Despite a fluctuating energy-cost adjustment rate that has literally and figuratively seen its ups and downs over the years, the base rate has stayed stable and unchanged since the 1980s.
But that could come to an end next year in order to assist funding major building projects at the Imperial Irrigation District. That is what is being proposed as a method to raise the money necessary for those projects, according to district management.
If all goes according to what’s been proposed on the surface, through changing ECA costs and the 1 cent per kilowatt-hour increase, the impact could be about $10 a month in added costs to customers IID bills.
We can’t say we haven’t expected this; it’s been something that has arguably been needed as the district’s infrastructure ages and needs beefing up for the future of transporting renewables.
There had been talk for the last few months about different ways to cover the different costs, including rate stabilization funds, ECA overages and short- and long-term debt methods, none of which helps to avoid the reality that there would be a time where the base rate would have to be raised. That time is now.
Still, the timing makes us a chuckle a bit, for the inevitability of how it could be used in the weeks running up to November general election, where three seats are up for election, including that of incumbents John Pierre Menvielle and Stella Mendoza and the free-for-all that will occur for disgraced Director Anthony Sanchez’s seat.
That’s your board majority right there, so something interesting will happen before November regardless if it power rates or water transfer drama.
The reality is, though, that through Proposition 218, any utility increase must go through a very time-consuming and public process. There has to be a 45-day window prior to the public hearing IID officials proposed for late December/early January. And if the rate hike is to go into effect by February, 30 days has to have elapsed before that time.
We expect to see action beyond talking points very soon.
That said, it’s difficult not to look through everything IID-related through that political lens, as so many of the sides — including board members with divergent loyalties and support bases — have made it so.
The fact that increasing rates, and especially the base rate, was discussed during one of most highly charged political seasons in recent memory, casts intrigue on the timing. What we mean is, the idea has now been floated, left out there to hang in the air, with significant action to all take place after a new board is elected. But the decision itself, the public hearing and the board action, will likely have to be made by the potential lame ducks if that Feb. 1 target is to be met.
That portends some duplicitous public haggling unless the decision is put in the hands of the new board. We’re not sure we care either way, as all must come to the reality that rates somewhere, somehow, sometime are going to have to go up to maintain the integrity of the system.
It’s how we arrive at that point that will be fraught with all the drama, grandstanding and promises kept and broken.
THE ISSUE
IID is proposing a rate hike.
WE SAY
Timing of announcement brings lots of political drama.
WHAT DO YOU SAY?
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