The Turlock Irrigation District Board of Directors will consider paying $8.5 million to Pacific Gas & Electric on Tuesday, part of an unpaid bill to construct a gas pipeline which serves a TID power plant.
The pipeline was constructed by PG&E to service the district's new Almond 2 Power Plant, in Crows Landing.
Based on PG&E's rates, TID was to pay $33 million to build the pipeline. The district paid $22 million up front, with the remaining $11 million to be paid through natural gas usage.
However, TID's actual gas usage was less than expected in the first year of the pipeline's operation. As such, TID owes PG&E a further $8.5 million.
On Tuesday, the TID Board of Directors will consider adding that cost to the district's annual capital projects budget.
The $8.5 million may be repaid by PG&E in the future, should gas utilization increase.
On Tuesday, the Turlock Irrigation District Board of Directors is also expected to:
• Hear regular weekly updates on electrical service, power generation, irrigation water availability, and the status of the irrigation season.
• Continue the process to create of a new pump district near Hilmar, to be known as the Maciel-Peterson Pump.
• Hold a public hearing to form a new improvement district near Waring Road in Denair, to be known as the Lucerne Joint Pipeline. The pipeline would serve 23 parcels, comprising 450.77 acres.
• In closed session, discuss labor contracts with the Turlock Irrigation District Employees' Association and the International Brotherhood of Electrical Workers. The IBEW has been without a contract since December 2011; the labor dispute led to a 45 hour electricity outage for 49 TID customers in September 2012, when IBEW workers declined to fix the issue, then interfered with other work crews.
• Discuss a case of anticipated litigation in closed session.
The Turlock Irrigation District Board of Directors is scheduled to meet at 9 a.m. Tuesday in the boardroom of the TID Main Office Building, 333 E. Canal Dr.