SSJID renews bid to provide electricity

PG&E rejects claim by irrigation district that it can cut ratepayers' costs

By John Holland
jholland@modbee.com

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MANTECA — The battle is on again over who should provide electricity in much of southern San Joaquin County.

The board of the South San Joaquin Irrigation District voted unanimously Thursday to renew its effort to buy the Pacific Gas & Electric Co. system in and around Manteca, Ripon and Escalon.

PG&E, which has about 38,000 customers in the area, remains opposed to the idea.

The district is reapplying to the San Joaquin Local Agency Formation Commission, which rejected its first application in 2006. The commission rules on the boundaries and functions of public entities within the county.

District officials said the purchase would reduce rates by about 15 percent and put electricity under local control.

"The $11.6 million that we can put back into the economy and the ratepayers' pockets in the first year of operations alone hit home for all of us," board President Dave Kamper said in a news release. "The people have spoken, and they need economic relief."

The district estimates that the wires, substations and other parts of the system have a market value of $61 million. It projects a $4 million cost to disconnect the system from the PG&E grid.

PG&E says the purchase cost could top $400 million. The investor-owned utility, which serves most of Northern California, also claims that the district has no experience in retail power.

"It's disappointing that SSJID is planning to spend even more taxpayer money on a risky plan to take over PG&E's electric system through eminent domain, particularly during these difficult economic times," Nancy McFadden, senior vice president of public affairs for PG&E, said in a news release.

The district supplies Stanislaus River water to farms and cities, and it sells wholesale hydroelectric power from three dams.

Independent analysis of system value sought

Jeff Shields, the district's general manager, said the application to LAFCO has one key difference from 2006 — a request for an independent analysis of the value of the PG&E system.

"We understand the importance of making sure that the people we will serve with electricity have all the facts," Kamper said, "without the fear tactics and misinformation that PG&E representatives will put out there."

PG&E noted that it has served the county for a century, providing jobs, paying taxes and supporting charities.

"We are privileged to serve our friends and neighbors in San Joaquin County and expect to do so for many years to come," McFadden said.

The dispute does not involve the parts of the county that get electricity from the Modesto Irrigation District.

Bee staff writer John Holland can be reached at jholland@modbee.com or 578-2385.