the customer opts-up to either the Smart Choice product (at least
69% renewables) or 100% Renewable Choice product or the customer opts-out of OCPA
service altogether and stays with SCE.
2. Smart Choice: If the City selects at least 69% renewables as its default energy product, then
all Huntington Beach customers will automatically be enrolled in the Smart Choice product (at
least 69% renewables) unless the customer opts-up to the 100% Renewables product, opts-
down to the Basic Choice product, or the customer opts-out of OCPA service altogether and
stays with SCE.
3. 100% Renewable Choice: If the City selects 100% renewables as its default energy product,
then all Huntington Beach customers will automatically be enrolled in the 100% Renewables
product unless the customer opts-down to either the Basic Choice or the Smart Choice
products or the customer opts-out of OCPA service altogether and stays with SCE.
OCPA Status Report - Default Energy Product Offerings
• Buena Park: Selected Smart Choice product (at least 69% renewables) as a default energy
product offering for their residential and commercial customers on January 25, 2022. The City
has not yet made a determination concerning the default energy product offering for City
facilities.
• Irvine - Selected Smart Choice product (at least 69% renewable) as a default energy product
offering for their residential and commercial customers and is expected to take final vote on
February 8, 2022. The Irvine City Council also decided that all City facilities will default into the
100% Renewable Choice product.
• Fullerton - Will choose a default Energy Product on February 1 , 2022
• Huntington Beach - Will choose a default Energy Product on February 1, 2022
Low-income qualified customers (customers currently enrolled in the California Alternate Rates for
Energy (CARE) and the Family Electric Rate Assistance (FERA) discount programs will continue to
receive all benefits and discounts as an OCPA customer.
Mayor Pro Tern Mike Posey serves as the City's member on OCPA Board of Directors;
Councilmember Dan Kalmick is the City's alternate. As the City's representative, Mayor Pro Tern
Posey has been integrally involved on the Board of OCPA since its inception. As such, Mayor Pro
Tern Posey may wish to supplement this report with comments of his own and may offer a
recommendation for action this evening.
Financial Impact:
The OCPA Board approved rate design set the 2022 rates for Basic Choice at parity to SCE,
assuming all OCPA member agencies select Smart Choice as the default service offering. This
approved rate design allows for a smaller premium for Smart Choice (estimated at SCE rate plus a
penny per kWh or 3.7% above SCE for average residential customer) and 100% Renewable Choice
(estimated at SCE rate plus 1.5 cents per kWh or 5.6% above SCE for average residential customer).
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File #: 22-074 MEETING DATE: 2/1/2022
In addition, the OCPA Board also approved the Net Energy Metering enhancements from the SCE
NEM program, as follows:
1. Set NSC rate at 10% above the incumbent IOU NSC rate
2. Provide monthly billing to NEM customers
3. Set all customers annual true-up period to April
OCPA Board Approved Rate Design Bill Impacts
For a typical residential customer, the bill impacts for the three OCPA product offerings are estimated
by OCPA as follows:
Estimated Typical Residential Bill Comparison
Basic Choice, 425 KWh Per Month
Charge Type OCPA SCE Difference
Generation S41.51 S49.96 (SS.45)
SCE SurchargeSS.45 S0.00 SS.45
SCE Delivery S64.44 S64.44 S0.00
Total S 114.40 S 114.40 S0.00 0.0%
Estimated Typical Residential Bill Comparison
Smart Choice, 425 Klf'h Per Month
Charge Type OCI A SCE Difference
Generation S45.76 S49.96 (S4.210
SCE SurchargeSS.45 S0.00 SS.45
SCE Delivery S64.44 S64.44 S0.00
Total S118.65 S114.40 S4.25 3.7%
Estimated Typical Residential Bill Comparison
100% Renewable Ellerin,Choice,425 KWh Per Month
Charge Type OCPA SCE Difference
Generation S47.S9 S49.96 (S2.07)
SCE SurchargeSS.45 S0.00 SS.45
SCE Delivery S64.44 S64.44 S0.00
Total S120.73 S114.40 S6.3S 5.6%
The detailed rate design analysis is included in the attached January 11, 2022 OCPA staff report
(Attachment 2).
In light of the lack of direct staff involvement in the development of the OCPA rate design analysis
attached here, OCPA staff will attend our meeting to discuss the options and answer related
questions.
Recommended Action:
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File #: 22-074 MEETING DATE: 2/1/2022
Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy product
offering for residential and commercial customers in Huntington Beach, and consider the same or a
different energy product offering (and corresponding rate and environmental benefits) for the City's
municipal energy accounts.
Alternative Action(s):
The following options are available to the City Council:
1. Select 100% Renewable as a default energy product offering for all OCPA Customers in
Huntington Beach;
2. Select Smart Choice (at least 69% renewables) as a default energy product offering for all
OCPA Customers in Huntington Beach; or
3. Select Basic Choice (38.5% renewables) as a default energy product offering for all OCPA
Customers in Huntington Beach.
Staff has no specific recommendation.
Analysis:
The following is OCPA's rate design analysis in the attached January 11, 2022 report. Under the
approved rate design scenario (scenario 3), the cost impacts for each of the default product offering
for the City's municipal energy accounts are estimated as follows:
Cost Increase ($/kWh) Cost Increase ($)
Basic Choice 0 0
Smart Choice .01 Approx. $141 k
100% renewable Choice .015 Approx. $212k
Over the past decade, the City has worked diligently to reduce energy consumption. The cost spent
on energy in 2019 was approximately $3.0M. This expenditure has been reduced from what was
$4.7M in 2014. This was done largely through projects such as the LED conversion of City
streetlights and the solar panels that were installed at City facilities. Even after paying for the debt
service on these projects, the savings far exceed the cost increase of implementing renewable
energy. This important policy matter before you represents an opportunity to extend the City's
commitment to environmental stewardship.
Environmental Status:
Not applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. February 1, 2021 Request for City Council Action Report
2. OCPA January 11, 2022 Report
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City Council/ ACTION AGENDA February 1, 2022
Public Financing Authority
offering for residential and commercial customers in Huntington Beach, and consider the same or
a different energy product offenng (and corresponding rate and environmental benefits) for the
City's municipal energy accounts.
Approved 6-1 (Peterson-No) 100% Renewable Choice Alternative Default Energy Product
Offering for Residential/Commercial Customers; and
Approved 6-1 (Peterson-No) 100% Renewable Choice Alternative Default Energy Product
Offering for City facilities
COUNCILMEMBER ITEMS
19. 22-079 Approved Item Submitted by Mayor Delgleize, Councilmember Moser
and Councilmember Bolton - Consider support of a Blood Drive in
collaboration with the UCI Health Bloodmobile, and direct staff to
coordinate with UCI Health to host the event at a City Facility
Recommended Action:
We are recommending the following.
1. Direct staff to collaborate with UCI Health to host a blood drive at a City of Huntington
Beach facility tentatively on March 5. 2022; and
2. Direct staff to highlight and promote resources for additional opportunities for the
community to participate in blood drives.
Approved 7-0
COUNCILMEMBER COMMENTS (Not Agendized)
Comments provided by: Posey, Carr, Moser
ADJOURNMENT- 9:39 PM
A Strategic Planning Workshop has been scheduled for 9.00 AM. Friday, February 4. 2022 at
Huntington Beach Central Library. Rooms C & D, 7111 Talbert Avenue, Huntington Beach, California.
The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is
Tuesday. February 15, 2022. at 4.00 PM in the Civic Center Council Chambers 2000 Main Street,
Huntington Beach California.
INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND
STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT
http://www.huntingtonbeachca.gov
City Council/ ACTION AGENDA February 1, 2022
Public Financing Authority
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute "Professional Services Contract
Between the City of Huntington Beach and Disability Access Consultants LLC for ADA Self-
Evaluation and Transition Plan."
Approved 7-0
15. 22-069 ITEM WITHDRAWN Approved-and authorized-execution-of a Professional
Advocacy-and-Grant Management Services
Recommended-Action:
Approve-and-
Between the o14 nt igtern Beach and iC Street-Consulting: i_1 E for legislative Advocacy
16. 22-061 Approved and authorized execution of Amendment No. 5 to Agreement
with Biggs Cardosa Associates, Inc. (BCA) for bridge design
services in the amount of $301,857.00, for a total contract amount not
to exceed $3,115,654.00 and extending the contract term 3 years
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute "Amendment No. 5 to Agreement
Between the City of Huntington Beach and Biggs Cardosa Associates. Inc. for Bridge Design
Services.
Approved 7-0
17. 22-062 Approved the purchase of 23 replacement vehicles from National
Auto Fleet Group using lease financing and authorized the City
Manager to enter into all documents necessary to lease finance the
purchase of the vehicles
Recommended Action:
Approve the purchase of 23 replacement vehicles utilizing 5-year lease financing at an interest
rate not to exceed 2.375 percent and authorize the City Manager to enter into all documents
necessary to lease finance the purchase of the vehicles and take all administrative and
budgetary actions necessary to complete the purchase and financing.
Approved 7-0
ADMINISTRATIVE ITEMS
18. 22-074 Selected Orange County Power Authority (OCPA) Alternative Default
Energy Product Offerings for Residential/Commercial customers and
City facilities offered
Recommended Action:
Select Basic Choice, Smart Choice, or 100% Renewable Choice as the default energy product
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File #: 21-085 MEETING DATE: 2/1/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Consider Maintaining Membership with the Orange County Power Authority (OCPA), a
Community Choice Energy (CCE) Joint Power Authority (JPA)
Statement of Issue:
On December 10, 2020, the City approved the required Ordinance, Resolution, and JPA agreement
necessary for Huntington Beach to join the Orange County Power Authority (OCPA), a Community
Choices Energy (CCE) Joint Power Authority (JPA). The decision was made to join the CCE at that
time for a variety of reasons, including the following:
• The potential for ongoing electrical power cost savings when compared against rates charged
by SCE.
• By joining in December 2020, the City would be considered a Founding Party member, which
places Huntington Beach onto the JPA Executive Board Committee.
• The agreements expressly allowed for any participating agency to withdraw from the JPA for
any reason and without any liability or cost by March 1, 2021 (subsequently, the withdrawal
deadline was extended to April 1, 2021).
Given those factors, as part of the determination to join the OCPA, the City Council also directed that
staff complete a full assessment of the proposed JPAs feasibility plan, and bring those findings back
for review at the City's February 1, 2021 meeting. At that time, the City Council would make a final
determination on whether or not to participate in the CCE.
Subsequently, staff coordinated with MRW & Associates (MRW), an independent firm that was hired
to assess the OCPAs implementation plan. A summary of MRWs findings (see attached report
assessing OCPA) is as follows:
• The OCPA CCE is expected to be financially feasible.
City of Huntington Beach Page 1 of B Printed on 1/27/2021
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File #: 21-085 MEETING DATE: 2/1/2021
• The MRW analysis confirmed that OCPA is projected to be able to provide power at rates
lower than Southern California Edison.
• The MRW assessment identified that the financial margins when comparing projected OCPA
rates against SCE rates are the smallest during the first 2-3 years of operation, and that the
margins increase over substantially over time.
• The financial analysis found that OCPA's Implementation Plan is generally sound, developed
utilizing reasonable and conservative assumptions. MRW did identify that the projections for
the amount of initial working capital that OCPA would need could be slightly understated.
o Of note, given that the City of Irvine is assuming all of the initial risk / start-up costs, this
does not seem to of particular concern regarding the viability of OCPA.
• The OCPA agreement helps minimizes potential financial risk for Huntington Beach by
specifically stating that the agencies are not required to make any financial contributions or
payments to OCPA, and that OCPA has no right to require a contribution or payment.
• A benefit of remaining a member of OCPA is that the City of Irvine has agreed to provide up-
front funding for implementation, start-up costs, as well as collateral funds in order to secure
all of the needed initial financing.
At this time, the City Council has the option to maintain membership with the OCPA JPA, or withdraw
from the CCE organization with no cost or liability impacts.
Financial Impact:
There is no direct fiscal impact from joining the OCPA JPA. Per the JPA agreement, participating
agencies are not required to make any financial contribution. Rather, the City of Irvine has agreed
through the JPA agreement to cover all initial start-up costs associated with establishing the new
OCPA entity. Those costs that Irvine has agreed to cover include the following:
• OCPA agency start-up costs, which are estimated at $2.5M.
• Initial working capital cash collateral of up to $5M for costs associated with procuring a
working capital loan.
Under the OCPA JPA agreement, Founding Party members have no financial obligation to the CCE
entity being formed, which provides financial protections for Huntington Beach. The OCPA JPA
agreement specifically states that the debts of the OCPA cannot be transferred to its member cities,
nor can the OCPA compel a member city to financially contribute to the OCPA. Therefore, the City's
General Fund should not be impacted by maintaining membership, nor will membership impact the
City's credit rating.
Recommended Action:
The City Council has the following options:
City of Huntington Beach Page 2 of 6 Printed on 1/27/2021
power LegistarT'
File #: 21-085 MEETING DATE: 2/1/2021
A) Maintain membership in the Orange County Power Authority Community Choice Energy Joint
Power Authority,
OR
B) Withdraw from the Orange County Power Authority, and direct staff to complete all requisite
documents necessary to terminate our participation in the CCE JPA.
Alternative Action(s):
Do not select either of the options and direct staff accordingly.
Analysis:
In 2018, the City of Irvine initiated a feasibility study to assess the possibility of implementing a CCE
program for their community. Those efforts evolved over the past two years, and in 2020, Irvine
extended an invitation to all Orange County municipalities, asking interested parties to consider
joining them in forming a CCE JPA, which has since been named the Orange County Power Authority
(OCPA).
A total of five (5) agencies are currently part of the JPA, including the cities of Fullerton, Buena Park,
Lake Forest, Huntington Beach, and Irvine. These five jurisdictions are considered the Founding
Party member agencies in the JPA and will be placed on the JPAs Executive Board Committee. Also
of note, per OCPA staff, there are currently up to 10 other cities reviewing participation in OCPA.
CCE Background
CCEs are a mechanism authorized in California in 2002 by Assembly Bill 117, whereby local
electrical service customers are provided with options when it comes to determining from where they
purchase their power. Under the CCE set-up, customers can continue to procure their electrical
power through their current utility provider (in the case of Huntington Beach, that would be Southern
California Edison), or they can opt to have a local municipal government (or a coalition of local
governments) procure electrical power on their behalf.
Typically, CCEs are established with larger environmental or social goals in mind, such as increasing
the share of power procured from renewable sources. In addition, CCEs have been shown to
provide slight cost savings (around 1-2% decrease) over traditional investor-owned utility operations.
Of note, establishing a CCE does not mean completely severing ties with the investor-owned utility,
given that the utility agency still owns and manages the distribution lines that transmit electrical
power to homes and businesses. Further, the utility company still meters each customer's power
usage, and continues to send customers their electrical bill. Under the CCE model, what changes is
the entity which purchases electricity on behalf of the customer; rather than the utility company
performing that role, the responsibility is transferred to the newly-formed local entity.
The Orange County Power Authority
The City of Irvine led an effort that in December 2020 to create a regional CCE Joint Power Authority
named the Orange County Power Authority (OCPA). Currently, the OCPA consists of five (5)
City of Huntington Beach Page 3 of 6 Printed on 1/27/2021
power Legistarr'^
File #: 21-085 MEETING DATE: 2/1/2021
founding member agencies; Buena Park, Fullerton, Irvine, Lake Forest, and Huntington Beach.
Additionally, currently there are up to 10 other Orange County cities that are considering joining the
OCPA. Of note, the original five members of OCPA, which includes Huntington Beach, are Founding
Party Members and automatically placed on the JPA's Executive Committee. Any other agency that
joins will be considered Additional Party member.
Given the uncertain nature of which agencies are looking to join the JPA, it is difficult to model
precise fiscal data for the proposed OCPA entity. However, Irvine has commissioned a detailed fiscal
analysis to assess various possible scenario through a 10-year pro forma document, a copy of which
is included as an attachment to this report. Per that assessment, the proposed OCPA was identified
as being financially viable, with the following key summary findings:
• OCPA would be able to repay the City of Irvine's start-up and working capital loans,-and build
up proper financial reserves, during the first 5-7 years of operation.
• After initial debt service costs are repaid, it is estimated that a significant amount of net income
will be available to the OCPA for use towards customer program or additional electrical rate
discounts.
OCPA Financial and Operational Analysis
The City Council directed staff to provide a financial analysis of the OCPA and present to the City
Council prior to the JPA no-risk opt out deadline. At the City's request, MRW & Associates (MRW)
completed an independent analysis of OCPA's financial viability, reviewed the OCPA Implementation
Plan, and provide an analysis of risks and benefits if of remaining in the OCPA. MRW's report found
that OCPA provides a financially viable option for the City to participate in a CCE with lower risk than
establishing a stand-alone CCE with the following key findings:
Financial Analysis
The MRW independent analysis performed found the OCPA program is financially feasible,
confirming that the OCPA's projected margin between the OCPA operating costs to provide power
is projected lower than the SCE energy generation rate. This means OCPA will be able to provide
energy wither at a lower rate or competitive with SCE. The tightest margins will occur during the
first few years of operation and will increase over time. The MRW model projects the margin
between OCPA power costs and SCE power costs will start near 1 cent/Kwh, and will increase to
over 3.0 cents/kwh over the next 10 years.
MRW states that a CCE is feasible, but is not risk-free. OCPA will be participating in a competitive
power market and subject to evolving state requirements and regulations. While an OCPA rate
discount in the long run should be achievable, market prices and SCE rate volatility could
combine to, in some isolated years, occasionally prevent the CCA from offering lower rates than
SCE.
Implementation Plan
MRW found that the OCPA Implementation plan uses assumptions that are generally sound,
confirming that the underlying customer phase-in, assumed power prices, operating costs, and
City of Huntington Beach Page 4 of 6 Printed on 1/27/2021
power LegistarT.'
File #: 21-085 MEETING DATE: 2/1/2021
CCA revenues are all reasonable or conservative. MRW stated that they feel the amount of
collateral provided by Irvine is lower than what may be required when OCPA secures the
financing.
Opt-Out Risk
Customers may choose to opt-out of a CCA service before, during, or even after a CCE is formed.
Most recent CCEs launched have only experienced very modest opt-out rates of around 2-3%.
MRW modeled a high opt-out rate of 30%, and even at that level, the CCE remained financially
viable.
Governance Model Options
The MRW evaluation found that joining the a JPA such as the OCPA would provide benefits from
increased negotiation and buying power for power purchases, access to better financing terms for
borrowing, and operation efficiencies gained by combining management and operating functions
such as billing and accounting. The tradeoff to the benefits of joining a JPA are that decision
making will be allocated amongst the participating parties as opposed to a single agency entity.
A benefit to the OCPA JPA, participating agencies are not required to make any financial
contribution. Rather, the City of Irvine has agreed through the JPA agreement to cover all initial
start-up costs associate with establishing the new OCPA entity as well as cash collateral up to $5
million for power purchase financing. If the City chose to form a stand-alone CCE enterprise they
would be required to fund the start-up capital and financial guarantee. By participating with OCPA,
these financial burdens are being met by Irvine and not required of Huntington Beach.
Greenhouse Gas (GHG)
In order for OCPA to achieve GHG saving, the CCE will be required to acquire energy above the
state renewable requirements. This would include purchasing energy from hydroelectric facilities
(which is carbon-free but do not qualify as "renewable" under state law) or increase the renewable
content of its electricity supply above that required by the state.
The MRW independent analysis confirms the OCPA studies and implementation plan is generally
sound and that maintaining membership is viable option for the City of Huntington Beach should the
Council choose to participate in a CCE. Additionally, maintaining membership in OCPA, will provide
the additional benefits of no implementation costs, reduced financial risk and reduced administrative
and ongoing management costs.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Enhance and maintain high quality City services
Attachment(s):
1. Community Choice Energy for the City of Huntington Beach and Review of Orange County
Power Authority
City of Huntington Beach Page 5 of 6 Printed on 1/27/2021
power Legistar'
File #: 21-085 MEETING DATE: 2/1/2021
2. OCPA Implementation Plan
3. Orange County Power Authority Joint Powers Agreement
City of Huntington Beach Page 6 of 6 Printed on 1/27/2021
power LegistarT""
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Moore, Tania
From: Linda K <Ikteamtalk@gmail.com>
Sent: Tuesday,January 17, 2023 1:56 PM
To: supplementalcomm@surfcity-hb.org; CITY COUNCIL
Subject: Item 19: Please keep OCPA and continue to give energy choice to HB residents and
clean energy options to everyone
To the City Council,
Thank you for supporting healthy outdoor recreation as Orange County's#1 Surf and Beach City!
Please continue to show leadership in sustainability and support energy choice and independence for
Huntington Beach residents.
There has never been a choice with our utilities.
It's either Opt-in to SCE or have no electricity at all.
I urge you to delay your decision to make changes to your OCPA accounts.
Community Choice Energy is the only program that brings revenue back to customers rather than sending it to
utility investors.
OCPA is a local Joint Power Authority(JPA).
Huntington Beach already enjoys local control with waste management and water districts.
JPAs include our OC Vector Control as well as our OC Fire Authority.
Energy independence can't happen when monopolies are in charge.
Despite what you might hear in the media, OCPA is doing well financially.
OCPA has a "strong"financial standing by one of the top CCA auditors in California.
CaICCA,the member organization representing CCAs in California, published it, here:
https://cal-cca.oraindependent-auditor-issued-a-clean-audit-opinion-on-material-accuracy-of-orange-county-power-
authoritys-financial-statements-and-identified-no-material-weakness-in-internal-control/
All expenses to operate OCPA are paid by the revenue from ratepayers (typically going to SCE investors).
Because of its non-profit status, the extra revenue must go back into the communities (after reserves are met in
the first few years).
The new rate in January 2023 will be 2% lower(for generation charge)than the SCE rate, and the rate is also dropping at
the higher renewable levels.
SCE's PCIA charge brings the rate savings to .8%. This PCIA charge will go down every year.
Here is a screenshot from this morning's OCPA Board Meeting at which the OCPA 2023 rate schedule was approved.
SUPPLEMENTAL
COMMUNICATION
Meeting Date: 1 ! i q f dO a~3
Agenda Item No.; lq(P3 - 010)
'Charlie Type 42CR4 SCE wlaencr[$I 04Nereitoe Mil
(quivalent Generation Charge ' $55.53 $56.66 01.0 -2.0%
SCE Genereice5un4ef5es $6..74 $6.74 50.00 00%
SCE Moan/Cnstr $77.01 572.111 $01CC 00%
"rota BY $134.35 $135.43 I$1.131 ale%
Wert Chad I
Charge Type 0011% SCE Derentnte(SI Mew*(14
Equlwlont Generation Cnarpa" $59.73 556.6.6 53.12 5 5%
SCE Generation 5cm-heroes 56.74 54.74 $0.00 00%
6CC Ae:veryr Costs 572.04 572.00S0.00 00
%megal $114.60 $135.4g 53.1.7 13%
100%ner ew,Gle Er¢-0 CF.:1.
Charge Type OiPA SCE Difference Difference(351
Equivalent Gerceretinr Charge" 561.91 $56.66 55.24 93%
SCE Deflection 5rrtharges 5b74 56.74 5000 00%
ECE0nlvary Coats..._.w_..._.n..__._....,..�_._,,,__..._.._ $72.C2 $72.01 $0.00 0.0%
$Dial art $14072 $135.48 $5.24 3.9%
"WI.I:.gmi.ACcm lauucrmt raC'Lrf 1,..Ic ultud m 5,'('E eguera v n ten,.:Itact renrniaiun lwdwnect d{gd.r:ubi.h. 't. . ..r...:
In the December 2022 OCPA Board Meeting,the following financial strengths were shared, (page 54 to 56):
https://www.ocpower.org/wp-content/uploads/2022/12/December-13-2022-OCPA-Board-Agenda.pdf
- OCPA is predicted to have reserves at$53.2 million by December 31, 2023, at the current Opt-Out rate, (even though
the Opt-Out rate is lower than expected).
- OCPA is expected to reach investment credit rating 3 years after launch in 2025.
- OCPA reported that adopting the recommended 2023 rate design will increase OCPA's projected reserves by
approximately$19.5 million for FY2022/23.
-OCPA has paid all start-up debt payments to The City of Irvine on time or ahead of time.
Also on page 54 of this December 2022 OCPA Board Meeting is an explanation in part of the SCE Rate increase
approved for 2023 of 24%to correct for undercharging in 2022,
"Several factors led to an increase in SCE generation rates. SCE rates were set too low in 2021 and 2022, resulting in an
under-collection. SCE increased rates in 2022 to recover$777 million of under-collection and will still need to recover an
additional $970 million via their 2023 rate increases"
This slide from the well respected MRW consulting company, showed the trends of CCAs to have increasingly better
rates compared to IOUs over time.
After initial start-up, rates decrease over time.
Competitive rates has always been the goal:
2
Projected Cost CCE vs. SCE
Figure ES-3. Average Lake Forest CCA Coat Projection versus SCE Generation Rate
t2
10 SCE Generotwn Set
II I
8 EoGPIEme8:1Artable otteettySource' City of lake Forest
2 ! CCA ieasibility study by
MRW&Associates
0
Feb.2Q21
2023 2020 2025 2029 2027 2028 2020 2030 2031 2032
CCA costsdo not include mein fortune oc progarm
Please also delay the decision to move to the Basic rate.
Huntington Beach has a legacy of strong sustainability and protecting its beaches.
The vast majority of member cities model this easy choice to keep it's operations 100%clean and unlike other programs,
there is no implementation costs.
There is no real Green Choice with the utilities.
The utilities historically offer a tiny%of customers an expanded green/renewables program.
In 2021,out of roughly 5 million SCE customers, a mere 2,452 customers were allowed on the Green Tariff program,
filing to the PUC:
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M459/K669/45 9669929.PDF
•
Other reasons to maintain utility choice.
SCE and the other utilities spent over 40 million dollars in recent years lobbying for a California solar
tax and a 75% drop in credit for sharing extra solar to the Grid! The CPUC just voted for the 75% cut
on December 15th. Community Choice agencies are not subject to the CPUC rules.
OCPA currently gives back 10% more to solar customers than SCE.
Regarding trust of renewable energy content:
Every year,we will see a Power Content Label for all utilities, including OCPA and SCE.
SCE's current Power Content label for 2021 is 31.4%Renewables and 9.2%nuclear.
Many residents in Huntington Beach don't have the luxury of owning a home or putting solar on their roofs.
I hope you'll continue to allow them the option of choosing 100% clean energy for the price of a cup of coffee
($5.24 for the average residential bill).
You can see all 2021 Power Content Labels here:
https://www.energy.ca.gov/programs-and-topics/programs/power-source-disclosure/power-content-label
Our group has over 300 members in Orange County and a large number in Huntington Beach. We support
sensible ways to keep our air and environment clean.
If I can be of any assistance in providing any further helpful information, please let me know.
Thank you,
3
Linda Kraemer, M.S.
Chapter Chair
The Climate Reality Project: Orange County, CA Chapter
www.climaterealityoc.com
OC Clean Power- www.occleanpower.org
LKTeamTalk@gmail.com
4
Switzer, Donna
From: Tristan Miller <tristan@mansey.com> SUPPLEMENTALSent: Monday, January 16, 2023 6:49 PM
To: CITY COUNCIL; supplementalcomm@surfcity-hb.org COMMUNICATION
Subject: Agenda Item #19 - Please Stay with 100% Renewable Energy
Meeting Date: l J�—/,2 3
Dear Mayor and City Council, r'lz3 —a y2J
Agenda Nam No.;_
I am writing you about agenda item#19"Consider selection of Huntington Beach's Orange County Power Authority(OCPA)Default
Energy Product Rate and the City of Huntington Beach's Municipal Accounts Rate Selection."
Please vote to stay in the highest renewable energy rate.Please preserve and protect our community and oceans from pollution
and give us energy choice.Our beaches and oceans are central to our community and economy. Stay with 100% renewable as
that will be key to protecting our beautiful beaches now and in the future.
Do not vote to drop City Municipal Accounts down to 38% renewables Basic Rate,and all new incoming customers to Basic
Rate.
SCE has raised its rates every year since 2010 according to the CPUC Public Advocates Office. SCE just announced a CPUC
approved 24% rate hike in January 2023! We need rate stabilization,keep rate payer dollars in our community,bring more
jobs,and give our city energy choice and ability to invest those ratepayer dollars in our communities.
Huntington Beach needs energy choice in Community Choice Energy!
For over 100 years,we have only had one choice,the Investor-Owned Utility(IOU).
Without Community Choice Energy(CCE)there is no market competition for SCE.
We need our revenue dollars to come back to our community for more energy savings and to invest in our community. For a city the
size of Huntington Beach,that could be millions of dollars per year!
1)The recent OCPA audit was clean according to this announcement:
https://cal-cca.org/independent-auditor-issued-a-clean-audit-opinion-on-material-accu racy-of-orange-county-power-
authoritvs-financial-statements-and-identified-no-material-weakness-in-internal-control/
CCEs are financially strong-for example 4 have `A' credit ratings. SCE currently has a BBB+credit rating. PG&E went bankrupt!
2)And the OCPA just announced the our rates will be 2% lower than SCE's basic rate-SCE just announced 24% rate
increase
https://www.ocnower.org/news/blog/orange-county-power-authorityannounces-its-basic-choice-ratedesign-will-be-lower-
thansces-generation-rateseffective-mid-ianuary-2023/
3)Please meet with the newly hired Director of Communications who has energy experience.Joe Mosca was the Deputy Mayor
of Encinitas. Encinitas has a strong new building electrification REACH code ordinance.Joe was a founding member of San Diego
Community Power-a Community Choice Energy Provider.
https://cal-cca.org/ocpa-hires-director-of-communications-and-external-affairs/
IOUs are lobbying against competition.And SCE and the other utilities spent over 40 million dollars in recent years lobbying for a
California solar tax and a 75%drop in credit for sharing extra solar to the Grid! The CPUC just voted for the 75%cut on December
15t.
OCPA currently gives back 10%more to solar customers than the utility and is not subject to the same CPUC rules.
OCPA is doing well financially;the new rate in January 2023 will be 2%lower than the SCE rate,and the rate is also dropping 2%at
the higher renewable levels.
1
Many OC and Huntington Beach residents have spent years advocating for Community Choice Energy. Many of local
officials and city council members past and present have advocated for Community Choice Energy.
Community Choice Energy is the proven most cost-effective and fastest way to reduce emissions and protect our beaches and
re-invest in our community. It's important to me! Please save our energy choice and market competition.
Stay in Orange County Power Authority(OCPA)at the 100% renewable default level.
Thank you,
Tristan Miller
Business Owner and OC Resident
Community Volunteer,Meet the Masters Art Program Manager&Volunteer
CCL and CRP OC Member
2
Switzer, Donna
From: Hoiyin Ip <hoiyini@hotmail.com>
Sent: Monday,January 16, 2023 8:14 PM
To: supplementalcomm@surfcity-hb.org; CITY COUNCIL
Subject: public comment: OCPA - item 19
It's unfortunate that council is considering lowering the default from 100%renewable. If this is what it needs to stay in
OCPA for Community Choice Energy,ok. Don't go back to monopoly.
Thanks,
Hoiyin
SUPPLEMENTAL
COMMUNICATION
Meeting Date: '/l 91z3
Agenda Nem No.; ram! f.23- v y2)
1
Switzer, Donna
From: Marilyn Palomino <palominoccr@gmail.com>
Sent: Monday,January 16, 2023 8:17 PM
To: CITY COUNCIL; supplementalcomm@surfcity-hb.org
Subject: Agenda Item#19 - Please Stay with 100% Renewable Energy
Dear Mayor and City Council,
I am writing to you about agenda item#19"Consider selection of Huntington Beach's Orange County Power Authority(OCPA)
Default Energy Product Rate and the City of Huntington Beach's Municipal Accounts Rate Selection."
Please vote to stay in the highest renewable energy rate.Please preserve and protect our community and oceans from pollution
and give us energy choice.Our beaches and oceans are central to our community and economy. Stay with 100% renewable as
that will be key to protecting our beautiful beaches now and the health of all citizens.
Do not vote to drop City Municipal Accounts down to 38% renewables Basic Rate,and all new incoming customers to Basic
Rate.
SCE has raised its rates every year since 2010 according to the CPUC Public Advocates Office. In 2022 and 2021 SCE raised
rates 3 times during each year! SCE just announced a CPUC approved 4% rate hike in January 2023!This information is
available on the SCE website.We need rate stabilization,keep rate payer dollars in our community,bring more jobs,and give
our city energy choice and ability to invest those ratepayer dollars in our communities.
For over 100 years,we have only had one choice,the Investor-Owned Utility(IOU).
Without Community Choice Energy(CCE)there is no market competition for SCE and there is no incentive to seek out sources of
clean energy.Yes we need SCE's infrastructure to transmit energy but we can obtain energy from cleaner sources! We need our
revenue dollars to come back to our community for more energy savings and to invest in our community.
1)The recent OCPA audit was clean according to this announcement:
https://cal-cca.org/independent-auditor-issued-a-clean-aud it-opinion-on-material-accuracy-of-orange-county-power-authoritys-
financial-statements-and-identified-no-material-weakness-in-internal-contro I/
CCEs are financially strong-for example 4 have 'A' credit ratings. SCE currently has a BBB+credit rating. PG&E went bankrupt!
2)And the OCPA just announced the our rates will be 2%lower than SCE's basic rate- SCE just announced 24%rate increase
hops://www.ocpower.org/news/b log/orange-county-power-authorityannounce s-its-bas ic-choice-ratedesign-will-be-lower-thansces-
generation-rateseffective-mid january-2023/
3)Please meet with the newly hired Director of Communications who has energy experience.Joe Mosca was the Deputy Mayor of
Encinitas. Encinitas has a strong new building electrification REACH code ordinance.Joe was a founding member of San Diego
Community Power-a Community Choice Energy Provider.
https://cal-cca.org/ocpa-hires-director-of-communications-and-external-affairs/
Please look towards the future in your decision-making. I appreciate concerns about costs for all citizens. Costs are not only financial.
Dirty energy causes pollution that costs people in many other ways. Public health is at stake.Cancer,heart disease and asthma are on
the rise and have been tied to pollution. Burning fossil fuels for energy is contributing to warming oceans and crazy weather patterns.
The time to act is now! I have lived in Huntington Beach for the past 35 years and I support 100%renewable energy.
Respectfully, SUPPLEMENTAL
Marilyn Palomino COMMUNICATION
Meeting Date: /Ii 7-/23
Agenda Nem No.; /1/-23 — D i/2)
Switzer, Donna
From: Charles Jackson <c jackson@ieee.org>
Sent: Tuesday, January 17, 2023 12:48 AM
To: supplementalcomm@surfcity-hb.org
Subject: Huntington Beach City Council Agenda item 19, 23-042, OCPA
Dear Huntington Beach City Council
The Orange County Power Authority, OCPA, has demonstrated that it can deliver power to Huntington Beach,
and that it has assembled an excellent, experienced team to deliver the power. However more transparency,
would be a good thing. The Huntington Beach appointed OCPA board member can examine confidential
power agreements, but not the SCE confidential agreements. This is one aspect of why Community Choice
Energy allows more local control.
With respect to the recommended options, they are all reasonable. While I support the best option for the
environment, other people in the city of Huntington Beach might support the lowest cost option. The City
Council of Huntington Beach was elected to make the best choice for the residents of Huntington Beach.
I fully support OCPA and hope that the residents of Huntington Beach will continue to have good choices for
the kind of power that they receive.
Charlie Jackson
SUPPLEMENTAL
COMMUNICATION
poet:®/
Agenda stem /e3/ 3^ 1J42)
1
Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 2023 9:27 AM
To: Agenda Alerts
Subject: FW:Agenda Item 19, File number 23-042
From: DANNY GRAY<danny_gray@cox.net>
Sent:Tuesday,January 17, 2023 7:03 AM
To:CITY COUNCIL<city.council@surfcity-hb.org>
Subject:Agenda Item 19, File number 23-042
Re: Agenda Item 19, File number 23-042
Hello Mayor Strickland and Council Members,
The decision to change the electric rate for Huntington Beach's Municipal Accounts to the OCPA Basic Choice
(at least 38.5%renewable energy) seems to be a financial decision with little consideration for the
environment. If this agenda item passes, it would be appropriate to remove any references that claim that the
City of Huntington Beach is a "Green" city.
I think changing the default rate to the Basic Choice for new rate payers is a dis-service to residents and
businesses. Is the city going to promote 100%renewable energy or is it going to be left to the residents and
businesses to find out about it on their own?
I also noticed that the city council has directed the staff to research leaving OCPA (reference file number 23-
042). Most of the council's comments on item 30 from the December 20, 2022 city council meeting, with the
exception of Dan Kalmick's comments, were based on misinformation. I hope the staff is more knowledgeable
than the council or has access to correct information.
Some businesses such as large hotel chains have sustainability goals of being carbon neutral or carbon free
within a certain time frame, typically by 2030. OCPA's 100%renewable option provides a pathway to that
goal. Leaving OCPA takes that option away and makes that pathway more difficult or unachievable in the City
of Huntington Beach.
Thank you,
Danny Gray SUPPLEMENTAL
COMMUNICATION
medkv : i/r'-/23
Agenda Item No.; // /23— D 1-/2)
1
Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 2023 9:27 AM
To: Agenda Alerts
Subject: FW: Public Comment File 23-042 Item#19 for January 17, 2023
From:cheriej2042@yahoo.com <cheriej2042@yahoo.com>
Sent:Sunday,January 15, 2023 3:02 PM
To:CITY COUNCIL<city.council@surfcity-hb.org>
Subject: Public Comment File 23-042 Item #19 for January 17, 2023
Dear Mayor Strickland and Councilmembers:
I am supporting the move of all City of Huntington Beach municipal accounts from the 100%
Renewable Choice to the Basic Choice. Despite the claims of OCPA, their own rate sheets
indicate the savings would not be 2% in the aggregate given SCE will continue to charge for
transmission of electricity. The actual savings is reported to be .8%. While much lower than
expected, there is no disclosure of what the City of Huntington Beach paid in 2022 since the
April launch of OCPA (above what the city would have paid had they stayed in the Basic
Choice). Given that OCPA is unable to deliver 100% Renewable energy, it is unwarranted for
the City to continue spending taxpayer money on a product that is not being delivered.
Therefore, I urge you to as soon as practical to opt the municipal accounts into the Basic Choice
and further should OCPA decide to raise their Basic Choice rates above SCE for the City to opt
back to Southern California Edison.
In addition, I would also support that any new commercial or residential accounts in the City be
put into the Basic Choice tier as well for the same reasons as outlined above.
Thank you.
Michelle Johnson
Irvine, CA
SUPPLEMENTAL
COMMUNICATION
Meeting per: /
Agenda Item No.; G1 t •2 3 - 40q.2)
1
Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday,January 17, 2023 9:28 AM
To: Agenda Alerts
Subject: FW: OCPA's Downward Spiral with OC BOS's OUT!
From: Dee Fox<dee.fox@me.com>
Sent:Saturday,January 14, 2023 5:29 PM
To:clerk@cityoffullerton.com; Clerk<clerk@cityofirvine.org>; info@ocpower.org; info@ocbos.org;
cityhall@buenapark.com; CITY COUNCIL<city.council@surfcity-hb.org>
Subject:OCPA's Downward Spiral with OC BOS's OUT!
The Orange County Board of Supervisors (BOS) has voted to get out of the Orange County Power Authority
(OCPA). OCPA Legal Council, Ryan Baron, and OCPA CEO, Brian Probolsky, were at the December 20,
2022, BOS meeting. They were questioned by the BOS regarding the recent audit report. Unfortunately,their
answers only raised more concerns. Probolsky claimed the OCPA sealed certain information in power contracts
because it was mandated by the state. However, BOS Chairman Chaffee stated that it is NOT mandated by the
state, at all. It is an option. The sealed information relates to power emissions content and cost. So, nobody
knows if the OCPA is really purchasing renewable energy, or whether they are buying cheap fossil fuel and
charging ratepayers the cost for 100% renewables. This is significant because it IS the reason for this
organization to exist.
Considering the importance of the audit and the outcome, it was imperative that the
OCPA release this information to the auditors. However, the OCPA refused to do so.
This was NOT considered to be common practice of successful Community Choice
Energy programs. As a non-profit public organization, not only the auditors, but the
public has a right to see what the OCPA is purchasing on their behalf. By sealing this
information seeks to suggest that they are not acting in the best interest of the
ratepayers and abusing their authority. Ryan Baron did not offer any solution to what
could have been the deal breaker.
The records are sealed for 3 years and after that time they are destroyed. The OCPA
conveniently placed a 3 year retention period on their documents, which means,
nobody will ever know what those power contracts contain except the people that
signed them. Apparently this was done to "cover-up" their power purchases so they
can remain in business and continue making their enormous salaries. Other,
reputable CCE's, have a records retention period of 7 years.
It was stated that the County would be liable for fees, not to exceed, $65 million if they
pulled out. The majority of the fees go to power already procured on their behalf.
However, the JPA Agreement states that the Authority has to sell off the excess
power and make a good faith effort to secure the best possible deal. So, the fees
1
would be significantly reduced. In order for the County to be responsible to pay these
fees, the OCPA will be required to show the power that was purchased, the cost they
paid, and the amount they received when it was sold. For obvious reasons, it appears
the OCPA would rather eat the cost then have to divulge this information, as that
would upset their whole operation.
BOS and OCPA Board member, Don Wagner, stated, "We are operating in the dark,
we don't know what the risk is to our constituents to pull out ... if we pull the plug and
this agency craters, then our constituents are at risk ... and more importantly, no one
is going to want to get near this smoking crater for ages." Well, the BOS has pulled
out!
Regarding the money being spent by the OCPA, it was interesting to me to see over$7,000
go to Presido. Presido is who Farrah Khan uses as her political consultant firm. Previously
Khan was with Melahat Rafiei and Cory Allen, who have since closed their doors because of
Rafiei's arrest in a Anaheim corruption scam. Cory Allen now opened up Presido and it is
rumored that Rafiei is still in charge. Why would the OCPA pay a political consulting firm that
Khan uses, $7,000?The answer is, they shouldn't! And the ratepayers should DEMAND that
money be reimbursed!
The City of Irvine has now replaced Farrah Khan and Mike Carroll with new Irvine Council
Member, Kathleen Treseder and Council Member, Tammy Kim, who was not very happy about
taking the position. Probably because she plans on running for the Mayor of Irvine and this
could be a thorn in her side, even though she claims to support it. Treseder stated that she will
only accept the position if the OCPA removes CEO Brian Probolsky. That might prove to be a
little difficult because of a whistleblower lawsuit Probolsky has with the OCPA, plus it takes a
majority vote to remove him as CEO. So, I wonder if that means she will hold true to her word
and not accept the position?
With the unincorporated areas in Orange County now out,the Power Authority is on a downward
spiral and ratepayers are going to see increases to make up lost revenue. We can't even predict
how much because this public organization is very private, and I don't expect this to change as
long as people like Ryan Baron are calling the shots.
If Buena Park were to get out from under the OCPA, chances are very high that they will not have to pay the
cost of power already procured. As with the BOS, without seeing those un-redacted contracts,the OCPA cannot
ask for a dime.
SUPPLEMENTAL
COMMUNICATION
I' 9-/z3
meeting
Agenda Item No.� 1 g ( 423
2
Moore, Tania
From: Fikes, Cathy
Sent: Tuesday,January 17, 2023 4:29 PM
To: Agenda Alerts
Subject: FW: Item 19: Please keep OCPA and continue to give energy choice to HB residents and
clean energy options to everyone
From: Linda K<Ikteamtalk@gmail.com>
Sent:Tuesday,January 17, 2023 1:56 PM
To:supplementalcomm@surfcity-hb.org; CITY COUNCIL<city.council@surfcity-hb.org>
Subject: Item 19: Please keep OCPA and continue to give energy choice to HB residents and clean energy options to
everyone
To the City Council,
Thank you for supporting healthy outdoor recreation as Orange County's #1 Surf and Beach City!
Please continue to show leadership in sustainability and support energy choice and independence for
Huntington Beach residents.
There has never been a choice with our utilities.
It's either Opt-in to SCE or have no electricity at all.
I urge you to delay your decision to make changes to your OCPA accounts.
Community Choice Energy is the only program that brings revenue back to customers rather than sending it to
utility investors.
OCPA is a local Joint Power Authority (JPA).
Huntington Beach already enjoys local control with waste management and water districts.
JPAs include our OC Vector Control as well as our OC Fire Authority.
Energy independence can't happen when monopolies are in charge.
Despite what you might hear in the media, OCPA is doing well financially.
OCPA has a "strong"financial standing by one of the top CCA auditors in California.
CaICCA,the member organization representing CCAs in California, published it, here:
https://cal-cca.ordindependent-auditor-issued-a-clean-a udit-opinion-on-material-accuracy-of-orange-county-power-
authoritvs-financial-statements-and-identified-no-material-weakness-in-internal-control/
All expenses to operate OCPA are paid by the revenue from ratepayers (typically going to SCE investors).
Because of its non-profit status, the extra revenue must go back into the communities (after reserves are met in
the first few years).
The new rate in January 2023 will be 2% lower(for generation charge)than the SCE rate, and the rate is also dropping at
the higher renewable levels.
SCE's PCIA charge brings the rate savings to .8%. This PCIA charge will go down every year.
Here is a screenshot from this morning's OCPA Board Meeting at which the OCPA 2023 rate schedule was approved.
1
ATTACHMENT B
¢harps Type . .._.._ _. ,. OCPA _.....-SCE _..... Difference($1 _...Difference(%I
Kqurcalert Gerreretior°wee" 5555a 556.4E :St.131
SCE Genera80nSotharses $5.74 56:74 S000 00%
sCEOwwnycoat 572,06 $72.011 $O.O0 00% ._
focal 6r $134.35 $133A6 .0,895-_.
art Ounce _.
Chow Type 0C8A SCE 011448400406 OMferour(%I
EquMslant Gerieration Mare" 559.76 556.66 $3.12 S 5%
SCECseneranon Suacnarer. $5.74 $6.74 50.00 q0%
SCE Oeivery Casts 572.63 572.06, $0.00 0.0%
Rita 3118.60 3135.48 $sat 2.3%
neixwaolo Encrgy
Chem Type OCPA SC! GMlerenoe O6Heeinee(%}
Equrslent Garetation Mote' $61,31 $56.66 55.24 9 3%
SC(GeneN41841 wctows $6.74 56,74 5000 00%
SCE 0NwryCows $72,08 572.06 5C DO 00%
total PO $140,72 $135.48 $5.24 3.4%
”$4.1..Ly:ir,.rlenr txncrarr ey('tat.:4akulekli i SCE polLerariur.i A.kaa rattigi¢iae sur:lwrfes,.p..s, hE. Linda/Max.
In the December 2022 OCPA Board Meeting, the following financial strengths were shared, (page 54 to 56):
https://www.ocpower.org/wp-content/uploads/2022/12/December-13-2022-OCPA-Boa rd-Agenda.pdf
- OCPA is predicted to have reserves at$53.2 million by December 31, 2023, at the current Opt-Out rate, (even though
the Opt-Out rate is lower than expected).
- OCPA is expected to reach investment credit rating 3 years after launch in 2025.
- OCPA reported that adopting the recommended 2023 rate design will increase OCPA's projected reserves by
approximately$19.5 million for FY2022/23.
- OCPA has paid all start-up debt payments to The City of Irvine on time or ahead of time.
Also on page 54 of this December 2022 OCPA Board Meeting is an explanation in part of the SCE Rate increase
approved for 2023 of 24%to correct for undercharging in 2022,
"Several factors led to an increase in SCE generation rates. SCE rates were set too low in 2021 and 2022, resulting in an
under-collection. SCE increased rates in 2022 to recover$777 million of under-collection and will still need to recover an
additional $970 million via their 2023 rate increases"
This slide from the well respected MRW consulting company, showed the trends of CCAs to have increasingly better
rates compared to IOUs over time.
After initial start-up, rates decrease over time.
Competitive rates has always been the goal:
2
Projected Cost CCE vs. SCE
Figure ES-3, Average Lake Forest CCA Cost Projection versus SCE Generation Rate
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Please also delay the decision to move to the Basic rate.
Huntington Beach has a legacy of strong sustainability and protecting its beaches.
The vast majority of member cities model this easy choice to keep it's operations 100%clean and unlike other programs,
there is no implementation costs.
There is no real Green Choice with the utilities.
The utilities historically offer a tiny%of customers an expanded green/renewables program.
In 2021, out of roughly 5 million SCE customers, a mere 2,452 customers were allowed on the Green Tariff program,
filing to the PUC:
https://docs.cpuc.ca.gov/PublishedDocs/Efile/G000/M459/K669/459669929.PDF
Other reasons to maintain utility choice.
SCE and the other utilities spent over 40 million dollars in recent years lobbying for a California solar
tax and a 75% drop in credit for sharing extra solar to the Grid! The CPUC just voted for the 75% cut
on December 15th. Community Choice agencies are not subject to the CPUC rules.
OCPA currently gives back 10% more to solar customers than SCE.
Regarding trust of renewable energy content:
Every year,we will see a Power Content Label for all utilities, including OCPA and SCE.
SCE's current Power Content label for 2021 is 31.4% Renewables and 9.2% nuclear.
Many residents in Huntington Beach don't have the luxury of owning a home or putting solar on their roofs.
I hope you'll continue to allow them the option of choosing 100% clean energy for the price of a cup of coffee
($5.24 for the average residential bill).
You can see all 2021 Power Content Labels here:
https://www.energy.ca.gov/programs-and-topics/programs/power-source-disclosure/power-content-label
Our group has over 300 members in Orange County and a large number in Huntington Beach. We support
sensible ways to keep our air and environment clean.
If I can be of any assistance in providing any further helpful information, please let me know.
Thank you,
3
Linda Kraemer, M.S.
Chapter Chair
The Climate Reality Project: Orange County, CA Chapter
www.climaterealityoc.com
OC Clean Power- www.occleanpower.org
LKTeamTalk@gmail.com
4
Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, January 17, 2023 4:30 PM
To: Agenda Alerts
Subject: FW: Items#7 and 19 for tonight's meeting
From:Joclyn Rabbitt-Sire <joclynsire@gmail.com>
Sent:Tuesday,January 17, 2023 1:56 PM
To: CITY COUNCIL<city.council@surfcity-hb.org>
Subject: Items#7 and 19 for tonight's meeting
Dear Mayor Strickland and City Councilmembers,
My name is Joclyn Rabbitt-Sire, and I have lived in Huntington Beach for 23 years. Welcome, once again to
our new council members, and a hearty welcome back to our continuing members. I would like to address two
items on the council meeting agenda for this evening: item #19 concerning OCPA and study session item #7,
concerning the Housing Element.
First, I would urge you to please vote no on item #19, concerning the move to the 35% Basic Rate in OCPA for
all new customers and municipal accounts. As a concerned citizen with children who would soon like to have
children, I am very aware of the climate crisis affecting communities everywhere, including across wildfire-
scorched and flooded California. It is critical that we lower our city-wide emissions, and the 100% default rate
is the best way to do that. Please vote no on this item, and maintain the 100% default rate. As you well know
by now, it takes a few clicks or a phone call tor customers to opt down to a cheaper rate or opt out
altogether. Have more faith in your constituents, and keep the bar raised for responsible action.
The other item of concern is item #7, concerning the Housing Element. I would ask that you listen to all the
information at the study session this afternoon with ears clear enough to hear the objective facts about this
plan. Please remember that you can certify this plan and then contest parts of it through the remaining eight
years of the term. Working with the State of California will bring much better outcomes than fighting against
it. We have yet to benefit from the past lawsuits, and have lost all too much money in the process.
Thanks for your consideration.
Regards,
Joclyn Rabbitt-Sire
HB resident