Orange County Power Authority Survives Dissolution Vote by Board Members

A Southern California Edison crew installs a new overhead switch for circuit reliability in Ventura, Calif., on May 13, 2020. (Brent Stirton/Getty Images)

The Orange County Power Authority (OCPA) survived a vote by its board to dissolve it during their June 21 board meeting.

The issue was agendized by Board Director Casey McKeon, who is also a councilman for the City of Huntington Beach, which voted to leave the agency last month.

“I don’t believe the errors and structural deficiencies of OCPA are fixable. The negative sentiment that was created with the public is too large to overcome, in my opinion,” McKeon said during the meeting, before casting his vote to dissolve the agency.

Board member Donald Wagner, also an Orange County Supervisor, which also voted to leave the agency last December, cast the other vote for its dissolution.

“Now’s the time to say we gave it a good try,” Wagner said during the meeting. “Do the fiscally prudent thing, do the wise thing for your taxpayers and ratepayers. Now is the time to orderly shut this agency down.”

Orange County Board of Supervisors Chairman Donald Wagner speaks during a board meeting in Santa Ana, Calif., on June 6, 2023. (Screenshot via Orange County Board of Supervisors)

The power authority—which now services the remaining member cities of Buena Park, Irvine, and Fullerton—was formed in 2020 as a “greener” alternative to Southern California Edison (SCE).

It offers three plans at 38, 69, and 100 percent renewable energy.

But since its inception in November 2020, the OCPA has been criticized for a lack of transparency and inexperienced management.

Several audits of the agency have been issued, including by an Orange County Grand Jury last June, the Orange County Auditor—at the request of Orange County supervisors—in December, and the California State Auditor in February.

Board Chair Fred Jung, also the mayor of Fullerton, told board members before the vote that the power authority today is entirely different from the one from last year.

“We don’t have the original CEO. We don’t even have our original general counsel. So, is it a new day for this agency? I certainly hope so,” he said during the meeting.

The Orange County Power Authority survives a vote by its board to dissolve it during its board meeting in Irvine, Calif., on June 21, 2023. (Screenshot via Orange County Power Authority)

Former CEO Brian Probolksy was fired in April after two years heading the agency, after the California State Auditor discovered he improperly executed agreements worth $1.8 million in contracts for marketing and financial services, while skirting required board procedures in the process.

Critics have said his lack of experience working with community choice aggregates such as OCPA also led to his failed leadership of the agency.

Chief Executive Officer Joe Mosca, who began in his role earlier this month, was the agency’s director of communications and affairs before he was tapped to temporarily replace Probolsky while a nationwide search is underway for a more experienced candidate.

Hired last December, Mosca previously worked for San Diego Gas & Electric and the Southern California Gas Company, and was a founding member and former chair of San Diego Community Power, the second largest Community Choice Aggregation in California.

OCPA Director Tammy Kim, who serves as the vice mayor for Irvine, echoed Jung’s remarks and reminded that the power authority has now made its way through 90 percent of the recommended actions from the audits it’s faced.

“This is a fresh start. We’re in a sound fiscal position ... We’ve made the changes that have been asked,” she said.

Director Jose Trinidad Castaneda, also a councilman for Buena Park, argued that under the new leadership and new board, and correcting past mistakes, the agency’s future looks bright.

“Ultimately, there is nothing left to say about what we are doing at OCPA. We have all of the data. We have approved a budget that shows the fiscal strength for this year, next year, and much further to the future,” he said.

A SoCal Edison power station is seen in Santa Ana, Calif., on June 9, 2022. (John Fredricks/The Epoch Times)

After over a year of operations the agency currently has reserves of $41 million in the bank, according to officials, and after the approval of its 2023–24 fiscal budget, also June 21, that number is expected to double. The agency currently serves over 200,000 customers.

“Building a sufficient reserve fund and obtaining an investment-grade credit rating are pivotal steps for OCPA,” Jung, the board chair, told The Epoch Times in an emailed statement.

A spokesperson for the agency told The Epoch Times the reserves result from the power authority’s rate design, which enables it to “cover all energy expenses and the cost of doing business,” while at the same time setting aside funds in reserves.

The agency is also continuing to engage with other communities to potentially join, with nothing finalized yet, according to the spokesperson.

Correction: A previous version of this article attributed Fred Jung’s remark to a different board official. The Epoch Times regrets the error.