MID Board Report Archive

Modesto Irrigation District (MID) Board Meeting of Tuesday, Nov. 28, 2006
Contact: MID Public Affairs Department, Maree Hawkins, 526-7390
The next MID Board meetings are scheduled for Dec. 12 and 19.

2007 rate increase approved

By a majority vote, the MID Board of Directors approved a 2007 rate package, effective January 1, 2007. The approved rate package results in an average retail electric rate increase of 2.8 percent, ranging from 1 percent to 7 percent depending on customer class.

A recommendation based on the Board-adopted financial policies was for an average increase of 5 percent, which included a 4 percent residential increase. The Board-adopted financial policies are to have rates at cost of service by 2007, reserves at $200 million by 2011, a 1.5x debt coverage ratio, and maintain an A+ stable bond rating.

The Board reserved the right to revisit the need for a mid-year rate increase. Sierra Nevada snowfall could be a determining factor.

Under the new rate schedule a residential customer using 750 kilowatthours per month will see an monthly average increase of $1.88. The increase is on the kilowatthour portion only. The fixed monthly charge of $12.50 remains the same.

The Board maintained the MID CARES low-income program at its current level of a $5 fixed monthly charge and a discount on energy used at just over 22 percent. The Board did change CARES income qualifications to reflect changes in federal poverty guidelines, authorized re-certification every three years instead of every two years, and waived the re-certification requirement for CARES customers who are 60 years old or older.

In other actions, the Board

• Unanimously authorized an agreement with Oracle for approved budgeted software licenses, support, upgrades, and maintenance services as required to maintain software application continuity for all Oracle products, used by MID.
• Unanimously authorized an agreement with Digital Inspections Inc. for Cascade software licenses and consulting services, as well as future incremental licenses, support and upgrades to maintain software application continuity for the product. This product will assist with tracking substation maintenance.
• Unanimously approved the 2007 Don Pedro Recreation Agency fee schedule. Fees will increase from $1 to $12, depending on the type of service. A recent review of the 2006 fee schedule and a survey of similar facilities found that Don Pedro’s fees are below the average rate charged for the same service at comparable recreational facilities in Central California.