Orange County Municipal Code Div. 7 Implementation of Community Choice Aggregation Program

Division 7 of Title 5 of the Codified Ordinances of the County of Orange is hereby created.

(Ord. No. 21-012, § 1, 12-7-21)

(a) The County of Orange has been actively investigating options to provide retail electric service to constituents within the County's unincorporated areas with the intent of achieving greater local control over the provision of electric service and promoting competition to the incumbent utility.

(b) Assembly Bill 117 (Stat. 2002, ch. 838; see California Public Utilities Code § 366.2 et seq.; hereinafter referred to as the "Act") authorizes any California city or county, whose governing body so elects, to combine the electric load of customers within the jurisdiction of the city or county through a community-wide electricity aggregation program known as Community Choice Aggregation ("CCA"), which allows the provision of retail electric service and other energy programs by a city or county.

(c) The Act expressly authorizes participation by a city or county in a CCA program through a joint powers authority, and to this end, the County has been evaluating joining a countywide CCA program.

(d) The Orange County Power Authority ("Authority") was formed on November 20, 2020 as a joint powers authority with the purpose of implementing a CCA program within the jurisdictional boundaries of its members.

(e) The Orange County Power Authority Joint Powers Agreement ("Joint Powers Agreement") specifies the terms and conditions by which member cities or counties may as a group participate in a CCA program with the following benefits:

(1) Providing customers a choice of power providers;

(2) Increasing local control over energy rates and other energy-related matters;

(3) Providing electric rates that are competitive with those provided by the incumbent utility;

(4) Improving the local economy by increasing local and regional renewable generation capacity and energy conservation and efficiency projects and programs;

(5) Increasing regional energy self-sufficiency; and

(6) Reducing greenhouse gas emissions arising from electricity use.

(f) The Joint Powers Agreement creating the Authority governs the CCA program, and provides, in part, that the County may participate in the Authority by approving the execution of the Joint Powers Agreement and adopting a CCA ordinance required by California Public Utilities Code section 366.2(c)(12), and with approval of the Authority's Board of Directors. The County's participation in the Authority will include voting membership on the Board of Directors of the Authority as provided in the Joint Powers Agreement.

(g) As a condition of the Authority implementing a CCA program in the County's unincorporated areas, the Authority is required to submit an amended Implementation Plan and Statement of Intent ("Implementation Plan") for certification by the California Public Utilities Commission ("Commission") in accordance with California Public Utilities Code section 366.2. The Authority may implement a CCA program after one year from the filing of the Implementation Plan to municipal, residential, commercial, and industrial customers within the unincorporated areas of the County that choose to participate.

(h) The Authority will enter into agreements with electric power suppliers and other service providers on behalf of its members, and based on these agreements, the Authority will provide power and other electric programs to customers at rates and terms and conditions that are competitive with those of the incumbent utility.

(i) Under California Public Utilities Code section 366.2, customers have the right to opt-out of a CCA program and continue to receive service from the incumbent utility. Customers who desire to continue to receive service from the incumbent utility will be able to do so at any time.

(j) On November 16, 2021, the Board of Supervisors held a public meeting at which time interested persons had an opportunity to testify either in support or in opposition to implementation of the CCA program within the County.

(Ord. No. 21-012, § 1, 12-7-21)

Based upon the foregoing, and in order to provide residents and businesses within the County with a choice of power providers, the County hereby elects to implement a community choice aggregation program within the jurisdiction of the County by participating in the Orange County Power Authority, as described in the Joint Powers Agreement.

(Ord. No. 21-012, § 1, 12-7-21)