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I find it extremely concerning that the OCPA has a huge reserve fund. Especially since they have the largest opt-out rate of all California Community Choice Energy (CCE) programs in California of 38%. The average is between 4% - 8%. Irvine City Council member and OCPA Board member, Kathleen Treseder used OCPA reserve funds to donate to Ayn Cracuin’s campaign for a seat on the Irvine City Council. Ayn Craciun is Treseders friend, and additional OCPA funds were given to Ayn Craciun/Climate Action Campaign, totaling $30,000! Also important to note; Craciun is Treseder’s Commissioner on the Irvine City Council. Then there is Irvine City Council member and OCPA Board member, Tammy Kim, who gives thousands of dollars to non-profit organizations overseas that help fund her campaign as she runs for the Mayor of Irvine. Other Board members give customer funds away to organizations of their liking, organizations that have nothing to do with clean energy projects. Some of these organizations get funding from their own cities as well. To say that the OCPA is being used as their own personal slush fund is an understatement. I have attached OCPA’s Financial Statements that include their check registers (on the very last pages) for you to decide. REASONS WHY OTHER CITIES GOT OUT OF THE POWER AUTHORITY • Lake Forest left during their grace period and before any energy was procured for their city. The reasons were multiple. They wanted the Joint Powers Agreement amended to give a term limit for the Board Chairperson. They also wanted the mentions of EMINENT DOMAIN in the Joint Powers Agreement to be taken out, completely. And they did not want Irvine to have two seats on the Board. All requests were denied. • The County of Orange gave notice after power was already procured for their customers, but prior to its delivery by SCE. They still walked away paying a hefty fine.The two main reasons the Board of Supervisors voted to get out was because the OCPA refused to show their power purchase contracts and agreements. They also felt that the CEO and their legal attorney was unable to properly address their overall concerns. • Huntington Beach and OCPA Board member, Casey McKeon, asked the OCPA for the California Independent System Operator Settlement Statements. The OCPA denied his request. McKeon stated that there was no reason not to release these documents, and by not doing so, confirms his belief that their entire operation is a fraud. He stated they were nothing but a “Shell“ company, and compared them to Enron. OCPA OPERATIONS Long-term power purchases are made a year in advance. And with OCPA’s unusually high opt-out rate, they need to secure new cities before their existing customers are saddled with paying the cost difference. This could financially bankrupt the organization. POWER CONTENT LABEL OCPA’s Power Content Label (PCL) only discloses what the OCPA has purchased, and not what they have sold off for profit. Misleading or deception, you decide. FEASIBILITY STUDY Recently at a Costa Mesa City Council Meeting, OCPA CEO, Joe Mosca stated that a Feasibility Study is done FOR the benefit of the OCPA. He claims that the study is to see if the city considering joining will benefit their organization. This is a bold face lie and I think the Costa Mesa Council saw this as a deception as well. The fact that OCPA is paying for this study, while the other cities had to pay for their own, but utilized OCPA’s recommended agency, and before the OCPA was up and running, says they want to control what the study will say about the organization now, because the report will be shared with the respective city. IMPORTANT FACTS TO REMEMBER • Cities that join are automatically removing their residents and businesses from SCE and placing them in the OCPA. • Whether enrolled in OCPA or SCE, everyone receives the same mix of energy, only difference is, OCPA customers pay more for Smart Choice and 100% renewable. • OCPA claims they are transparent, but refuses to show their settlement statements. • Until the loan to Irvine is paid back, Irvine will have two seats on the board. • Having substantial reserves with an unusually high opt-out rate is concerning as to how those reserves were collected. • Misuse of customer funds by board members, and mismanagement are serious concerns. Without an outside independent oversight review board, customers will have no idea what is going on behind the scenes. • Long-term energy contracts can affect rates. OCPA needs to be transparent and keep customers informed of the pros and cons of these contracts. • The six-month notice requirement by the OCPA for customers to switch back to SCE is a significant consideration for a potential city that is considering signing on. • OCPA can change their rates AT ANY TIME, as they are not regulated by the State like SCE. 2