The Turlock Irrigation District Board of Directors will consider a rate increase for electricity customers, following a public rate hearing on Tuesday, Dec. 2, in order to help with a nearly $17 million shortfall on delivering power.
At Tuesday’s public rate hearing, customers will be able to give public comments regarding the proposed revisions to the District’s electric rate schedules. The Board of Directors would be able to vote on the rate increase at any time following the rate hearing.
TID staff has projected $373 million in revenue for 2015, but approximately $390 million in projected spending, at the current rates.
In September, the Board had considered a 5 percent rate increase to make up for the shortfall, however TID is supplementing the shortfall with a “rate stabilization fund” to help keep the rate increase lower.
A proposed 2 percent system-wide rate increase is estimated to make up $6 million of the $17 million shortfall, with a Power Supply Adjustment change ($4 million), and use of the rate stabilization fund ($7 million) to make up the rest of the projected shortfall.
The rate stabilization fund, which holds approximately $69.2 million, had $4 million budgeted for use in 2014. Although the rate stabilization fund could make up the entire $17 million shortfall, it was explained that depleting the fund is not necessarily an option as it acts as backing to attain lower interest rates should bonds be needed.
TID generates power for more than 98,000 residential, farm, business, industrial and municipal customers. The system-wide rate increase of 2 percent would affect all of the customers.
However, TID customers on the West Side of the District, which includes Patterson, Crows Landing, and Diablo Grande, would face some additional charges due to cover the cost of TID’s acquisition of the system from Pacific Gas & Electric in 2003.
Electricity customers are not the only ones facing potential rate hikes. On Jan. 13, the Board of Directors will hold a public rate hearing, potentially increasing irrigation rates by more than double.
The TID Board of Directors will also consider a resolution to approve several changes to solar net metering.
The TID Board of Directors will hold the public rate hearing Tuesday, Dec. 2 at 9 a.m. in the Board Room of the TID Main Office Building, 333 E. Canal Dr.