MID approves plan that could lead to water rate hikes

Farmers in the Modesto Irrigation District moved a step closer Tuesday to major rate increases to pay for system upgrades.

The district board voted 5-0 to approve the Agricultural Water Management Plan, required under state legislation that aims to conserve the supply. The vote allows MID to meet a Dec. 31 deadline to submit the plan, but decisions on specific projects and financing would come in 2016 and later.

The plan includes installation of meters that more accurately measure the water delivered to farmers from the Tuolumne River and wells, at an estimated cost of $4.5 million. A rate increase early next year could cover this, although it would not go through if a majority of farmers objected.

Several speakers, including representatives of farmers and an environmental group, said they support raising MID rates. They have long been among the lowest in California, and while they have risen somewhat during the drought, users here are not paying close to what some farmers elsewhere have faced.

Peter Drekmeier, policy director for the Tuolumne River Trust, warned against too-low prices for high-volume water use per acre.

“That doesn’t send a strong price signal,” he said. “It also doesn’t generate revenue for a lot of projects that need to move forward.”

Ripon attorney Stacy Henderson, who represents farmers, agreed that the rate structure should promote conservation. She also said the plan needs to encourage groundwater recharge through flood irrigation, which has declined as drip and other efficiency measures have spread.

The plan says growers have been converting from flood irrigation at a rate of about 130 acres a year, which could have a “negative impact” on the aquifer.

The plan also notes that 23,758 of the district’s 66,451 acres were almond orchards as of 2012, and other tree crops and vineyards brought the permanent plantings to 36,266 acres.

Farmers have warmed to the idea of rate increases in the wake of a failed attempt to sell some of MID’s water to San Francisco in 2012, at a far higher price than they have been paying. The city would have bought water freed up by the construction of a few small reservoirs that catch water flowing out canal ends toward natural streams. Such projects could still happen, with the farmers paying.

Tuesday’s hearing renewed the debate over MID’s long-standing practice of having its electricity customers cover some of the water system costs.

“All of these monies come out of my pocket, and I object to that,” said Lee Delano, a former MID assistant general manager and one of the most frequent critics. He said the 2014 crop report for Stanislaus County, showing a record $4.4 billion in gross income to farmers, shows that they can pay more for water.

Board Chairman Larry Byrd took issue with that. “The farm industry is a roller coaster ride,” he said. “It’s chicken one day and feathers the next.”

This story was originally published December 15, 2015 at 5:35 PM with the headline "MID approves plan that could lead to water rate hikes."