Frank Clark: OID’s surplus dwindles; rate increases possible

California’s fourth year of drought has had devastating effects. We all know of fallowed ground, ripped out orchards, dry wells, watering restrictions, etc.

Many irrigation districts such as Fresno, Merced and others will deliver no water this year. Modesto Irrigation District will deliver only 16 inches per acre. Until this year, farmers in Oakdale Irrigation District were fortunate to receive normal deliveries. This year they will be limited to 40 inches, which should be adequate.

Having adequate water did not occur by accident. Improved infrastructure, more efficient irrigation practices and improved cropping patterns all contributed. OID used 280,000 acre-feet 10 years ago but now uses only 220,000.

The drought has had a severe impact in one area – OID’s finances. A few years ago, OID had reserves of $51 million after water transfers and revenues from Tri-Dam power generation. With the drought, we have little water to transfer and greatly curtailed hydro generation. In 2014, OID had a deficit of almost $5 million; there is a projected deficit of $10 million for 2015 and another $10 million possible in 2016.

If the drought continues, our customers might see significant increases in water costs.

While more easily handled by the large almond growers, an increase might create hardships for dairymen, cattle ranchers and small property owners. Pray for rain.

This story was originally published June 18, 2015 at 4:28 PM with the headline "Frank Clark: OID’s surplus dwindles; rate increases possible."