IID lowers municipal water rate and raises energy rates

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IID Energy pic

 

EL CENTRO – At their regular meeting of Tuesday, January 21, the IID Board of Directors voted to drop municipal water rates from $68 per acre foot to $20 per acre foot as part of the new budget for 2014.

$20 is the rate that agricultural users are charged.

Municipal water usage is less than 3% of total water used in the Imperial Valley. The combined usage of industrial and municipal is approximately 3%.

The cities may or may not pass the savings on to their customers.

Also, as part of the new budget, energy rates will increase 7% beginning March 1st.

The Energy Cost Adjustment (ECA) is currently $0.0324 and will move to $0.0415.

The average household bill will go up between $5.75 and $17.17 for the hotter months.

This is in addition to the $33 million funded from the Rate Stabilization Fund.

If you are on the Average Billing Program your rates will not change.

“Energy costs are going up,” said Director Stephen Benson. “The fine imposed by FERC is also raising the costs. The ECA will be spread out over the remaining months of 2014. The air conditioning costs are higher during the summer months and spreading out the costs will take the burden off of these months. Jobs are slower during the summer. The over-collection is being used to soften the blow of higher rates over 2 or 3 years instead of just one year so the rate payer won’t be hit with substantially higher rates the next year.”

President James Hanks and Director Norma Galindo were the dissenting votes on the ECA rate increase.

“I cannot vote, in good conscience, for a rate increase,” said Galindo. “Many ratepayers are having a hard time getting their unemployment benefits extended and it’s getting toward the end of agricultural season when some workers may have a hardship. I will not vote for any rate increase.”

The Board approved of the 2014 operating and capital budgets of $545,231,100 for the Energy Department and $217,890,600 for the Water Department.

 

 

 

6 COMMENTS

    • vegetables and beef should be free too since the Imperial valley produces them too.
      No such thing as free.
      it takes money to produce electricity as well as knowledgeable people.

  1. A nearly a billion dollar a year public utility needs directors that bring wisdom, character and leadership to this important and not easy position. Good luck, current directors, do your best leading the iid.

    • vision, intelligence, qualifications too please…..? An enhanced and enforced governance policy will go a long way toward helping any director sustain the Board’s focus on directing strategy and vision and off trying to run and influence the day to day business operation in the interests of themselves their families and their cronies. An enhanced and enforced governance policy and a more focused Board of Directors will transform the entire IID business enterprise from one of a reactive business culture always playing behind the business curve to a proactive business enterprise playing far more productively ahead of the business curve and in the long term interests of our ratepayers and our region.

  2. Norma, Norma, Norma, Jim, Jim, Jim- but what about the evaluation of the business case for raising energy rates? Did you consider that? Unemployment benefit extensions and cyclical worker economic hardship are purely emotional political rationalizations that tell the public you are more interested in your re election than your elected obligation to cost effectively direct a nearly billion dollar a year public utility. More of the same emotional neighborhood grandstanding for votes for the next election. Next candidates please!

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