Oakdale seeks divorce from PG&E in favor of lower electric bills | Opinion

Oakdale, in search of more affordable power costs for its residents, is not alone in its quest to break ties with PG&E and electricity rates that have jumped by 70% since 2020.

The Stanislaus County city of 23,000 is exploring a switch to the Modesto Irrigation District. The Oakdale City Council voted 5-0 on May 5 to recruit a consulting firm to explore the idea. Such a move, said council members, could save residents an average of $257 a month.

“I think it’s fair for us to stand up for the residents,” said Councilmember Jarod Pitassi. “... It really ticks me off how much they have to pay.”

The cities of Fresno, San José, Stockton and Yuba City have either explored options to drop PG&E or have thought about it.

In his 2024 State of the City address, Fresno Mayor Jerry Dyer criticized PG&E. “I’m calling on PG&E executives to tighten their belts, as all of us are doing, and loosen up on some of those profits,” he said. “This is a corporation that reported a $2.24 billion profit last year. PG&E has increased rates 14 times since 2020, resulting in a 71% increase in PG&E bills.

“This is no longer sustainable. Enough is enough. It is time to give back to our community.”

Two years earlier, Dyer and community leaders floated the idea of hiring a consultant to look into forming the city’s own utility operation. However, there was no political will to move forward.

San José abandoned plans in March to create a municipal utility and struck a deal with PG&E for infrastructure improvements for its downtown and northern areas. Officials, however, say they have left the door open to forming a municipal utility if PG&E fails to meet certain milestones.

Last month, Stockton residents were given a choice to get their electricity from PG&E or Ava Community Energy. PG&E will handle power delivery and billing, but customers can save about 5% using the alternative choice.

Oakdale takes the first step

At its May 5 meeting, the Oakdale council directed staff to initiate discussions with the Modesto Irrigation District “and other relevant agencies” to explore consolidating electric service under MID.

MID — established in 1887 and an electricity supplier since 1923 — and PG&E both serve Oakdale, but their costs are what led the council to look into a divorce from PG&E. Interim City Manager Jerry Ramar, the city’s former police chief, told the council a switch to MID would save a household using 750 kilowatt hours $3,084.

Oakdale’s 7,000 PG&E customers, said Ramar, would save a combined $21.6 million annually.

The council didn’t have to listen to residents to support their vote. Councilmember Kayleigh Gilbert, who lives in a 650-square-foot apartment, sees a monthly PG&E bill of $500. Colleague Pitassi, an MID customer who sets his thermostat at 69 degrees in his 1,900-square-foot home during the summer, said his bill never goes over $160 a month.

Road forward isn’t easy

“We’ve been talking about (a switch to MID) for the six years I’ve been in this council seat, so don’t hold your breath,” said Councilmember Christopher Smith. “But, I’ll be the first in line to say ‘heck yeah’ on this even if the council has to spend money to do this study, if we can guarantee people that the rates are going to decrease.”

PG&E has already signaled it is not willing to sell its infrastructure to the city, which has a per capita income of just over $37,000.

“We think it is important to tell you upfront that PG&E is not interested in negotiating a sale,” Eric Alvarez, a PG&E government affairs representative, told the council.

Cities and agencies that have sought to create municipal utility districts, said Alvarez, “often commit significant resources.” The South San Joaquin Irrigation District, he said, has spent about $28 million since 2008 trying to acquire PG&E infrastructure.

That district, which serves 130,000 residents in Manteca, Escalon and Ripon, started its break from PG&E two decades ago. On June 23, a San Joaquin County Superior Court judge will hear the district’s eminent domain case to take over PG&E’s retail power system in those three cities. PG&E wants the Public Utilities Commission to hear the case.

PG&E, which reported a record $2.47 billion profit last year, is playing hardball with any municipality or agency that wants to break away. Oakdale and the South San Joaquin Irrigation District are venturing where Fresno, San José and Stockton have dared not go. That is a prudent move if their efforts result in better electrical rates for their residents.

This story was originally published May 29, 2025 at 3:00 PM.