OC Power Authority Board to Review Commercial Power Rollout, Finances
The Orange County Power Authority (OCPA) Board of Directors will hold its monthly meeting via Zoom on Tuesday, May 3, at 10:00 a.m. Highlighting the agenda is a staff report on the rollout of OCPA-provided power to commercial customers and an end-of-quarter financial report. The latter, listed as Item 9.3 on the consent calendar, reports an operating loss of $3,020,301 for the period July 1, 2021 through March 31, 2022. (During this period, OCPA was not generating revenue from power sales, and operated on funds borrowed from the City of Irvine.)
The accountants’ letter accompanying the financial report includes the following disclaimers raising transparency issues:
“Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
“We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.”
At the top of the agenda is a closed session for a conference with legal counsel on existing litigation. The litigation is identified as “PUC Resource Adequacy Proceeding.”
The OCPA Board is now hearing all public comments near the beginning of the meeting, paralleling agenda changes recently adopted by the Irvine City Council, although the Board has taken no public vote to implement this change.
The agenda packet and instructions for participating via Zoom are HERE.
Councilmember Larry Agran Requests Full Report on OCPA
At the April 26th City Council meeting, Councilmember Larry Agran asked that a full report be provided on what’s been happening at the Orange County Power Authority (OCPA) at the May 10th City Council meeting.
To date, no other Councilmember has asked for any information from or allowed a report on the OCPA to be placed on the Irvine City Council agenda despite the fact that Irvine has spent $7.7 million in Irvine tax dollars. Agran’s first request for a “Presentation — an OCPA progress report — for the benefit of the City Council and the entire Irvine community” was in September of 2021. This item did not receive the support of a second Councilmember and therefore never made it on the Council agenda. See Memo here.
Will Irvine residents finally receive a full comprehensive report on the OCPA?
“I am hoping and expecting that there will be a full report at an Irvine City Council meeting about just what has been happening with the OCPA. We have $7.7 million in Irvine dollars invested in the power authority. the month of April involved the opting in and presumably opting out of a good many business. We have no information however as to what the opt out rate was, what the revenues will be to the entity going forward, nor do we have any indication of how many have opted down, and we have no indication whatsoever as to the viability of this very important enterprise. I would expect from my council colleagues, the two who are on the Board of Directors of the OCPA, Councilmember Carroll and Mayor Khan, I would hope and expect that at our next meeting, May 10th, this item is agendized for full disclosure and discussion so that we know where we stand with respect to the Power Authority and its operations.”