Statement From Orange County Power Authority Re: California State Auditor’s Report of Orange County Power Authority

The Orange County Power Authority (OCPA) respects the role of the California State Auditor in ensuring that government and public agencies provide efficient and high-quality services in a transparent manner.

The State Auditor found OCPA to be fully transparent with its finances by posting budgets, treasurer reports, and audited financial statements on its website.  The Auditor stated that OCPA follows state law when it keeps certain details of power purchase agreements confidential, such as the price of power.  The Auditor asserts that criticisms regarding OCPA not sharing certain details of power purchase agreements arise from requesters’ misunderstandings about the confidentiality of the agreements’ terms. The Auditor acknowledged in his report that OCPA is working with its member agencies to share more information regarding our power purchase agreements. In addition, the Auditor concluded that OCPA generally complied with Public Records Act requirements and that OCPA met the requirement to, within 10 days, notify the person making the request of its determination about whether the request sought disclosable records. 

OCPA takes this and all audits seriously and sees them as a resource for OCPA and our Board of Directors as we strive for continued improvement. As a new community choice energy (CCE) program with a critically important mission of climate action, a focus on continuous improvement will allow OCPA to succeed in reaching its goals of providing our customers with an energy choice for the first time ever, moving our region closer to 100% clean energy at a competitive rate – OCPA’s Basic Choice gives customers more clean energy at a 2% cost savings compared to Southern California Edison (SCE) on the equivalent generation rate – and investing in innovative programs that benefit residents, businesses, and the economy in our communities.

Participating in OCPA is the main way for our member agencies to decarbonize the electric grid and reduce their local greenhouse gas emissions from the generation of electricity. OCPA is the sixth largest and one of the greenest CCEs in the state with 78% of its customers at the 100% renewable energy level and 18% at the 69% renewable energy level, which is the equivalent of taking 200,000 traditionally powered vehicles off the road per year.

We are committed to working with our Board of Directors on an Improvement Plan that will include consideration of the recommendations contained in the state audit.

With 80% market share, OCPA is financially strong and operating in the black, as demonstrated by the June 30, 2022, financial statements validated by an Independent Auditor’s report.

“Our Board looks forward to discussing policies that will enhance oversight of OCPA to ensure its success. We feel validated that the question of transparency has been reviewed by the State auditor. The Board and staff have already begun to make proactive improvements, including many of the recommended actions in this latest report. We’ll continue to make progress by implementing processes recommended by the esteemed team from Balance Public Relations who are advising OCPA on our path forward.” – Fred Jung, Orange County Power Authority Board Chair

“Audits evaluate complex problems and recommend actionable solutions to government agencies, like OCPA.  The recommendations in the State Auditor’s report will serve as a roadmap for the OCPA and its board to work together to improve its operations as it continues a path to operating a successful organization that its stakeholders can trust and count on.” – Elaine Howle, CPA, Principal, Balance Public Relationsand Former California State Auditor

OCPA recently retained the services of Balance Public Relations and its well respected, experienced team to provide strategic consulting and audit compliance advisory services.

Elaine M. Howle, CPA, former California State Auditor now holds the position of principal and chief strategist with Balance Public Relations, to provide counsel on an improvement plan for the various reports and audits issued about OCPA.

Howle served as the California State Auditor for 21 years from 2000-2021. Under her leadership, the California State Auditor’s Office grew from a steadfast financial and compliance watchdog into a robust government and policy powerhouse that has been recognized both nationally and internationally. Howle is joined by Dean Florez, founder and CEO of Balance Public Relations and former California State Assemblymember and Senator in advising OCPA.

About Orange County Power Authority

The Orange County Power Authority is a not-for-profit public agency that offers clean power at competitive rates, significantly reducing energy-related greenhouse emissions and enabling reinvestment in local energy programs. To learn more, visit www.ocpower.org.