MID Board Report Archive

MID Board Meeting of Tuesday, Jan. 10, 2006
Contact:  MID Public Affairs Department, Kate Hora, 209 526-7454
The next MID Board meetings are scheduled for Jan. 24, Feb. 14 & 28, Mar. 14 & 28.

Water report

The Hetch Hetchy reservoir system has filled to 84 percent of storage capacity, reported Walt Ward, Assistant General Manager for Water Operations. Don Pedro Reservoir is at 85 percent capacity, about two and a half feet above flood control space. Power generation is running at maximum output. Dam operators will release more water than can be run through the generators for about one week to get water storage back down below the flood control level. Snow in the Sierra Nevada Mountains has reversed its normal pattern. Instead of having more snow in the north and less in the south, the current forecast for April 1 runoff is:

2006 water rates

Walt Ward also introduced a staff proposal for increasing 2006 water rates, and the Board initiated the Proposition 218 process to notify landowners. For several years MID has been gradually raising water rates towards cost of service, at a rate of slightly less than 10 percent a year. Staff proposed a base water allocation of 36 inches, a 10 percent water rate increase, and a $4.00 per acre state fee recovery charge to recover the cost of complying with new unfunded state mandates.

The proposed rate increase is needed to cover higher costs of protecting water rights, operating and maintaining the canal system, delivering and scheduling water, engineering design support, and various system improvements.

New regulatory costs relate to dam safety inspections, water quality monitoring (agricultural runoff), aquatic pesticide permits, and higher state fees. The cost of complying with these unfunded mandates has grown significantly over time. The proposed $4.00 fee would recover only about one-half of the total cost.

By majority vote, the Board directed staff to initiate separate Proposition 218 processes for the two rate increase components, as follows:

Target dates:

Mail notices to landowners – Jan. 13, 2006

Hold public hearing – Mar. 14, 2006

Proposed Memorandum of Understanding                        

A proposed Memorandum of Understanding (MOU) between Stanislaus County and MID was introduced. Stanislaus County has formed a water committee and will begin reaching out to all water purveyors in the area later this month. The proposed MOU is a planning document under which the County and MID would look at the water needs of citizens and the feasibility of meeting those needs with MID surface water. Contrary to recent rumors, the MOU is a starting point, not a “done deal” with a predetermined conclusion. Geographically, the MOU would cover unincorporated areas within the MID irrigation boundary, including but by no means limited to Salida. The MOU is in accord with long-standing Board policy of treating every customer or potential customer equally, and working with other public agencies in a positive and productive manner. One key benefit of a formal MOU would be creating an open, transparent process in which water questions can be researched, debated, and ultimately decided in a public forum. Importantly, MID staff reiterated their pledge that MID will meet all commitments to its existing water customers, including both agriculture and the City of Modesto. A decision was made to carry this item forward to the Jan. 24 Board meeting.

Board raises electric rates for 2006

By majority vote, the Board agreed to raise electric rates to cover part of a projected $40 million deficit (after spending cuts of $13-$15 million) in 2006. The balance will be made up by a further drawdown of reserves. Residential customers will see a rate increase of about nine percent. The percentage will vary somewhat depending on how much electricity the customer uses. Customers with average consumption of about 750 kilowatthours (kWh) per month will see their average monthly bills increase from $87 to $94. The $12.50 per month fixed charge remains unchanged.

Qualifying low-income customers enrolled in MID CARES will see their fixed monthly charge drop to $5.00 per month. In addition, income guidelines were raised to 155 percent of the federal poverty level.

The Board decided to revisit electric rates in spring 2006 and to consider possible mid-year rate increases at that time.