TID power rates will increase for first time since 2015. Here’s how much and why
Electricity customers in the Turlock Irrigation District will get a rate increase Dec. 1 to cover the rising cost of natural gas, its main power source.
A home will pay $8.05 more a month during winter based on an example from TID assuming 805 kilowatt-hours of consumption. It will be $12 if that home uses 1,200 kilowatt-hours during a summer month, when air-conditioning is in demand.
The increase will take effect under a 2005 policy that adjust bills to reflect gas prices. TID staff can implement it without a board vote.
The district has about 110,000 hookups in a zone from south Modesto to north Merced County and from La Grange to the Patterson area.
TID is raising its rates around the same time that the neighboring Modesto Irrigation District considers an increase of about 10% over two years. It is scheduled for a possible board vote Tuesday, Nov. 15. MID also cites gas as a major cost driver.
TID adopted its Power Supply Adjustment to deal with fluctuations in the cost of gas, which is traded worldwide. This source is larger than hydropower, wind, solar or any other for both districts.
The TID adjustment can add up to 1 cent per kilowatt-hour to the base rates, or can be a credit of up to half a cent. Customers have enjoyed the maximum credit since 2012. It will become a half-cent surcharge as of December.
The staff assesses the gas market every six months, said Brian Stubbert, assistant general manager for financial services, during an Oct. 25 briefing for the board.
Board chairman Michael Frantz said the 2005 policy has helped smooth out rate increases, but the 2022 bump is nonetheless abrupt.
“Clearly, the costs have gone up, and it’s completely outside of our control,” he said.
Gasoline and other fossil fuels have shot up due to supply chain issues, the Ukraine war and other factors.
TID also increased bills in 2015, but this involved the base rate structure rather than the gas adjustment. The base rates cover the various power sources along with payroll, maintenance, debt repayment and other expenses.
This story was originally published November 15, 2022 at 5:30 AM.
