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County Pulls the Plug on OCPA After Audit Reveals Gross Mismanagement and a Continued Lack of Transparency

Just in time for the holidays, the Orange County Power Authority (OCPA) got a lump of coal in the form of another highly critical review of the agency’s operations.

The new audit revealed that a whopping 20.4% of OCPA customers have opted-out, choosing to remain with Southern California Edison (SCE). That is triple the average opt-out rate statewide among similar agencies. The loss of electricity sales, or “load loss,” was 16.5%, nearly double the 8.5% that OCPA estimated in its pre-launch planning.

The auditors for the County blasted the OCPA for offering rates that are significantly higher than SCE rates, and making rate information difficult for ratepayers to find.

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City Council Holds Emergency Meeting to Discuss OCPA

Councilman Larry Agran requested an emergency Council meeting to discuss a proposal for the City of Irvine to give OCPA a notice of withdrawal from the agency, effective July 1, 2023, with the caveat that the withdrawal will be rescinded if OCPA takes concrete steps to address the problems identified by an Orange County Grand Jury report and County of Orange audit.

Councilmember Mike Carroll — who has served as Chair of the OCPA Board since its establishment — agreed with Agran, stating: “The worry we have is that if we don’t do this [give notice of withdrawal from OCPA], Irvine gets caught holding the bag at the end of the story….I don’t really see a way out.”

However, Mayor Farrah Khan, Vice Mayor Tammy Kim and newly elected Councilmember Kathleen Treseder voted to remain in OCPA.

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City Hosts Community Climate Action Meeting

The City of Irvine is hosting a pajama party drive-in movie event on Saturday, December 10th at 5:30pm.

The family-friendly holiday movie, Home Alone, will be screened.

Families are welcome to bring their own snacks, or purchase tasty treats from the gourmet food trucks that will be parked onsite.

Irvine families will be admitted for free with a non-perishable food donation for the Orange County Food Bank.

Space is limited so registration is required!

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Serious Management & Transparency Problems Persist at the Embattled OC Power Authority

On November 7th, a vote to remove Brian Probolsky as CEO of the troubled Orange County Power Authority (OCPA) failed in a closed session of the agency’s board, according to sources at the OCPA and Irvine City Hall.

The board  — which is chaired by Irvine City Councilman Mike Carroll — took its vote the day before a new slate of Council candidates in Huntington Beach, who campaigned on the promise to pull out of OCPA, won election. Sources also say that the Orange County Board of Supervisors will soon discuss pulling the County out of OCPA as well. That would leave just Irvine, Fullerton and Buena Park as member cities. If Huntington Beach and the County exit, it is unclear whether enough ratepayers would be left to keep OCPA afloat.

If OCPA collapses, Irvine taxpayers and electricity ratepayers could be on the hook for tens of millions of dollars in loans, loan guarantees, and other liabilities that OCPA has incurred. In fact, ratepayers in all of the OCPA member cities could be responsible for the more than half-a-billion dollars in energy purchase agreements that OCPA has signed.

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Mayor Khan and Her Council Majority Silence Residents, City Commissioners, and Irvine’s History of Detailed Planning

In matters of public policy, Irvine Mayor Farrah Khan and her City Council majority — Anthony Kuo, Tammy Kim and Mike Carroll — have a pattern of ignoring or shutting out public input, staff recommendations, and established procedures.

During the September 27th Council meeting, that pattern was on full display, when they approved two major contracts — one for the development of a 14,000-seat amphitheater and one for a large water polo and aquatics center — worth hundreds of millions of dollars.

This is just the latest in a pattern of Khan and her Council majority ignoring Irvine’s long history of detailed planning and public input.

The OC Power Authority (OCPA) was established by Mayor Khan and Councilmembers Carroll and Kuo in 2019 with little review — even though they were committing millions of Irvine taxpayer dollars. OCPA is now the subject of three audits (City of Irvine, County of Orange, California State Auditor) and there is an ongoing FBI investigation.

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Irvine Developers & Mayor Khan Tied to Attack Mailers Against Councilmember Larry Agran

An Irvine Community News & Views investigation shows that a huge influx of “dark money” — funding an unprecedented deluge of political “hit piece” mailers against Irvine City Councilmember Larry Agran — originated from the two largest developers in Irvine: The Irvine Company and FivePoint.

So far, $355,000 from the developers has been funneled to the Building Industry Association of Southern California PAC (BIA), which then transferred the money to the Los Angeles County Democratic Party. The Party then sent a large portion of the money —  $270,000 — to a PAC (Working Families United), which has close ties to disgraced Democratic campaign consultant Melahat Rafiei and Irvine Mayor Farrah Khan. (Rafiei and Khan are the subjects of an ongoing FBI investigation into corruption in Irvine.)

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Political Action Committee (PAC) Established to Flood Irvine Mailboxes with Vicious Attacks & False Claims

Hit pieces, paid for by hard-to-trace “dark money” Political Action Committees (PACs), have begun fouling Irvine voters’ mailboxes, taking aim at Councilmember Larry Agran. The mailers falsely claim Agran supported the establishment of the Orange County Power Authority (OCPA).

In fact, Agran has been a vocal critic of the OCPA, which was established with millions of dollars of Irvine taxpayer funding by Mayor Farrah Khan and Councilmember Anthony Kuo — months before Agran joined the City Council.

The return address on the attack mailers matches that of Crummitt & Associates, a firm that performs financial records and reporting functions for political campaigns. Its principal, Gary Crummitt, is listed as the treasurer of the just-created PAC attacking Agran.

Crummit was also the treasurer of Khan’s 2020 mayoral campaign and is handling her re-election campaign finances this year.

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Mayor Khan and Her Council Majority Push Through Hundreds of Millions of Dollars in New Projects, Without Input from the Planning Commission … or Irvine Residents

During a contentious marathon meeting on September 27th, the Irvine City Council approved two controversial long-term contracts for facilities to be built in the Great Park.

On two 4-1 votes (Councilmember Larry Agran voted NO), the Council — sitting as the Great Park Board — approved a 40-year deal with USA Water Polo to occupy part of a proposed $80 million water polo & aquatic center; and a 50-year deal with Live Nation to operate a proposed $130 million, 14,000-seat outdoor amphitheater.

The actions came despite objections from residents that the agreements and supporting information totaling more than 600 pages were made public just a week before the Council meeting and were being pushed through without public review or input by the City’s Finance Commission, Planning Commission or Transportation Commission.

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The Irvine Cabal

When the Federal Bureau of Investigation (FBI) probe of corruption in Anaheim burst into the news in May, the term “Anaheim Cabal” — a secretive, backroom group of business and government leaders — entered the political lexicon.

That FBI investigation also exposed an Irvine angle: A key witness was first arrested for allegedly plotting to bribe Irvine City Councilmembers to approve cannabis operations in Irvine; then, that same witness turned state’s evidence in the separate Anaheim investigation.

But subsequent revelations — and the work of local journalists to get to the bottom of some other issues in Irvine — hint at another backroom group pulling strings for their own benefit. Among Irvine City Hall insiders, it has become known as the “Irvine Cabal.”

A timeline outlines what has been uncovered by Irvine Community News & Views and other news organizations. The timeline includes gaps and raises more questions than it answers, but an array of facts show that something has been going on in Irvine for years that requires further investigation.

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The Latest from the Embattled OCPA

After promising to do better to keep residents informed regarding its operations, the Orange County Power Authority (OCPA) waited until late Friday afternoon — just before the start of the Labor Day weekend — to release its 145-page board meeting agenda for Tuesday (September 6th).

During the September 6th meeting, the OCPA board grappled with yet another audit of the agency — this one by the County of Orange. The board also had to address questions regarding who can be a board member and how board members are selected.

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