The City Council of Oakdale, Calif., recently voted in favor of the city reaching out to consulting firms for proposals to conduct a feasibility study that would examine the consolidation of the city’s electric service under the Modesto Irrigation District, a public power utility.
Oakdale is currently served by MID and investor-owned utility Pacific Gas & Electric, which results in rate disparities for residential and commercial properties within the city of Oakdale, with PG&E customers paying a higher rate than those with MID, a presentation at the May 5 City Council meeting said.
A report from Jerry Ramar, Interim City Manager, to the Oakdale Mayor and City Council said that MID “provides electric service at lower rates than PG&E and is governed by an elected board. The potential to expand MID service throughout the City of Oakdale could offer cost savings, local control, and alignment with community values.”
The report said that converting the electric service entirely to MID would require:
• Negotiations with MID.
• Engagement with the California Public Utilities Commission.
• A determination of feasibility regarding MID annexing additional service areas.
• Potential acquisition or eminent domain of PG&E infrastructure in areas not currently served by MID.
The process would likely require coordination with legal counsel, CPUC, and the Local Agency Formation Commission, as well as public outreach and financial analysis.
“Given the legal, financial, and technical complexity of such a transition, the first step is to commission a formal feasibility study and initiate inter-agency discussions,” the report said.
To ensure MID’s current customers aren’t impacted, MID would require the City of Oakdale to pay for feasibility studies and any costs associated with MID extending its services, including building any facilities and additional infrastructure. The City of Oakdale would also be responsible for any costs or fees charged by PG&E for departing from their system.
The Oakdale City Council voted in favor of reaching out to consulting firms for proposals to conduct a feasibility study.
