Information Release

MID approves 2008 electric rate increase

• Rates to rise in two stages: January and May
• Low-income program strengthened

The Modesto Irrigation District (MID) Board of Directors yesterday approved a measure that will raise most electric rates in two steps during 2008.

Residential electric rates will increase seven percent on January 1 and 3.25 percent on May 1, 2008. Residential customers who use average amounts of electricity, about 850 kilowatthours a month, will see electric bills rise $7.64 on January 1 and $3.72 on May 1 for a total of $11.36 next year. The fixed monthly charge remains unchanged at $12.50.

The MID Board also raised the low-income discount by half a percent, from 22.1 to 22.6 percent. The fixed monthly charge for low-income customers is still only $5. Residential customers who qualify for MID’s low-income program, MID CARES, will now save over $370 a year on their electric bills, based on average electric usage.

Increases in commercial, industrial and other electric rates, ranging from five to 15.5 percent, were also approved.

The rate increase is needed to help MID bridge an anticipated year-end budget deficit of $33.6 million. MID will also draw almost $11 million from its reserve fund to limit the amount of the rate increase.

Together, the rate increase and reserve drawdown will pay for:

• Higher purchased power supply costs due to lack of hydropower in 2007.
• Energy efficiency programs to help customers conserve energy and manage their energy costs.
• Improving electric service reliability per new federal requirements.
• The first-year cost of renewable energy, solar energy incentives and reducing greenhouse gases linked to global warming.

Established in 1887 by a vote of the people, today MID delivers 59,000 acre-feet of irrigation water a year to 3,000 agricultural customers. MID has provided electric service since 1923 and today serves 114,000 residential, commercial, industrial and agricultural customers. Since 1994 MID has been a wholesale drinking water provider to the City of Modesto. Not a part of any city or county, MID is an independent public agency governed by a locally elected Board of Directors, operated on a not-for-profit basis and committed to providing reliable water and power service at competitive rates.

For more information

2008 electric rates or estimates of 2008 electric bills

• Residential rates, call 209 526-7337 or toll-free 1-888-335-1643
• Commercial/industrial/other rates, call 209 526-7339 or toll-free 1-800-304-5373

MID CARES low-income program, program qualifications, how to enroll

• Call 209-526-7435 or toll-free 1-866-645-6625

Email questions to customerservice@mid.org

Notes:

• KWh = kilowatthours
• Average year-round residential electric usage is 850 kWh per month.
• Individual electric bills may be higher or lower depending on usage.