4 OC Cities Launch First Community Clean Energy Provider
Powering A Clean Affordable Energy Future
Projected To Save 1 Million Metric Tons Of Greenhouse Gas Emissions Per Year
Image Source: Sierra Club
The Power Of Choice Comes To Orange County With The Launch Of Its First CCE In Four Cities
Orange County, California — Electricity bills have been going up for Orange County residents and businesses for the past two decades. The investor-owned utility, Southern California Edison, has increased rates for OC families and businesses by 42% as of 2021 , with plans to increase rates further. For years, residents and local groups have advocated for energy choice and finally that time has come.
Upwards of 42% Rate Increase
Southern California Edison, has increased rates for OC families and businesses by 42% as of 2021. Now there’s a new clean energy provider for Orange County: Orange County Power Authority.
Graphic Source: www.publicadvocates.cpuc.ca.gov
On October 1st, 2022, Orange County’s first Community Choice Energy (CCE) Agency officially launched service to residents in four cities in Orange County: Irvine, Huntington Beach, Fullerton and Buena Park, joining over 200 cities and counties throughout California serving more than 11 million satisfied customers.
Orange County's first (CCE) agency is called The Orange County Power Authority (OCPA). OCPA was formed to provide cleaner energy choices, competitively priced electricity, managed by the people who use it with innovative programs to benefit local communities.
CCEs are not-for-profit, community-led and proven. Upwards of 10 states including California, have or are implementing CCE programs because they work, reduce pollution and spur investment. Since Community Choice Energy (CCE) programs buy twice as much energy from renewables sources as required by California (according to a study by UCLA), CCEs are the fastest path forward to 100% clean energy.
"I'm so excited about OCPA and its potential for Irvine and all of OC. Besides providing customers more choices, like 100% renewable energy, our basic tier pricing will soon be lower than SCE. And in addition, our customers will be able to participate in the many programs and incentives that are offered through the years.” - Farrah Khan, the Mayor of Irvine
Community Choice Energy (CCE) is sometimes called Community Choice Aggregation (CCA). The model established in 2002 by California Bill AB 117 allows cities to form a CCE and partner with investor-owned utilities (IOUs). The CCEs purchase the energy on behalf of customers (the “generation” portion of our energy), while the IOUs still deliver the electricity through their wires, (the “delivery” portion of our energy).
Since CCE programs buy more renewable energy, the OCPA is projected to reduce emissions by
1 million metric tons - which is equivalent to taking 200,000 cars off the road. This is with only 4 cities - imagine the impact as more cities join.
According to the EPA, electricity from fossil fuels is the second largest share of greenhouse gas emissions.
Keeping Ratepayer Dollars In The Community
As a CCE, the Orange County Power Authority will keep ratepayer dollars in the community to reinvest back into our neighborhoods — instead of the shareholders of private utilities. Within a few years of launching, CCEs invest money for energy programs back into the community.
For OCPA member cities, investments back into the community will be in the millions of dollars per year. These programs help address the needs of our diverse Orange County community, while decreasing polluting emissions that lead to more frequent and more destructive heat events, wildfires, and flooding. CCE programs include extra incentives for new and used electric vehicles, rebates for solar and battery storage, low-income e-bike grants, workforce development training, cooling centers, and more. Here are some of the types of amazing types of programs: https://cal-cca.org/programhighlights/.
"I have been committed from the start to making sure Buena Park residents have the greatest choice for power, that our options include moving away from greenhouse gases to do our part in resolving the climate crisis, and that the money they spend results in increased investment in our community, benefiting everyone. OCPA will allow us to accomplish these goals." - Susan Sonne, Council Member for Buena Park
With Community Choice Energy, cities choose a cost-effective, and immediate way to cut emissions. It’s really a win-win for our community and our environment. It empowers residents and creates a greener community. OCPA is launching to residents October 1st on solid footing — after a successful launch to businesses earlier this year - switching local businesses to cleaner, more reliable power.
While there is early criticism over the management of the program and the need for greater transparency, city officials are working to address these. Community members should speak up for the changes they want to see and get involved to guide the success.
That’s exactly how the first-ever CCE program launched in Orange County - by local community members speaking up and asking for it! Hundreds of your local neighbors, residents, clean air, cleantech, and environmental conservation supporters have worked for years to bring Community Choice Energy (CCE) to Orange County.
Game-Changing Vote: 100% Renawable Default
One of the first and game-changing decisions out of OCPA was the 100% Renewable Default vote by 3 out of 4 of the member cities, (and 69% by the 4th City, Fullerton). With that one vote, city officials sent a clear message that clean air in the community is a priority.
“Simply with this one city council vote, emissions from electricity are virtually eliminated! Boom, just like that. Because of the 100% renewable energy default, 3.5 million people across these diverse 35 communities virtually eliminate greenhouse gas emissions from their electricity supply.” - Greenbydefault.org
The Beauty of Community Choice Energy Is Customers Always Have A Choice
The default rate is just a starting point. Customers have choice and can “Opt-Down” to the Basic Choice at any time. That Basic Choice is the same price as the SCE standard rate.
The 100% Renewables Default vote is expected to save roughly 1 million metric tons of CO2 per year. That’s the equivalent to 200,000 cars off the road. To put that into perspective, it takes between 31 and 46 mature trees to save 1 metric ton of C02.
Climate Reality OC wrote a blog about this monumental “Big Win for 100% Renewables” here: https://www.climaterealityoc.com/learn.
No Real Option for a “Green Rate” If Residents Stick With Investor-Owned Utility
What most customers don't know about SCE's "Green Rate" is that it’s not even currently available to any customer who wants it. Instead, one must apply to be placed on a waiting list, since there is a cap on the number of households that can be served under it.
According to SCE’s own 2021 Green Rate Tariff Program report to the California Public Utility Commission (CPUC), out of roughly 5 million accounts there were 2,452 active Green Rate accounts at the end of the year - after having lost 341 of those to de-enrollment and closed accounts. That number turns out to be less than .05% of SCE's customers. Additionally, no portion of the Community Renewables Project, the environmental justice portion of the program, had been started. For more, see the 2021 Utility Green Tariff Shared Renewables Progress Report.
OCPA has made significant improvements regarding problems reported in its start-up days. At the September 6th, 2022 Board Meeting, OCPA’s CFO Tiffany Law gave a recap of the July 2021 - June 2022 year-end budget. She reported 1.6 million dollars in the black and reported that was a 333.3% improvement over the projected deficit of .7 million dollars.
OCPA is meeting its reserves, which is one of the most important indicators. Meeting reserves leads to a higher credit rating, which leads to the lowest energy loan rates.
We have a large team at Climate Reality OC who support CCE. We’re encouraged by OCPA’s progress, and we will continue to have respectful conversations with the staff and Board about changes we want to see.
It’s an incredibly challenging paradigm shift to move away from the old energy investor-owned model, but CCEs have already been working in California and across the United States.
We are grateful for the pioneering leadership of the OCPA Board and the city officials who supported the move. Energy could be considered the most important utility when it comes to life, second only to water. That utility should be in the hands of the community.
On the day of OCPA’s launch to residents, Fullerton’s Mayor Fred Jung reflected back on what it took to get here:
“After years of hard work by community advocates and change makers, Orange County Power Authority will begin serving residents of Buena Park, Fullerton, Huntington Beach and Irvine. We celebrate this historic achievement as a step in the right direction to combat the negative impacts of climate change. We are all duty-bound to find answers to the existential threat of our time. And I want to thank everyone for getting us this far and to encourage us to continue fighting on as we have so far to go.” Fullerton Mayor Fred Jung
Want to know more about CCEs? Check out Powered by Community Video from CALCCA.org.
We are your neighbors and friends, and live in your local community. Join with us to make a world of difference now and for future generations!
Join our Chapter or email us at climaterealityprojectoc@gmail.com.