MID to weigh power rate hikes

Whether Modesto Irrigation District electricity customers should pay higher fees – a contentious issue in recent times – will surface at a Nov. 25 board meeting.

How much more money the district’s 113,000 customers should pay has yet to be announced. District staff continues to formulate a proposal, which would be weighed by board members. Their decision would kick off a process that would include chances for people to support or protest a rate hike.

The board on Tuesday unanimously approved a new $471million yearly budget, an increase of 6.3percent from the previous year. Staff predicts that the district will collect $12million less than needed and wants to fill the gap at least in part by charging higher rates for both of MID’s major services, power and irrigation water.

Many people in recent years have decried the district’s practice of charging electric customers more to keep farmers’ irrigation rates artificially low. The subsidy amounts to several millions of dollars each year.

The new budget relies, in part, on $382.4million from selling electricity, amounting to 91percent of MID income, and $24.7million, or 6percent, in water sales.

The board has juggled its meeting schedule for the rest of the year and will not convene until Nov. 25. That meeting will start at 9 a.m. in the chamber at 1231 11th St. in Modesto.

Officials have warned farmers to expect an irrigation rate increase as well. That issue should come to the board in January.

This story was originally published October 28, 2014 at 6:14 PM with the headline "MID to weigh power rate hikes."