Orange County Power Authority Demonstrates Continued Financial Strength with Approval of Fiscal Year 2024-25 Budget

Orange County Power Authority Demonstrates Continued Financial Strength with Approval of Fiscal Year 2024-25 Budget

Community energy not-for-profit agency is prioritizing affordability and sustainability while advancing local climate solutions faster than investor-owned utilities 

IRVINE, Calif. (June 21, 2024) – The Orange County Power Authority (OCPA) Board of Directors has approved a balanced FY 2024-25 operating budget, projecting total net revenues of $306 million and total expenditures of $289 million, resulting in a surplus of $17 million. This positive outlook follows OCPA’s second full year of operations. It contributes to building OCPA’s Net Rate Stabilization Reserves to $103 million – a significant step toward obtaining an investment-grade credit rating. The reserves are projected to cover 128 days or 41% of budgetary operating expenses by June 30, 2025.

“The leadership of Orange County Power Authority has made a commitment to fiscal responsibility by continuing the impressive growth of our financial reserves. This policy of good governance allows us to procure energy at more competitive rates and contributes to the long-term stability of the agency while providing an affordable electricity option for our local communities to receive more clean energy,” said OCPA Board Chairman Fred Jung. “Our accomplishments in the last two years are forging a sustainable path in our mission to address climate change and create healthier communities for generations to come.”

Several factors have contributed to the continued positive outlook, financial stability, and growth of OCPA over the past year, specifically:

  1. Affordable Rates: Adjusted the Basic Choice plan by increasing the renewable energy content to 44%, costing 3% less than Southern California Edison’s (SCE) equivalent generation rates. The Smart Choice plan includes 72% renewable energy content and adds 1 cent per kWh to the Basic Choice rate, while the 100% Renewable Choice plan adds 1.5 cents per kWh.
  2. Competitive Net Energy Metering (NEM) Program: Maintained NEM 2.0 benefits with a Net Surplus Compensation (NSC) rate 10% higher than SCE’s NSC rate.
  3. Clean and Renewable Procurement Strategies: Contracting for long-term clean and renewable generation resources to fulfill a significant portion of OCPA’s electricity demand.

The FY 2024-25 budget includes plans to increase funding to hire four additional full-time employees. This will ensure adequate coverage of essential functions and support the provision of reliable, affordable, clean electricity and electrification programs. These initiatives aim to reduce greenhouse gas emissions and strengthen the local economy.

OCPA’s fiscal year runs from July 1, 2024, through June 30, 2025. The budget is updated annually and amended mid-year to balance immediate needs, long-term considerations, and rate affordability.

###

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.