The Modesto Irrigation District Board Nov. 23 approved on a 4-1 vote a 7 percent increase in its electricity rates. The rate hike, effective January 1, 2011, was attributed to several factors. That includes a drop in muni revenue because of lower demand caused by the economic downturn and resulting jump in unemployment and home foreclosures in Stanislaus County. Modesto spokesperson Kate Hora also said increasing the district’s renewable supplies, and the costs of solar power rebates and complying with the state’s climate change rules under AB 32, also are contributing factors. In addition, higher power costs are linked to the Federal Energy Regulatory Commission’s relicensing of the district’s Don Pedro hydropower plant. Modesto’s energy portfolio is expected to include 18 percent renewable supplies, primarily wind energy, next month. It also includes small biogas and hydro projects, representing 1 percent of the total power mix. The muni expects to have 26 percent of its power portfolio come from supplies considered renewable by the end of 2012, predominantly wind power. A proposed 25 MW solar project under review, if approved, will also be added to the mix in 2012, according to Hora. Out-of-state coal provides 24 percent of the district’s power. Utility bills beginning in 2011 are set to include a separate surcharge representing 5 percent of the rate increase. That is to account for the estimated costs of green energy supplies and compliance with AB 32. The costs will be trued up at the end of the year. “The board felt it was important to let customers know what they are paying for,” Hora added. Average monthly electricity bills are expected to rise next year about $9.40, or from $139.55 to $148.94.
