MID board will examine 2016 power costs

The board of the Modesto Irrigation District will get a glimpse Tuesday morning of trends that could affect electricity costs next year.

Directors will hold a workshop on parts of the proposed 2016 budget that relate to power demand, renewable energy and several other factors.

It’s too early to say whether customers will face a rate increase next year, spokeswoman Melissa Williams said Monday. That would be determined after further workshops next month on the cost of fueling MID power plants and buying electricity from elsewhere.

A staff report for Tuesday’s meeting said prices are “historically low” for natural gas, the main fuel for power plants, but demand in MID continues to grow.

Peak demand is projected at 689 megawatts next year, just shy of the high point in 2007, which was followed by an economic downturn that reduced consumption.

The report said MID has enough renewable power, mainly from wind turbines in the Pacific Northwest, to meet a state mandate for at least 33 percent from these sources by 2020. State lawmakers could raise the mandate to 50 percent by 2030, forcing MID and other utilities to invest much more.

The board will get an update on MID’s gas “hedging” program, which allows it to secure some of the supply for future years in an effort to control costs.

The workshop also will cover energy conservation programs, including rebates and education, along with discounts for low-income customers.

This story was originally published July 27, 2015 at 2:58 PM with the headline "MID board will examine 2016 power costs."