Orange County Power Authority Continues a 2% Discount and Reports a Projection of $41 Million in Reserves at Mid-Year Budget Review
Community choice energy provider is financially strong as it nears the first anniversary of commercial service
IRVINE, Calif. (March 17, 2023) – Orange County Power Authority (OCPA) announced today that its mid-year budget update projected a healthy contribution to reserves of $41 million – an increase of $36.3 million from the $4.7 million previously projected in its FY 2022-23 budget that was approved by the Board on June 29, 2022.
“OCPA is financially strong and delivering on our promise to bring renewable energy at competitive rates to Orange County,” said OCPA Chair Fred Jung, “OCPA’s proactive efforts in its energy hedging program and fiscal responsibility have directly benefitted the bottom line allowing us to set the 2023 rate design for Basic Choice at 2% less than the SCE equivalent generation rate. This demonstrates our commitment to providing our communities a choice in how much renewable energy they want to invest in to put on the grid to fight climate change.”
Several factors have resulted in significant changes to OCPA’s operating revenues and cost of energy, positively impacting the FY 2022-23 budget. Specifically, on December 13, 2022, the Board approved the OCPA 2023 rate design which became effective January 9, 2023, and set OCPA’s Basic Choice generation rate (with at least 38% renewable energy) at a 2% discount to Southern California Edison’s (SCE) equivalent generation rate. Additionally, OCPA has received several more months of meter data, which has enabled a more refined sales forecast to be produced.
OCPA’s approved FY 2022-23 mid-year operating budget includes $285.9 million in net revenues and $244.9 million in total operating and non-operating expenses, resulting in a contribution to reserves of $41 million.
OCPA’s net income can ultimately be used to help stabilize electricity prices, provide incentives for solar installations, support energy efficiency programs, and develop more local renewable energy sources in and near Orange County.
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 through consumer choice. At full launch, OCPA will be the sixth largest and one of the greenest community choice energy providers in California, with approximately 846 MW in peak load serving over 825,000 residents and businesses in its service area. To learn more, visit www.ocpower.org. In 2002, the California State Legislature enabled Community Choice Energy providers (CCEs) to procure electricity for customers within their communities, while receiving transmission and distribution service from SCE.