The Orange County Power Authority’s chief executive and his staff repeatedly circumvented key procurement policies without sufficient oversight and improperly issued $1.8 million in marketing and financial services contracts on behalf of the beleaguered agency, according to a blistering state audit released Tuesday, Feb. 28.
Auditors also determined OCPA is unable to demonstrate that those contracts are in the best interest of its customers.
“Further, the pattern of contracting practices we identified at OCPA that were neither competitive nor accountable to the board’s oversight poses a risk to the organization,” auditors said in the 43-page report.
OCPA officials said in a statement Tuesday they respect the role of the state’s auditors, but believe they didn’t fully comprehend the intricacies of contracts.
“The auditor asserts that criticisms regarding OCPA not sharing certain details of power purchase agreements arise from requesters’ misunderstandings about the confidentiality of the agreements’ terms,” the statement says. “OCPA takes this and all audits seriously and sees them as a resource for OCPA and our board of directors as we strive for continued improvement.
“We are committed to working with our board of directors on an improvement plan that will include consideration of the recommendations contained in the state audit.”
Auditors, who reviewed a dozen OCPA contracts, believe the problems uncovered with the agency’s procurement procedures may be widespread.
The OCPA launched as a green alternative to Southern California Edison nearly a year ago, with the city of Irvine spearheading its creation. Fullerton, Huntington Beach and Buena Park also were early joiners of the county’s first community choice energy program.
However, since its inception, the ratepayer-funded OCPA has been riddled with allegations of mismanagement.
In December, the Orange County Board of Supervisors canceled its contract with the agency for service…
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