Steve Mohasci: Does Modesto need a new electricity provider?

In 2015, Modesto Irrigation District extracted $14.7 million from electric customers; of that, $12 million (84 percent) went to 138 (23 percent) farm irrigation customers. This group averages about $800,000 in farm profits, while annual wages average about $32,000 for 65 percent of County residents. Since 2010, growth of farm profits have averaged 22.6 percent, but other county residents have not been as fortunate. Wage growth averaged 0.9 percent and small business profit growth averaged 4.1 percent.

A majority of the MID farmer-controlled board of directors continues to implement the public policy of income redistribution but from low to high. MID serves about 116,600 electric customers and about 600 farm irrigation customers. The MID website claims 3,100 agriculture customers, but the 2012 Agriculture Census indicates 3,450 farms with irrigated acres and MID serves 18 percent of the irrigated acres in the county. The issue is that a small minority is imposing the income redistribution policy on a large majority.

Our elected officials (city and county) need to work with LAFCO to form a Municipal Utility District to take over electric service from MID. The electric customers already own the electric system and 75 percent of the irrigation system, so begin the negotiations.

This story was originally published August 18, 2016 at 11:50 AM with the headline "Steve Mohasci: Does Modesto need a new electricity provider?."