Modesto Irrigation District raises electricity rates for 2009

Electricity rates will rise next year in the Modesto Irrigation District, but not all at once, its board decided this morning.

The board had considered a single increase of 15 percent for residential customers and 12.5 to 20 percent for businesses, effective Jan. 1.

Directors instead opted for phased increases that, for residential customers, will be 7 percent Jan. 1, 6.5 percent June 1 and 5.4 percent Sept. 1.

The average monthly bill for a typical home, using 850 kilowatt-hours of electricity, will rise from $119.32 now to $137.16 in a year.

The phased increases add up to 18.9 percent, more than the initial full-year increase. That’s because more money must be raised later in the year to make up for the smaller-than-planned hike on Jan. 1.

The second and third increases could be adjusted after the board next year reviews power generation conditions, including the cost of natural gas and the availability of cheap hyrdoelectricity.

Commercial and industrial rates will be phased in roughly the same way as residential rates.