Orange County Power Authority Maintains Rates For 2026

OCPA’s rate stabilization provides customers with certainty in the cost of their renewable energy and protects them from rate volatility

IRVINE, Calif. (January 13, 2026) – At its January 12, 2026, meeting, the Orange County Power Authority (OCPA) Board of Directors approved maintaining the agency’s existing 2025 generation rates and product cost differentials for its Basic Choice, Smart Choice, and 100% Renewable Choice electricity products for calendar year 2026.

“Orange County Power Authority is committed to creating rate stability for our customers,” said Susan Sonne, Board Chair of OCPA. “By maintaining our current rates for 2026, we are providing certainty in an increasingly volatile energy market.”

The decision comes amid frequent and significant rate changes by Southern California Edison (SCE), the investor-owned utility (IOU) whose generation rates OCPA has historically used as a benchmark. While indexing rates to IOU generation costs is common among community choice aggregators (CCAs), CCAs operate under fundamentally different, community-focused business models.

“Unlike traditional utilities that are beholden to shareholders, Orange County Power Authority is community-focused and purpose-driven,” said Sonne. “We have our customers top-of-mind with every decision we make. Everything we do is in service of our mission to equitably offer renewable energy options and invest in clean energy to reduce greenhouse gas emissions across Orange County.”

Recently, the California Public Utilities Commission (CPUC) approved changes to the methodology for calculating Power Charge Indifference Adjustment (PCIA) rates. These rates, which are baked into monthly charges for bundled IOU customers but appear as a separate line item on bills for customers who receive generation from a CCA like OCPA, reflect the difference between the actual costs IOUs like SCE pay for energy resources and their current market value. With the market value of traditional utility portfolios declining, the shift in methodology is driving up PCIA rates specifically for CCAs and their customers. Additional SCE rate changes in 2025 – including reductions tied to prior overcollections and balancing account adjustments – contribute to SCE’s bundled generation rates appearing artificially lower in 2026.

“We know firsthand from our customers that they want rate consistency, not rates that change four to six times a year,” says Joe Mosca, CEO of OCPA. “Considering all the factors that have contributed to SCE’s current rates, it seems probable that their rates will increase again soon, if not experience a significant spike – especially when you look at their rate trends over the past few years. We aim to avoid a situation where we follow current trends only to face sharply rising electric rates. Our approach is focused on ensuring stability and fiscal responsibility.”

The increase in PCIA charges represents a structural, statewide challenge affecting all CCAs to varying degrees. CalCCA, the trade association representing 24 CCAs across California, is actively challenging these regulatory decisions before the CPUC and in the California Court of Appeals.

To support customers with cost concerns, OCPA will launch a Green Discount Program offering a 40% carbon-free energy product at a 1% discount to SCE’s equivalent generation rate.  Non-solar residential customers are eligible for the program, and Low-income customers enrolled in the CARE and FERA programs will receive enrollment priority. The program will launch in mid-2026 ahead of summer.  

Additionally, OCPA has received CPUC approval for its Clean Energy Access Program, which will provide eligible low-income residents with 100% solar energy and a total bill discount of 20%, in addition to existing assistance programs. Once enrolled, customers will remain in the program for the long term. The program is expected to launch in the third quarter of 2026.

“Over the past two years, OCPA has taken strategic steps to maintain rate stability despite repeated changes to SCE’s rates that created significant uncertainty,” Mosca added. “This year, OCPA will maintain its rates and will begin the process of decoupling from SCE’s rates. Our goal is to provide predictability for customers while continuing to deliver programs and local clean energy investments that reduce bills and support a reliable, sustainable clean energy future.”

About Orange County Power Authority

The Orange County Power Authority is a not-for-profit public agency that offers clean power at competitive rates, significantly reducing energy-related greenhouse emissions and enabling reinvestment in local energy programs. To learn more, visit www.ocpower.org.