During its August 20 board meeting, the Imperial Irrigation District Board of Directors approved a resolution to conduct a detailed analysis and evaluate the process and benefits of transitioning all residential customers to an average billing model.
This initiative would ensure more consistent and manageable billing, boosting customer satisfaction and promoting greater financial stability for households throughout the region, the California public power utility said.
"The Imperial Irrigation District is aware of the impacts that rising living costs and higher electricity bills have had on our residential customers; we are exploring solutions to include developing a stabilized billing system," said Chairman Alex Cardenas. "By listening to the concerns of our customers, IID is working to address their needs and proactively seeking to mitigate these challenges through various measures but acknowledges the need for a more comprehensive solution."
The traditional billing system, characterized by seasonal fluctuations, can create financial challenges for customers facing higher bills during summer when air conditioning is essential, IID said.
Since 2020, IID has seen its fuel and power costs soar by 86%, from $222 million to an astounding $411 million in 2024, primarily due to rising natural gas prices and shifts in state energy policies.
Following the directive from IID's Board of Directors, General Manager Jamie Asbury has been tasked with assessing the anticipated benefits and possible concerns related to converting all residential customers to an average billing system that includes the following:
- The evaluation should consider financial implications and operational feasibility.
- The evaluation should ensure a simple option to opt-out for customers who prefer to continue with the monthly billing approach currently in place.
- The evaluation should consider a sufficient inflator to serve as a buffer against a potentially burdensome end-of-12-month settlement payment.
- The evaluation should consider transitioning all accounts with a consumption history of at least 12 months, leaving accounts with less than 12 months history remaining on the monthly billing approach currently in place until the account has reached 12 months of history.
"We are committed to exploring every avenue to support our customers through these challenging times," said Asbury. "This initiative reflects our dedication to providing reliable, cost-effective power and a billing system that aligns with the financial needs of the communities we serve."
By potentially moving to an average billing system, IID said it aims to improve the customer experience by providing more predictable monthly bills and strengthening its position as a community-owned utility provider that prioritizes the needs of its community.
The findings and recommendations of this evaluation are expected to be presented to the Board of Directors by November 2024, with considerations for potential implementation in 2025.
