Oakdale takes another step on switch from PG&E to MID. Other options are in play
Oakdale will spend $75,000 to examine whether switching from PG&E to the Modesto Irrigation District is worthwhile.
The City Council voted 5-0 on Monday, June 2, to hire a consulting firm with expertise in electricity markets. The move came four weeks after members agreed informally to explore the idea.
PG&E objected both times. It noted that rate relief already is happening and that the system is not for sale anyway.
PG&E serves about 7,000 Oakdale homes. MID already supplies about 1,000 others under a circa-2000 effort to diversify the California grid.
The consultant is Bell Burnett & Associates, based in San Francisco. It will have four months to produce a report on the financial, technical and legal issues.
Councilmembers told of PG&E customers paying several hundred dollars in summer months, including the especially hot 2024. Member Christopher Smith said many also are pressed to afford groceries and other needs.
“This is one of those things where we spend money to make people’s lives — the important part of their lives — better,” he said.
Why does MID deliver cheaper power?
MID is cheaper in part because it is a public agency, without PG&E’s need to earn profits for investors. The district also serves mostly flat terrain. PG&E’s service area includes mountains prone to snow and wind in winter and wildfires in summer. The utility paid massive settlements after its wires sparked blazes.
Oakdale’s interim city manager, Jerry Ramar, estimated last month that the move could save $257 a month for the average home. He cautioned then and again Monday that the transition costs could be too high. The city also can expect years of litigation if it tries to acquire the system via eminent domain.
“I think our constituents, in my opinion, would like us to spend the money to see if it’s possible,” Ramar said. “If it’s not, I still think it’s money well-spent.”
MID would require Oakdale to pay for a separate report on how the new territory would affect current operations. The city also would have to reimburse PG&E for its power lines, substations and other assets.
The switch would need approval from the MID board, the Stanislaus Local Agency Formation Commission and the California Public Utilities Commission.
Are there other ways to trim power bills?
The consultant will look at three main options:
- MID takes on all of PG&E’s electricity customers in Oakdale.
- PG&E continues to serve its current Oakdale customers but the City Council requires that future subdivisions hook up to MID.
- The city begins generating or purchasing its own wholesale power, while PG&E continues to maintain the lines and bill customers. Lathrop and Stockton have offered this since April 1, with expected bill savings of about 5%. It is called Community Choice Aggregation and is provided in the region through Ava Community Energy.
Fresno, San Jose and Yuba City are among the other cities that have sought alternatives to PG&E. The company also has faced a takeover challenge since 2008 from the South San Joaquin Irrigation District. The public agency aims to provide lower-cost power in and near Manteca, Escalon and Ripon.
What does PG&E say about switch?
In urging Oakdale to drop the idea, PG&E has cited the $28 million legal cost to SSJID so far. It acknowledged that bills have been steep but said they will ease in coming years.
The company noted a $15 billion federal loan that will enhance its infrastructure around Northern California. It also said next year will bring a 5-cent dip in the price per kilowatt-hour to a home. This is the largest component of the bill and is now 63 cents during peak demand and 40 cents at other times. MID ranges from 18 to 21 cents.
The council heard Monday from Erica Cabrera, local government affairs manager for PG&E in the Central Valley. She urged, without success, that the vote be postponed until after meetings with city officials that had been set for Tuesday.
“Exploring a public takeover that isn’t viable and would create additional risk and cost would not be beneficial to residents here in Oakdale,” Cabrera said.
This story was originally published June 4, 2025 at 1:50 PM.
