Huntington Beach City Council Special Meeting - October 23, 2023

This special meeting of the Huntington Beach City Council was called to consider two related actions: (1) switching the default energy product for existing Orange County Power Authority (OCPA) customers from the 100% Renewable Choice Plan to the Basic Choice Plan (at least 38% renewable), and (2) authorizing the City Manager to effectuate the City's withdrawal from OCPA. The meeting was held at 5:00 PM on October 23, 2023, in Council Chambers. Councilmember Bolton was absent; Councilmember Kalmick arrived late after the roll call. The City Clerk received 28 supplemental communications regarding the item.

Public Comments & Testimony

Fourteen members of the public spoke. The majority (11 speakers) opposed the resolution and urged the council to remain in OCPA, citing concerns about climate change, loss of consumer choice, potential financial costs of withdrawal, and the rushed nature of the special meeting. Key points included:

• Russell Neal (Chair of OCPA Community Advisory Committee, licensed engineer) supported the resolution, arguing that climate models are unreliable and that nuclear/hydro power achieve zero carbon emissions more effectively.
• Buzz McCord opposed withdrawal, stating OCPA is now well-managed and offers a cheaper alternative to Southern California Edison, and that climate change poses real financial risks to coastal properties.
• Paul Horgan asked the council to remain in OCPA, noting that global temperatures have been the hottest on record and that OCPA provides customer choice.
• Andrew Einhorn urged maintaining OCPA to address rising sea levels and to keep a 2% cost advantage over SCE.
• Tony Dawes (40-year resident, water/precipitation researcher) argued the science supports climate action and that withdrawal is a mistake.
• Dennis (41-year resident) opposed OCPA, calling it “bloated middle management” and urged the council to negotiate directly with SCE.
• David Reinerson accused the council majority of “dictatorship” and “taking away choice,” comparing the action to other controversial policies.
• Lisa Swanson (14-year resident) asked why the meeting was called with little notice and without a staff report; she represented over 60,000 residential and 9,000 business customers who want to stay in OCPA.
• Michelle Ferry (teacher, resident since 1968) criticized the rushed special meeting and urged staying with renewables.
• Charlie Jackson (22-year resident) noted that OCPA’s issues have been resolved, that SCE has been fined much more than OCPA, and that leaving would cost the city money.
• Tim Geddes (40-year resident) protested the rushed meeting and lack of public input, and also requested a diverse invocation for future meetings.
• Katherine Ryder (homeowner since 1985) said she and her husband chose OCPA to reduce their carbon footprint and asked not to lose their choice.
• Laura Seyer (longtime resident) opposed withdrawal, citing the 60,000 households already receiving 100% renewable energy.
• Jocelyn Rabbit Sayer (resident, parent, business owner) asked the council to vote their conscience and not pull out of OCPA.
• Flossie Horgan noted the low public attendance due to lack of broadcast and accused the council of holding the meeting to avoid opposition.

Discussion Items

Councilmember McKeon (the appointed OCPA board member) made a motion to adopt the resolution, which was seconded by Councilmember Van Der Mark. The staff report, presented by a city staff member, explained that the city had voted to withdraw from OCPA on May 16, 2023, and that changing the default rate to the Basic Choice Plan would mitigate costs of exit. The city had hired outside legal counsel (Nora Sheriff and Gwen O’Hara) to assist.

Councilmember Kalmick (arrived late) spoke at length against the resolution, arguing that:

• OCPA’s early problems have been resolved.
• Withdrawal would leave approximately $10 million of Huntington Beach ratepayer money in OCPA reserves.
• Residents would lose the ability to choose 100% renewable energy after June 2024, when they would be returned to SCE’s 35.8% renewable mix.
• The city would lose the 2% discount OCPA offers and face a 1–2% rate increase from SCE.
• Businesses marketing themselves as 100% renewable would lose that option.
• The special meeting was rushed and unnecessary.

Councilmember Moser echoed Kalmick’s concerns, stating that the council is taking away choice and that the fiscal impact is not fully known. She noted that the city currently pays $3.25 million in OCPA charges and that switching to SCE would cost an additional $32,000–$65,000 per year, not including future SCE rate hikes. She also expressed disappointment that the council is dismantling past efforts to address climate change.

Councilmember McKeon and Mayor Strickland argued that the decision to withdraw was made in May, that the action tonight was about cost mitigation, and that residents can still individually opt into 100% renewable energy through OCPA until the city exits. Councilmember Burns supported the withdrawal, stating that OCPA was a “disaster” and that “professional experts” (SCE) should run energy.

Key Outcomes

The council voted on the resolution (23-9291) to adopt Resolution 2023-55, which:

1. Switches Huntington Beach OCPA customers from the 100% Renewable Choice Plan to the Basic Choice Plan (at least 38% renewable).
2. Authorizes the OCPA board member to request expedited implementation of the rate change.
3. Authorizes the City Manager to effectuate the City’s withdrawal from OCPA.
4. Authorizes the City Manager to notify OCPA and affected customers.

Vote: 4 in favor (Van Der Mark, Strickland, McKeon, Burns), 0 opposed, 2 abstentions (Kalmick, Moser). Councilmember Bolton was absent. The motion carried 4-0-2.

The meeting was adjourned. The next regularly scheduled meeting is November 7, 2023.